I just came across a fairly new concept from a site called Kickstarter, which is essentially a web interface that allows people and organizations to create an online fundraiser by offering incentives in a tiered format. This actually isn’t a new concept at all but it is unique the way I found it being used. A great band (The Spill Canvas) who I have been listening to for the better part of a decade put up a Kickstarter page (the fundraiser will end on new years day 2012 so this link may be dead at some point after) to help fund the recording of their new album. The minimum donation is $1 with the top tier coming in at a whopping $4500 or more.

Now you must be thinking, “Why would I give a band money to record an album?” One reason is, if you donate 10 dollars to reach tier 2 you get a digital copy of the album upon release and do not have to pay any extra to get it. Essentially, the deal the band is making with their fans is that “We can only afford to make a new record if we can guarantee enough copies of it will be sold to cover the cost of making it.” To me this isn’t a bad idea, especially considering I personally have enjoyed every song they have made to date. I know I’m not going to get a crappy album with one good song and the rest filler. They are a quality band and I will invest in that.

“But why would someone invest $4500 dollars?” This is where the tier system comes in. As I’ve stated, by donating $10 dollars for tier 2, you get a copy of the album in mp3 format. Not a bad deal, especially if the album costs more than $9.99 on Itunes or Amazon mp3, etc. But here’s the real kicker. Every tier above 2 gets you more personalized incentives. You also get every incentive from the tier values below the one you chose.

Here’s an example:

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I think the coolest part about this concept is the way it connects the band to it’s fans. It puts them on the same level in a sense, telling them “we need you as much as you need us.” It’s also great that it lets the fans have a much closer, personal connection with them, and the band can see how dedicated their fans are to invest in an album that hasn’t even been made yet.

Like I said, tiered donation incentives aren’t a brand new concept, but the way it is being utilized in this case brings up some very unique questions for the music industry. Will this become the way smaller bands make albums? Will it eliminate the need for record companies even further than has already happened? Will fans become bigger investors in a band’s career? Will fans have more control over what they want to hear if they are the ones funding the recording? The possibilities are endless.

It all remains to be seen. Here’s a great song that got me hooked on The Spill Canvas in the first place.