Michael Fiebach -DJShadow.com- Glenn Goldman -IRIS/ BlinkerActive- D igital DTF D igital DTF Direct-to-Fan Music Marketing and Monetization in the 21st Century  Magademics

Agenda  Introductions/ Overview  “Roundtable”  Getting Started  Build your Fanbase *Short Break*  DTF: When, Where, and How?  Fan Matrix

Introduction/ Overview  Why are we here? The internet and the emergence of DTF About me  Why are YOU here?  Roundtable discussion

The Foundation  Building Blocks 1. Exceptional Product 2. Assemble your Team 3. Commercially viable  People CARE about you  People will give you $$ Who is Corey Smith?

Where Are We Now? Internet and Digital Era  Digital Downloads up 18.7% in 09 (2.03 B)  Physical Sales down 20% in 09 (4.38 B)  Physical/Digital Split - 59/41 **Figures according to RIAA; IFPI annual reports

Where Are We Now? Internet and Digital Era The Great Dip Recorded Music Revenue down 25%: ‘99 - ‘08 (from $38.6B-$27.5B) New York Times, The Economist, and Forrester all predict continued drops in revenue for the foreseeable future.* *IFPI annual reports

Where Are We Now?  Internet and Digital Era (cont’d) Over-saturation  “80 percent of all records released are just noise, hobbyists. (These) people clutter the music environment with crap, so that the artists who really are pretty good have more trouble breaking through than they ever did before” -Tommy Silverman (Tommy Boy Records) Are you just part of the “noise”?

Where Are We Now? EEmergence of a new Music Business Model Rise of the middle class musician Direct-to-fan marketing Look on the bright side: YOU are now in control

Getting Started  You are a Small Business Funding Paperwork  LLC vs. Inc  Tax Forms Copyright and Publishing

Getting Started Legalese

Copyright Registration  If you are going to release your music to the public for sale, invest in some protection. Go on line to and use form eCO to register your sound recordings (masters) and musical compositions within 3 months after your commercial release.

Getting Started Legalese Sound Exchange  Register yourself as an artist and as a copyright owner of your recordings with Sound Exchange at This will insure you will collect your share of performance royalties from the digital performance of your recordings on internet radio and other websites.

Getting Started Legalese Gracenote  Submit your masters and complete identifying information to Gracenote. Gracenote’s “fingerprint” software provides automatic master identification information for I-tunes users and many other digital services.

Getting Started Legalese ASCAP and BMI  Affiliate yourself on-line as a writer and a publisher with one of these performing rights organizations. or Register all your compositions on-line with your performing rights organization after you have affiliated. This will entitle you to collect your share of performance royalties for any analog performances of your musical compositions over the air on tv or radio or any digital performances over the web.

Getting Started  You are a Small Business Branding  Your Name and Likeness Must match musical feel  Graphic identity (logo, fonts, etc)  Story Examples: MF DOOM

Does your music match your brand?

Branding Do these brands match?

Branding Do these brands match?

Branding Do these brands match? MAYBE?

Getting Started  Web Presence Personal Website  Thenadas.com Thenadas.com Social Networks  Facebook: Oona Facebook: Oona  Twitter: Wynton Marsalis Twitter: Wynton Marsalis  Marketing Collateral Artist one-sheet Bio: STORY Press Photos EPK

Electronic Press Kit Owl City

Getting Started Maintain Brand Consistency

Be Cost Conscious! Oh, and one more thing…

Next Steps: Build your Fanbase  New Music = New Product(s)  Live Performance/Touring  Global Mainstream Mediums Physical/ Digital Distribution Promotional Outlets  Radio (Terrestrial vs. Online)  Television Music Videos  Music Magazines  Blogs/ Internet Publications  Internet Radio  Online Video

Next Steps: Build your Fanbase  Affiliate Marketing Artist Collaborations Brand Partnerships

Next Steps: Build your Fanbase

 Affiliate Marketing Artist Collaborations Brand Partnerships Contests- Radiohead Remix CompRadiohead Remix Comp Licensing  Movies, TV, Games  Creative Marketing Example: “Get Up” Campaign“Get Up” Campaign Christina Aguilera/Target

Direct-to-Fan  Video: Why Direct To Fan? Video: Why Direct To Fan? Music can be a Loss Leader  Take stock of your current fan base Create a goal sheet  Where and how should you market? Tools for collecting/ monitoring data

Direct-to-Fan Facebook Insights Google Analytics MySpace Dashboard

Direct-to-Fan

 Perfect your Palace/ Website Development Site/Store navigation and layout Product Presentation

Direct-to-Fan  Perfect your Palace/ Website Development Site/Store navigation and layout Product Presentation Shockhound.comShockhound.com Ease of Shopping Security Search Engine Optimization (SEO)

Direct-to-Fan  Other Channels for Fan Acquisition Newsletter Apps  Mobile (Not ringtones - down 25% from ‘08 to ‘09)  Web According to RIAA -

Direct-to-Fan

 Analyze Growth Regularly Re-tool goals and strategy  Manage your time Build a team Focus on YOUR core competencies Setup business for optimal ROI (time and money investment)

Direct-to-Fan Summary Points  What is DTF Marketing Awareness Engagement Permissions based marketing Targeted Merchandising  What does it do? Creates a closer, more personal connection from artist to fan Caters to the different fan tiers

Fan Matrix  Let’s Segment your Fan Base Potential Fan Casual Fan Regular Fan SUPER Fan

Fan Matrix: Maximum Annual Value Per Fan

Fan Matrix: Potential Fans  Purchase Patterns None  Annual Value $0  Where They Find You Mass Media  How Informed? Minimal How do you think you should reach/engage these fans and convert them too…

Fan Matrix: Casual Fans  Purchase Patterns At least 1 transaction  Annual Value $1-20 avg  Where They Find You Mass Media, Google, Public Profiles  How Informed? Familiar: name, some music, LIKE you How do you think you should reach/engage these fans and convert them too…

Fan Matrix: Regular Fans  Purchase Patterns Return Customer  Annual Value $ avg  Where They Find You Casual + one or more of: website, newsletter, mobile  How Informed? Casual + KNOW BRAND How do you think you should reach/engage these fans and convert them too…

Fan Matrix: SUPER Fans  Purchase Patterns Buys Everything  Annual Value $ avg  Where They Find You Everywhere Possible  How Informed? Know your birthday, your kids names, and your favorite ice cream flavor. In other words, EVERYTHING. How do you think you should reach/engage THESE FANS?

Direct-to-Fan

A Tale Of 2 Formulas  Traditional Model High Volume, Low Margin  New Model (DTF) Low Volume, High Margin Which would you choose? You need BOTH!

DTF Test Your Knowledge  Is this good practice? Only use social media Start marketing before you perfect the music Make your plan at the start and stick by it Craft goals (short and long term) only after you secure a record deal Avoid analytics; you can just ‘guest-imate’ Focus on quantity of fans over quality Spamming is cool Don’t trust others; do it yourself

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GO NETWORK! Glenn Michael