Monday, July 21, 2008

Online Music Promo - Engaging, Email Lists and Actually Monetizing: Lucky 7 Final chapter

Okay on we go with the very last episode of our 3 part series on getting your head around online promotion basics and then it just mutated into a seven part whopper!



In today s stunning conclusion it’s just all business. It’s not basic anything anymore because we’re actually engaging fans and we’re actually monetizing it.



Here's whats happened so far:


Part 1 is here: In digital we trust - preparing for digital music marketing and promotion


And part 2 is here: Are you ready? Content you need for your digital online promotion campaign


And part 3: Google and the importance of words on the web: more “who’s going to write our blog copy” now then “who’s going to direct our video”


Part 4: Getting your head around using social media and web 2.0 to promote your music


Part 5: Setting up a music artists website



Part 6: Music Artist Website promotion: Marketing and Sales




And don’t forget: Our new artist community has launched @ http://www.newmusicmarketing.com/ - it’s still free to join in July and we’re starting to add new in depth content already.



And of course tomorrow @ The Depot in Devonport I’ll be be giving a presentation on all this stuff Check it out if you’re in auckland.





So it was cliffhanger end last time when we suddenly discovered while we were promoting our websites and building the power of our musics brand message to connect with audiences – it was the good old email list that formed a fundamental strategy for monetizing all along!



There are many unique propositions you can be using to monetise this valuable, influential brand you’ve built up and these relationships you’re building with your audience, but your potential fans don’t want to be bombarded by what you want to sell them. That's not real. They want to connect with a message that makes them open to having you earn their trust. And this is where the proposition of having new fans sign up for an email list is probably one of the most successful strategies to create income long term, because the relationship is based on respect for a fan who welcomes your interactions, and will be prepared to spend money as the relationship and the unique value grows.



As the music industry evolves, I always say well . . . the last time I saw the rulebook on making money, it was flying out the window. Only one thing holds true and that is creating value for the fans and managing the relationship leads to artist success.

I think most of the old music industry think Radiohead was just a bad dream. They need to wake up.
Okay so lets wrap
up this thing by describing some different ways you can innovate to create revenue from your website and email list – and remember what I’ve said about new music business models – its not a horse race! You can ride every income stream that is worth the effort.


The idea is to continually innovate and optimize so that you are enhancing the value of your most profitable interactions and minimising the effort of your least profitable interactions. This is fundamental in guiding the innovative process.



Lets look at some areas for innovating monetization:



Pricing structure: Trent Reznors last Nine Inch Nails release was remarkable for the number of pricing iterations he created on different products available, so there was a product for fans at every level from a basic $5 download all the way up to a limited edition item valued a $300 that netted him $750,000 over the 48 hour period they took to sell out. The remarkable thing was also that this was an instrumental album, that though creating further options for licensing and synching, however was not really NIN's core content. But NIN's core fanbase is fully engaged and they dont care.

Income streams: The asian music market, where rampant piracy cripples the value of physical goods and copies, has led the way in showing how developing wide and deep ranges of products and service under the brand of an artist can actually leverage the effects of piracy.



The opportunities here to innovate abound. Maybe you need to have a serious and open minded think about what kind of products and services you can provide. I realised I could go to 6 year old’s birthdays and play pirates for $200 a pop, there’s this guy I heard about who offers to write and record love songs - mainly for the wedding market.

There's Bob Baker's buddy who sold 15,000 CD's on the pier playing cheesy love ballads twice a week for 18 months.

What have you got? Is it your raw technical skill? Is it your charisma? Is there are specific message around a common issue that peopel conenct with through your music? Do you have prolific output?Do you make a fashion statement with what you wear or a sexual statement with what you don't?

You need to identify exactly where you can creating the most value with your specific skills and doing those things that you love that dont seem like work and leverage it!



Fan supported: In the fan supported model which has already been demonstratably successful, the artist set up a system by which there was increasingly personalised rewards for example - $10 pre ordered a copy of the CD, $500 gave you a thank you in the CD liner notes, $5000 gave you a trip from anywhere in the US to stay courtesy of the artist for a weekend during the recording and participate on the backing vocal of one of the songs.



Ad supported revenue: We often talk about the digital revolution creating an “attention economy” that is, in a digital environment where copies of content cease to have financial value, the value is then transferred to the attention created through content and the opportunity that remains to create revenue from attention through advertising.

