Folks Can Digg Shoes For Needy Kids

from the looooots-of-shoes dept

With an offer that reminds me of the OLPC "give 1, get 1" promotion (but hopefully without the delivery complaints), Digg is selling a Digg-branded shoe, made by TOMS Shoes. For those who haven't seen its commercials, TOMS Shoes has the catchy promise (called One for One) that for every pair of shoes it sells, it gives away a pair of new shoes to needy kids in developing countries.

This bit of marketing is brilliant because it ties together a nice "reason to buy" story with a physical good (the shoes), and the whole story promotes both Digg and TOMS Shoes. Eventually, I assume Digg and TOMS could also easily create a Threadless-like store for more custom shoes (instead of T-shirt designs). The current shoe design was created by a Digg employee, but it seems possible that Digg users could submit shoe designs of their own. And apparently, TOMS shoes sells T-shirts, too, so Digg users may get to Digg/Bury some T-Shirt designs someday as well.

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Nestle's Kit Kat Bars Give Consumers An RtB In Japan

from the you-will-surely-win dept

Techdirt reader Kathy writes in to let us know about the 200 different flavors of Kit Kat candy bars in Japan. Public Radio International describes how Nestle has developed an interesting sales strategy in Japan where the competition among retailers is apparently so great that stores benefit from constantly updating their shelves with new products. In such a marketplace, Nestle has adopted numerous varieties of its Kit Kat candy bars that can only be purchased in certain locations or at specific times of the year. So instead of trying to peddle the same merchandise to everyone, Nestle has effectively given consumers a reason to buy (RtB) -- by making limited edition flavors and targeting the local tastes and customs in Japan. Nestle caters to Japan's omiage gift-giving culture (where friends are expected to bring back unique trinkets when they travel) with regional Kit Kats. So for example, a potato-flavored version is only sold in the northern part of Japan known for its potatoes, so northerners (or traveling southerners) can give out unique treats that aren't available nationwide. And all over Japan, the candy bars have also been packaged with mailing labels -- so that the candy can be sent as "good luck" charms. Due to the ingenious connection to the Japanese words Kitto Katsu which mean "you will surely win", the "good luck" symbol for Kit Kats in Japan was also successfully manufactured and marketed and as a result, Kit Kats have been popular with exam-taking students who seem to want good luck, however they can get it.

Clearly, Nestle must be admired for its efforts to connect with candy fans. And it's particularly brilliant to see them bundle candy bars as good luck charms -- a story that adds intangible value to the otherwise ordinary snacks. Perhaps it's only a matter of time before some artists write some flavor-inspired songs/plays/films and try to sell loooots of Kit Kats, too.

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AC/DC's Reason To Buy: Get A Box Set Inside A Functioning Guitar Amp

from the now-that's-cool dept

We're always interested in cool "reasons to buy" that different content creators are coming up with, so thanks to TW for alerting us to AC/DC's latest effort, involving a special box set that is packaged inside a working guitar amp. The box set is $200, but beyond just the music (rarities, memorabilia, etc.) the casing itself is a 1-watt guitar amp, one foot wide by one foot high and four inches deep:

One of the fun things we've noticed in talking to various content creators about ways to better structure their own tiered "reasons to buy" is that it really helps to come up with some ideas that fit the content creator directly, and how they currently interact with fans. That is, you can't just copy what everyone else has done, but need to find that special unique thing that matches the content creator. This seems like a perfect example.

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Cory Doctorow Joins The CwF+RtB Experimental Crew

from the good-for-him dept

Writer Cory Doctorow has long been a leading thinker/experimenter when it comes to issues of copyright and content creation -- having long put his works under very permissive Creative Commons license, and making sure that his books were available in all sorts of different formats. However, for the most part, he kept using the same basic business model. However, it looks like he's jumping on board our favored "tiered" CwF+RtB model. Reader Russell sends in the news that Doctorow will not just be self-publishing his next book, but is also offering various "tiers" for support. The ebook and the audiobook will be free, but the physical book will cost money. On top of that, there will be a limit of 250 specially bound limited edition hardcover versions for $250. He also sold a $10,000 commissioned story, which was already sold before he announced this (he thinks he priced it too low). Finally, he may experiment with ads in the book as well. It will be interesting to see how well this works, though I think the tiers could include some more options/creativity, as most people don't have many options outside of the basic book. Still, it's great to see these tiered direct-to-fan CwF+RtB offerings getting closer and closer to being mainstream.

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Felicia Day Building Acting Success The Entrepreneurial Way

from the do-call-us,-we'll-call-you-back dept

Though she's had a few minor successes with roles on Buffy the Vampire Slayer and House, Felicia Day has been quietly building herself a successful career under the radar of mainstream Hollywood. Her self-produced web series, The Guild, which follows a nerdy crew of World of Warcraft players through their offline hijinks, is now on its third season. In an interview with Wired, Felicia Day shows that, whether she knows it or not, she is definitely dabbling in CwF + RtB (if you're new here read this).

Felicia has done a great job connecting with her fans. Her @feliciaday twitter account boasts nearly 1.4 million followers, and the nature of her conversations on twitter demonstrates that she is well versed in the medium. The Guild is funded by sponsorship from Microsoft and Sprint, DVD sales, and individual donors.

It's a good start, but like others, Felicia seems to fall into the "give it away and pray" trap -- while it's great to rely on the good grace of donors, she could do much better if she gave her fans a better reason to buy. On her recent appearance on the Jimmy Fallon show, Felicia expressed her surprise at the prospect that someone would support The Guild with a $100 donation; however, what if, for $1,000, you could spend a few hours tackling quests on World of Warcraft with Felicia? Surely there's a fan or two out there that would leap at that opportunity. Day does not disclose the economic details of her franchise, but she keeps alluding to small budgets and tiny profit margins. I would be curious to see the exact numbers, but there's nothing wrong with running a small, lean, efficient operation: given the choice of owning GM or Craigslist, I'd definitely choose Craigslist. This metaphor works for entertainment too: remember Waterworld? This doesn't mean calling for the end to the lavish spreads of food on movie sets. Of course not. From what I hear, Google has great food too.

