Many independent artists and bands struggle to survive financially due to a lack of a record contract and/or sales of their music
With the growth of crowdfunding platforms such as Kickstarter and Indiegogo, not surprisingly music bands are turning to these platforms as a means to raise funds to produce and release their music as well as attract a loyal following of fans
In the past, this has proved very successful for a lot of bands who we are able to offer a wide range of ‘gifts’ to entice would-be fans to invest in their cause. We believe the principles of crowdfunding can be extended even further by utilizing some of the features of BlockChain Technology.
Tying in closely to the use of digital tokens, the particular feature we want to describe relates to the ability for a band, not only to receive support from the fans in the form of a financial pledge, but have the ability to reward those fans by giving them a stake in the success in the band that they support.
You are My Reward
This element of reward, we believe, forms a new era of interaction between 2 parties such as a musician and their fans. This is based on reciprocal benefit in that the 2 parties share in the rewards of the relationship
We are developing this approach for the crowdfunding feature in the Zimrii Platform based on the issuing of rights to an artists’ released music to their fans. It would work like this:
- An artists creates a crowdfunding campaign and specifies the amount they wish to raise via fans of their music
- As an incentive for fans to support the artist, they will offer prizes to fans based on the amount they wish to pledge
- One incentive to fans could be rights to the artists music in exchange for a financial pledge
- Once the crowdfunding campaign is over, the fans get notified of their rights assignment which are attached to the album or other music production that the campaign is raising funds for
- The artists looks to sell the album. As this happens, the fans who hold rights in the album will also get rewarded financially. The more the album performs well, the more the artist and the fans benefit
If you own shares in companies, then the approach described above, is based on this concept. You purchase shares in a company and you are rewarded for holding onto the shares, in the form of dividends if the companies share price increases
We believe this represents an innovative mechanism to drive increase loyalty for an artist existing fans and as an attractive proposition to encourage new fans to follow and support the artists music