Advertising networks online are getting increasingly sophisticated, and although I hold fast to the assertion that in 2008, 1000 page views should equal 1000 cents earnings - and currently after blogging for over 9 months, that’s about what I earn from my blogs in a week – I honestly believe that conditions for online advertisers will improve across the board as the medium continues to improve and show its effectiveness. First, muso’s will start out with Google adsense ads, before looking into joining an ad network potentially capable of delivering more lucrative and more consistent targeted ads charged per impression, finally a successful established musician should be able to attract sufficient interest to be able to cut out the middleman and sell advertising directly to niche partners.


Affiliate marketing: Affiliate marketing is a lucrative form of online marketing that drives online sales with high commissions, thus attracting many like a modern day gold rush. Those with online products will join an affiliate network that will provide its “partners” (bloggers, webmasters etc.) with ad offers. The tracking of these sites and offers is a highly sophisticated commercial operation and once a sale can be traced to somebody who once visited your site with the corresponding ad displayed, you will be accredited with a 40%-75% commission on the sale value. As I’ve discussed before the range of products is staggering, and sure, miracle diets etc. do tend to sell better BUT what you’ve got to realise is that there are free offers that pay out. This means you can leverage your email list to present a variety of offers to your fans. But the fact that you are able to collect 75% commission on digital products does raise possibilities about relative product value.

E.G. – Buy a month worth of digital movie rental for $US40 (of which the band gets $US30) and get our new album (worth $10) free!!!

You getting me? Things could get interesting.


Monetized communities:

So monetizing communities is based around the concept that the content that drives your promotion and monetization through advertising etc. becomes exponential once you have harnessed fans to actually create content for you.



Discussion about you, discussion with you, discussion about content, interaction with content, deconstruction (“mash up”) of content . . . when your fans are doing this for you, you’ve now got a a wild freeform content generating, web ownaging machine!



You want them designing their own t-shirts and selling them to one another and taking a cut. “c2c” means “consumer to consumer”.



The way we do business is about to be fundamentally changed online.



But yes. Artists must accept relinquishing control.

In 2013 If some kid photoshops your face on a dogs body and sells 50,000 t shirts online then you’re going to have to take your 25% cut and massive exposure and sulk in the corner.



But on communities gotta touch on what I’m doing personally with kurb – as a working model – so you can see in practice the model of a high value online community that is monetized. And the fact that you can see that I’m doing it, it’s not some huge leap for you. Cost me a few hundy.



With http://www.newmusicmarketing.com I’ve set up a forum platform from which to distribute high value content. In my case it’s content that I feel is to valuable to share freely – in your case it’s most likely your music. But in creating a platform on which to monetize premium content and your fan relationships you can create dynamic propositions.

You can build a list of 1000 hardcore fans who are happy to commit to paying $1 per week ($1 per week????) and be part of a premium experience that gives them premium access (you stop in the members over the week to interact) and access to premium content: your music, videos, special exclusive content, giveaways, competitions and prizes, special free gigs, seriously, innovation can run wild!




BUT



like I said. It’s just one horse in the stable. Your making $1000 p/week of your premium membership sites – your also making pocket money out of advertising, digital retail, royalties and licensing, your gigging of course – even your good old CD’s and merch . . . y’know? The futures not dark.



But you gotta get started now. It’ll take years for your online presence to dvelop and mature.






Okay, So I hope you’ve enjoyed this series!



I’ll be doing a post soon about going back over your blog and editing it for optimisation as a clean up each of the articles in the series.



Part 1 is here: In digital we trust - preparing for digital music marketing and promotion


And part 2 is here: Are you ready? Content you need for your digital online promotion campaign


And part 3: Google and the importance of words on the web: more “who’s going to write our blog copy” now then “who’s going to direct our video”


Part 4: Getting your head around using social media and web 2.0 to promote your music


part 5: Setting up a music artists website




And don’t forget: Our new artist community has launched @ http://www.newmusicmarketing.com/ - it’s still free to join in July and we’re starting to add new in depth content already.


And of course tomorrow @ The Depot in Devonport I’ll be be giving a presentation on all this stuff Check it out if you’re in auckland.





It’s time for me to get on with developing my community at http://newmusicmarketing.com



And I’ve got work to building my blogs presentation to build a more powerful brand and develop more and new ways of monetization.



Look for me at http://musicmarketingblog,info as I'm getting my act together here!



And make sure you subscribe by RSS because I just know I’m going to be talking more about branding, engaging fans and more about developing these relationships and monetized interactions soon.



Cheers!


1 comment:

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