Traditional crowdfunding platforms only allow you to "donate" or "pre-order" music through perks by artists. With PerDiem you are literally investing in a project and can earn money if the project is successful. This creates an incentive for the investors to promote the music long term since the success of their investment is tied to the success of the artist.
No, you don't own any equity in the artist or their music. The artist sets a percentage they want to give back to the investors based on revenue for that project. Since PerDiem distributes the music, it’s easy to maintain integrity between the artist and investors.
With any investment, it may take a while for you to see a return on your investment. When you decide to sell your shares, we purchase them back from you at their current value which may be more or less than you purchased them at. Simply “Request Cash Out” on your user profile page and we will send your earnings via PayPal in 1-2 business days.
Most successful campaigns for new artists raise around $1,000-$2,000 and give back around 50%. If the first campaign is successful, artists can start another campaign to raise more funds. We recommend campaign lengths between 30-90 days to ensure artists have enough time to meet their goal.
Yes. Since the band retains full ownership of their music, and makes the choice to "give back" to their fans, there is no need to have contracts between the artists and the fans. You are simply purchasing a record (or multiple records) from the artist and the artist is rewarding you for doing so. PerDiem has exclusive distribution to the music which helps ensure the investors get a direct return on their investment.
The system is designed to protect both the artists and the fans. If an artist decides to leave the platform we highly encourage them to do it in a way that doesn't upset or disappoint their investors. In the past, some artists that were unable to fulfill their campaign goals have refunded the money to investors, while others have not. Investing in music is high risk and we encourage people to only invest what they are willing to lose.
100% of the money from shares purchased goes to the artists, and 100% of revenue is split between the artist and investors. The only cost for the investor is transaction fee (10%) plus the credit card processing fee (2.9% + $0.30) .
For example: You invest $10 in an artist. The total would be $11.41. $10 goes to the artist, $1 goes to PerDiem, $0.41 goes to the credit card processor.
Once an artist hits their campaign goal, we send 100% of the amount raised to the artist via PayPal.
If an artist doesn't reach their goal, your money will be credited back to your account.