Much like with the music industry, it is getting easier for creatives to self-produce quality works without the support of a major studio. And, as we experiment with new business models (like CwF + RtB), perhaps we will find a better way to produce TV shows and movies than the traditional model. In the traditional paradigm, starving actors work jobs as waiters and waitresses while plying their craft during their off-hours in the hope of being "discovered" and hitting the acting "lottery." Otherwise, many live job to job or eventually burn out and go find a different job. With the tools of production and distribution now being available to the masses, when can acting be the "day job" for more people? Hopefully soon.

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Four Rules For Music Business Success

from the don't-suck dept

The Topspin blog has a story of one of the bands they've worked with, a lesser known act called Fanfarlo, that was able to reach some specific goals in promoting itself and building up its fan base, while getting many to commit to paying. From that, the post discusses a four step "formula" that the band used for success (listed here with my summary):

1. Don't suck: something that often gets lost in these discussions. The music still does need to be good. All of these business models are that much harder if the music isn't any good and fans don't like it. Playing good music is a definite first step.
2. Get others to introduce you to their audience: This is another good point. I've been talking to some musicians lately, who were trying to understand how to best apply some of this stuff, and I often suggest looking for other, more well-known acts, that the band can work with to get some sort of endorsement, or "opening" slot on a tour (or even just a gig) as a way of reaching more fans. The Topspin post points out that some people assume that this is the real story behind the success of Fanfarlo, but the numbers don't bear that out. It probably accounted for approximately 30% of the band's sales. Not shabby, but hardly the only reason for the band's success.
3. Make those audiences an offer they can't refuse: In this case, the band offered a download of their album, plus four bonus tracks for $1 for a limited time. Yes, all of the songs combined for a dollar -- not each of them for a dollar apiece. While I normally support just giving away the music for free, I can see a reason to offer them all for a dollar in some situations. In this case, it gets more people to commit to the music and the band, but at a price that is much easier to deal with. I'm still not convinced that $1 is better than free, but it sure beats regular album prices. While this offer was for a limited time, after it was over, the band still offered the download cheaply ($6).
4. Repeat: This is another important one. We keep hearing bands put in place business model promotions that are one time deals, rather than a fully thought-out continuous and ongoing business model. By repeating the process, not only can a band keep making money, but it lets them iterate and experiment, and find out what works (and what doesn't.).

In this case, it looks like things definitely worked. It was able to get 15,000 new fans on its mailing list, with a rather stunning 13,000 of those buying something (but fans just want stuff for free, right?). Of those who simply viewed the download offer, an amazing 22% made a purchase. That's an insane conversion rate. Also 30% of the download buyers came back and bought a physical product later (CD, vinyl or special edition).

All in all, yet another successful example of a band figuring out ways to connect with fans while giving them a reason to buy.

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Connecting With Fans Via Live Theater As Well...

from the it's-happening-everywhere... dept

For many years, my wife and I have held a season subscription to the plays at the American Conservatory Theatre (ACT) in San Francisco. They put on some really great shows -- a mix of new and old (including at least one play by either Tom Stoppard or David Mamet pretty much every season, which is great, since those are probably my two favorite playwrights). This latest season kicked off with a bang a few weeks back with an amazing adaptation of Noel Coward's Brief Encounter, done by the Kneehigh Theatre group from the UK. Having attended dozens of plays at ACT over the years, I can't remember any that I thought was quite so amazing or that made me want to run out and tell lots and lots of people to go see it. It's the most imaginatively staged play I've ever seen, and you have to have a serious psychological disorder not to smile through most of it (despite the serious subject matter: marital affairs). I think the opening line to the SF Gate review summed up my thoughts exactly:

Every so often a theater piece comes to town that is so brilliantly conceived and executed, so entertaining on every level, that you want everyone you love or even like just a bit to see it. Kneehigh Theatre's "Brief Encounter," the opening show in the American Conservatory Theater's new season, is that kind of experience.

You kind of have to see the play itself to understand what's so creative about it, but as a hint, before the play even starts, the actors show up in different parts of the theater and start playing instruments and singing songs -- totally unannounced (and many in the crowd ignored it) right up until the play starts. Then, during intermission, they ended up doing something similar in the bar area (downstairs, not upstairs), before mingling with the crowd as everyone made their way back to the theater. Considering most of the actors are on-stage close to the entire time during the play, it's noteworthy that they then end up extending things both before the play and during the intermisison. It really is a neat way for the actors to more closely "connect" with the fans at the show.

Anyway... that, by itself, obviously isn't the sort of thing we post around here, but when I saw the news that the engagement had been extended for another week (the second time already) due to popular demand, I wanted to send that news to a few friends who I knew would enjoy the show, and did a quick search to find that SF Gate review (separately, I believe the play is heading to NY and then Minnesota in the coming months, for folks in either place). In doing so, I came across a blog post from a dramaturg who works at ACT talking about how the artistic department of ACT is trying to get much more involved in meeting people at the theater and improving the overall experience:

An idea I had over the summer, the SHOP puts the creators of Words on Plays (my supervisor and me) in the theater to personally sell our product and discuss it--as well as the play itself and the theater more generally--with our patrons. Part of our theater's mission is to encourage conversation; we're taking this tenant literally. Previously Words on Plays was sold at the merchandise counter, but that counter is remaining unmanned this season because of low sales. So our timing was good.

The idea is to get more in touch with the fans coming to the theater and build a stronger relationship, while still offering "reasons to buy" (the whole RtB part...). While it sounds like direct sales of the book weren't a big deal, it is still helping more people connect with the theater overall and come back to see more plays (a bigger moneymaker than any book...):

Our patrons are most familiar with our theater's hospitality and fundraising staffs. Certainly not a bad thing, but what if this model was exchanged for one in which representatives from the artistic staff were always present to discuss what the patrons are really there to think about--the art?

This is how smaller theaters have to do it because everyone is doing everything. The artistic director is the ticket taker. The playwright is the one who knows where the fire extinguisher is. And it's lovely. Every show you are being welcomed in by a family.

This is where my thinking started. I would stand at my booth selling my product and furthering conversation about the show. But I think I may have been thinking too small. Last night I sold five copies. Commendable but negligible. But I also sold at least two couples on November, our next show, by simply telling them how funny a script it is. I spoke to another gentleman about his time in England. I made a handful of people laugh when I directed them to the new location for the hearing devices: "Why don't you put a sign up?" "Because then I wouldn't get to talk to you."

