Michael Fiebach -DJShadow.com- Glenn Goldman -IRIS/ BlinkerActive- D igital DTF D igital DTF Direct-to-Fan Music Marketing and Monetization in the 21st.

Michael Fiebach -DJShadow.com-

Glenn Goldman -IRIS/ BlinkerActive-

DDigitaligital DTF DTFDirect-to-Fan Music Marketing and Monetization in the 21st Century

Magademics

Agenda Introductions/ Overview “Roundtable” Getting Started Build your Fanbase

---------------*Short Break*---------------

DTF: When, Where, and How? Fan Matrix

Introduction/ Overview

Why are we here? The internet and the emergence of DTF About me

Why are YOU here? Roundtable discussion

The Foundation

Building Blocks1. Exceptional Product2. Assemble your Team3. Commercially viable

People CARE about you People will give you $$

Who is Corey Smith?

Where Are We Now?Internet and Digital Era

Digital Downloads up 18.7% in 09 (2.03 B) Physical Sales down 20% in 09 (4.38 B) Physical/Digital Split - 59/41

**Figures according to RIAA; IFPI annual reports

Digital

Physical

Where Are We Now?Internet and Digital Era

The Great Dip Recorded Music Revenue down 25%: ‘99 - ‘08

(from $38.6B-$27.5B)

New York Times, The Economist, and Forrester all predict continued drops in

revenue for the foreseeable future.*

*IFPI annual reports

Where Are We Now? Internet and Digital Era (cont’d)

Over-saturation “80 percent of all records released are just noise, hobbyists.

(These) people clutter the music environment with crap, so that the artists who really are pretty good have more trouble breaking through than they ever did before” -Tommy Silverman (Tommy Boy Records)

Are you just part of the “noise”?

Where Are We Now? Emergence of a new Music Business Model

Rise of the middle class musician Direct-to-fan marketing

Look on the bright side:

YOU are now in control

Getting Started You are a Small Business

Funding Paperwork

LLC vs. Inc Tax Forms

Copyright and Publishing

Getting StartedLegalese

Getting StartedLegalese

Copyright Registration If you are going to release your music to the

public for sale, invest in some protection. Go on line to http://www.copyright.gov/ and use form eCO to register your sound recordings (masters) and musical compositions within 3 months after your commercial release.

Getting StartedLegalese

Sound Exchange Register yourself as an artist and as a copyright

owner of your recordings with Sound Exchange at http://www.soundexchange.com/. This will insure you will collect your share of performance royalties from the digital performance of your recordings on internet radio and other websites.

Getting StartedLegalese

Gracenote Submit your masters and complete identifying

information to Gracenote. http://www.gracenote.com/ . Gracenote’s “fingerprint” software provides automatic master identification information for I-tunes users and

many other digital services.

Getting StartedLegalese

ASCAP and BMI Affiliate yourself on-line as a writer and a publisher with

one of these performing rights organizations. http://www.ascap.com/ or http://bmi.com/ Register all your compositions on-line with your performing rights organization after you have affiliated. This will entitle you to collect your share of performance royalties for any analog performances of your musical compositions over the air on tv or radio or any digital performances over the web.

Getting Started You are a Small Business

Branding Your Name and Likeness

Must match musical feel Graphic identity (logo, fonts, etc) Story

Examples: MF DOOM

Does your music match your brand?

Branding

Do these brands match?

Branding

Do these brands match?

Branding

Do these brands match?

MAYBE?

Getting Started Web Presence

Personal Website Thenadas.com

Social Networks Facebook: Oona Twitter: Wynton Marsalis

Marketing Collateral Artist one-sheet Bio: STORY Press Photos EPK

Electronic Press Kit

Owl City

Getting StartedMaintain Brand Consistency

Be Cost Conscious!

