3OH!3 singer Sean Foreman performs in California in 2009. 3OH!3 reportedly reached “3.7 million fans via 304 different artists” through Headliner.fm. Photo: Flickr/msimmondsphotography

“Promotion on the social web was broken. We wanted to see if we could make it better.” –Mike More, Headliner.fm co-founder.

This interview was a long time coming. Mike More (@mikemore) had introduced himself to me last June via email. He was excited to talk on the phone about what he referred to as fan trading—the concept behind his new startup Headliner.fm which mirrors live music’s headliner-opener relationship online.

What’s the story behind Headliner?

MM: We [Mike More and Bill Cromie] were working with all the major labels, TV networks, and film studios helping them to promote their new release via video on the social web. While we were doing this we realized how broken music promotion and marketing for bands and artists on the social web was. We also saw early on the move from the inbox to the stream or real-time communications and that this was growing very quickly. So we put our heads together and thought like a band or artist. We asked ourselves what is the best way to reach new fans on Facebook, Twitter, MySpace, and mobile devices. The answer was simple: ask other bands with similar fans to tell their fans about your band—collaborative promotion. We liked this idea because having bands become the filters for messages seemed the best way for bands to get the most of Facebook, Twitter, MySpace, and mobile platforms. Having an artist recommend another artist is like having a chef recommend a restaurant. You know that this person who is making the recommendation has taken his or her time to vet it, and has the background that would allow them to be well-qualified to make a recommendation. Additionally, collaborative promotion rewards bands for their existing fan base and allows them to reach new fans fans in a scalable, authentic way. These ideas were the guiding principles of Headliner and kinda where Nabbr [their previous company] fell short.

Headliner launched in late 2009—what are some things you’ve learned along the way since then?

MM: The most important thing we learned is to listen to our users. Headliner is here for one reason—to serve their needs period. We have just partnered with SoundCloud so our users can check out other bands music quickly and easily before they accept promotions from other artists. This was the number one request by the bands who use Headliner so we implemented it quickly. The SoundCloud partnership allows bands to syndicate their music to Facebook and Twitter—Headliner is becoming an artist-run content syndication network on top of Facebook and Twitter.

How does online promotion compare to offline promotion?

Playing a show you get to get your music in front of a new audience for 20-min or an hour. The audience are having drinks hanging with their friends and having a good time. On radio once your song is added to a national play list your song will be heard by millions of people tens of thousands of times daily. The signal-to-noise ratio is much lower on both of these offline promotions. Radio is like 20 songs 50 times a day and that’s it. Both of these are very hard to replicate on social media platforms. Most large brands would have a hard time replicating the impact of a live show, national radio, or TV campaign online.

Additionally the signal-to-noise ratio on the social web is way out of control. You need to think of social media differently. The only similarities—and what holds true for both—are that you need to have great music and you need to reach a large new audience with enough frequency to break through the noise on Facebook, Twitter, MySpace, and mobile devices. What we see is that it takes more reach and frequency to stand out on the social than offline. The main advantages of social media are the lower cost of using scalable viral techniques and the quality of new fans you can reach.

On which social network—Twitter, Facebook, or MySpace—does Headliner seem to work the best. Are fans on one network ‘worth’ more than on another? What’s the exchange rate so to speak?

MM: We see a higher response rate on Facebook and Twitter mainly because Headliner only messages fans via status updates. That said, when MySpace changed their band pages and placed status updates on top of the page we saw response rates jump up a MySpace. We have 133 million fans over all about 40 million on Facebook, 37 million on Twitter and 56 million on MySpace. We see this because bands still have a lot of fans or social capital on MySpace music.

I don’t think fans are worth more or less on any platform. A fan is worth more to a band when they’re real and engaged in the band’s music. The exchange rate is one Band Buck to reach one new fan on any platform. That said, bands can choose only to run promotions on Facebook, Twitter, or MySpace so bands can chose which platform they think is most useful for their promotion needs.

How does the pricing work?

MM: We have a freemium model. So any band of any size can sign up for Headliner and reach 15k new fans on us—plus earn Band Bucks for their existing fans and by accepting promotions from other bands.

