Digital DTF
Direct-to-Fan Music Marketing and Monetization
in the 21st Century
Michael Fiebach -DJShadow.comGlenn Goldman -IRIS/ BlinkerActive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.
2.
3.
Exceptional Product
Assemble your Team
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
Digital
Physical
**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?

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
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 http://www.copyright.gov/ 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
http://www.soundexchange.com/. 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.
http://www.gracenote.com/ . 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.
http://www.ascap.com/ or http://bmi.com/ 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


Social Networks



Thenadas.com
Facebook: Oona
Twitter: Wynton Marsalis
Marketing Collateral




Artist one-sheet
Bio: STORY
Press Photos
EPK
Electronic Press Kit
Owl City
Getting Started
Maintain Brand Consistency
Oh, and one more thing…
Be Cost Conscious!
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
Next Steps:
Build your Fanbase

Affiliate Marketing




Artist Collaborations
Brand Partnerships Christina Aguilera/Target
Contests- Radiohead Remix Comp
Licensing


Movies, TV, Games
Creative Marketing

Example: “Get Up” Campaign
Direct-to-Fan
 Video:

Music can be a Loss Leader
 Take

stock of your current fan base
Create a goal sheet


Why Direct To Fan?
Where and how should you market?
Tools for collecting/ monitoring data
Facebook Insights
Direct-to-Fan
Google Analytics
MySpace Dashboard
Direct-to-Fan
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.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 - http://76.74.24.142/A200B8A7-6BBF-EF15-3038-582014919F78.pdf
Direct-to-Fan
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


Annual Value


$0
Where They Find You


None
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


Annual Value


$1-20 avg
Where They Find You


At least 1 transaction
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


Annual Value


$20-200 avg
Where They Find You


Return Customer
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


Annual Value


$50-1000 avg
Where They Find You


Buys Everything
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
Traditional
NEW Model
Which would you choose?
You need BOTH!
Volume
Margin
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
http://www.musicthinktank.com/blog/avoid-these-mistakes-15-critical-marketing-mistakes-that-all.html
Before you leave…
Please take a minute to fill out the
anonymous survey and give us some
feedback.
We need those analytics!
GO NETWORK!
Glenn Goldman
Glenn@irisdistribution.com
@Stage4Podcast
Michael Fiebach
Michael@djshadow.com
@MFiebach