Trent Reznor Explains What A Musician Needs To Do To Be Successful These Days

from the good-job dept

Pretty much every other person who's ever read the site has sent this one in today, so I figure it's worth writing up. We've talked for a long time about how unknown/up-and-coming artists can embrace new business models to be more successful these days. In fact, five or six years ago the only artists who were doing these kinds of experiments were the up-and-coming ones. And when we did that, people complained that "well, sure, this works for the unknowns, because they have nothing to lose, but it's not a real business model." And then, in the last couple of years, with folks like Trent Reznor and some other well known artists embracing new models, suddenly the refrain changed: "well, sure, this works for them because they already have a huge following... but it'll never work for everyone else." What was silly was that they were both effectively doing the same thing: better connecting with fans, and offering them something of scarce value to buy. In my more recent presentations, I've been careful to show how artists big, medium and small are all successfully embracing new models based on this formula:

Connect with Fans (CwF) + Reason to Buy (RtB) = The Business Model
And those who are embracing it are finding that it works and works incredibly well in many cases. Yet, still people want to insist that it can't work. In fact, Reznor himself heard this when he mentioned that the Beastie Boys new offering (built on the Topspin platform) was "how you sell music today." In response, the second wave of naysayers listed above came out to complain, so Reznor decided to respond by explaining how new artists get noticed, build a following and build a business model these days. And the formula is basically: connect with fans and give them a reason to buy... and use free music to do both of those things. He does note, that if you want to be a superstar, you probably need to sign with a label, but doing so will mean giving up pretty much everything: control, profits, ownership. However, if you just want to be a success...

* Forget thinking you are going to make any real money from record sales. Make your record cheaply (but great) and GIVE IT AWAY. As an artist you want as many people as possible to hear your work. Word of mouth is the only true marketing that matters....

* Parter with a TopSpin or similar or build your own website, but what you NEED to do is this - give your music away as high-quality DRM-free MP3s. Collect people's email info in exchange (which means having the infrastructure to do so) and start building your database of potential customers. Then, offer a variety of premium packages for sale and make them limited editions / scarce goods. Base the price and amount available on what you think you can sell. Make the packages special - make them by hand, sign them, make them unique, make them something YOU would want to have as a fan...

* The point is this: music IS free whether you want to believe that or not. Every piece of music you can think of is available free right now a click away. This is a fact - it sucks as the musician BUT THAT'S THE WAY IT IS (for now). So... have the public get what they want FROM YOU instead of a torrent site and garner good will in the process (plus build your database)....

* Have your MySpace page, but get a site outside MySpace - it's dying and reads as cheap / generic. Remove all Flash from your website. Remove all stupid intros and load-times. MAKE IT SIMPLE TO NAVIGATE AND EASY TO FIND AND HEAR MUSIC (but don't autoplay). Constantly update your site with content - pictures, blogs, whatever. Give people a reason to return to your site all the time. Put up a bulletin board and start a community. Engage your fans (with caution!) Make cheap videos. Film yourself talking. Play shows. Make interesting things. Get a Twitter account. Be interesting. Be real. Submit your music to blogs that may be interested. NEVER CHASE TRENDS. Utilize the multitude of tools available to you for very little cost of any - Flickr / YouTube / Vimeo / SoundCloud / Twitter etc.

* If you don't know anything about new media or how people communicate these days, none of this will work. The role of an independent musician these days requires a mastery of first hand use of these tools. If you don't get it - find someone who does to do this for you. If you are waiting around for the phone to ring or that A & R guy to show up at your gig - good luck, you're going to be waiting a while.

Great stuff, as usual, and certainly reinforces the point: it's certainly hard work, but it is doable. If you're unknown, use this process to get known. Once you're known, you can start to implement all different elements of the business model, using the music to make scarce goods much more valuable and start earning that way. Great advice for artists big, medium and small...

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Redlight Cameras In Kansas City Are Too Successful

from the gotta-hire-more-people dept

We've had a bunch of stories about problems with redlight cameras, in that they don't seem to make intersections any safer, but they do present an easy way for cities to bring in a lot of cash quickly. However, there's an apparent "downside" to the cash influx, as well. Reader mrtraver alerts us to the news that redlight cameras in Kansas City have been issuing so many tickets that the police department needs more money to handle all the tickets. Kansas City wants to hire four new officers just to deal with the automated tickets, or get more money to pay officers' overtime salaries for dealing with so many tickets. Apparently, in just three months, the cameras at 20 intersections have given out 6,900 tickets, and there's a big backlog as officers need to review each photo to make sure it's legit before sending out the citation.