Indeed. Over the last few months, we've been seeing how the whole CwF + RtB concept isn't just working for musicians, but authors, movie makers, photographers and many other content creators as well. Most of these experiments are still early, but you get a sense that actually building real connections with fans is really working for those who truly put their hearts into it. And, oh yeah, if you're in San Francisco, you really should go check out Brief Encounter...

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Part Of The Reason To Buy Is Actually Asking For Money

from the and-talking-about-money dept

A bunch of folks have been sending over Amanda Palmer's latest blog post, where she discusses the importance of content creators today getting used to both asking for money and talking about money. This came after a couple people suggested to her that she not be so open about money issues in talking about her various business model experiments. Amanda notes that it's becoming the new norm to talk about money, and it shouldn't be seen as a bad thing. Part of the whole process of connecting directly with fans is that you take out the middleman, who had a variety of jobs, but one of them was asking for money. So if that middleman is gone, then the only person left to ask for money is the artist, and this shouldn't be seen as bad.

artists need to make money to eat and to continue to make art.

artists used to rely on middlemen to collect their money on their behalf, thereby rendering themselves innocent of cash-handling in the public eye.

artists will now be coming straight to you (yes YOU, you who want their music, their films, their books) for their paychecks. please welcome them. please help them. please do not make them feel badly about asking you directly for money. dead serious: this is the way shit is going to work from now on and it will work best if we all embrace it and don't fight it.

unless you've been living under a rock, you've surely noticed that artists ALL over the place are reaching out directly to their fans for money.
how you do it is a different matter.
maybe i should be more tasteful.
maybe i should not stop my concerts and auction off art.
i do not claim to have figured out the perfect system, not by a long shot.

BUT ... i'd rather get the system right gradually and learn from the mistakes and break new ground (with the help of an incredibly responsive and positive fanbase) for other artists who i assume are going to cautiously follow in our footsteps. we are creating the protocol, people, right here and now.

i don't care if we fuck up. i care THAT we're doing it.

She goes on to compare the new model to her experience busking in the past. In a separate discussion I had with Amanda a few months back, she referred to the new business model, "power busking." I agree almost entirely with her on this... with one, perhaps crucial, quibble. I get a little wary of focusing too much on the "busking" aspect, as it feels a little too close to the give it away and pray model, that isn't really a complete business model. I tend to believe that if you give people a real reason to buy (i.e., something scarce and valuable, offered at a reasonable price), then it's not "busking" at all. It's not "asking for money" at all.

It's offering a great deal that people want to buy. It's the difference between the PBS telethon fundraising effort and people gleefully snapping up merchandise from a TV show or movie. It's not about asking for money. It's about providing a "reason to buy" in the form of scarce offerings that are made more valuable thanks to the content that is being shared. From there, you're not begging for money, but you're offering up a great deal to fans who are thrilled to exchange their money for what they get in return.

So, I absolutely agree with almost all of what Amanda is saying, and think it's great that she's being so open about her experiments (and, yes, I know, I've been bad about giving up the data on our own experiment, which is entirely due to being too busy to just focus and write up what we learned... but it's coming soon!). But, I think that one way to get beyond the issue of "asking for money" and making that feel crass, is not to think of it as busking or asking for money or begging for money, but to focus on experimenting with ways to offer up scarce value that people simply want to pay for, rather than feel goaded into paying for it.

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Smashing Pumpkins Latest To Embrace Free Music... With A Reason To Buy

from the really-free dept

It looks like another "big name" band is recognizing the power of free. The Smashing Pumpkins have announced that its latest album will be released entirely free:

Each song will be made available absolutely for free, to anyone anywhere. There will be no strings attached. Free will mean free, which means you won't have to sign up for anything, give an email address, or jump through a hoop. You will be able to go and take the song or songs as you wish, as many times as you wish.

And quite an album it will be: the band is working on releasing 44 songs. The idea is to release a song at a time starting around Halloween (the band is just starting to record them now) until all 44 songs are released. But, the band is also offering up a "reason to buy" as well:

We will however sell highly limited edition EP's (of 4 songs each times 11), and details of how those EP's will be made available are still being worked out. Because the songs themselves will be free, the EP's will be more like collectors items for the discerning fan who will want the art itself, along with the highest possible audio quality available. The EP's will be more like mini-box sets rather than your normal cd single. We may also offer other variations for sale, say for example a digital single with a demo version of a song. The commitment that is most important is the one I'm making to you: that the music of 'Teargarden by Kaleidyscope' will be available for free to everyone. All 44 songs: free for ALL.

When the entire album is finished, it will be compiled into a deluxe box set which will also be made available for sale. Those who have bought the EP's need not worry, as the box set will not be a recompilation of the limited edition pieces.

Sounds cool to me. Give away the music for free, connect with those fans, and then give them a reason to actually purchase something physical and scarce that's much cooler than just the music. Great to see another "big name" figuring all this out as well. And, before people say that the band can afford to do this because it's already huge and well known, most of the artists we discuss doing this sort of thing are small artists, who do it to establish themselves to get attention. Claiming that this only works for one type of artist is an increasingly naive statement. Smart musicians of all sizes are recognizing all of the opportunities that using the music as a free promotion presents.

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Reason To Buy? The $1 Million Wine Book

from the might-be-a-very-limited-audience dept

As book publishers are starting to struggle with the same business model issues facing the music industry and others, it seems at least one publisher has come up with a unique "reason to buy" -- though, it may be slightly out of your price range. johnjac points us to the news about the $1 million wine book. It is, as described, a book about wines that will run you a cool $1 million. Why? Well, because it comes with the wine it talks about. The book will list out the world's top 100 wineries, and with the book you'll get a six bottle case from each winery listed in the book. So, the book, plus 600 bottles of wine from the 100 best wineries in the world. They're only making 100 copies of the book... and 25 have already been pre-ordered, so hurry up and order.

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Moldover Gives People A Reason To Buy His CD By Turning The Case Into An Instrument

from the rock-out dept

Another day, another example of a musician not freaking out about "piracy" but looking to create innovative reasons to actually buy something. The latest is the artist Moldover, who not only learned how to build circuit boards that display the album artwork and spell out the song titles, but he actually turned the CD case itself into a fully functional instrument. Check it out:

It has a button that makes sound, and then you can adjust the sound via light sensor that creates a virtual theremin. On top of that, it has a line-out jack, that lets you listen quietly, or record music via the CD case itself.

