Let's understand how to decide how much money a musician should be able to raise for his/her music project through crowdfunding.
Explain your budget!
You can have a budget of Rs. 50 lakhs for a music video, but if you can't justify WHY you need that much money, you're just going to leave fans pissed off. Music video, sound mixing or the album design - be clear about what exactly you’re raising money for. Make a list of all the things you’d actually need to cover the work, from spends on renting equipment to hiring your favourite VFX artist to managing the labour costs, if any. A lengthy thorough list will help you be on track without missing out on any tiny details and it will also help you justify your crowdfunding budget.
Consider all costs!
Be it PR, marketing, events – consider all extra costs. If you plan on hiring an agency, a social media expert or are managing it all with the help of your friends and interns, make a list of it all. The pitch video, rewards is also going to cost you, make a note of it too. In order to harvest maximum out of the efforts you’ve put in – cover everything you can think of, and remember to not over do it. Ideally, these extra costs tend to go over budget, but if you plan properly and make the right decisions from the beginning you’ll be able to pull it off without going broke.
Do the Math!
If you crowdfund Rs. 2 lakhs to make a music album and a video to go with one song, then basically you need 200 people to give you thousand each. Go back to your fan lists, email list or facebook friends list and think if you will be able to get 200 people to give you 1000 each. So the higher the target, the higher the number of people you need to bet on.
Ask yourself if this is the money you need or the money you want
The smartest thing to do is to strictly raise just the amount you need- maintain a barebones budget. If you reach your target soon enough, you can always stretch your budget. This will not only spike your chances of success, but also ensure you don't get overwhelmed or daunted by the huge task.
Stay as realistic as possible and do your research on other music crowdfunding projects that succeeded! Got any questions? Ask away!