Study: Fans Really Want To Spend More Than $10
Talk of "monetizing the fan base" can get to be a bit much. In a world where so much is available free, doesn't the artist risk turing off fans with pleas for $10, $25, $50 and even $100? No, as it turns out. Fans, particularly the most engaged fans, want to contribute at a higher level than all of the 99 cents ITunes transactions iTunes suggest.
As Topspin and others have proven, there are many kinds of fans and each is willing to contribute at a different level from free to 99 cents to $10 and on up the ladder. But a new study of the top projects on artist and project funding site Kickstarters shows that many supporters want to give well beyond the basic levels that most musicians and others offer.
"Looking at the totality of successful projects, $50 rewards make up 11.44% of aggregate dollars pledged versus Craig’s hypothesized 25% — though it is the second largest tier. $100 rewards are the highest-grossing level, representing 16.36% of collected pledge dollars despite ranking fourth in reward popularity," according to Kickstarter. "But pledges aren’t just about dollars raised. Take the $25 level. Though it only represents 8.14% of aggregate dollars pledged, it’s actually the most popular reward tier, representing 18.41% of all rewards chosen (the tallest blue bar above). $50 reward pledges make up 13.57% of all backings."
I’m sick of hearing about Topspin. They need to show studies of which bands make money mainly because I bet this model isnt made for everyone. Yes it may work for washed up bands that have a decent fanbase trying to make a comeback but for the average band, never. You’re lucky to dump off a couple CD’s per show and you have to beg and plead. I support local music all the time but am I going to buy $25, 50, or 100 in merch? Nope. They should be happy I came out to support their music, possibly picked up a CD, and maybe told my buddies to check you out. Which they wont. Give me a valid reason why I should buy your music/tshirts etc.
Mike,
You have a great point.
Hey Mike,
As someone who works at an indie label (in direct to consumer even) but is also an independent artist I will say the point to be taken is things scale and think outside the box. When I do a campaign via Topspin for one of the label artists we’re keeping in mind this $25 sweet-spot and the amount of money the fanbase would WANT to spend (not just be willing to, but like the article alludes to – what people want to spend).
As an independent artist it scales. My band couldn’t afford to print up copies of our newest EP and ship them, plus we understood our fans don’t really care about CDs except at shows. SO we printed 200 CDs to sell at shows and sold digital bundles online using Topspin at $3, $6 and $9. $3 gets you the new EP, $9 gets you every song we’ve ever recorded including 2 unreleased acoustic tracks. Our average sale is over $6.
The concept scales – it’s not $25 but it’s helpful. It doesn’t replace iTunes (which is a big part of our business) but it does work, and there’s no reason to be sick of Topspin, it’s just one cog in the wheel.
Well I just loaded my album “The Truth; to Itunes and I can appreciate an article like this. i will tell you if it is true win the sales are generated. ML the Truth of 100 Drums Productions LLC