Grants
Grants are financial assistance awarded by the government, an organization, or a person to individuals for a specific purpose - music, arts, studies, projects etc. Unlike loans, the recipient needs not to pay the money. However, if he decides to abandon the reason why the grant has been granted, in some cases he may be required to pay it back.
Advantages:
- Your credit history in most times has no bearing to your application
- You can keep 100% of your profit and control of your career
- You don't need to pay the money back
Disadvantages:
- The application in itself is a tedious process
- Grants are usually awarded to projects that have not been started yet.
- There are a lot of grants. You need to choose what suits you best.
- Expect a lot of competitors
- Grants may not cover everything that you need
How to get Music Grants:
- Do research on the grants available in your area
- Set meeting with the Granting Organization
Reaching out to grant officers can help in submitting a solid application, something which most applicants fail to do. These people know what a strong application looks like and have seen applications that failed before so they can definitely offer suggestions for you to get a better chance of getting the grant. Plus, it will also show your strong commitment too.
It is important for you to make sure that you follow all instructions and you submit everything that is necessary. They should be fully convinced that you are worth being awarded the grant. Submit the supporting materials - recording, videos, and press clippings to prove that you are someone that should be taken seriously.
Once your application is approved, focus on achieving your goals and staying on the budget. It is also necessary for you to keep the deadlines set by the organization. A public Thank you notice would also be great to show appreciation.
Crowdfunding
Equity Crowdfunding
Also known as Crowd Investing or Investment Crowdfunding, Equity Crowdfunding is a system that allows groups of investors to finance start-up companies and small businesses in exchange for equity.Donation-Based Crowdfunding
When an individual financially supports a campaign without expecting anything in return, it is called Donation-Based Crowdfunding.
What it does is that the artist presents a project to a number of backers who can donate any amount. To get more donations, the artist may offer sample songs or tokens. Sample Donation-Based Crowdfunding include Indiegogo, Kickstarter, GoFundMe and etc. These services typically take 5-10% out of these donations.
Peer to Peer (P2P) Lending
Also known as “crowdlending” or social lending, Peer to Peer lending allows individuals to obtain loans directly from other people.
How does P2P work?
A P2P Website connects lenders and investors. The website sets interest rates and terms. An investor then opens an account on the site and deposits money which will, later on, be divided into different lenders.
Reward-Based Crowdfunding
With this type of crowdfunding, people can pledge money to support the cause. In return, they are given merchandise, a sample copy of the artist’s album and etc.
Patrons
By definition, patrons are what you call the organizations, foundations, non-profits, or individuals who commit to supporting artists with their goals. Normally, they are well known and respected.