It seems like every day we see new and different examples of artists coming up with cool reasons to actually buy product. While some critics insist that these sorts of things only work once, I tend to believe that creativity knows no bounds, and we'll keep seeing more and more unique ideas.

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Making Magazines Worth Buying: Magazines That Play Video

from the neat! dept

Earlier this year, we talked about how some magazines were really making an effort to make the physical magazine worth buying by doing cool things with the physical product. Most of those were niche publications, but there's some evidence that much more mainstream magazines are experimenting as well. Last year, Esquire Magazine experimented with an e-ink cover. However, it looks like Entertainment Weekly is going even further, by allowing CBS to embed video within an ad in the magazine. Yes, you read that right. Basically, a small video screen is installed in between two pages, and seen through a cutaway. Apparently, it works pretty well, with full-motion video, including sound (apparently somewhat loud, with no volume control, which is a bit annoying).

While a bit gimmicky (and probably quite expensive), it does get you thinking about some other possibilities for actually making physical magazines a bit more worthwhile.

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The Details Behind Amanda Palmer's Amazing Impromptu Music Video

from the connecting-with-fans dept

On Friday, we posted a guest post from singer Amanda Palmer, all about her thoughts on connecting with fans. If you didn't get a chance to read the whole thing, at the end she included a music video that she did. However, the story behind that music video is so good that it deserves a separate post of its own. We already know that Amanda has been a big fan of using Twitter to reach out to fans, and she did exactly that in this case -- but not to film a video. Just to hold an impromptu "flash gig" on the beach with two days' notice. Cool idea. Other bands should try that as well.

And then... one of her fans suggested the morning of the gig that she learn this song by Cat Stevens. So she did. And she went to the beach and a bunch of her fans showed up and she played some music and everyone was happy. And then they realized that the setting was great to film a music video. One of the people there was Danna Kinsky, who hardly knew Amanda, but is a filmmaker, and had her camera. Another person there was Lindsey Barnes, a photographer, who agreed to shoot some photos of the group. And, with the help of Kirsten Vangsness to corral and organize people, they created an impromptu music video...

The whole thing was thought up, organized and completed in 20 minutes. There was some after the fact editing and sound work, which appears to have taken a few weeks, but the end result is really amazing. It's a better music video than an awful lot of expensive professional music videos... and it was a spur of the moment thing. As the video notes at the end, musicians shouldn't fear Twitter, but learn to embrace it:

It's really an amazing example of what you can do by connecting with fans. We're so thrilled that Amanda is taking part in our CwF + RtB experiment, that this week's special promo is that you can just buy her book and CD by itself (the book is signed by both Amanda and Neil Gaiman), or for a little bit more, you can also buy the whole Techdirt Music Club and get a bunch of other stuff as well. If you just want the Amanda Palmer stuff separate from The Music Club, it's only available until midnight August 10th, so don't miss out...

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Don Bartlett Explains How Joe Pug Gave Away Free CDs To Connect With Fans

from the and-it-worked dept

There are just a few hours left if you want in on the special promotion.

With our CwF + RtB experiment in full swing, we've asked some of the participants involved to provide some guest posts about their own experience with new business models and new promotions. Don Bartlett manages Joe Pug, one of the artists involved in our Techdirt Music Club. If you order both the Techdirt Music Club and the Techdirt Book Club before midnight PT, tonight, we'll throw in a free Techdirt hoodie, or a free lunch with Mike Masnick. Bartlett and Pug ran a fascinating experiment starting last year, where they experimented with giving away totally free CDs (not just downloads). Bartlett agreed to write a guest post about what they learned:

It's hard to glance at a music blog these days without finding an article talking about the "new model" for the music industry. As the conversation advances, thoughtful commentary has popped up from sources as diverse as Mark Cuban and Trent Reznor. From my perspective, too many musicians have adopted the sound bytes that "labels are dead" and "you don't need a label" without fully thinking through the ramifications of that. While it is certainly true that many labels have backed themselves into a tough spot for a variety of reasons, the good ones still provide essential infrastructure such as distribution, publicity, financing, promotion and expertise. As we move towards a world where labels have less of a role, it's more important than ever for bands to become well-versed in how to handle these duties themselves.

For developing bands, one of the most critical parts is marketing and promotion. Fortunately, this is an area where the playing field is more open than ever. We are excited for Joe Pug to be a part of the Techdirt Music Club because we share the ideology of "Connect With Fans" and "Reason to Buy." These are core principles that every band should abide by. On the surface, it sounds very simple. The tricky part is to take your unique situation and determine what methods will achieve those goals.

In the case of Joe Pug, we felt very strongly that his songs would connect with people. This is not something we decided emotionally, but rather by looking at his history with existing fans, sales numbers, the responses he was getting from live shows, and other objective metrics. The challenge for us, then, became getting these songs in new ears in an efficient, cost effective way. We printed up CDs with two of his songs on them, along with contact info and a note that the full record was available on iTunes. We started by passing them out after shows at local venues. We had success, but we were casting too wide of a net, and it wasn't cost efficient. This is when it occurred to me that we should be inviting the people who are most excited about Joe's music to help. You can't possibly ask for more targeted marketing... people are intimately familiar with their friends' musical tastes, so if they're passing the CD along -- there is a high probability that they will be interested.

The results were instant, and overwhelming. Every possible metric jumped immediately... physical sales, digital sales, MySpace plays, Facebook friends, attendance at shows and merchandise sales. And somewhat unexpectedly, the fans who were requesting the samplers were emailing him about how excited they were to help. Without really intending to, we identified Joe's most enthusiastic fans in a place where we could interact with them and reward them with special treatment. It became one of our primary ways of connecting with fans, and the two songs were connecting well enough to give the new fans a reason to buy the full record or come out to a show. It is important to note here that it's not up to me to make moral judgments about the price of music. It's my job to look at the available revenue streams and find a way to maximize them for my client.

When it comes to connecting with fans, what worked for Joe may not work for someone else. Each situation has a unique path between band and fan. Identify your fan base (or distinct segments of your fan base for larger bands), then take a close look at how they interact with music. A younger fan might scan his RSS feed for blog posts and trade songs with his friends over AIM. An older fan might not even know how to download an mp3 into his iTunes. A busy professional might ask the clerk at a boutique what is playing while she shops. An electronic music fan is a whole lot more likely to share a widget than a folk music fan. Successfully identifying these factors within your fan base is probably the most crucial part of the equation, in my estimation.

