The median price point on RocketHub…and other crowdfunding platforms for that matter…is 20 bucks. … Make your $20 price point really jump off the shelf. –Brian Meece, RocketHub co-founder.

Crowdfunding website RocketHub was launched in January 2010 by three musicians/entrepreneurs—Brian Meece, Vladimir Vukicevic, and Jed Cohen. (tonic.com)  Meece was speaking above in his August 2010 interview with CDBaby podcaster Kevin Breuner. Meece continued with more details:

“The single most popular price point on RocketHub, by far, across the board, is $20. So what that means is make your $20 price point really jump off the shelf. Make it really exciting, make it really fun, because that’s what you’re going to move the most of likely. Another very popular price point is the $100 price point, which I also found very intriguing. The $100 price point typically are folks that have built up a lot of trust, or have been following you a little longer. They may be inner-circle folks, you know, your Uncle Bobby from Texas that loves everything that you do and buys 20 of your CD’s everytime they come out, but, you know just loves the fact that he’s got a nephew who’s making records. That’s where he’s probably gonna’ land. You’d be surprised who lands there, but it’s a very, very popular price point. … As a result the average contribution, it hovers day to day, but it’s in about the upper $50s. $57–$59 is the average across the board. So that’s very interesting because when we look at that average number, we could start to say if I wanna’ hit $500, then I need about 8–12 people to really hit that number—not a lot.” (CDBaby Podcast #098)

Guided by my own DIY business rule #6, I don’t need to waste time or money researching market price points for people who buy music. There’s already a company who’s perfected them—Apple:

2010 Apple iPod price comparison (source: apple.com)

Earlier this year Shamal Ranasinghe (@shamalman) presented marketing data from TopSpin Media at MIDEM 2010 in Cannes, France in series of slides. This one displays the advantage of selling at every price point—everything from frequent cheap buys to rare premium package deals:

“Consider Premium Offers”—slide 11. (source: Topspin Media)

On tour » another issue to consider is that location changes value/price.

Graphics: iPod, Topspin, and ‘price shuffle‘ graphics were remixed by RVE.

In a VideoSong

1. What you see is what you hear (no lip-syncing for instruments or voice).

2. If you hear it, at some point you see it (no hidden sounds).

VideoSong is medium defined by Jack Conte with those two rules. In addition to his solo production, Jack is the orchestration half of the indie music duo Pomplamoose, who chose video as their social medium of choice largely due to the magnetic attraction emitted by YouTube. They popularized their music on YouTube with videosong—a format that seemed functional and easy—and inspired viewers.

Last Friday, Kevin Breuner at CD Baby interviewed Jack Conte in DIY Musician Podcast #096. I recommend giving the full podcast a listen. Jack explained why he and Nataly chose to cover the songs that they did, and how it helped them become sustainable on mp3 downloads alone—covers and originals. Here are two excerpts from the podcast—the first is about the attraction to videosongs, and the second is about why Pomplamoose resisted record deals from all four major labels.

Poster remix: VirtualMusictv/Flickr
#smday poster remix inspired by the 1996 film Trainspotting based on the Irvine Welsh novel of the same name. I had the movie poster with the original monologue on my wall in 2000. I’d bought it at the college poster sale. They always sell posters to CU students at the start of new semesters. It was the first time I saw the letters DIY in print.
movie: YouTube | Amazon

CAUTION: When it comes to problem solving, engineers are fearless.
Graphic version: virtualmusic.tv/2010/06/10-engineering-rules/

With the smartphones coming, and all these apps coming, the music business gets one more kick at the can, and I hope they don’t fight this one, because there’s a huge opportune to grow the business faster than what they’ve ever considered. I think there’s a huge sense of optimism for the first time in about five years that this business can actually grow. –Terry McBride in his 2009 interview with tech reporter Matt Hartley [video above].

Music is becoming more of a service than a product and Terry believes that in these digital times, context trumps content, access trumps ownership, and customer service is as important as ever. P2P filesharing should cease to be an issue as listeners increasingly prefer instant-access streams.

The second interview details the history of the Nettwerk Music Group as a DIY all-in-one company that developed by adapting to meet the needs of musicians and their fans. Towards the end he talks about joint ventures between musicians and non-music brands as being likely in the next five years.

