I inadvertently set off quite a debate this week when I posted a few slides from a presentation that I often use when I speak at music conferences. I wrote a post entitled ‘How Bands Can Make More Money By Not Putting a Price on a CD’. Of the 44 resulting comments the majority of musicians responding to my post were in agreement, but it’s fair to say that until I had some real world results my theory could have just ended up as a red herring.
So here’s one artists success story. My friend and trusty member of the Gang of Four traveling road crew [a job that is pitifully low in traveling right now] Dominic Keska, persuaded Benjamin Taylor [son of James Taylor & Carly Simon] to give my idea a try – here’s his comment left on the original post and also at Music Think Tank.
dom Says:
February 15th, 2009 at 4:47 pm
We tried this experiment with Ben Taylor at his show Friday night at the Bluebird Theater in Denver.
Ben made a very articulate announcement from stage stating that due to the economy etc..we’ve decided to let people take his music home at a price of their choice. Also mentioning that the suggested retail price was $15..
We took in well over $1000 in CD sales, double what we would on an average night. We normally sell 3 Full Lengths at $15 each and an EP at $5.
We sold a total of 84 CDs averaging almost $12 per CD!
Last night we were in Jackson Hole, the trend continued, proving another good night. Where we sold 48 CDs and averaged almost $11 a CD.
We are moving more product than we normally would and in average making more than what our CD were to sell on iTunes or a record store.
Tonight we are in Boise, plan to continue the name your price for CDs and if Denver is an indication, we should reach the $1,500 mark tonight.
I will keep reporting how we are doing nightly, certainly thus far its working in our favor. Especially setting some ground rules for the consumer and not taking less than cost yet instilling the mind set that this is a win win for both fan and artist.
Brilliant idea
February 17th, 2009 at 12:20 pmYoure taking the wrong message away from these statistics. That data shows that the price of CDs is way too expensive. 15 dollars for a CD, especially when they can be sold for much less at a profit as this data also shows. The name your own price data seems to show that prices are too high, not that people don’t want CDs.
February 18th, 2009 at 9:48 am@Joe, not sure I follow. The only data I’ve been interested in here *is* the price point. Of more interest to me is choice, giving the fans choice seems to create an opening for true fans to give more and for new or undecided tentative fans to give what they feel is appropriate. The data from the many artists who commented on the original post is that they sell more CDs and make more money. Something is working. I believe it has parallels to Lewis Hyde’s – The Gift.
February 18th, 2009 at 10:02 amI have to agree with Dave in a different way–if the CD price issue were as dire as Joe says, vinyl never would have suffered–fact is, the technology is becoming a moot point–if the consumers let it. MP3s are cheaper true–but also EASIER TO CONSUME. Not so five years ago, but today, yes. HOW people consume music is just as important as price point and that’s the real issue here, methinks.
If the shiny disc is to survive, it needs to offer something to music buyers that MP3s don’t–and one of those things would be “Set your own price”. Yes, you can also do that digitally, but you can’t put an MP3 in somebody’s hands at a show–and people LOVE nostalgia items. That’s why folks pay the markup for those expensive high-profile band shirts–not cuz they just loved Skinny Puppy or whoever.
Now the genius who starts selling jam-packed flash drives full of band videos, unreleased trax and video blog entries at their shows? THAT person is going to really up the ante.
February 19th, 2009 at 8:17 amhi ben taylor i have not seen you in like 4years
March 29th, 2009 at 8:19 amim 9 years old now and wanted to know
when your playing in CT mystic
i want to see you soon
@joe
White Stripes already did it. They released USB drives that an artist friend of theirs created in each members’ likeness that had the full album, art, videos and extras for around $15 I believe. They only made so many and they sold out instantly from what I hear.
That’s where the innovation factor will play a key role in the future. And that’s why I don’t want to see CDs go away as many claim they will, including the big industry execs. It just doesn’t make sense. Baseball cards, die cast models, and all other kinds of collectibles aren’t disappearing, they just aren’t heard of much because of their staple significance in their respective area of interest.
When people who control content realize that it’s not the content that should be valued but those things that appear around the content pays homage or makes it easier to access, then we will see the true potential of not only art, but business as well.
April 1st, 2009 at 12:24 pm[...] like this value proposition is starting to filter into the lower levels of bands. The question is… how long will this [...]
April 3rd, 2009 at 8:57 pmSounds to me like people just like your music. Good for you!
The best to you.
December 16th, 2009 at 11:00 pmBetsy Grant
[...] notion of making money from CD sales through record labels and concentrate on making money from the experiential awareness that surrounds their brand; a brand they own, no one else. The downside to this for musicians is that they need to get [...]
December 29th, 2009 at 7:57 pm[...] Another weak argument amongst the comments is the usual “well they’re big artists already so of course they can do that.” That is defeatism pure and simple. My original point is that by adding value you provide more reason for someone to purchase your music, you can most likely increase your margin on the sale, and you will also most likely benefit from word of mouth and further purchases from a satisfied fan. It may be as simple as deciding not to press CDs but to press vinyl instead and sell the record with a coupon to download free MP3s. It may be that if you have CDs for sale at your concerts you don’t put a price on them and you accept whatever the fan can afford to pay. Don’t take my word for it, ask this relatively unknown band – it works. Ben Taylor, on tour, did it and he sold way more. [...]
July 10th, 2011 at 11:46 amThanks for the article Dave,
I have not been convinced that new/emerging artists can increase sales by the “name your price” model.
Sure it worked for Radiohead (they have a massive following.
Ben does have good music, AND the added benefit to being the offspring of a very famous pop couple (from my generation), doesn’t hurt that he looks AND sounds like his dad. These things aside, The thing that is getting traction is
giving some control, to your fans and creating new ways to engage with the individuals who want to spend money on your work.. I encourage clients to utilize technology to create artist bundles- ie: flash drives, Bjork’s latest record is utilizing a iPhone app to create a interactive experience with her fans. Whether it’s a fun little game, perhaps a interactive video, or create your own mash ups, that help you as a artist reinforce your brand. If you have no idea how to make that happen, you can easily find a creative business consultant / strategist to help you.
Living in the SF bay area so near Silicon Valley it seems to me like the ideal musical collaboration.
Shake things up people, get your fans talking, but be strategic about it, music fans are ready for something NEW & EXCITING, it’s time to give it to them!
Cheers,
=Tamra=
July 11th, 2011 at 8:38 am“Providing business strategies for creative minds”