There is a great deal of discussion these days about the "new model," but really it is only new to the music industry. Develop a truly great product that people are legitimately excited about. Invest the time, effort and money to market that product efficiently, and leverage small successes into larger ones. Eventually, the successes become large enough that everyone who gambled on the product gets their share of the profits. This is hardly MBA-level material.

What is "new" is that artists are more free than ever to execute their own marketing plans, rather than relying on the inefficient, bloated ones many labels push. I have been told many by people with nice cars, important business cards and famous friends that Joe's sampler CD program was wasteful and even "degrading to my artist." I respectfully disagreed. A year into his career, with only one EP released, Joe is playing Bonnaroo, Lollapalooza, and Newport and touring with some of his idols. 14 months after its release, the EP sells more each month than the month previous. Is he rich? Is he famous? No. He is, however, making a very respectable living as a musician and laying the foundation for a fantastic career. That, I would hold, is the "new model".

For the Techdirt Music Club Joe is offering up a special version of the EP, with specially designed Techdirt-inspired cover art, and some unreleased songs. Check it out.

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Amanda Palmer Talks About Connecting With Fans: Fans WANT To Support Artists

from the and-so-they-do dept

With our CwF + RtB experiment in full swing, we've asked some of the participating artists/authors to provide some guest posts about their own experience with new business models and new promotions. Amanda Palmer, one of the artists involved in our Techdirt Music Club, is someone you're hopefully familiar with by now. She's really been at the forefront of experimenting with these sorts of business models and agreed to write a guest post about her experiences.

As part of this, we're also doing an early announcement of the special promotion that we'll be running next week only. If you don't want the entire Techdirt Music Club, you can just order Amanda Palmer's part: the Who Killed Amanda Palmer book of photographs and short stories -- signed by both Amanda Palmer and Neil Gaiman -- and Amanda's signed CD as well. That's available now... but only through August 10th until midnight PT.

And here's Amanda's post:

i've been talking with a lot of folks lately about "why this works". the things i find myself saying over and over to people is that twitter and the new networking technologies are simply new tools for artists who have been super-connecting with their fans all along.

i started my band in 2000. we didn't play rock clubs. we played in our friends houses, in our own houses, in art galleries, in lofts, at parties. then we gradually brought the party indoors, into clubs that would book us once they knew we'd bring in 50 drinking/paying bodies. i treated our email list like gold. i obsessively stayed up all night and added named after every show. we took the time to meet every single fan who wanted to meet us after every show (i still do this, and i know that brian does it in his current punk band, world/inferno). but this wasn't because i felt it was mandatory....i did this because we LIKED it.

i got into music-making in the first place because i was so hungry to just CONNECT WITH PEOPLE. to me, the meeting&greeting was part of the reward, not a chore. but not all bands think like this. we were lucky. we liked it.

i'm still lucky, because i STILL LIKE IT. i actually love sitting down for an hour or two and bantering back and forth with my fans on twitter. they're all intelligent, funny, cool people. very few of them are mundane or obnoxious. very few of them ask stupid questions. there's a huge amount of respect between me and the fans and between the fans themselves. i feel proud that my music has brought all these freaks together, and i still like attending the party.

for artists who have NO desire to do this, it's quite a quandary nowadays, because many fans have come to expect it.

it's a slight catch-22: it's impossible to hide and it's impossible to fake.

and artists who have huge walls about what they're willing to share can end up seeming irritated....and letting someone else tweet for you is the kiss of death. the last tweet a fan ever really wants to see is : "hey THE ARTIST'S fans!! check out THE ARTIST'S new single, available now on itunes!!!" people hate that shit. not when you know you can go somewhere else and get: "fucking hell, let me share with you guys i'm feeling..."

re: the connecting to fans, and giving them a reason to buy....

what i've found is that once people trust and love you as an artist, some percentage of them will buy ANYTHING if they know the actual exercise is to simply put money in the artist's pocket. case in point: when i did my hock-weird-shit-from-my-apartment webcast auction a few months ago, fans wrote in asking if they could bid on the glasses and wine bottle we were drinking from. the answer: fuck yes. why not? they sold for a few hundred dollars each. the reason? these fans knew that it wasn't the objects themselves that were important. they knew that i was raising rent money, and they wanted to help; wine bottle was pure symbolism.

another fan tweeted in that they'd love to get involved by buying a signed postcard for $20...would i do that? when i told them that sure, i'd do it, 70 other fans wrote in and wanted one for themselves.... and most of them KNEW that i have a section of my website that states clearly that if you simply send me your address, i'll send you a signed postcard...FOR FREE!

but they wanted to help. and be involved. and involved them i did...before ending the webcast i read off a list of all their names. i knew they'd dig that...and i hadn't promised anything. i just knew that being recognized means so much when you're sitting randomly alone behind your computer, watching a webcast, feeling only slightly connected.

so:
connecting with fans, if they LIKE YOUR ART, automatically gives them a "reason to buy", even if it's NOT ART, because they want to SUPPORT YOUR HABIT.

i think we're going to see more and more of that as fans come to realize that the music is free but comes with the emotional price-tag of supporting the artist in any way the artist puts their proverbial hat out (merch, mementos, special packages, literal/web-based tip jars...or wine bottles).

how much do you think the hardcore fans who buy the $300 vinyl/art-print bundles would simply buy a random pretty book of monochrome prints by an unknown artist in a bookstore?

my guess: they will look at the bundle book a few times, admire it, appreciate it, put it on the coffee table or the bookshelf. and they will listen to the vinyl....probably. but are most of those people vinyl-philes? art print collectors? the point is, they will get two other things that are more important: bragging rights and the knowledge that they were singlehandedly involved with and supporting an artist's personal enterprise. because they love the artist, and they want to support him/her, period.

but the nature of fandom & its responsibilities is going to have to change to the same extent that the musicians are going to have to look at their lives & livelihoods (as "working musicians") more honestly.

as musicians rely more and more on fans/listeners/audience within this kind of honor system, the fans/listeners/audience will have to ante up or the system just won't work.

my hope is that the future culture of music will equate the pleasure of hearing a brand new band in a teeny club with the moral responsibility to toss them a few bucks to keep going, instead of just walking into the night, feeling lucky.

p.s. i created this video about a month ago with my fans at the beach at the tail end of a twittered flash-gig in LA. watch it, it's awesome.

