Musician Making A Living With Forty Committed True Fans

from the imagine-what-he-can-do-with-1,000 dept

A year and a half ago, we wrote about Kevin Kelly's theory that to be a success as a content creator, you just need 1,000 "true fans." These were the ultra-committed fans. The fans who would follow you to the end of the world and purchase whatever you came out with. And -- more importantly -- they'll help bring more fans into the fold. The point isn't that these are your only fans, but the most committed. At the time, I wasn't sure if the 1,000 number was really accurate, but certainly agreed with the idea of more closely connecting with your biggest fans. My guess was that 1,000 wasn't really enough. But, perhaps I was off in the wrong direction? Ariel Hyatt has been blogging about the concept of 1,000 True Fans and has an interview with musician Matthew Ebel, an up-and-coming musician who makes a living from his music, and breaks down the details -- including pointing out that he makes 26.3% of his net income from just 40 hard-core fans.

Music Sales:

• CD Sales - 4.1%
• Digital Music Sales - 13.9%
• Subscription Site - 36.9%
• Live Shows - 18.1%
• Cover Gig Fees/Cover - 9.8%
• Original Gig Fees/Cover - 6.2%
• Tips (Including UStream) - 2.1%
• Works For Hire & Voiceovers - 8.2%
• Affiliate Sales (typically for my own albums/tracks) - 1.1%
• Licensing - 13.2%
• Independent Film - 6.6%
• Internet - 6.6%
• Web Design - 4.6% (I include this because I'm doing a website for a friend... it's something I choose to do, but it is part of my income this year.)

Now, first thing I'll point out is that I'm still not sure the numbers fully add up. Matthew doesn't give a total amount earned, but in a comment says:

Suffice it to say that I'm renting a house in Wellesley, MA with a couple of room mates... I'm not starving, I can still eat sushi from time to time, and my car (neither a Pinto nor a Bentley) is paid off.

So, he's making a living wage, but not raking it in, which is to be expected (and is certainly a hell of a lot better than many musicians). Now, of course, the other number that stands out above is the "subscription site" with the single largest percentage of his revenue. That would be his MatthewEbel.net site, where he offers a $5/month subscription offering. It actually looks quite a lot like the music business model I suggested back in 2003, so it's nice to see someone making it work directly. Basically, it's people paying for access to Matthew (he even admits that in the description, saying it's like a permanent "backstage pass"). While subscribers will get regular access to new music as soon as he creates it, the selling point is special invitations and access to the artist.

And, of course, Ebel seems to certainly recognize the CwF (connect with fans) part that has to go along with this RtB (reason to buy). In the interview, he discusses the importance of really connecting with those fans. First, he notes that one of the nice side effects of his "subscription" offering is that he promises fans two new songs and one live concert recording every month, and that keeps him top of mind:

Little did I realize that new releases every two weeks would be better than any good album reviews or press coverage. Giving my fans something new to talk about every two weeks meant exactly that: they talk about me every two weeks. They're not buying an album, raving about it, and losing interest after a few months, they're constantly spreading my name to their Twitter followers, coworkers, pets, etc. Regular delivery of quality material is damn near my one-step panacea for the whole industry.

And, of course, he uses social media to connect as much as possible:

Good music is barely enough to get fans to hand out 99¢ anymore; they have to be emotionally invested in the artist if that artist wants their loyalty. Don't get me wrong, there can still be a "fourth wall" during a live concert or video, but real, meaningful connection with the fans is what keeps me in their heads after the show's over (heck, even your "character" can interact with fans in-character). I chat with my fans via Twitter, Facebook, matthewebel.com and matthewebel.net, and as many other channels as possible. The more I interact with them between performances, the more I stay fresh in their minds and the more inspiration I draw from them.

Yet another musicians showing how CwF+RtB works. Now, I'm sure some will complain that this isn't a "real" success because he's not selling out stadiums or something (of course, those are the same people who would say that those selling out stadiums don't count because they can afford to do crazy experiments). But given how many musicians we're hearing about these days making exactly these types of things work to the point where they can make a living doing it, you have to begin to realize that something's working.

Filed Under: connecting with fans, cwf, kevin kelly, matthew ebel, rtb, subscriptions, true fans

Photographers Can Do CwF+RtB Experiments, Too

from the n00bs-need-not-apply dept

Michiel Rhoen writes in to tell us about photography instructor and author, Thom Hogan, who has embraced the CwF+RtB philosophy by offering a limited edition deal (only 25 spots available with 4 already taken at the time of writing this) where Mr. Hogan will sit down one-on-one with each buyer for 3 hours. During those 3 hours, Hogan is game for almost any kind of photography consulting, giving his professional advice on camera equipment, portfolio reviews, help with post processing work or just a long chat over a meal together. But that's not all... The complete Thom Hogan Limited Edition package (US$849) includes:

• A full normal package for the book, Complete Guide to the Nikon D700 (CD and To Go Guide), a US$49.99 value
• A full printed version of the main book in black and white, a US$29.99 value
• A full printed, signed, numbered version of the main book in color, a US$99.99 value
• All of the above shipped to you via Priority Mail
• All future updates of the book, if any, delivered free, a likely US$14.99 value or more
• Three hours of personal, one-on-one time with Thom, a US$750 value

So this deal is aimed directly at folks who own a very specific camera and who happen to be able to travel to see Hogan when he's available for the one-on-one time. It's not exactly going to make Hogan a millionaire (at best, it's going to make him $21,225 gross). But it's a great example of how an author can take advantage of actual scarcities (Hogan's time and expertise) as part of a business. I do find it interesting that Hogan's limited edition offer is an experiment that might demonstrate the advantages of selling an author's time over selling content that is already created. I imagine if this package sells out, that Hogan will expand this limited offer to other specific cameras. And I'd bet he'd even be able to crowdfund a new book if enough amateur photographers ask him to create his next "complete guide" for a camera he might not otherwise have reviewed.

