Thanks to many websites, artists can now directly raise funds from people in order to help them to develop their projects (albums production, music videos, tours). The U.S. website Kickstarter is the most emblematic. However, many crowdfunding campaigns fail, either during the fundraising campaign, or at the end of this one, during the project's implementation. In this workshop, we will focus on existing fundraising platforms, the legal and tax aspects, the Do's and the Don't and review some success stories.

2. DBTH was proudly founded to provide strategy, business
development, media relations and networking to amazingly
cool people and companies in the creative space.
MaMA is one of the most dynamic music convention and
conferences in Europe. Based in France, MaMA has showed its
usefulness and pertinence for France as well as other
territories, providing a market place to make deals, and to
share experience with others professionals, to consider and
discuss updates and change and to discover new artists.
MaMA makes available 80 concerts, 30 conferences, debates
and workshops, speed meetings, lunches…
2

3. About Virginie Berger
• I ve been online 15 years!
• I run DBTH, a strategy and development firm for artists, creatives
industries, emerging tech.
• Author: “Music and digital strategies”(Amazon, iTunes…)
• I’m specialized in music, creative industries and digital marketing
• I’m a member of IAB / IDM Joint Digital Council
• I also host «On refait la musique», a talk show about the music
industry.
3

5. Crowdfunding
=
Participative financing action, relying on
social networks and community platforms
on the web to reach a great number of small
donators.

6. How crowdfunding can support you?
Crowdfunding
=
Almost any kind of musical projects
• Production
• Tours
• Marketing
• Video
• Web
• Merchandising

8. 452 participative financing platforms in the world by April
2012
=
$1.1 billion in funds raised in 2011

9. Kickstarter raised nearly
$120 millions in one year, thus financing around 50
projects per day !
<+/+',(-%*)%&

10. !"#$%"&'()*(+&%,)-*.)"./!
The Crowdfunding boom in 2012
7'(+&%,)-*.)"./( !
April, the 5th 2012 :
(
01&123(45161(
OBAMA ratifies the Crowdfunding
(
Act and ALLOWS Crowdfunding
"#!$%&#!'(()*!&+!,-.&,/!,/!012/3!
for companies (
21!.14516#/!2%3!+1!.7++/.8/!,/!
97#,2!53&:-2*!-.;1551#8!1&#2&!<!+1!
+&4&8/!,/!.7++/.8/!&4572-/!/#!.12!
,/!9&#1#./4/#8!513!+/2!97#,2!
5%0+&.2=!!
Lausanne le 12 janvier 2012 / Adrien Aumont / Kisskissbankbank

11. In France
25 crowdfunding platforms
5.000 projects
=
Six million euros raised since 2008

12. !"#$%&%$'&()&%)#*)$'&#'+,*-.&)*&-//"0,/*! 8"/%&#"/*')&4"/%&
Creative & innovative sector platforms
1)&2,'#3+&4$&5'"64.$/4-/7!
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1)&2,'#3+&4$&5'"64.$/4-/7!
!"#$%&%$'&()&%)#*)$'&#'+,*-.&)*&-//"0,/*!
!"#$%&%$'&()&%)#*)$'&#'+,*-.&)*&-//"0,/*!
!"#$%&%$'&()&%)#*)$'&#'+,*-.&)*&-//"0,/*! 8"/%&#"/*')&4"/%&
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8"/%&#"/*')&4"/%& 8"/%&#"/*')&4"/%&
8"/%&#"/*')&4"/%&
The world leaders
<+/+',(-%*)%&
Kickstarter, Indiegogo, Rockethub
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8"/%&#"/*')&4"/%&
!"#$%&%$'&()&%)#*)$'&#'+,*-.&)*&-//"0,/*!
In France, general <+/+',(-%*)%& (arts, cinema, music, artistic projects)
platforms :;+#-,(-%*)
Ulule, Kisskissbankbank 8"/%&#"/*')&4"/%&
<+/+',(-%*)%& <+/+',(-%*)%& :;+#-,(-%*)%&
<+/+',(-%*)%& :;+#-,(-%*)%&
Specialized platforms
Babeldoor, Friendsclear, Arizuka, Myshowmustgoon.com,
<+/+',(-%*)%& 9/0)%*-%%)2)/*&
Yourmajorstudio, mymajorcomany,
<+/+',(-%*)%&
Lausanne le 12 janvier 2012 / Adrien Aumont / Kisskissbankbank
9/0)%*-%%)2)/*&
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Lausanne le 12 janvier 2012 / Adrien Aumont 12 janvier 2012 / Adrien Aumont / Kisskissbankbank
Lausanne le / Kisskissbankbank

