The concept of crowdfunding has been around for centuries. In the recent times, the first noteworthy online crowdfunding campaign was in 1979 when $60,000 was raised to support the North American tour for the British rock band Marillion, the most commercially successful neo-progressive rock band in the 1980s.
Music crowdfunding gained its popularity in 2013. More and more niche crowdfunding platforms focused on driving a specific crowd are popping up in the music industry today. Until the notorious financial trouble in summer 2018 with one of the world’s leading music crowdfunding platforms delaying payments to artists, music crowdfunding was seen as a fresh alternative to the traditional label funding model. It has opened up new opportunities to DIY musicians and helped them take their music careers to the next level.
Has this problem with late payments shaken artists’ trust in this platform exclusively or in the credibility of music crowdfunding model, and how bad is the damage?
Show4me may be the answer and a timely alternative in the current music crowdfunding landscape.
The key idea of the new Show4me music interaction network is partially based on what is commonly known as ‘music crowdfunding’ model with artists reaching out to their fans to participate in the organization of their next release. However, the crowdfunding-based model of Show4me has some key differences from conventional music crowdfunding.
Here they are:
1. Music crowdfunding campaigns enhanced by concert crowdfunding
Music crowdfunding on Show4me is combined with concert crowdfunding with various types of concerts and album campaigns available to the artists. They can be launched to various audiences fast and frequently. This helps artists do the following:
- access, grow and retain a global fanbase
- plan their next release and sell tickets to their shows
- raise funds for the next digital album
- sell existing albums and collect detailed statistics on their music sales accumulated in a single place
Using Show4me, artists get a unique zero-loss way to do all the above. With fans backing their shows and music, musicians no longer need to pre-fund the shows from own or loaned money, and take financial risks of bad ticket sales. On top of that, artists can use automatic event ticket generation and collect detailed stats on ticket sales.
Fans, on the other hand, get a chance to buy tickets to their favorite artists’ shows at a discounted price, not to mention sharing some great moments with their favorite artists.
2. Financial security and fraud concerns addressed properly
After the precedent with delayed payment of funds raised through crowdfunding campaigns, legal regulations are likely to come into the crowdfunding space. Before it happens, Show4me is doing its best to handle fraud concerns and cure the shaken credibility of music crowdfunding platforms.
Show4me uses one of the leading crowdfunding third-party payment gateway providers to process payments. This payment management system ensures that payment data and transactions are safe and secure. The provider employs Know Your Customer processes (KYC) and anti-money laundering checks that conform to European regulations. KYC procedure is required by the payment processor and Show4me to fight fraud and money laundering. By law, all artists' campaign funds are securely kept in separate accounts for each artist. After the crowdfunding campaign has reached its funding goal, artists can request a payout from Show4me. After KYC procedure is completed by the artist, funds are transferred to the artist’s account.
In addition to that, the latest $12,8 million investment raised on January 18th, 2019 from the UK-based corporate investor is another proof of Show4me’s credibility. All funds are used to transition Show4Me from concert crowdfunding platform launched in 2014 to a broader all-in-one music interaction network. To date, the company has raised a total of $13,5 million in funding.
3. Multiple points of music monetization
Show4me is based on a ground-breaking $1 annual subscription, which can shake the dominance of music streaming with its humiliatingly low payouts to musicians and give them the opportunity to get way higher profit compared to streaming. Let’s see how they can do that.
Average per-stream rate of the world’s leading music streaming service is $ 0.00331.
That means to make $1,000, the artist needs to have 302 114,8 streams (1000 / $ 0.00331). Suggesting that a fan makes 3 to 5 streams on average, the artist needs to have a fanbase of at least 60 000 people or more (302 114,8 / 5). Fewer streams would mean more fans are required.
If you are not Drake topping year-end charts in streaming services with his 140 million fans generating 7 billion streams a year, getting real income from music streaming can get really hard. The latest trends show that per stream rates will continue to drop and streaming volumes will grow. What makes matters even more complicated is that there seems to be no alternative tool for independent artists outside the major labels to negotiate the current situation with the leading streaming platforms.
With Show4me annual subscription, a musician only needs 1000 fans subscribed to his Artist Club to make the same $1000.
This is up to 300 times higher profit compared to that artists get on music streaming ($1 vs $ 0.00331 per stream pay).
Unlike music streaming that focused exclusively on fans and streams number, we focus on fans’ quality and the value of artists’ work. The whole idea of Show4me is based on the quality relationship between artist and fan. Using the network, artists can involve their fans in the process of their music creation, build trust and develop deep emotional connection with the super fans.
On top of $1 annual subscription, we have added music and concert crowdfunding, music sales so that artists could get music-related income and make a life-long living as full-time musicians. This convergence of tools creates a strong synergy, simplifies all industry processes for the musicians and mitigates risks associated with conventional music crowdfunding.