Thanks Amanda! To get the signed book & CD check out the Amanda Palmer Special, or get the entire Techdirt Music Club for just a little more. Or, if you want to go all out before midnight PT on Monday the 3rd, if you buy both the Techdirt Music Club and the Techdirt Book Club before midnight PT, August 3rd, we'll throw in a free Techdirt hoodie, or a free lunch with Mike Masnick.

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A Closer Look At How Amanda Palmer Connected With Fans To Become Successful

from the it-ain't-'cause-of-the-label dept

We've written a few stories about Amanda Palmer, and her amazing success in connecting directly with fans (and her struggle to get dropped by her major record label), but none got quite as much attention as the last one about her massively successful Twitter experiments last month. The comments on that post got pretty involved, with Amanda herself stopping by to clarify some points. Some people argued that the only reason she had a fan base at all was because of her major record label association, and also claimed that the label financed the album -- which Palmer denied, noting:

for the record, i actually fronted ALL of the money for this record, because the label wasn't interested in supporting the effort.... i put in my own 200k (much of it borrowed) to make the record. the label picked it up, but i was never fully paid back (long, vile and complicated), which added insult to injury when they did FUCK all to promote the record.

Even more to the point, others are pointing out how much of her core loyal following had nothing to do with anything done by the record label. Hypebot asked Emily White, who's had a long history with Amanda and her work, to weigh in on how she built up her fanbase, and how much impact the record label had. The answer is that the label didn't do very much at all. It got some new markets interested... briefly... but those fans didn't stick around. The true fans were the ones who found out about Amanda and the Dresden Dolls via word of mouth. A few key excerpts (though you should read the whole thing):

I tour managed The Dresden Dolls from 2003-2006 and later co-managed the band as well as managed the launch of Amanda Palmer's solo career. The band self-booked a spring 2004 tour around SXSW hitting everything from sports bars to a bbq restaurant. They had no label, publicist, radio promo, agent, etc. to help book or promote the shows. Before hitting the road, I thought, "who is going to turn up to these shows outside of the Northeast? (as the band is from Boston). How will anyone know about them?"

But kids DID turn up. Whether it was 100 folks in Carbondale, IL or the amazing show Appalachian State University students put together in Boone, NC, the tour was a smashing indie success. I asked the fans at the merch table and the folks who helped us put the shows together how they knew about the band. The answers were consistently along the lines of "my cousin in Vermont IM'd me," "my boyfriend sent me a CD from Boston," or "someone forwarded me one of their mailers." It was true word-of-mouth about an incredible new band, fostered by Amanda and Brian's commitment to playing killer shows, writing personalized mailers and signing an autograph for every fan who wanted one, no matter how many hours it took.

....

And because of that decision [to sign with a major label], the band did receive pockets of radio success in markets like St. Louis and Arizona. The attendance at those shows spiked in 2006 when a few Dolls songs were receiving airplay. Awesome, right? Well, now it's 2009 and we've returned to some of those markets. Many of those radio fans don't turn up anymore. Yet, the hardcores or "1000 true fans" are still there, just like they have been since they organically founded The Dresden Dolls back in the day. They still line up outside for hours, know every word of every song (whether or not it has been released), and wait around for Amanda's autograph. They don't need a top down marketing plan to tell them what to like. And who are the new hardcore Dolls/ Amanda fans? They are the younger siblings and friends of the original fans, who continue to spread the gospel about an artist who's work they love so much they can't not talk about.

Once again, if you can connect with fans, and give them a true reason to buy, they will. That doesn't mean labels are useless. If they can help artists better connect with fans and provide more reasons to buy, they can absolutely be helpful. But that's just not the way many old school label folks work these days. Some of them are finally getting it (and I've actually had some really great conversations lately with record label folks who are figuring this out). But for artists who can (and want to) do it themselves, there are an increasing number of wonderful opportunities.

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More And More Bands (And Their Labels) Giving Fans A Reason To Buy

from the good-news dept

Peter Davias alerts us to an article over at Indyweek noting how more and more bands are adding value in order to get fans to actually find it worthwhile to buy the album. The article includes a bunch of examples down at the end, including a limited edition comic book based on each song on an album (by the band The Hold Steady). The band Sunn O))) apparently offered up some different options, including just getting a patch with the CD... or if you bought both the CD and a t-shirt, you got the patch along with a sticker and a poster. And on and on it goes. But, what's worth mentioning here is that many of these promotions appear to be done with the record label in question. I know it's fashionable for some to claim there's no need at all for a record label any more, but I still think there's a place for labels in helping the bands that don't want to figure out these business model issues themselves. It's just that the old "model" of bands signing away everything to those labels is likely to change drastically. Still, it's nice to see more and more record labels recognizing that the way to sell these days is to provide additional value beyond just the music.

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Buy The Novel, Get A Lot More -- Including True Reasons To Buy

from the now-this-is-unique dept

When we talk about the various business models and economics surrounding "infinite goods" people always want to insist that there's some area where there are no scarcities or are no ancillary goods that can be sold. One example that's commonly cited is novels. Sure, with business books, the writer can go on a speaking tour, but with novels, what else will people want to buy? But, of course, that misses the point. There are always creative ways to get people to buy, and it's rather insulting to suggest that people are so uncreative that they can't come up with other unique ways to either sell other things or to convince people that the physical book itself is worth buying.

That's why I was excited to hear from JC Hutchins, who was telling us about the way he's selling his new novel, Personal Effects: Dark Art. First, if you buy the book itself, it comes with a lot more than just the book. In the book are various "artifacts" that are talked about in the book and are a part of the story -- such as credit cards, business cards, IDs, photos and legal documents -- all of which look and feel totally authentic (yes, including the credit card). But, even more interesting is that the story goes beyond the book itself. We've seen various video games, movies and even albums have certain "Alternative Reality Games" associated with them -- and this book does, too. If you Google the names of certain characters, you can find their webpages and blogs (and accounts on certain social networking sites). The phone numbers on the business card work. You can email characters in the story, hear voicemails and hack into different websites and emails, as well.

Oh, and on top of that, in order to help people get more interested in the story, Hutchins offers up a free audio prequel to the book designed to introduce you to the story, the characters and the "world" the full story inhabits. He also has a huge 50 page PDF file you can download, with details and info on how to host your own party around the themes in the book, with the idea obviously being to allow fans of the book to evangelize it to other friends.