Filed Under: cwf, photography, rtb, thom hogan

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

Public Enemy Trying To Get A Little Help From Its Friends

from the holding-songs-hostage dept

SellaBand is known for funding musicians' albums with contributions from fans -- contributions that not only help to record the music but also entitle the paying fans to a share of the revenues from the album after it's released. Up until now, the artists using SellaBand have not exactly been household names, making it susceptible to Masnick's law where critics could say SellaBand is only good for small bands. However, Chuck D and Public Enemy are aiming to prove that a big-name act can solicit $250,000 from fans to finance their next album. It's actually not all that surprising that Chuck D would go this route. You may not remember, but when Lars Ulrich from Metallica first freaked out about Napster, it was Chuck D who publicly debated him, and said that file sharing was "the new radio" and it was time to embrace it. Chuck D also testified before the Senate about how file sharing was a great distribution mechanism, and the recording industry was making a mistake trying to stop it. So you had to figure he'd be a fan of trying out smarter, fan-focused business models.

Similar to efforts by Trent Reznor, Jill Sobule, Kickstarter and many others, SellaBand also has a system of fan-fundable tiers for its artists. For Public Enemy, supporters can buy into the project in $25 shares in order for Public Enemy to reach its ultimate quarter million dollar goal. And the more shares you buy, the more you get.

• 1 Part ($25) = "Believer" Level Incentive: Exclusive, numbered CD in Digipak
• 4 Parts ($100) = "Hype" Level Incentive: "Believer" Level, plus the opportunity to buy 2nd CD at 50% off, & Name in booklet
• 10 Parts ($250) = "Rebel" Level Incentive: All of Above plus Exclusive Limited Edition Public Enemy T Shirt
• 20 Parts ($500) = "Posse" Level Incentive: All of Above plus Autographed Copy of CD signed by Chuck D
• 40 Parts ($1,000) = "Terrordome" Level Incentive: All of Above plus Unlimited backstage pass for 3 years [Limited to 50]
• 200 Parts ($5,000) = "Bring The Noise" Level Incentive: All of Above plus Executive Producer Credit on Album [Limited to 15]
• 400 Parts ($10,000) = "PE Number One" Level Incentive: All of Above plus Studio Visit during recording session [Limited to 5]

But unlike Josh Freese, Public Enemy's tiers are missing a certain je ne sais quoi that could connect with fans or give them a compelling reason to buy a 3-year backstage pass for $1,000. These tiers lack some authenticity to me, though I wouldn't consider myself a fan of Public Enemy. But honestly, I can't really tell if Public Enemy came up with these levels -- because they sound so standard (especially if you look at other SellaBand artist tiers). Not to knock Public Enemy too hard, but they really should put a bit more effort into something like this. And SellaBand might also benefit from looking into floundering Kickstarter projects to perhaps get a better grasp of how to promote artists that aren't quite reaching their fund goals. One of the lessons learned is that contributing fans want to see some involvement and interactions -- you can't just set it and forget it -- if you're asking fans to part with a few thousand dollars. But on the other hand, SellaBand doesn't seem to have goal deadlines, so Public Enemy might have the fame and patience to attract 10,000 fans willing to fork over $25 each.

Filed Under: chuck d, fan funded, music, public enemy, rtb
Companies: sellaband

The First Printed Copy Of SuperFreakonomics Auctioned Off For Charity

from the not-so-superfreaky dept

With the follow-up to Freakonomics coming out, as part of the plan to promote SuperFreakonomics, the books' authors are auctioning off the very 1st printed copy on eBay for charity. The winner of the auction gets a signed copy of this book, as well as a verification letter and a limited-edition SuperFreak t-shirt. Clearly, the economists behind this offer understand the value of scarce goods, and they've tried to increase that value with a couple extra goodies (as well as a matching donation up to $5,000 from Stephen Dubner). But wouldn't it be more interesting to see additional "reasons to buy" around the content, along with typical "freakonomic" analysis of what works and why? Dubner has already suggested (tongue-in-cheek) that the winner won't suffer from winner's curse, but will there be more practical lessons to be learned from this auction? How would the results of this charity auction be different if it did a Dutch auction (like xkcd did recently)? Auctioning off another copy of the book without the charity aspect would be an interesting test, too. And are there other scarce items that Stephen Dubner or Steven Levitt could offer for their book sales?

Filed Under: auction, charity, freakonomics, rtb, superfreakonomics

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

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.

Filed Under: amanda palmer, asking for money, business models, busking, music, reason to buy, rtb