The Age of Engage: An Urban Guide to the Social Music Evolution

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Danny Dee of Digipendent's blueprint to monetizing in the new Social Music Economy

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The Age of Engage: An Urban Guide to the Social Music Evolution

  1. 1. The Age of Engage:<br />An Urban Guide to The Social Music Evolution <br />Thursday March 04, 2k10<br />Daniel “Danny Dee” Aguayo<br />Minister of Propoganda<br />Digipendent Artist Services<br />
  2. 2. WARNING<br />(Shit Load of Bad Words)<br />
  3. 3. Current Projects:<br />
  4. 4. State of the Digital Union<br />40% of music was bought digitally in 2009 <br />1 billion Youtubevids watched daily<br />20hrs of content uploaded every minute<br />175k new blogs create daily<br />Facebook users = 400million<br />45million daily status updates <br />Myspace users = 120million<br />50 million tweets per day (600 per second )<br />
  5. 5. The Age of Engage<br />
  6. 6. Can you blog?<br />
  7. 7. Fans don’t want to Just connect with you music….<br />True fans want YOU to connect with THEM!<br />
  8. 8. VS<br />
  9. 9. 360 Deals = Standard<br />
  10. 10. Do For Self!<br />Avg. Rev Per Sale: iTunes = < $3 / ARPS: D-T-F = $20-$50<br />
  11. 11. Create your own Dream Team<br />Manager(s)<br />Lawyer<br />Promo team<br />P.R.<br />Distro (physical/digital)<br />Radio promoter<br />Web design<br />Booking agent<br />Misc: Publisher/manufacturers/video/label, stylist etc…<br />
  12. 12. The 3 Stages of Development<br />Alert, Connect, Sell<br />
  13. 13. How Do you Compete w/ FREE?<br />
  14. 14. ADD VALUE<br />
  15. 15. Limited Edition High Margin Offers<br />
  16. 16. You Are NOT Selling Music…<br /> …selling experiences <br />Not making transactions… <br />…Building relationships<br />
  17. 17. Fans pay more: >$20 average revenue / transaction, $50 with branded artists<br />
  18. 18. The Formula for Success<br />
  19. 19. CwF + RtB = $<br />
  20. 20.
  21. 21.
  22. 22. Website = homebase<br />
  23. 23. Tiered Pricing<br />
  24. 24. Free is a Price Point<br />
  25. 25. OLD Model vsNEW Model<br />High Volume, Low Margin<br />Millions of units<br />One-size fits all product<br />Tiny Revenue for artist<br />Lower Volume, High Margin<br />Multiple Products (SKUs)<br />Smaller, segmented market<br />Efficient, high-margin<br />
  26. 26. Direct-to-Fan Marketing Plan<br />Establish Goals<br />Craft Product Offers<br />Create Content<br />Formulate Value Proposition<br />Analyze & Optimize<br />Apply Pareto Principle <br />Repeat, iterate , Experiment<br />
  27. 27. Landing Page<br />Offer Page<br />
  28. 28. Squeeze Page<br />
  29. 29. Permission Based Marketing<br />Ownership vs Rental of fans<br />= #1 asset<br /><ul><li>MUST BE:
  30. 30. Anticipated,
  31. 31. personal
  32. 32. Relevant</li></li></ul><li>HITS = how idiots track success<br />VARIABLE<br />FRAMEWORK<br />Discovery<br />Playing/Sharing<br />REACH<br />Fan sites, blogs, music services, TV/Radio/Film, total impressions<br />Permission<br />ENGAGEMENT<br />Play, share, post on Twitter, embed on blogs, word of mouth<br />$£€¥<br />ACQUISITION<br />Email, Facebook friend, Twitter follower, fan club, street team <br />MONETIZATION<br />Conversion, active paying fans, recurring revenue, capturing economic surplus<br />
  33. 33. Revenue by Channel<br />
  34. 34. Your Digital Toolbox<br />
  35. 35. The Essentials<br />
  36. 36. The 3rd Ying Yang Twin<br /> Your Hype Man as the “TYPE Man”<br />
  37. 37. The Top 2 Things You should be doing…<br />…as unsexy as they me be, are:<br />Collecting fan email addresses (only when its permission based)<br />Worrying about Search Engine Optimization (SE0)<br />
  38. 38. Key Takeaways<br />It’s all about the data!<br />website = homebase<br />CwF + RtB = $<br />You can’t DIY<br />Include tiered premium offers<br /> + collectibles w/ higher value experiences<br />Focus on low friction/cost fan acquisition <br />None of this is possible without GREAT music.<br />
  39. 39. Thank you! <br />HOLLA!<br />dannydee.com<br />digipendent.com<br />twitter.com/dannydee<br />youtube.com/digipendent<br />facebook.com/digipendent<br />#artistadvice<br />

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