It’s critical for us that bands have a free service to reach new fans which is better than any paid alternative. We want the free experience to be so good that some portion of our bands will want to upgrade to the Pro level to get a few more bells and whistles.

So for free you get to reach new fans for free on Facebook, Twitter, MySpace, and mobile. We have two subscription accounts, Pro ($30/month) and Platinum ($50/month), which include additional features [e.g. deeper analytics and location-based targeting. Pro comes with 300k Band Bucks per month and Platinum comes with 750k, equivalent to 300 and 750 "new fans" respectively.]

Do bands that have a larger fan base have greater authority or ranking?

MM: No, bands on Headliner with larger fan bases do not have greater authority. In fact, smaller bands or bands who have smaller fan bases tend to have more reactive fans than bands who have over 500k fans.

We have a chart that ranks bands by how many new fans they reach and how many promotions they accept from other bands. We wanted to create a chart which rewarded bands who are best at cross-promotion other bands.

Do you have any other social web communication insights?

MM: The real-time web or status updates have changed the way fans communicate on the social web. If you look where all the action is on Facebook it’s around status updates. Bands need to get their music into the stream.

Who are your favorite artists—Headliner or not?

MM: That’s easy. I’m a big Wu-Tang Clan fan. We have both Redman and Method Man on Headliner. I love their music.

Tell us about Nabbr—how did you go from Nabbr to Headliner?

MM: Nabbr was a great learning experience for both myself and Bill. We started Nabbr as almost a completely different company. The original idea was for a media-rich list of anything on the web that you could share through social media—think StumbleUpon with video, music, and images. We did not really get that much traction with this idea. So via a conversation with a friend of mine, Steve Greenberg, who was the president of Columbia Records at the time, we came up with the idea for what Nabbr ultimately became—a video-syndication network. Steve had just finished a CD with a new group he signed—the Jonas Brothers. He was very excited about his new group. He’d shot three videos for he same song with three different endings but was having difficulties getting traditional media to give his them any thought. Traditional radio had rejected the idea of playing the Jonas Brothers because of their age and pop music had just fallen out of style, and TRL was a no go. So Steve asked us how we could help get out. I suggested he start a MySpace page for his band—keep in mind this was 2005 when MySpace had about 12 million users—and we would post his videos on the front page of their MySpace page and make the video shareable (pre-YouTube).

This stunt worked okay but did not really move the needle for the Jonas Brothers. As we took a look at the Jonas Brothers fans we saw that one fan owned a site called whateverlife who had 3 million kids showing up a month. I reached out to her as asked her to post the Jonas Brothers video on her front page with a button to vote for the band on TRL within a day the Jonas Brothers made it to #4 on TRL. Steve called me in disbelief and asked me is this was real. I told him first of all you paid us nothing to help you and second of all we are small startup living on Ramen soup and no sleep—what money do we have to invest in your artist? The rest you say is history—shortly thereafter we found hundreds of other social media sites and reached a combined audience of 40 million monthly unique viewers where we syndicated video for all the major labels, movie studios, and TV networks. Since then both video and the social web have exploded.

In a lot of ways Headliner is a much better way to syndicate content on the social web—it’s smarter, faster, cheaper, more targeted, and authentic.

What’s on the horizon for Headliner in 2011?

MM: Our big goal in 2011 to help as many bands and artists as possible to build their fan bases through the power of collaborative promotions. Collaborative promotion is not a new idea for bands but until now has been hard to scale without a platform. We want to help create long-term value for bands and artists who use social media to reach and engage their fans. On this note we plan to roll out more tools to help bands and artists find discover the best bands and artists to promote with. The idea is that the more that a band uses Headliner the easier it should become to message new fans about a new show, track, or post.

// Notes: The interview took place via emails in 2011 and was edited for clarity.

Photo: matthileo/flickr

“Why make your own website? You own it. You own the experience.” –Chris Vinson, Founder, Bandzoogle.

Since before you heard of Google, Chris Vinson has been designing musician websites. Like many today, he was in a band that needed a website. He did what anyone with enough determination would have done—he built it. 1000+ people were on his email list before email was a staple. Based on the success of his band’s site, he was later hired by his record label to build hundreds more. In 2004, he launched Bandzoogle—now a comprehensive, subscription, website platform for musicians.