And, of course, Hutchins works to come up with interesting ways to "connect with fans," including the ability for fans to "commit themselves" as patients to the psychiatric hospital at the center of the story. The story in the book revolves around a therapist at the hospital who uses an individual's "personal effects" to help treat them -- so this part lets you submit your own backstory and whatever "personal effects" you want, in order to "become a patient." It may be a little gimmicky, but it's a lot more immersive than just about any other novel.

All in all, it looks like a really fun world around the book. It helps the author better connect with fans and gives them a reason to buy the actual book -- no ebook is going to replace the overall impact here.

Now, I can probably already write exactly what the critics will say in the comments here: that (1) this seems like a ton of extra work and what if the author just wants to write and (2) this only works this one time, with this one author, in this particular genre. In response to the first point, that's true, but Hutchins actually teamed up with an alternative reality game creator, Jordan Weisman, and there's no reason other authors can't find partners, too. Second (and this is important, even though it will no doubt be ignored by the critics here): no one is saying that this is "the model" for selling novels in the future. The point is simple: there are a nearly unlimited number of ways in which authors can be creative and unique in providing people true reasons to buy books and/or other scarcities. Hutchins is just demonstrating one (or, actually, a few) that he figured out. In this case, Hutchins recognized (correctly) that such an ARG would fit with this particular novel, and that's great. I'm sure other creative writers in totally different genres can come up with creative other "reasons to buy" and other scarcities around the types of things they do, as well.

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Amanda Palmer Connects With Fans, Gives 'Em A Reason To Buy... And Makes $19k In 10 Hours

from the that's-the-way-to-do-it dept

We keep talking about artists who are connecting with fans, and giving them a reason to buy, and it seems like every day we hear of more and more new and creative ways that artists are doing this -- even as the naysayers stop by daily to insist it's impossible for such things to scale. It's a blast to see it scale more and more every day and prove them wrong. The latest example comes from Amanda Palmer -- who we've written about a few times before. She's the singer who has been fighting with her major record label (Warner Music's Roadrunner) for not just being a pain to deal with, but for making it harder for her to both connect with fans and give them reasons to buy. For example, she got caught in Warner's stubborn decision to fight YouTube over payments, and had all her videos taken down from YouTube against her wishes. So, at a concert, she told fans to upload the video to YouTube as she sang a song begging her label to drop her.

But, even as she's stuck on the major label, she's shown that by connecting with fans and giving them a reason to buy, they absolutely will support her. Back in April, we wrote about how she got her fans to help support the backup dancers on the tour, since they had no money to pay them, but the fans came through with money/food/lodging.

However, now she's going much further, much of it using Twitter to closely connect with fans. She recently explained three separate experiments, all done on a whim this month, which allowed her to bring in $19,000, and all of which show those same basic characteristics: connect with fans and give them a reason to buy. The story is so good that I ended up including the whole thing, because it's too good not to read -- but check out Amanda's site directly.

this story has just been blowing people’s minds so i figures i should write it down.

1.
FRIDAY NIGHT LOSERS T-SHIRT, $11,000

about a month ago, i was at home on a friday night (loser that i often am when i’m not touring, i almost never go out) and was, of course, on my mac, shifting between emails, links and occasionally doing some dishes and packing for a trip the next day. just a usual friday-night-rock-star-multi-tasking extravaganza.

i twitter whenever i’m online, i love the way it gives me a direct line of communication with my fans and friends.

i had already seen the power of twitter while touring…using twitter i’d gathered crowds of sometimes 200 fans with a DAY’S notice to come out and meet me in public spaces (parks, mostly) where i would play ukulele, sign, hug, take pictures, eat cake, and generally hang out and connect. this was especially helpful in the cities where we’d been unable to book all-ages gigs and there were crushed teenagers who were really grateful to have a shot at connecting with me & the community of amanda/dolls fans.

i’d also been using twitter to organize ACTUAL last-minute gigs…i twittered a secret gig in LA one morning and about 350 folks showed up 5 hours later at a warehouse space….i played piano, filmed by current.tv, and then (different camera crew) did an interview with afterellen.com.
the important thing to undertsand here is that the fans were never part of the plan..,i basically just INVITED my fans to a press day, the press didnt’ plan it…i did.
i was going to be playing in an empty room and doing q&a with afterellen on a coach with only the camera watching.
it was like….why not tell people and do this in a warehouse instead of a hotel lobby or a blank studio? so i did.

it cost me almost nothing. the fans were psyched.

but back to the bigger, cooler story….

so there i am, alone on friday night and i make a joke on twitter (which goes out to whichever of my 30,000 followers are online):

“i hereby call THE LOSERS OF FRIDAY NIGHT ON THEIR COMPUTERS to ORDER, motherfucker.”
9:15 PM May 15th from web

one thing led to another, and the next thing you know there were thousands of us and we’d become the #1 topic trend on twitter.
zoe keating described it as a “virtual flash mob”.

the way twitter works (if you don’t have it) is that certain topics can include a hashtag (#) and if a gazillion people start making posts that include that hashtag, the topic will zoom up the charts of what people are currently discussing. it’s a cool feature.

so anyway, there we were, virtually hanging out on twitter on a friday night. very pleased with ourselves for being such a large group, and cracking jokes.

how do you “hang out” on the internet? well, we collectively came up with a list of things that the government should do for us (free government-issued sweatpants, pizza and ponies, no tax on coffee), AND created a t-shirt.
thank god my web guy sean was awake and being a loser with me on friday night because he throw up the webpage WHILE we were having our twitter party and people started ordering the shirts - that i designed in SHARPIE in realtime) and a slogan that someone suggested: “DON’T STAND UP FOR WHAT’S RIGHT, STAY IN FOR WHAT’S WRONG”. neil gaiman and wil wheaton joined our party. the fdnas felt super-special.

by the end of the night, we’d sold 200 shirts off the quickie site (paypal only) that sean had set up.
i blogged the whole story the next day and in total, in the matter of a few days, we sold over 400 shirts, for $25/ea.

we ended up grossing OVER $11,000 on the shirts.
my assistant beth had the shirts printed up ASAP and mailed them from her apartment.

total made on twitter in two hours = $11,000.
total made from my huge-ass ben-folds produced-major-label solo album this year = $0

