One Working Musician Explains How Pay What You Want Works For Him
from the working-it dept
We're going to try something a bit new here at Techdirt. Usually, we post stories based on some news event or stories elsewhere, but since we talk so often about various business models, and often try to highlight business model experiments that work, I wanted to start a regular series of "case studies," on content creators doing interesting things. Sometimes it will include success stories. Sometimes, perhaps, failure stories. Sometimes we won't even know yet. But the goal is to call out examples of the interesting things that have been done, and to dig into them a bit, and hope that we can all learn from them and maybe see if others are inspired by them. We're looking for content creators (not just musicians, by the way) who might be interested in sharing info with us as a part of this series, so if you are doing something interesting, or know of someone else who is, hit us up at the feedback link above.The first one in this series of posts is about jazz musician Jason Parker, who also blogs at the site OneWorkingMusician.com, where he details his various experiments with making a living as, yes, a working musician.
Back when Radiohead did their pay what you want offering a few years ago, one of the widespread critiques of the idea was that it would only work if you already had a huge following. We've seen, of course, that isn't true. Last year, we wrote about a few experiments with bands trying pay what you want CDs at shows and having some success with it. This doesn't mean, of course, that if you just toss up some music and say "pay what you want," it will work. But if you really do cultivate a fanbase, and offer them a way to support you, it's often quite amazing what they will do... and that's exactly what Jason discovered.
It started with a "weekend experiment," late last year, where Parker reduced the required price of the download of his albums, to $0 from $5, and tweeted to his followers that they could pay whatever they wanted for it. He had considered setting a minimum of $1, but decided to see what happened if he went totally free. And the results were quite impressive:
Sunday night at midnight I checked my Bandcamp.com stats and was amazed. The three Jason Parker Quartet CD's, "No More, No Less", "Live @ JazzTV", and "The Jason Parker Quartet" had been downloaded 128 times! That's more downloads than I've received in the last few months combined. Most days I was lucky if a track or two were downloaded, let alone full albums.After the weekend, he raised the prices back up to $5... but after thinking through it some more, and seeing these and other results, he's now permanently set the price at "pay what you want," with $0 being a perfectly acceptable price. I asked Jason how it's going, and he says that before, when he had the price at $5, he would sell maybe 3 per month. However, these days, with the price set at $0, he's averaging 8 sales per week with an average price of $8.50. Yes, his sales have increased from one every ten days or so, to more than one per day, and the amount people pay has gone up. The CDs, by themselves, are obviously not a huge moneymaker, but still, the revenue has gone from about $15/month to around $300/month. By giving it away for free and letting people pay what they want. Not bad.
And what's even more impressive to me is that many of the people who downloaded the CD's actually paid for them, even though they didn't have to! In fact, I made more money from sales this weekend than in any other three-day period since the days right after the release of our latest CD, "No More, No Less". All while giving them away for free!
Jason's second experiment was with pay what you want at a show. Through a long and not very interesting set of circumstances, he was set to play a gig where the bar didn't realize that he was supposed to be playing that night, and had no one to watch the door. It was also a bar that has a lot of "regulars." While he had planned to charge a cover, rather than dealing with that, he decided to just ask people walking in to donate $5 to the musicians' fund, and he was surprised by the results:
Of course there were people who blew right by, or said "I'm just here for a beer", or "I'll get you on the way out" (which is as good as a "no"). But there were also many people who actually paid the $5 even though they didn't have to! And I can tell you for a fact that the majority of the people at the bar were NOT there to see the music. The bar has a large group of regulars who all seemed to know each other.Jason's third experiment was to start exclusively offering CDs at shows using a "pay what you want" scale. He found that he was actually selling more CDs at a higher price that way:
Just by asking, I was able to get people to give me $5 of their hard-earned cash when they weren't expecting to part with it. They had a choice and they chose to support the live music happening in the bar, even though it was completely unfamiliar to them and somewhat out of place. At the end of the night, both bands walked away with money in their pockets, free drinks in their bellies, and new fans. How about that??
