I think only in the folk world would it be seen as a virtue to put out a CD which doesn't aim to achieve the best possible sound quality. It is possible to make a CD fairly cheaply, and if the engineer knows what they are doing it can still sound pretty good. However you will make a better one if you are prepared to devote more time and money, for example by recording each instrument separately. However much you spend, if you can fund it from your own savings then you don't have a problem. If you can't, you're going to have to find other sources of funding. Bank lending has more or less dried up, and credit cards are an expensive way of borrowing. Crowdfunding is just one alternative option, but it can only work if the artist can generate sufficient goodwill and trust for enough people to be willing to support them. However it is increasingly being seen as a legitimate way to raise finance for all sorts of projects, especially now banks are so reluctant to lend, and as a way for investors to get a better return at a time of unprecedently low interest rates. It's just another way of doing business. The OP apparently feels uncomfortable about being approached. Fair enough, but it's not compulsory (although it can be difficult to turn friends down). However a lot of people are happy to contribute. I remember Ann's crowdfunding on Mudcat, and it became apparent that for many it was not simply a matter of paying in advance for something but they also felt a sense of involvement and of giving support, which they wouldn't have got from simply buying a CD.
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