2.
WEBCAST AUCTION, $6000

a few nights after that, i blogged and twittered, announcing a “webcast auction” from my apartment.
it went from 6 pm - 9 pm, my assitant beth sat at my side and kept her eyes on incoming bids and twitter feed.
while we hocked weird goods, i sang songs and answered questions from fans. we wore kimonos and drank wine. it was a blast.

people on twitter who were tuned in re-tweeted to other fans. the word spread that it was a fun place to be and watch.
we had, at peak, about 2000 people watching the webcast.

at the suggestion of a fan early in the webcastm anyone could, on demand, send us $20 via paypal and we would chew,
sign and mail them a postcard. we sold about 70, and we read all those names at the end of the webcast and thanked those
people for supporting us. here’s how the sales broke down:

all the items were signed by moi and hand-packed by beth and kayla._ the items and highest bidders were as follows:_ hilary, ukulele used on the european tour: $640 _jake, “guitar hero” plastic guitar controller used in album promo shoot: $250_ lary b, copy neo2 magazine, plus two post-war trade slap-bracelets & a crime-photo set: $230_ devi, glass dildo, with subtley-sordid backstory: $560 _liz b., “hipsters ruin everything” t-shirt, made by blake (get your very own here!!!!): $155.55_shannon m., my bill bryson book, a short history of neary everything: $280_ nikki, huge metal “the establishment” sign, used at rothbury festival for the circus tent i curated: $450 _j.r., purple velvet “A” dress used in the dresden dolls coin-operated boy video shoot: $400_ jessie & alan: who killed amanda palmer vinyl: $100_ nikki: wine bottle, auctioned BY REQUEST!!! $320 _shannon w., torn-to-shit vintage stockings used in the who killed amanda palmer/ michael pope video series: $200 _jodi,
school-note-book break-up letter, written to amanda from jonas woolverton in 7th grade (i still haven’t emailed him about that….): $250_ daryl, ANOTHER wine bottle, by request, that we had LYING AROUND: $320
and…………..
reto emailed, having barely missed the wine bottle, and asked us to send him “something funny” for $129.99. we sent a heath ledger statuette.

total made on twitter in 3 hours, including the postcards, was over $6000.
again, total made on my major-label solo album this year: $0

3.
TWITTER DONATION-ONLY GIG, $1800

a few days later, i twittered a guest-list only event in a recording studio in boston, to take place a week later.
the gig lasted about 5 hours, all told, with soundcheck and signing. i took mostly requests and we had a grand old time.
first come, first served. the first 200 people to ask got in, for free. i asked for donations and made about $2200 in cash.
i gave $400 back to the studio for the space and the help. we sold some weird merch. i think we should call it an even 2k.

total made at last-minute secret twitter gig, in about 5 hours = $2000
major-label record blah blah blah = $0

…..and for fun, and to thank my fans for being awesome, i’ve been doing some twitter perfomance art, including answering their questions by magic-markering my body until it’s covered, and displaying time-lapse make-up application advice….but that’s another story.

TOTAL MADE THIS MONTH USING TWITTER = $19,000
TOTAL MADE FROM 30,000 RECORD SALES = ABSOLUTELY NOTHING.

turn on, tune in, get dropped!!!!!

love,
amanda fucking palmer
http://www.amandapalmer.net
http://www.dresdendolls.com

There are so many different examples buried in there of both connecting with fans and giving them a reason to buy, it's worth reading multiple times. So, go on, naysayers in the comments. Point out, yet again, why this is the exception, and explain why other artists can never do their own creative means of connecting with fans and giving them a reason to buy. We'll chuckle, and watch as more and more figure it out.

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Magazines Giving Readers A Real Reason To Buy

from the very-cool dept

While most of the coverage of the old school paper media industry struggling to update their business models has focused on newspapers, there are lots of questions around the magazine industry as well. Magazines are losing ad revenue and trying to reinvent themselves to retain readers. Some are giving up and shutting down completely. However, I've seen a few stories lately pointing to smaller, less well known magazines that are really doing some unique things to give readers a real reason to buy, rather than trying to force them to buy. The first comes courtesy of Surinder, who points us to a story about Monocle magazine, who has focused on a strategy of giving readers a real reason to buy:

There are, on this type of thinking, two kinds of reader: fans and the indifferent. Monocle's strategy is to find fans and then, boy, make money out of them. So, if you missed an issue, back issues cost double - because in the end it is only completists, eyeing an irritating lacuna on the bathroom shelf, who will want to buy. And they might as well pay up.

There are Monocle accessories - bags, pens and Lord knows what else - to buy and of course it is the fans that do, as they rather like being some sort of trans-national club, who fancy flying for a holiday in Costa Rica/Brunei/South Africa. And if you missed them in the magazine, you can head down to a Monocle shop. There is one off Marylebone High Street in London, with others in Los Angeles, or in Mallorca this summer, on the off chance that you happen to be in those locations at the crucial time.

Now, some readers may snort with derision at this point. After all, it would not be hard for more demotic types to describe Monocle as pretentious, although this is in fact unfair. But it does not matter; if there are enough fans you can make good money from them, a strategy that never did Madonna much harm. The snorters - a majority for any publication if you think about it - are irrelevant.

Then, the Wall Street Journal covered five different magazines that are all coming up with creative ways to add value and give fans a reason to buy. Some of them are incredibly creative, often turning the "magazine" into a piece of artwork itself (i.e., something you want to posses and own, not something you read and toss out). For example, there's T-Post -- a magazine built into a t-shirt:

It's the magazine you can wear.

Every six weeks, T-Post sends its 2,500 subscribers a new T-shirt: It has a true story printed on the inside, chosen to make readers think, while on the outside an artist interprets the story to create a stylishly unique piece of graphic clothing. The idea behind the magazine is that each design will provoke onlookers to comment -- and give the owner of the T-shirt the opportunity to spread the story printed on the inside.

Other magazines include one where every issue is round and comes inside a designer frisbee, another where the magazine is made of unique and unusual materials (the latest one is "a book of black-and-white photographs that turn to color when exposed to the sun." Then there are magazines that blur the lines between magazines and objects, such as La Mas Bella and La Lata, which comes in a can you have to pry open.

While a lot of these are (not surprisingly) art magazines, that doesn't mean non-art magazines can't take a lesson from this: provide something worth keeping that creates a real reason to buy.

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