I really think that the paradigm is shifting. I think within the next five years you’re going to have other brands inside the market signing artists. Brands will look at this going, well, we already use music within all of our TV, and radio, and, you know, internet media. Um, why don’t we just sign the artist? –Terry McBride, in his 2008 CMU-Tube interview [video below].

On my previous post, Musicians—Money Is Not Motivation, Dave MacDonald had commented that Terry McBride recently spoke positively about the music industry at TEDxVancouver in November 2009. That video isn’t available yet, but I hope they air it soon on TEDxTalks—I’ll keep you posted.

[homepage thumbnail photo: Flickr/stephen_dyrgas]

Carey is pioneering a new business model for music. She’s cutting deals with the kind of partners musicians have traditionally shunned, pushing herself into new areas such as publishing, tourism and food and drink. … “A lot of big powerful music-industry executives made a giant mistake,” she says. “They gave the music business away on the internet. If they had just sat back and said, ‘Maybe let’s figure this internet thing out, it could be something cool,’ we could have found a way to distribute music online on our own terms, not somebody else’s. … Musicians have long promoted non-music products. The Rolling Stones marketed Windows 95 with Start Me Up. Michael Jackson did endless Pepsi promos. And rappers such as P Diddy and Jay-Z have moved on from name-checking other people’s fashion and luxury-goods brands in their songs to create their own brands, usually in partnership with their record labels, and promote them instead. But Carey is breaking new ground in three areas. Mariah Carey: The gloves are off | Times Online

The internet has leveled the playing field. It has proven that content is king, and that those who work hard at delivering content can build a following. Artists have channels with live streaming video content and direct connection with their fans through mobile applications. The same opportunities exist for everyone, and they’re almost all free. You may think that endorsements and partnerships are only for megastars—but I don’t. I believe that indie musicians with smaller niche fan bases can make the same types of product endorsement deals and partnerships with brands or services that the megastars can. The trick is finding the right brands and companies to match up with. But if you have—for example—a Ustream or YouTube channel that’s getting hundreds of views on a daily basis then I don’t think it would be hard to pitch to a company that relates to your audience. Ideally your audience would be a target market for the endorsed product or service. Think big but also think local.

flickr.com/photos/eyesofrc/ / CC BY-NC-ND 2.0

There is no single exact solution for indie artists, but the best solutions revolve around leveraging social media and video streaming to maximize fan engagement. Visual content is a must. Video content is supreme. YouTube serves well over 1 billion views per day. Live videos are easy to stream with ustream.tv, stickam.com, or justin.tv and a decent webcam. For recording non-live videos I recommend HD pocket cameras like the Zi6 or Zi8, or smartphones that enable mobile uploads like the iPhone. Video is becoming more interactive by the second and mobility is always important. Each musician has their own unique style and identifying that will help you see opportunities. Keep an open mind and be willing to adapt.

It seems that we truly are at the dawn of a new era. Opportunities abound at every corner. Music is more alive than ever, consumers listen to more music in more ways than ever thought possible, artists interact and build connections with fans in new and unique ways, music and other entertainment content can be delivered via multiple platforms for a fraction of the cost of traditional methods, and artists can form business relationships with many different partners—including consumer brands. (Music Branding Gets All Grown Up | Talent Zoo)

A lot of businesses still don’t get the internet, but a lot of them do—these are the ones that you can work with. Realize that a band’s physical merchandise is a product line, and there’s nothing stopping bands from partnering with companies to sell their own non-music products. Smart companies would likely jump at the chance to sponsor bands that have built active communities around the internet and are accessible via mobile phones. They see the meaning in social media—for business.

The types of products that will work for indie musician endorsements will vary greatly and be determined by each musician’s personal style or brand. A middle-man service that helps musicians match up with consumer brands and vice-versa might be viable—don’t you think? It would probably be pretty easy for Google, Facebook, or MySpace to implement such a service. However I’m a fan of DIY and I usually like to cut out middle-men. I think the best approach would be to directly contact companies that you’d like to partner with. Don’t be afraid to fail. You can’t get anywhere without trying things. Remember to focus on the dopeness—see Part 1: Music Dopeness and Bands as Brands.