At gigs in my hometown of Seattle I have been averaging $12/CD, which is more than the $10/CD I used to charge, and I have been averaging about twice as many CDs out the door per gig.Jason recently did a show where he specifically told the audience from the stage that he wanted everyone to leave with a CD, and that they could pay whatever they wanted:
And while we were on tour last month all CDs were sold as PWYW and we averaged $14/CD! I sold every disc I brought with me and couldn't be happier how it turned out.
It's been very successful for me in many ways, and I'm a huge fan. I have actually started to physically hand CDs to people at shows, and when they ask "how much" I tell them they are welcome to put whatever they think is fair in the tip jar. I can't tell you how many $20 bills I've seen go in the jar for single CDs.
By the end of the night I had sold 27 CDs with an average price of $11.50.I asked Jason what he thought about the idea that people "just want stuff for free," as we hear so often, and his general thoughts on the idea of better "connecting with fans," and he gave quite a nice response about his experiences and his thoughts:
I think it is about continually connecting with your fans and potential fans. For me the best thing has been to reach out to people on Twitter as a person, not as a musician. When they get to know me as a person, they are MUCH more likely to buy the CD. That's where the majority of my Bandcamp sales are coming from. It does take work to be consistently chatting with folks and finding new folks, but I see a direct correlation between how much I converse on Twitter and how many downloads I sell. It's a no-brainer.Great stuff from Jason, and I appreciate him taking the time to answer my questions. If you want to check out his music, you should head on over to his Bandcamp page. You won't regret it.
I disagree that people "just want stuff for free". The way I see it, people will take for free what they have no connection to. However, if you make a connection, these same people will WANT to give you money. And as I found out at the bar, the connection doesn't need to be deep or lasting, although that certainly helps. The people who gave money in that instance did so because I appealed to them as a musician and a human being and asked them for their support. They were willing to give even if that's the last they'll ever hear from or of me. I think that's pretty cool and pretty telling. We need to get comfortable making the ask...that's the only way we'll get what we need.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: business models, jason parker, music, pay what you want
Reader Comments
Subscribe: RSS
View by: Time | Thread
Actually...
The tough part, I think, is actually gauging how large/interested your audience is and, even more so, engaging them properly....
[ link to this | view in chronology ]
Re: Actually...
[ link to this | view in chronology ]
Re: Re: Actually...
What I'd be interested in learning as a follow up from Jason is if he was able to see some kind of cumulative effect on interest/sales/whatever based on using this model. I suspect that, at some level or another, that effect is there. Measuring it isn't so easy, though....
[ link to this | view in chronology ]
Re: Re: Re: Actually...
Good luck with that.
[ link to this | view in chronology ]
Re: Re: Re: Actually...
I'd be happy to follow up! Can you explain more what you mean by a "cumulative effect"?
Thanks,
Jason
[ link to this | view in chronology ]
Re: Re: Re: Re: Actually...
The point, I thought, was to connect and get your fans to be your advocates. At some point you reach critical mass and massive amounts of people know you and your work....
[ link to this | view in chronology ]
Re: Re: Re: Actually...
Your thoughts??
[ link to this | view in chronology ]
Re: Re: Re: Re: Actually...
The "pay what you want" sales model is akin to the "pass the hat" live model. It doesn't work all that well.
Much more successful is the "suggested donation" model, where you set a specific price (say $10), but make it clear that it's optional. By giving a suggested price, you give people a goal to shoot for, even if it's not required.
For me, the "suggested donation" model actually surpasses both the "pass the hat" model, and the "fixed price" (i.e. cover charge) model.
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Actually...
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re: Actually...
But, in my experience, it's not about "guilt" so much as genuine ignorance about what a fair price actually is. Consumers have no idea how much it costs to do things (nor should they need to), so they won't know unless they're told.
Now, obviously you can't just set your own price - people can tell when they're being gouged. But everyone wants to support the things they like, and if you set a fair price, they'll voluntarily oblige if they can.
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re: Re: Actually...
I am finally getting where Mike is coming from on this. It just clicked with your previous comment. Its about the presentation, the access, and the connection. Very cool!
Neat thing is that the record labels can't do this there is to much animosity towards them. Actually its out right hatred, and people would be spiteful and vindictive towards them. So one less business model for them to use ... hoo-ah!!
[ link to this | view in chronology ]
Re: Re: Re: Re: Actually...
1. People are generally good. Explain to them what you're trying to do, and why you're trying to do it, and they'll want to help.
