25 ways to finance your next recording project, music video or major equipment purchase (I)

You’ve heard the expression “It takes money to make money.” And sometimes it does. You’ve also heard horror stories about the complications of bank loans, business plans, lawyers, and meddling investors. And it’s those negative mental associations that keep many aspiring music people from ever taking a stab at a big project – whether it’s committing to a CD release, buying a new sound and lighting system, producing a music video, or starting a small record label.

I can hear you now: “Man, I’m never going to be able to get a bank loan. And I wouldn’t trust a power-hungry investor with my career. Why bother?” Well, I say don’t let those perceived obstacles stop you from getting what you want!

For now let’s forget about bank loans and high finance – although we will touch on them briefly a little later. Instead, let’s think about more creative, street-level methods of raising money. Let’s call it Guerrilla Music Financing, because we’re going to be attacking this money-raising business from the ground level, where we can get a lot more accomplished by relying on our creativity.

Important note: The first thing to note about Guerrilla Music Financing is that – unlike the traditional road to investment capital, where a large lump sum of money comes from one almighty source – we guerrillas have to think in terms of combining a number of smaller money-raising streams into one sizable river of cash.

What follows is a list of 25 specific actions you can take now to get money flowing toward your musical project.

Six ways to raise thousands of dollars yourself

This next statement might seem obvious, but it’s an important one to grasp: The best source for funding your musical projects is you. By taking control of your own financing, you avoid having to answer to a co-signer or investor. The feeling of freedom alone will lighten the load of small sacrifices you may have to make along the way.

Here are six great ways to turn to yourself for money matters:

- Set aside a percentage of your day job salary

First, set up a special savings account at a bank for the exclusive purpose of building a Guerrilla Music Project Fund. Setting aside just $25 a week will give you about $650 in only six months. And while your money is growing and earning interest at the bank, you can use this time to scout around for the best possible deal on studio time, video production, sound systems, or whatever it is you’ll be investing in.

- Earn extra cash to stash for your project

Humans have an uncanny ability to get things done when they are truly motivated. Don’t limit yourself by thinking within the confines of your present financial situation. Could you possibly earn extra money by giving guitar lessons, working as a studio session player, or gigging as a solo act?

There are dozens of ways for people in the music business to make extra cash with their talents. Don’t be a victim of tunnel vision. Playing a paid gig is just one of many ways to profit from music. Do you have skills at home recording, publicity, website design, or even running sound and lights for other bands? Use your creativity.

Note: Earning an additional $25 a week would give you another $650 in six months – a total of $1,300!

- Sell your old equipment

Most musicians have at least some seldom-used equipment sitting around in the basement or garage. Some have quite a bit. Is there a good reason why you continue to hang on to it? If not, you may be cheating yourself out of the extra cash you could earn by selling it.

Run a classified ad, post notices at music stores in your area, or sell to the highest bidder on eBay. Blow the dust off of those old suckers, sell them, and add some money to your Guerrilla Music Project Fund.

Another possibility: Many CD stores pay cash for decent pre-owned releases. And don’t forget books, appliances, and other items you can part with. Use your head and cash in on stuff you already have!

- Spend less on gear – buy only what you need

The main point here is to be realistic. Just as you define your musical and creative needs, you should also assess your technical and production needs. Separate what you would like to have from what you actually need.

Key questions: Do you really require that 24-channel board when a 16-channel mixer would do the job for a lot less money? Is that $700 guitar effects rack something you really need? Or is advertising your new release in a national magazine really necessary, when you may be better off promoting it on a regional level, where it will have more impact and cost less?

- Get a bank loan or line of credit

If you have a good credit rating, you have the option of getting a bank loan. True, this is what you want to avoid if you truly embrace the “guerrilla’ philosophy. But some musicians are more financially secure than others. If you have some monetary stability and are confident about your future in music – at least for the next couple of years – this is a tempting option. Just make sure you don’t strap yourself with loan payment if the band breaks up or CD sales aren’t as brisk as hoped.

Note: There are plenty of juicy guerrilla suggestions still to come in later articles, and many of them will be even better, less-costly ways to get the funds you want.

- Use credit cards

Another method of financing is using a credit card. This is basically a loan, but I list it separately because many people overlook it as a financing option. You can either purchase items directly by charging them to the card or get a lump sum cash advance to spend on a variety of things.

Credit cards carry the same disadvantages of a loan, only those low minimum payments make the dangers of snowballing interest even greater. However, life is often a gamble and a lot of musicians have used credit cards to fund everything from PA and lighting purchases to entire CD releases

Example: one music commentator recalls; “I’ll never forget the time I received a promotional mailing from a new artist. The flier read, ‘Sponsored by Visa, MasterCard and American Express’ – pointing out, in a humorous way, that he was an independent artist funding his CD project with his personal credit cards. It certainly caught my eye, and it definitely helped him get his music out into the world. So keep credit cards in mind, but use them cautiously.”