Here at Make It In Music we have been following with interest the Amanda Palmer Kickstarter story. It has definitely been a game changer. Indie musicians everywhere are now looking at the DIY approach in a new light. There is money to be had.
Earlier this month we took at look at this, with Crowdfunding - Beware of the Goldrush - 20 Things You Must Consider looking at things that concern your commitment to the fans that have invested in your music.
But we forget there are other implications to suddenly having a million dollars fall in your lap.
Martin Frascogna has written an article covering possible legal and financial implications to consider when setting up a kickstarter project.
Martin states,
Raising millions via crowdfunding doesn’t come without questions, and more so, legal implications. Where does all the money go? Is there a legal obligation to investors? Because Amanda’s successful Kickstarter will inevitably inspire others to initiate crowd funding campaigns, artists can avoid future pitfalls by implementing the following techniques.
1. Treat It Like a Contract
2. Assure the Proper Entity
3. Transparency Is Key
You can read his full article in the Midem Blog here
Links
http://makeitinmusic.posterous.com/crowdfunding-beware-of-the-goldrush-20-things
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