Oh, and one more thing…

Next Steps:Build your Fanbase

New Music = New Product(s) Live Performance/Touring Global Mainstream Mediums

Physical/ Digital Distribution Promotional Outlets

Radio (Terrestrial vs. Online) Television

Music Videos Music Magazines Blogs/ Internet Publications Internet Radio Online Video

Next Steps:Build your Fanbase

Affiliate Marketing Artist Collaborations Brand Partnerships

Next Steps:Build your Fanbase

Next Steps:Build your Fanbase

Affiliate Marketing Artist Collaborations Brand Partnerships Contests- Radiohead Remix Comp Licensing

Movies, TV, Games

Creative Marketing Example: “Get Up” Campaign

Christina Aguilera/Target

Direct-to-Fan Video: Why Direct To Fan?

Music can be a Loss Leader Take stock of your current fan base

Create a goal sheet Where and how should you market?

Tools for collecting/ monitoring data

Direct-to-FanFacebook Insights

Google Analytics

MySpace Dashboard

Direct-to-Fan

Direct-to-Fan Perfect your Palace/ Website Development

Site/Store navigation and layout Product Presentation

Direct-to-Fan Perfect your Palace/ Website Development

Site/Store navigation and layout Product Presentation Shockhound.com Ease of Shopping Security Search Engine Optimization (SEO)

Direct-to-Fan Other Channels for Fan Acquisition

Newsletter Apps

Mobile (Not ringtones - down 25% from ‘08 to ‘09) Web

According to RIAA - http://76.74.24.142/A200B8A7-6BBF-EF15-3038-582014919F78.pdf

Direct-to-Fan

Direct-to-Fan Analyze Growth Regularly

Re-tool goals and strategy Manage your time

Build a team Focus on YOUR core competencies Setup business for optimal ROI (time and money investment)

Direct-to-FanSummary Points

What is DTF Marketing Awareness Engagement Permissions based marketing Targeted Merchandising

What does it do? Creates a closer, more personal connection from

artist to fan Caters to the different fan tiers

Fan Matrix

Let’s Segment your Fan Base Potential Fan Casual Fan Regular Fan SUPER Fan

Fan Matrix:Maximum Annual Value Per Fan

Fan Matrix:Potential Fans

Purchase Patterns None

Annual Value $0

Where They Find You Mass Media

How Informed? Minimal

How do you think you should reach/engage these fans and convert them too…

Fan Matrix:Casual Fans

Purchase Patterns At least 1 transaction

Annual Value $1-20 avg

Where They Find You Mass Media, Google, Public Profiles

How Informed? Familiar: name, some music, LIKE you

How do you think you should reach/engage these fans and convert them too…

Fan Matrix:Regular Fans

Purchase Patterns Return Customer

Annual Value $20-200 avg

Where They Find You Casual + one or more of: website, newsletter, mobile

How Informed? Casual + KNOW BRAND

How do you think you should reach/engage these fans and convert them too…

Fan Matrix:SUPER Fans

Purchase Patterns Buys Everything

Annual Value $50-1000 avg

Where They Find You Everywhere Possible

How Informed? Know your birthday, your kids names, and your favorite ice

cream flavor. In other words, EVERYTHING.

How do you think you should reach/engage THESE FANS?

Direct-to-Fan

A Tale Of 2 Formulas Traditional Model

High Volume, Low Margin New Model (DTF)

Low Volume, High Margin

Which would you choose?

You need BOTH! Volume Margin

TraditionalNEW Model

DTFTest Your Knowledge

Is this good practice? Only use social media Start marketing before you perfect the music Make your plan at the start and stick by it Craft goals (short and long term) only after you secure a

record deal Avoid analytics; you can just ‘guest-imate’ Focus on quantity of fans over quality Spamming is cool Don’t trust others; do it yourself

http://www.musicthinktank.com/blog/avoid-these-mistakes-15-critical-marketing-mistakes-that-all.html

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GO NETWORK!

Glenn [email protected]

@Stage4Podcast

Michael [email protected]

@MFiebach