“Decide an important action and encourage fans to do that action.”

Tracking website analytics for years, Vinson has concluded that “elaborate sites lose traffic.” Simple is better. Having a complicated, all-Flash website is self-defeating. “Flash sucks” was rule #1 in his 18-minute intensive at NMS about ‘how to make an artist website that rocks.’ He echoed these rules and really drove the idea of having exactly one concept per page. Have one call to action—e.g. ‘download this’ or ‘become a fan on Facebook.’

There are three phases according to Vinson: Attract fans from social networks a.k.a. “outposts.” Engage them with a “compelling fan experience.” Sell through simple calls to action. “Artist websites emphasize an artist’s own brand.” Make it personal. “Frequent updates = repeat visits.”

Bandzoogle founder Chris Vinson explains how to make an artist website that rocks. Photo: virtualmusictv/flickr

Brand isn’t something you sell. It’s not schilling other people’s products, and it’s not selling out. Brand is what you stand for.” –Liz Leahy, Co-Founder, Section 101.

What about fan mailing lists? What’s the right frequency? Ariel Hyatt suggests one email per month. Each should contain a single call to action—a different call to action each month. Disc Makers CEO Tony Van Veen said, “Retain mindshare. Don’t let them forget about you.” and “Add value in your communication.” Everything you do online is communication and should reflect your brand vision.

Want to get in on this action and try Sound Around free for three months? Well, you’re in the right place because we have a couple promo codes to dish out to bands. To be eligible to win one: Use your band’s twitter (or disqus) account to sign in below, leave a comment, and check “share on twitter.” You can check out band apps already built by Sound Around in the App Store.

Sound Around: iPhone apps for bands.

Gee, Scott, what do you want to do tonight? The same thing we do every night, Steve—try to help music take over the world by building better mobile apps for bands and their fans!

In 2009, in a little place called Raleigh, North Carolina, brothers Scott and Steve Klein had been brainstorming tech startup ideas. Both were students at NC State, but with opposite majors—nearly yin and yang. Add entrepreneurial DNA, and they’re Pinky and The Brain. Scott (Brain) was preparing to graduate as a computer engineer, and his younger brother, Steve (Pinky), was studying business management/marketing. Their startup would be born, but the question was, what kind? Taking advantage of their student resources, they had access to mentoring and networking through the NCSU Engineering Entrepreneurs Program.

They started 2bros1blog.com to blog about what they learned on the startup road. Many early ideas were solutions aimed towards the university community. Scott had learned Objective-C, the programming language for iPhone apps, and they decided they really wanted to get involved with mobile apps. Everyone has a phone, and they always have it with them, right? But they needed to find the right niche. They thought about campus sports or news apps, but when they proposed building a news app for the college paper, they were met with perplexed stares. Scott and Steve realized that for their app service to fly, they needed to find people that were really interested in expanding and engaging their audience. Being music fans themselves, they took what seemed to be a logical turn that summer—towards musicians. Next stop, Sound Around.

Scott graduated in December, gave a speech, and started a job at an TransLoc—a startup that provides realtime location information to mass-transit users. He built their iPhone app. At the same time he and Steve (who was still in school and working part-time in Macaroni Grill) were developing what would soon be called Sound Around. At the turn of 2010, they took on 15 bands as closed-beta testers. In February Steve learned the ins and outs of web design and built getsoundaround.com.

With people skills and resourcefulness, they’d bootstrapped their expenses so far, but in early 2010 they got involved with TechStars in an effort to raise seed capital. In March they flew to Boulder and found themselves surrounded by like minds in the tech scene. Of 600 startups, TechStars funds only 10. Sound Around made it to the top 27 but not the final 10, and it was back to bootstrapping.

In a typical college scenario, the two brothers were living in a 4-bedroom apartment with two other students—David and A.J.—but when David moved out to live with his fiancé, Scott and Steve commandeered the empty room and converted it into a workspace—their current headquarters.

