Thursday March 04, 2k10Daniel “Danny Dee” Aguayo

Minister of PropogandaDigipendent Artist Services

An Urban Guide to The Social Music Evolution

The Age of Engage:

WARNING

(Shit Load of Bad Words)

Current Projects:

• 40% of music was bought digitally in 2009

• 1 billion Youtube vids watched daily

• 20hrs of content uploaded every minute

• 175k new blogs create daily

• Facebook users = 400million45million daily status updates

• Myspace users = 120million

• 50 million tweets per day (600 per second )

State of the Digital Union

The Age of Engage

Can you blog?

Fans don’t want to Just connect with you music….

True fans want YOU to connect with THEM!

85%

15%

Traditional Label DealLabel Artist/Manager

60%20%

20%

Direct-to-Fan DealArtist/Manager MarketingFulfillment

VS

360 Deals = Standard

Do For Self!

Avg. Rev Per Sale: iTunes = < $3 / ARPS: D-T-F = $20-$50

Create your own Dream Team

• Manager(s)• Lawyer• Promo team• P.R.• Distro (physical/digital)• Radio promoter• Web design• Booking agent

Misc: Publisher/manufacturers/video/label, stylist etc…

The 3 Stages of Development

Alert, Connect, Sell

1

•Creating awareness

2

•Making Connections

3

•Monetizing

How Do you Compete w/ FREE?

ADD VALUE

Limited Edition High Margin Offers

You Are NOT Selling Music…

…selling experiences

Not making transactions…

…Building relationships

Fans pay more: >$20 average revenue / transaction, $50 with branded artists

The Formula for Success

CwF + RtB = $

Website = homebase

Tiered Pricing

Free is a Price Point

High Volume, Low Margin

Millions of unitsOne-size fits all productTiny Revenue for artist

OLD Model vs NEW Model

Lower Volume, High Margin

Multiple Products (SKUs)Smaller, segmented market

Efficient, high-margin

Direct-to-Fan Marketing Plan

1) Establish Goals

2) Craft Product Offers

3) Create Content

4) Formulate Value Proposition

5) Analyze & Optimize

6) Apply Pareto Principle

7) Repeat, iterate , Experiment

Offer Page

Landing Page

Squeeze Page

Permission Based Marketing

Ownership vs Rental of fans= #1 asset

MUST BE: Anticipated,

personal Relevant

REACHFan sites, blogs, music services, TV/Radio/Film, total impressions

ENGAGEMENTPlay, share, post on Twitter, embed on blogs, word of mouth

ACQUISITIONEmail, Facebook friend, Twitter follower, fan club, street team

MONETIZATIONConversion, active paying fans, recurring revenue, capturing economic surplus

Discovery

Permission

Playing/Sharing

$£€¥

VARIABLE FRAMEWORK

HITS = how idiots track success

Revenue by Channel

Your Digital Toolbox

The Essentials

The 3rd Ying Yang Twin Your Hype Man as the “TYPE Man”

The Top 2 Things You should be doing…

…as unsexy as they me be, are:

1) Collecting fan email addresses (only when its permission based)

2) Worrying about Search Engine Optimization (SE0)

Key Takeaways

• It’s all about the data!

• website = homebase

• CwF + RtB = $

• You can’t DIY

• Include tiered premium offers+ collectibles w/ higher value experiences

• Focus on low friction/cost fan acquisition

None of this is possible without GREAT music.

Thank you!

HOLLA!

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