Is Artistfunding a good business model for independent artists?

Questionable funding tactics have been used to help independent artists execute their projects. Business models such as “Artistfunding” have been prominent as an alternative to the major-label industry approach.

Basically, artists provide signed services, appearances, or merchandise in exchange for an investment in their project that needs funding. Artists offer signed CDs, posters, and even give performances to fans who “invest” or “donate” to their fund. The higher the investment, the more prestigious the product or service the artist will provide to fans who give money.

Some artists may see this type of model as a great way to create a financial foundation for their work, but there are also independent artists who are still skeptical of it. Especially, independent artists who don’t have a fan base yet. Artists with a strong following are the only people who can take advantage of this business model.

An example of this model is The Hector Fund. The fund has 3 independent artists on board using the “artistfunding” model. The artists describe this approach as “inexpensive”, but is it just a way to not have to earn your own fund through honest hard work?

In the past, bands financed their own projects and had to tour while selling their CDs and marketing merchandise to keep their art going. But with this type of funding, artists only depend on what they receive, rather than what they earn.

Sure, they agree to hand out t-shirts and make phone calls, but is this really an honest way for artists to raise a fund?

What you think?