How FanVestor Benefits Musicians in a Changing World
In my previous posts I’ve discussed the ways FanVestor is using changes in SEC regulations to revolutionize the way fans, regardless of their net worth, can invest in their favorite performers and athletes. I now turn to how the FanVestor model can help musicians thrive during this challenging time.
Musicians have been especially hard hit by the pandemic — mostly due to prohibitions on the live performances many depend upon for their livelihood. In fact, pre-pandemic, the largest portion of a musician’s income came from live performances, whether this was the tips received from regulars at the neighborhood bar or a cut of the proceeds from sold-out concert halls. Moreover, many musicians are self-employed and have informal or temporary arrangements with the venues where they perform. This has often resulted in them falling through the cracks of government aid efforts, not just in the U.S. but around the world.
The Save Our Stages Act, which is included in the $900 billion stimulus package passed by Congress late last month, will provide a much-needed infusion of cash to independent venues across the country, including bars and restaurants. The act sets aside $15 billion in grants for these venues to make their mortgage payments, buy protective gear and pay employees until they can fully reopen for business. It also provides additional copyright protections against illegal streaming.
While these measures will certainly help, there is clearly a need for musicians to step out of their comfort zone and utilize some of the other income streams available to them. This can be anything from creating new products under their brand, selling existing merchandise, or endorsing big name products such as soft drinks, clothes, makeup, and so on. This is where FanVestor comes in.
FanVestor is literally transforming the relationship between musicians and their fans. It the first of its kind global, all-in data-driven fan investing and fan commerce platform (website and app) for elite talent, musicians, and athletes, as well as entertainment, sport, and e-sport organizations. With the highest level of compliance and online investing sophistication, FanVestor offers a new way for fans to engage with their favorite celebrities and athletes through Initial Talent Offerings™ (ITO) and Initial Entertainment Offerings™ (IEO). Unlike crowdfunding platforms, with FanVestor individuals can receive an actual investment, future dividends, as well as exclusive rewards and experiences such as priority access, enhanced fan experiences, and other benefits. FanVestor is also the only such channel in existence that connects fans directly to invest in their favorite celebrities and athletes. Most importantly, it allows them to Invest with Heart™.
FanVestor also helps musicians build and continuously grow their brands. Its mining of big data provides an understanding to musicians about the spending habits of their fans — not just the “stuff” they buy but the emotional connection behind their purchases. This enables musicians to interact with them more efficiently through social media platforms, both with regard to merchandising and charities and philanthropic organizations. Just as important, Fanvestor protects musicians and sports figures as they branch out into new, unfamiliar income streams. For example, as I have written about previously, professional boxer Floyd Mayweather found himself in hot water with the SEC after one of three Initial Coin Offerings (ICOs) that he endorsed on Twitter and Instagram turned out to be fraudulent. According to the SEC rules one must disclose payments they have received in exchange for their endorsements, and though Mayweather has said he wasn’t aware of this, he had to pay $600,000 in fines and was barred from endorsing securities for three years.
The same is true for the pitfalls inherent in the traditional crowdfunding model. For example, in 2017, angry TLC fans called the group “scammers” after waiting for two years for the final album they financed through a Kickstarter campaign. And then there is PledgeMusic, which in 2009 created a direct-to-platform that promised an “experience” to fans who could invest in an album and virtually witness its creation from start to finish. Instead, the business model eventually proved unsustainable, leading to bankruptcy and a collective loss of ten million dollars to the participating artists. It doesn’t have to be this way. FanVestor’s investment model harnesses the power of crowdfunding but also serves as an ambassador to both its investors and participating celebrities so that both are protected financial losses and liability.
Throughout the pandemic, FanVestor has stepped up to create ways of improving the lives of performers and fans alike. This past summer it partnered with media giant iHeartMedia to raise money for Los Angeles charities providing healthy meals for children and families who were struggling to keep food on the table. Many of these children get breakfast and lunch at school, and COVID-19 closures placed an additional hardship on them. To raise money, iHeartMedia and FanVestor held a charity sweepstakes, where fans bid for a chance to hang out with the Jonas Brothers and many other of their favorite artists.
There is no doubt that the music industry has been drastically changed by the events of 2020. Equally certain is that the future, while challenging, will also present opportunities for musicians to grow their careers in new and exciting ways. FanVestor, with its one-of-a-kind platform, unparalleled security, and knowledge of SEC regulations, is poised to assist musicians as they navigate this new landscape and leverage their talents and social media reach for a prosperous path forward.
On my next post, I’ll be discussing how the Fanvestor model is helping musicians, athletes and fans create opportunity from chaos. In the meantime, go to FanVestor.com to download the app and learn more about how FanVestor helps musicians build their brands and build relationships with fans like never before.