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Nettwerk, Topspin Show: Give People A Reason To Buy... And Many Of Them Come Through

from the some-data dept

In the last post, I showed the video of my presentation at the NARM event full of music industry and music industry retailers. I recognize that not everyone wants to sit through a 30 minute presentation (even though I promise that it goes quickly!), so I did want to highlight two parts of it separately, here in text, that I think are worth calling out. Both show companies that seem to (implicitly or explicitly) recognize what we talk about in terms of enabling artists to better connect with their fans and give those fans a reason to buy -- Topspin and Nettwerk. We've certainly talked about both in various posts, but execs from both companies were kind enough to share some data on some of their experiments that have not been reported elsewhere, and which I thought was worth sharing.

Topspin, of course, has built up a platform to better enable artists to both connect with fans and to give them a reason to buy, and has been able to work with some fantastic artists, both big and small, including Eminem, Paul McCartney, the Beastie Boys, Metric, Beck, Van Hunt, David Byrne and a bunch of others as well. The exciting thing is the level of success Topspin has found with these artists:

• The average transaction price across all Topspin artists has been $22. Compare that to the average price of a CD, which remains between $12 and $14. If you give people a reason to buy, they're willing to pay more. It's obviously not just about "getting stuff for free" as some contend.
• Even better, two separate artists using TopSpin have found that their average transaction price is between $50 and $100.
• Finally, one artist using Topspin has found (amazingly) that the average transaction price from what was being offered was greater than $100.
• And, on top of that, on one recent project, they found that 84% of the orders were premium offers (meaning above the lowest tier).

The idea that people just want stuff for free? Debunked. Give people a reason to buy in the form of real value they can't get elsewhere, and they absolutely will. About an hour after my talk, Ian Rogers, CEO of Topspin did a keynote interview at the same event. You can watch it here: Separately, we've definitely been quite impressed with what Terry McBride has done lately with some artists who work with Nettwerk, the indie label/artist management company. Terry's very much been a believer in the mantra of connecting with fans and giving them a reason to buy, and has even talked about how the whole concept of copyright has become outdated. His view isn't that this is necessarily a good or bad thing, but it's just the way it is, and in helping the artists he works with, they have to figure out ways to work with it. To date, that's included a lot of creative ideas for better connecting with fans and then giving them a reason to buy. One experiment he did was with the artist K-OS, who did a few different experiments, starting with allowing the fans to create their own "mix" of his latest album. Not a remix, but a mix. They released the stems of the songs before the album was released, let the fans create their own mixes, had them vote on the best, and then released two albums at the same time. One was the "pro" mix and the other was the "fan" mix. Then you could buy either one separately, or both together as a package.

The second experiment was the "pay on your way out" concert tour. Realistically speaking, this was a series of ten "free" shows. You could get in for free, but they asked you to pay what you felt was reasonable on the way out. Given the insistence by people that fans just want something for free, you would expect that very few would actually pay anything at all. Of course, that wasn't what happened.

Terry was kind enough to share with us some data from the experiment. Despite being free to come and go without paying anything, 63% of people attending ended up donating money on the way out. Now I'm sure some folks will mock this and say that he could have made more by charging everyone, but it seems quite likely that a lot more people came out to these free shows than if he had made people pay in advance. Almost two thirds of people ended up paying, totally voluntarily -- and their average donation was $6. Again, some will claim that this is low, but you have to look at the bigger overall picture. During this tour each of the two K-OS CDs were separately in the top 50 list of best sellers.

So, he gave a series of free shows that ended up bringing in tens of thousands of dollars combined (average attendance at each show was approximately 1,000 people) and it helped get a lot of people to buy both the CDs that were being offered in support of K-OS. Some people are going to nitpick the numbers, of course, but the evidence remains clear again: it's not that fans just want stuff for free. If you give them a reason to buy, an awful lot of them will absolutely buy.

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Success Stories From The Music Commerce Frontier

from the things-are-working dept

To hear some in the industry tell it, the music industry is falling apart. Except, we're not seeing that at all. What we have seen is that sales of one particular element of the industry have come under much needed competitive pressure, and that's caused a few companies who relied too heavily on that area of business to finally start to recognize the inefficiencies in their business model -- which they're falsely blaming on "piracy." However, the rest of the industry is thriving. A couple weeks ago, I presented at the National Association of Recording Merchandisers (NARM) event, held in San Diego, about "success stories from the music commerce frontier," highlighting both artists and companies that were finding success, despite the "woe is me" complaints from both the big record labels and certain music retailers. Parts of the presentation come from older presentations, but about 2/3 of it is entirely new material, including the opening bit, built off of Clay Shirky's wonderful analysis of what comes next for the newspaper industry -- but applied to the music industry. The presentation itself runs about half an hour and you can watch it below (if you're in an RSS reader, click through to the page to see it):

NARM 2009 State Of The Industry: Michael Masnick from NARM on Vimeo.

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