2. Pay what you want inherently makes most people think not only about the art, or about money, but about how they're connected with regard to value and price. Asking someone to pay a price sucks. Asking someone to give in the amount they value what you've done creates a bond.
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Actually...
Its ...
Pay what you want with a price of zero as the default
-vs-
Pay what you want with a non zero price as the default
The second choice is the better option. IMHO
[ link to this | view in chronology ]
Re: Re: Re: Actually...
The only ones who actually have any idea about how things spread are search engines.
Maybe it is important but if Youtube is any indication of how things work, the original almost always is the one who gets the most views and then others start showing up.
Search baby search.
[ link to this | view in chronology ]
Re: Re: Re: Actually...
[ link to this | view in chronology ]
Re: Actually...
e.g.:
http://extensions.joomla.org/extensions/site-management/site-traffic-statistics
[ link to this | view in chronology ]
Good stuff
funny thing, the album has a minimum purchase price of 0.00
but if you wnat to get the individual tracks, they have a minimum of 1$
Sweet
[ link to this | view in chronology ]
Of course, I want to support artists, but I cannot give money to an organization that uses it to take my rights away from me. I'm glad to hear about this guy's success. I'm far more likely to take the music for free and give a $10 tip than buying it for even a dollar.
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Re:
My hypothesis is different: each one has their own view on how much a music CD is worth. Some people would pay $10, some people $20... The trick is that, by not stating a price, each person will pay their own optimum value (see http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html to understand why each person paying their optimum price is good).
On the other hand, each person will tend to pay what they view as how much it is worth, instead of just paying nothing, because people are naturally good.
[ link to this | view in chronology ]
A Freely Donated How-To Lesson on Fix your Headline:
Also, it's "Workin" Musician, not "Working Musician".
[ link to this | view in chronology ]
Re: A Freely Donated How-To Lesson on Fix your Headline:
[ link to this | view in chronology ]
"he decided to just ask people walking in to donate to the musicians' fund"
"We need to get comfortable making the ask...that's the only way we'll get what we need."
Turning Art into vagrancy, beautiful.
RtB is certainly not the whole "no one tell them we will be offering this service, then surprise them and ask for a donation (and a $5 donation is not PWyW, its $5)"
Otherwise the next article should be about the awesome ass window washer who decided to take his skills to the street and offer it for donations, he was connecting more with his customers by showing up places unexpectedly and asking donations of strangers for providing a service that was imposed upon them rather than sought out.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
.............what is an ass window?
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
Re: Re:
[ link to this | view in chronology ]
[ link to this | view in chronology ]
"They sit at the bar, and put bread in my jar,
And once I saw an organ grinder dance while his monkey turned the crank, then both went round with hat out.
Not exactly a new "business model", now that I think on it.
But I'm afraid it only works where the product is free and value is subjective. Don't see any migrant workers offering fruit in exchange with a pay-as-you-want model, because there's an *objective* standard for it.
[ link to this | view in chronology ]
Pass the Bucket
Similar story with downloads. For ideological reasons I'm not comfortable with charging money for our music, which has tons of samples (we sell physical CDs basically at cost, and the only reason we sell those is that you're still not considered "legit" in today's industry without them. Times are changing, though). Instead I use it to promote the things I can make money at in music, and newsflash!: it isn't merch. My biggest money makers are DJing and guest bartending. Behind that is music production, and as bigger studios have fallen by the wayside I've been cleaning up on that end. However, the last few years have seen a downturn on that side of my business, so lately I've been trading production work for things like graphic design and PR work for my band, which is kind of creating a "serpent eating its tail" situation. After that is working as a soundguy for live shows, and behind that is mostly free work sequencing/scoring that I do for modern dancers, performance artists, and other various artsy things that catch my interest. But there are other benefits to that work. Mostly networking and venue rental discounts.
Whatever you can do to get by, that's what counts. Personally, I like it when people are buying other people's music, because it creates an industry I can sell my "behind-the-scenes" skills to.
