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Kick Ass on Kickstarer: Thriving Under the New Patronage Model The slideshow for SF Musictech Summit, 11-11-14. See you in the Kyoto room at 2 pm! Bryan Kim for Think Steady Inc. Follow me @freshbreakfast on twitter.
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Kick Ass on KickstarterThriving Under the New Patronage Model
> Bryan Kim @ Think Steady Inc.
Bryan Kim, Founder of Think
Steady Inc.
Music Digital Strategist
Ustream, Tracksby, Y-combinator
Directed Top 25 Music campaign
Ran 4 campaigns for $200K+
Researched Top 100 Music
Campaigns
Who Am I To Tell You?
What Is Crowdfunding?
Payment Transaction Format
Collectively Enable Something
Flash Element / Deadline
Direct From Creator
Internet Native
Social
Vertical Agnostic
What Is The “Patronage”
Model?
Music Specific
Selling Patronage Products
Majority $$$ From Minority of “Whales”
Relationship Based / B2B
Relinquish Content Sales
New Patronage
Model
Crowdfunding
Transaction Format
Why Now?
Internet = Perpetual Copy Machine
"Moving Units" Era is Over
RIAA U.S. Music Shipments
2004 - 2013
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Subscription
MP3
Downloads
CD s
Year-End Retail Dollar Value (in millions)
U.S. Physical CD Revenue
2004 - 2013
$11,461
$2,126
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Year-End Retail Dollar Value (in millions)
CD s
U.S. Digital Download Revenue
2004 - 2013
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
MP3
Downloads
Year-End Retail Dollar Value (in millions)
U.S. Subscription Revenue
2004 - 2013
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Year End Retail Dollar Value (in millions)
Subscription
Transition / Research
So Now
What?
Top Backer Contributions
% of Backers % of Revenues
Top 5 0.30% 22.1%
Top 10 0.60% 28.7%
Top 25 1.5% 37.1%
Top 5% 5% 43.4%
Top 10% 10% 52.9%
Top 20% 20% 65.5%
* Average 1,645 backers per top 100 campaign
True Back Contributions (cont.)
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
Top 5 Fans
Top 10 Fans
Top 25 Fans
Top 5% Fans
Top 10% Fans
Top 20% Fans
Backer / Revenue Distribution
% of Backers
% of Revenues
Going Beyond CDs and T-Shirts
Project
Content
19%
Merch
18%
Other
63%
Product Category by Revenue
Relationship
36%
Premium
Content
25%
Collectible
15%
Ticket
10%
Production
8%
Kudos
6%
“Other” Patronage Products
Product Category $/Backer
Product Category Avg. $ Per Customer
Project Content $20
Premium Content $52
Average $57
Merch $63
Kudos $73
Ticket $158
Collectible $222
Relationship $421
Production $638
Relationship Rewards
In Person -- $714 per backer
On Stage -- $326
Online / Phone -- $104
Relationship Reward Examples
Phone or Skype
Invite to Backer Album Premiere Party
Lunch / Dinner / Coffee / Drinks
Studio Hangout
Nightlife / Party
Concert @ Fan’s Home
Premium Content Rewards
Rare -- $117 per backer
Vinyl -- $57
Entire -- $51
Bonus -- $36
Premium Content Reward
Examples
Vinyl
Entire Discographies on custom USB
Unreleased Recordings / B-sides
Out-of-Print Pressings
Rare Old Pressings
Collectible Reward
Memorabilia -- $482 per backer
Hand Crafted -- $177
Curated -- $176
Collectible Reward Examples
Handwritten Personalized Lyrics
Instruments /Gear Used on Album
Apparel / Props in Music Video
Curated Care Package
Test Press Vinyl
Original Album Artwork
Ticket Reward
Extended -- $780
VIP / Meet n’ Greet -- $164
General / Regular - $108
Ticket Reward Examples
Lifetime Backstage Passes
Extended “Roadie” Access
Meet and Greets
Festival VIP Access
Guestlist Passes
Discounted Tickets
Production Reward
Artist-2-Artist – $930 per backer
Executive – $719
Inclusion -- $516
Production Reward Examples
Sing/Play on Record or Stage
Personal Fan Theme Song
Commission Song / Cover Song Request
Cameo in Music Video
Open for Artist
Record Track Together
Kudos Reward
Content -- $76
Online -- $52
Kudos Reward Examples
Name in Liner Notes
Executive / Associate Producer Credit
Shout Out on Social Media / Website
Name in Film / Video End Credits
Pic of Fan on Artist Profile Pics
Patronage Products
Product Category Avg. $ Per Customer
Project Content $20
Premium Content $52
Average $57
Merch $63
Kudos $73
Ticket $158
Item $222
Relationship $421
Production $638
“When copies are super
abundant, they become
worthless.
When copies are super
abundant,
stuff which can’t be
copied becomes scarce and valuable.”
Kevin Kelly’s “Better Than Free”
The Presentation
Be Direct, Personal, Inclusive
Write in 1st Person Voice
Go Beyond the SKU
Video: Speak into Camera
Focus on Fan’s Interests (not yours)
The Marketing
Hyper Target Dedicated Fans
Emails Emails Emails
Get Large Similar Artists to Support
Release (great) Free Music
Reel in Whales
B2B instead of B2C
What NOT To Do
PR / Press
Mass Consumer Marketing
Spam
Set It and Forget It
Think Like a Startup
All About Traffic / Conversions
Continuously Monitor Traffic
Last Day Should Be Best Day
Post Campaign
Fulfill!
Involve Backers Through Launch Process
Build Relationships w/ Whales, Backers
Build Customer Base (not just followers)
More Than Money
1st Week Soundscan
“Pre-Album” Cycle
Jumpstart Patron Relationships
Outperform Vague Expectations
Movin’ On Up: MC Lars
2014 Album
1,017 Backers
$42,213
2012 Vinyl
459 Backers
$17,621
2011 Album
520 Backers
$23,282
Fin, Follow
Company: ThinkSteady.com
Email: [email protected]
Writings: http://Bryank.im
Twitter: @Freshbreakfast