Having success with the beta apps, they started recording videos to demo the Sound Around platform, and, in the meantime started the application process for funding through another (more local) startup incubator, called LaunchBox Digital…which pretty much brings us to the present. Last night was a milestone for Sound Around. Their first apps were approved by Apple and are now live in the App Store. The party was on, but it’s only the beginning for Sound Around.

In the upcoming weeks, Sound Around will be running discount promos via Twitter. Stay in the loop: @VirtualMusictv and @getsoundaround.

Scott is on a 3-month sabbatical from his job at TransLoc to focus full-time on Sound Around. Steve would love to be able to dropout next semester and get Sound Around rolling without distractions. Funding would help them “scale faster” but with or without it they’re expecting to launch in public beta this summer. They considering finding a 3rd team member experienced in web and/or Android dev.

The ‘band apps as a service’ market is a wide-open frontier. There’s some fundamental characteristics about Sound Around that really make them stand out.

1. It’s the DIY mindset. Sound Around’s young, two-brother team is the core of all their development. They’re building it all from the ground up. By not hiring out their programming or design, they’ll be able to constantly address feedback and improve their platform. When demands of the app market change, they’ll be able to adapt the fastest.

2. Sound Around purely focused on developing apps for bands/musicians. They’re not leaving the music niche—immense as it is—and they plan on rocking it. MobBase is their only direct competition right now, and there’s plenty of room to coexist in this space.

3. In what I’ve learned about Scott and Steve, I can tell that they understand the importance of people in the mix. They plan on creating an interface for interaction—not one-way communication—and they have a lot of innovative ideas on deck.

4. Their pricing is user-focused. It’s not based on installs. Bands pay based on the number of fans that actually use the app each month. The starter $14/month plan covers 1000 unique app users per month. Above 1000 is $0.01/user until the next tier—$29/month for 5000 unique users.

5. Their mascot is a giraffe named Shirley. She’ll make you smile. :) Giraffes are a symbol of evolution, you know. She doesn’t always travel with the team of course, who’ll be attending events this summer, including Warped Tour in Charlotte, and would love to meet up.

// update // October 19, 2010 from Scott:

I know it hasn’t been very long since we officially launched back in July, but we’ve been working on something really cool behind the scenes that we’re finally ready to tell everyone about. One of our fellow local music companies, ReverbNation, has acquired Sound Around and will be moving quickly to launch the product to their more than 900,000 artists.

Steve and I are both super excited to be joining the ReverbNation team to work on providing mobile products that will continue to move the needle on acquiring new fans, and engaging existing ones on a deeper level. We’ve been heavily vested in creating useful technologies in the mobile space, and we have no doubt that these efforts will only be amplified as we move into our new roles working alongside an impressive and passionate team of individuals.

For everyone that had a hand in touching, shaping, or otherwise influencing our foray into building a product and launching our first company, we can’t thank you enough for all of the hours of mentoring, being a cheerleader, and (most importantly) bringing us down to size when we needed it.

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]

“Know what your problem is, Shapiro? It’s that you just have this really shitty way of looking at things, ya know? I don’t have that problem. I just look at the dopeness. But you, it’s like you just look at the wackness, ya know?” (The Wackness)

So you consider music as your profession? Then whether you like it or not, your band is your brand. You may think you are defined by your style and sound, but nowadays your are ultimately defined by your fans and their perception of you. When you look in the social-media mirror your public face should be a reflection of your private face [see discussion]. If you cannot handle being true to your fans by putting yourself out there genuinely then your fans will see right through you. And if you’re not providing some form of free content, then you will be invisible. Music fans have lots of choices.

Now more than ever the essential component of your business is you. Use the tools that are available to go where your fans are—social media—and deliver true customer service (the most important aspect in business) by responding to all comments and messages from your fan base. In doing these actions you’ll be building all the promotional material that you’ll need, and you’ll be forming a community around your brand. Remember to focus on the dopeness that most of your costs as a musician have evaporated and you have your fans at your fingertips. Your true fans will support your shows and purchase from you as a thank you. Gary Vaynerchuk describes the thank you economy:

[homepage thumbnail photo: Flickr/DistortedSmile]

Part 2: Musicians, Brands, Endorsements, and Partnerships