Public Enemy Not Selling Well Enough On Sellaband: What Went Wrong?

from the connect-with-fans,-give-them-a-reason-to-buy dept

There have been a bunch of companies popping up lately that have allowed bands to help "pre-finance" an album, by getting fans to commit to pay up in exchange for some sort of added benefit. We've covered in great detail how Jill Sobule successfully used just such a method (on her own, not with a startup) to finance her last album. Earlier this year, though, the concept got a lot of attention when the group Public Enemy signed up with the company SellABand to try to raise $250,000 by the end of the year to finance its latest album. While we were impressed by such a well-known act trying such a system, we did note when it was announced that the "benefit" given by the group didn't really seem that compelling. The pricing seemed quite high for what people were getting, and there was little effort to actually "connect with fans." It was really just a very high-priced way of getting people to fund the next album.

So it doesn't come as much of a surprise that Public Enemy is struggling to reach its goal. It has raised over $70,000, which is nothing to complain about, but that's well short of the $250,000 goal.

There are definitely some important lessons to be learned from this. These sorts of models require a lot more than just putting it out there and expecting fans to automatically support you, no matter how big an act you might be. Jill Sobule worked really hard to cultivate and connect with her committed fanbase, and that's what helped her hit her goal. Public Enemy didn't seem to put much effort into that at all. Second, pricing really does matter. In giving people a "reason to buy" something, that doesn't mean you just slap a price on stuff. The price needs to be reasonable and make sense to people. Public Enemy's offerings just seemed pricey all around, even to fans of the group. At $100 you got a CD and a chance to buy a second CD at 50%, along with your name in a booklet? Eh. What's so exciting about that. At $250 they add in a t-shirt? That's $150 just for a t-shirt? You had to go all the way up to $500 before they would even autograph the CD. Sure, $1,000 for a 3 year unlimited backstage pass could be cool if you were going to see the band a lot, but that was the first offering that really seemed potentially worth the money for a serious fan.

So, I think there are some important lessons here. We've mainly focused on pulling lessons from the success stories, but the lessons from failures can be just as valuable. And, in this case, it goes back to our standard formula of Connect with Fans (CwF) and give them a Reason to Buy (RtB). Unfortunately, it doesn't look like Public Enemy really did much of either. They just expected the fans to come to them, and they priced everything too high, without giving really compelling lower end options. Because of that, they certainly got some people to pay up -- and, again, raising $70,000 is nothing to put down -- but it fell well short of the goal. In some ways, what they did is like a cargo cult: copying all the superficial aspects of what worked before, but not the really important stuff.

Filed Under: connecting with fans, public enemy, reason to buy, support, tiers
Companies: sellaband

Always Sunny In Giving People A Reason To Buy: Sitcom Produces Gag Product Featured On Show

from the business-models-that-work dept

Earlier this year, we wrote about the sitcom It's Always Sunny in Philadelphia, which has a bit of a cult-like following among fans of the show. As we wrote, the show was doing a cool thing to connect with fans, by doing a live tour and screening a new episode in theaters around the country. It was a cool idea, and we were surprised other TV shows didn't do things like that. But, of course, the rest of our favorite "CwF + RtB" business model equation is beyond connecting with fans, you also have to give them a reason to buy. And reader Jeff alerts us to something else that the show recently did. In an episode last month that involved the various characters in the show discussing their new product ideas, at least one of them, the Dick Towel (um... NSFW) was turned into a real product (again, NSFW) and offered for sale for $20. According to Jeff, in an email he recently received from the site, so many people have ordered that they're a little late in shipping, and it looked like over 4,000 towels had been sold. Connect with fans and giving them a reason to buy appears to work with television shows as well... Of course, others have tried similar things as well, and there's even an entire company, Omni Consumer Products, that tries to license brands from movies to turn them into real products...

Filed Under: always sunny in philadelphia, dick towel, reason to buy

Reason To Buy? Getting A Real Version Of The Resident Evil Motorcycle?

from the have-fun-with-it dept

Reader harbingerofdoom sends in the news that video game developer Capcom has commissioned the creation of a "very limited run" of real motorcycles based on the chopper in the game Resident Evil. As harbinger notes with his submission, this is quite a "reason to buy," in that he'd gladly pay $25,000 for a copy of Resident Evil if it came with one of these...

Filed Under: motorcycle, reason to buy, resident evil, rtb

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.

Filed Under: branding, marketing, reason to buy, shoes
Companies: digg, toms

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.

Filed Under: japan, kit kat, reason to buy, rtb
Companies: nestle

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.

Filed Under: ac/dc, guitar amp, reason to buy, rtb

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.

Filed Under: connect with fans, cory doctorow, cwf, reason to buy, rtb, tiers

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.

Filed Under: acting, connect with fans, cwf, felicia day, reason to buy, rtb

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.

Filed Under: business models, connect with fans, cwf, fanfarlo, music, reason to buy, rtb
Companies: topspin

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...

Filed Under: act, brief encounter, connect with fans, cwf, plays, reason to buy, rtb
Companies: american conservatory theatre, kneehigh theatre