from the another-good-example dept
Mathew Ingram points us to a blog post by Mark Kelly, the keyboard player with the band Marillion, who have actually been using just such a method of producing their albums for almost a decade:
In 1999 we released our final contracted album for Castle Records and, in anticipation of the way we planned to do business in the future, called it Marillion.com. We had already collected the email addresses of more than 20,000 fans through free CDs, downloads, etc. and by asking these fans to order and pay for the upcoming CD in advance, we were able to finance the writing and recording.This is another fantastic example of the business model in action: focusing on connecting with your true fans, focusing on selling scarce goods (remember, the creation of content is a scarcity -- existing content is not) and giving people a real reason to buy (such as "special edition pre-order CDs with 128-page hardcover books containing beautiful artwork").
We maximised the profit from the pre-order by cutting out the record companies, distributors and retailers, manufacturing and shipping direct. We also released the album in the shops through an independent distributor to reach the fans not on the internet.
We released three more albums between 2001 and 2007 using this business model and despite continuing falls in CD sales worldwide we have managed to shield ourselves from the worst by continuing to build our database of email addresses, currently more than 65,000, and by offering special edition pre-order CDs with 128-page hardcover books containing beautiful artwork.
I'm sure many people still download our music illegally but the real hardcore fans want the special editions and are willing to pay £25 or more for them.
Unfortunately, after describing this great business model, Kelly veers off on a tangent that doesn't seem to fit with the point he makes in the first half. Even though his band has figured out how to profit without having to worry about "piracy," he seems to support the idea that ISPs should be responsible for file sharing, and he doesn't seem to recognize how promoting file sharing himself would help create more fans to add to that 65,000-strong email list. But, still, even though the end of the post doesn't quite match with the first half, it's great to see another band find success with this sort of business model.