Posts tagged money
David’s reverse referral fee experiment

The other day David Weinberger approached me with an idea: what if he bought album downloads from me in bulk so that he could give them away? It was interesting but I was sceptical – I'm already giving away the music for free, why would anyone care?

So we agreed on a bulk price, I rigged up a special download link he could distribute and he twittered and blogged it:

I'm trying an experiment with a business model I like to call a reverse referral fee. Here's how it works…

You click on a link that lets you download a copy of Brad Sucks' latest album, Out of It. The album of wonderful music is yours for free in every sense. (Share it! Please!) But, I'm going to pay Brad for each copy downloaded, at a bulk rate he and I have agreed on.

To my surprise it got a fair amount of attention (aka free word-of-mouth advertising). Many people thanked him for buying them the album, I got a lot of mentions on Twitter that I wouldn't have ordinarily. The 50 copies were all downloaded within about an hour, but it's pretty clear more than 50 people got introduced to my music. Plus David paid me so I made out like gangbusters.

What is there to learn from this? I'm not sure. It's clear that the reaction was much larger than if David had said “go download Brad's free album, it's free and anyone can go get it whenever”. Saying that money was changing hands on behalf of their download definitely got people's attention and created a small viral chain reaction.

David thinks this could be a viable option for super-patrons and that I should offer it as an option. What do you think?

Saul Williams download numbers

saul williams Trent Reznor released some facts about the Saul Williams record he produced and then released digitally for $5 [nin.com]:

Saul's previous record was released in 2004 and has sold 33,897 copies.

As of 1/2/08, 154,449 people chose to download Saul's new record. 28,322 of those people chose to pay $5 for it, meaning: 18.3% chose to pay.

Of those paying,

3220 chose 192kbps MP3 19,764 chose 320kbps MP3 5338 chose FLAC

Thoughts:

  • 28,322 * $5 = $141,610 which for a solo artist and zero marketing investment seems pretty decent. Of course partnering with a super famous established artist like Trent helps.
  • With 154,449 downloads and earnings of $141,610 that works out to earning $0.92 per download which vastly exceeds all bandwidth costs.
  • 154,449 seems like an extremely low number of downloads. The hype for this album was primarily in nerd-centric venues so I'm assuming the majority skipped the ecommerce shit and went straight to torrents for their downloads.
  • This isn't counting other digital sales avenues -- did they put it on iTunes? That's where most people are buying their digital music these days, not going direct to the artist's website.
  • I think putting such a low limit on what people could pay was a dopey idea. If we're going to be dealing in intangible value, why not let consumers decide for themselves?
  • Are there really that many FLAC users out there?

All in all I think it was a success even if they feel disheartened. Trent admits that he spent too much on the record. I'd be interested to know what the costs amounted to. I can't even conceive of spending $40,000 on a record let's say and having $100,000 left over would keep me in beer and guitar strings for another year or two.

Gimme Some Money v0.85

I've been jealous of Gimme Some Candy for a long time. I've hassled them to let me in but they're not accepting new artists. It's a great idea -- a tip jar with benefits. Supporters can buy items and leave a little message that gets displayed on the artist's homepage.

So I've written and released an open source clone that's pretty easy to set up. It's called Gimme Some Money. The default items are a star, heart and cookie but they can be swapped out. You can see mine (using the default icons) over on the right sidebar.

Requirements: PHP 4+/MySQL & a Paypal account

Update: fixed an IE/Opera bug and updated it to v0.86 (thanks to jason for pointing out the bug).

Scott Andrew pre-order aftermath

Scott gives the lowdown on his pre-orders. Very awesome and open of him to give the numbers out. Looks like it was a pretty great success and huge congratulations to him.

I've been thinking about taking pre-orders for the next Brad Sucks album but I don't think I have the energy or time or talent to set up a sweet system like Scott's so I doubt I'll bother. It's hard enough getting the record out the door.