Over the past two years, crowdfunding – whether it’s through Kickstarter, Indiegogo, PledgeMusic, or a custom page on an artist’s website – has grown at a rate that’s impossible to ignore. At the current pace, contributions to Kickstarter campaigns alone are expected to account for over $150 million in arts funding in 2012. That’s more than the entire National Endowment for the Arts.
While this figure does speak to the historically low levels of national arts funding, it also says a lot about how quickly crowdfunding has become a major force in the creative economy. Just two months ago, Amanda Palmer raised over one million dollars for her new album and art book, and today, self-released artists who use the platform to secure tens of thousands of dollars to make new albums have begun to look “normal.”
In June of this year, a website called AppsBlogger shared an infographic that suggested that as many as 68% of music projects on Kickstarter ultimately reached their funding goals. But based on the newest numbers from Kickstarter, the success rate for music projects is closer to 55% today. Thankfully, this is still a bit higher than the overall Kickstarter success rate, which hovers around 44%.
According to the service itself, there’s a stark line between the campaigns that succeed and the ones that fail: “Funding on Kickstarter is all-or-nothing in more ways than one,” the company warns. “While 12% of projects finished having never received a single pledge, 82% of projects that raised more than 20% of their goal were successfully funded.”
Some artists, it seems, know what they’re doing, while some quite simply, don’t.
So what is it that separates the winners from the losers? The research suggests that it all comes down to one word: Planning. Studies show that winning campaigns are most likely to come from artists who…