13. Donations vs donations
General Specialized
Investsment
Lausanne le 12 janvier 2012 / Adrien Aumont / Kisskissbankbank

14. Large transactions examples
• Launching by the Louvre museum of the
tousmecenes.com platform with more than €400 000 raised,
• An independent video games studio raises $1 million in 2 days,
$3.3 million in 1 month,
• Julie Uhrman, designer of game console Ouya (open source
on Android) : funds needed $950.000, funds raised $8.6 million.
• Lockpicks by Open Locksport raised $87 400 dollars (for 6 000
asked) for a padlock opening tool project...

16. Anatomy of a campaign

17. Photos
Updates
Social
Description/ network
Bio Media
Pitch
Choice of Video
the
Rewards platform
Objectives

18. Your Budget

19. • Define your budget
• You think you can raise €100 000 ?
• You have a large fanbase ?
• Even Public Enemy had to switch from 250k$ to 75k$
• Be realistic !
• Take all costs into account (including rewards),
• Integrate 10% more to address any problem,
• Take into account the fees linked to the platform percentage and the means
• of payment (paypal),
• VAT, tax return (citizens, EI, association, company, private contributor
or company)

20. Sample
Budget

21. Who are you talking to?

22. 4 extended
entourage, general
public sharing
common interste
interests
3 support,
2 Closed
Entourage
famiy friends
1 You

23. Rewards
• Offer a wide range of contributions
Medium Large More than
Small 20/100€ 150/500€ 600/1000€ 1000€
The collecting duration should fit the amount you ask for.
According to Kickstarter, the optimal campaign length is 30 days.
According to the Kickstarter data :
• 80% of your contributions will be in the 25 ‐ 50€ range
• 20% will be in the larger range of contribution.
• $50 is the optimal investment point, followed by the $25
one.
• The reward should be proportional to the value of the
contribution.
HAVE FUN WITH YOUR REWARDS IDEAS

24. Contribution ideas
Prerelease CD/Download
Signed CD (DVD, etc..)
Private concerts
Handwritten sheet music
Email, interview, skype
Mixtape
Personnalised track
cover
« One of a kind »
Private visite in the backstage
In House Concert
Music Lessons
Dinner, drinks

25. Example, Josh Freese for his second solo album, Since 1972,

26. • For $50 , phone call,
• For $250 lunch with him,
• $500 lunch in a very high-end restaurant,
• At $2.500 (in a limit of 5 packages), a drums lesson (and you could
keep one of his snare drums). Visit of the Hollywood wax museum with
Freese and one of his rockstar friends (to be chosen out of a list) + you
could pick 3 articles of clothing from his wardrobe
• For $10,000, you could have dinner with Freese and one of his
rockstar friends, before heading for Disneyland, still with Freese. And
at the end of the night, you would keep John's Volvo break – after
taking him back home.
• Packages at $20.000 and $75.000 with offers including having Freese
as a drummer in your band or as a personal assistant for a few weeks.
• You could also go on tour with him. He could even write and record a
song about you. A florida teenager bought the $20.000 offer and
spent a week with Freese, including one night on the Queen Mary, a
pizza evening at and with Mark Mothersbaugh (of Devo) and a mini-
golf session with the singer of Tool.

