kick ass on kickstarter - sf musictech 11-11-14

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: bryan@thinksteady.com

Writings: http://Bryank.im

Twitter: @Freshbreakfast