Video: www.tommydarker.com/music-talks/archive/nicholas-lovell-how-to-turn-your-freeloaders-into-superfans/

1. Freeloaders,
superfans and
the future of
business
culture
Nicholas Lovell
@nicholaslovell
#DarkerMusicTalks

2. How do we make money
when everything is going
free?

4. • “You can’t make money from apps”
• “We’ve got to make people start
valuing content again”
• “I deserve to be paid for my work”

5. You need to earn the right

8. Free does not mean no revenues

9. Flip your thinking

10. Amount each person is willing to pay
Revenue
opportunity
Marketing
opportunity

11. The Curve

12. The Curve – in 3 steps
• Find an audience
• Use technology to figure out what they
value and to talk to them again
• Enable superfans

13. Freeloaders

14. Source of revenue

15. Word of mouth

16. Potential converts

17. Gawkers

18. Technology
• Understand what your audience values
• Earn the right to talk to them again

19. Superfans

20. Let those who love what
you do spend lots of money
on things they truly value

21. Let those who love what
you do spend lots of money
on things they truly value

22. Let those who love what
you do spend lots of money
on things they truly value

23. Let those who love what
you do spend lots of money
on things they truly value

27. Target: $400,000
Average pledge:
$38.28

28. An unsurprising distribution
Number of pledges
60,000
50,000
47,946
40,000
30,000
24,636
20,000
11,530
10,000
1,090
900
148
100
10
4
$250
$500
$1,000
$5,000
$10,000
0
$15
$30
$60
$100
Number of pledges

29. A very surprising distribution
Double Fine Project revenue
$1,400,000
1,153,000
$1,200,000
$1,000,000
$800,000
739,080
719,190
$600,000
$400,000
100,000
50,000
74,000
40,000
225,000
$200,000
65,400
$0
$15
$30
$60
$100
$250
Double Fine Project revenue
$500
$1,000
$5,000
$10,000

30. A very surprising distribution
• Total raised: $3,336,371
Pledges
Money
>=$1,000
0.1%
6.0%
>=$250
1.3%
15.4%
>=$100
14.7%
51.9%

34. The Curve for music

35. What are you going to give
away for free?

36. How are you going to earn
the right to talk to them
again?

37. What are you going to sell
for 10x, 100x, 1,000x the
previous “average” price?

38. Love your freeloaders
Love your superfans
Love everyone inbetween

39. Thank you
@nicholaslovell
www.nicholaslovell.com