27. How to ask for money?

28. • Don't be shy!
You are only asking people around you to help you
develop your career
• “This is business. Not personal”
This effort is only about a predetermined amount
at a precise moment
Don't panic

29. The Video Pitch

30. ”The success rate of projects that don’t include a video is way
lower than projects which include one. Video is the best way to get
in touch with donators”
Co‐Founder Yancey Strickler, Kickstarter
Video is the most important fund-raising tool
Keep it brief – 3 minutes MAX!
Describe your band, your music, your project, the
amount you need
Why and for which contributions?

31. Amanda Palmer: $200 000....... $1.192.793$ in the end
http://youtu.be/TveAzAs6NAY

32. How to develop your campaign?

33. • Relays The band website
Youtube
Tumblr
Bandcamp
• Twitter
• Facebook: Post updates about your campaign on your social
networks profiles
• Email marketing: use your mailing lists, create targeted mailing lists,
send weekly or bi-weekly updates
• Blogs/blogging relationships: Ask for a helping hand... or several
• Offline events

34. The experience begins before the purchase

35. How to succeed?
“A combination of actions 100% : your objective! !
to reach 100% of your objective »
6. Announce « Have a large
the forthcoming communication
success : approach
+25%
ask my kissbankers to mobilize to aim at smaller and
their community
+ explain to my community
more personal actions »
that we can go beyond 100%
50Days
5. Personal mailing : +30%
Individual emails
25Days Adapt my message to every one
4. Segmented mailing: +30%
Deliver a more personal message for each different circle
10Dayss
3. Grouped mailing : +10%
• Inform my contacts via email
• ( family, friends, colleagues, acquaintances, etc. )
5Days
2. Social networks + widget : 5%
Export my project thanks to a widget + create a post on my blog + relay on twitter
J1
1. Social networks, friends & family :
J -15 Announce my forthcoming collaboration with kisskissbankbank to create expectation

36. Think of special offers
“My best fund-raising day was when I managed to raise 33% of my funds
in 24 hours. It was via a simple email that said « I need at least 27$ to finally
reach the 2,000$. Anyone giving 27$ or more in the next 24 hours
will get to download all my previous albums for free.»
By indicating a specific amount, clear period of time and a genuine reward,
I gathered 33% of the total of my donations in 24 hours.”
Tyler Stenson

37. Watch out for the “U” effect
Campaigns tend to have a quick start, reach a big
donation peak and collapse. Then, a new important
rise in donations is observed towards the end.
(Kickstarter data)

38. How to avoid this gap ?
• With regular communication
• Look for external relays
• Constantly work on your network
• Send info and reminders continuously

40. IN SHORT
• Before you start, define your plan: where, how much, how.
• Who will you be talking to ? Where are they ?
• Carefully select your platform. Each project has its own model.
• Develop your rewards, best is good…
• Create your pitch,
• Where are you going to broadcast your pitch ?
• Develop your diffusion plan: which content, which channels, when ? What will you
be needing ? how much will it cost ?
• Define the resources you will need. Who will be in charge ? When ? Can you do
everything ? If not, who will you be working with ? And for how much ?
• Define the time necessary for all this,
• Monitor. Every day. What works, what doesn't and why ? What can you improve ?
• Is your web presence well implemented ? Are you ready to relay the whole thing
on social networks ?
• Is your audience ready to receive it ?
And... be yourself….

41. REAL CASE STUDY : THE APARTMENTS
Thank
You!!
By Emmanuel Tellier, former journalist for Inrocks, chief editor for
Telerama, musician (Chelsea, Melville and today pop-rock band
49 Swimming Pools)

43. DBTH is a digital entertainment consulting firm focused on
leveraging our collective experience and expertise in:
• Building relationships,
• Identifying market opportunities,
• Growing brands,
• Defining best practices.
for the Creative, Entertainment, Emerging Technology and
Mobile Industries.
43

44. All the best for your digital journey!
Questions & discussion welcome
More information in my book “Music and
digital strategies”(Amazon, iTunes…)
• Blog
http://fr.linkedin.com/in/ www.virginieberger.com
virginieberger
• Website
www.dbth.fr/en
facebook.com/virberg
Facebook.com/dbthAgency
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45. Merci ! vberger@dbth.fr
dbth.fr/en
@virberg