Still, I think the most beautiful "business model" I ever witnessed was (literally) perpetrated by a band called The Causey Way. Their gimmick was that they were a cult led by a man named simply "Causey" and in the middle of shows, hell in the middle of songs, he would point at a member of the audience and demand at least 5 dollars. People were so stunned, embarrassed, and scared of not looking cool that they eagerly handed the man money. Keep in mind that the audience had already paid at least $20 apiece to get in the doors. It even worked on me. I mean, this dude on stage is pointing at you, looking you in the eye demanding money, and the whole audience is now focused on you. What else can you do except hand the guy 5 bucks? Absolutely brilliant.
[ link to this | view in chronology ]
and everyone has an ass window, its just always night.
[ link to this | view in chronology ]
And I can tell you that it is definitely a cumulative effect so far. What Mike didn't talk about was my Micropatronage (fan-funding) programs that have helped me raise fund for my last album and my tour. About 85% of the people who gave to my first program (CD) also gave to my second program (tour). They were also my biggest advocates in getting the word out the 2nd time around. So far so good!
And I think the key is that PWYW allows the consumer to decide what the product/service is worth TO THEM. The CD may be worth $1 to one person and $50 to another. I'm just giving them the opportunity (and the prodding) to make that decision. As you say, people generally do want to support things they like and will do so if asked.
Thanks for all the great comments folks!
[ link to this | view in chronology ]
Re:
Also, congratulations Jason!
[ link to this | view in chronology ]
http://oneworkingmusician.com/come-on-tour-with-the-jason-parker-quartet
http://www. jasonparkermusic.com/new-jason-parker-quartet-cd
[ link to this | view in chronology ]
Great Article
[ link to this | view in chronology ]
Re: Great Article
I like the music - never heard of the band. He gets my $10 for the digital and just pointed a few fellow jazzies his way.
Why? Not just for the music but for the openess and the fact he "gets it". Music is about the music and the fan - the rest is dross.
[ link to this | view in chronology ]
Totally right
I did the pay as you want at my shows and sold cd's in avarage of 9USD every show - that thing works, but like everything in life - it's a question of marketing, and in this case - marketing from the stage
[ link to this | view in chronology ]
How do they do that? they engage the communities they are in.
I'm an atheist by the way.
The oldest trick in the world is doing some sort of public event to raise funds, for musicians they can partner together to make such events like the Brazilians "aparelhagems" that are trucks full of equipment to make parties like circus, where you put up a show and on the side you have merch being pushed to customers like drinks, food, apparel, memorabilia.
Today you can find used busses and trucks for less than 10 grand, remodeling them would cost 3 thousand each or less depending on if you want to have electricity and shower inside.
I can see the possibilities.
[ link to this | view in chronology ]
Of course that can't be done alone, it needs a group of people to be accomplished.
[ link to this | view in chronology ]
The Lesson Learned
[ link to this | view in chronology ]
It's really a very old model
When I was stationed in Boston, I use to ride the T to the office very day. At the orange/blue line interchange, there was a young man who played the violin. He could have easily been in the Boston Pops, but he chose to play in the subway. Every day he played, he left with a violin case full of money. He made his own hours, and lived life on his terms, and no one told him what to play. Every day I saw him, I dropped a least a fiver into that case.
On my last day in Boston, just before my transfer, I dropped a $100 bill in his case, and thanked him for making my commute more enjoyable.
[ link to this | view in chronology ]
Entertainment people
[ link to this | view in chronology ]
And Gene Cavanaugh, sorry you didn't find this interesting and/or useful. I find the "back" button works great in these instances... ;)
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Hope you dig the tunes!
Jason
[ link to this | view in chronology ]
Happy customer :)
Somehow between that decision and me writing this post, Jason now has twentyfive bucks, I have a personal email from him replying to a comment I made in the payment, and will definitely be keeping an eye on future releases. Funny how that goes :)
He asked me if he could put a comment I made on here, so I figured I'd do so myself:
This take it for free if you like attitude gives me much more satisfaction as a listener than ripping something from Limewire... and actually compels me to pay up, just because you've placed some trust in me to do the right thing. Weird reverse-psychology thing :)
[ link to this | view in chronology ]
And LC...I don't think it's so much that you need to have a solid fan base as that you need to have the willingness to search out your would-be fans. The internet makes that so much easier. Artists willing to put some time into it are reaping the benefits!
Cheers all.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Same Here
[ link to this | view in chronology ]