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Archive for the ‘Direct to Fan’ Category

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Last week, our partner, ReverbNation, published a blog post on the “Top 5 Ways to Sell More Music and Merchandise” and I couldn’t help but start thinking about how “direct to fan” e-commerce could work for a multitude of industries. Take, for example, Audrey Kitching or Kimberly Wyatt–both signed up to Audiolife. While the latter is working on releasing her first album, neither use the Audiolife platform to sell music. They use it to sell their merchandise and do so successfully because, after all, anyone with a web presence and followers or “fans” can sell merch online.

There is no doubt that the technology works and that merchandising is a lucrative business, so why couldn’t anyone use a platform like Audiolife’s to sell directly to consumers? The answer is, they could. Unless you’re a touring musician or attending conventions/events, then selling direct to fan/consumer through an on demand e-commerce platform is a no-brainer. Take, for example, the television industry. Any show that lasts longer than one season has fans and many of those fans would love to buy a cool shirt, hat, mug, whatever that has the shows logo or some funny quote or slogan from the show. Let’s face it, we’re all walking billboards for the things we love and we all love more than just music.

I definitely see a future where direct to fan e-commerce becomes largely widespread. It’s already entered several industries and proven its capabilities. Regardless of whether the economy is doing well or not, the ideal situation for any business, company or individual is to make money with little to no cost. With on demand e-commerce, you can. ReverbNation shared some ways for musicians to do it, but that doesn’t mean others can’t do it as well.

What do you think? Does direct to fan e-commerce have a bright future? I’d love to hear your thoughts in the comments below.

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We hope you’ve been following the rollout of our Reverb Store. ReverbNation selected Audiolife because our technology is streamlining e-commerce for independent artists and labels. You know we’re excited about this innovation in the music business and, by the numbers, it looks like ReverbNation artists are energized, too!

  • Over 30,000 ReverbNation artists have signed up to take control of their merchandising and marketing by joining the Reverb Store initiative.
  • Every day, nearly 200 artists are adding merch to their store, making money, marketing their images and connecting with fans.
  • Fun fact: 85% of what’s being sold is physical merchandise, while digital downloads make up approximately 15% of sales.

Jed Carlson, our partner and co-founder of ReverbNation says: “I’m optimistic about the future of D2F e-commerce. We’re changing how the music business operates, and our tools give artists the power to create their own retail channels online easily, tap into the social Web and manage their music catalogs.”

What the numbers tell us is that artists are micro-targeting fans. This is novel! In the past, artists haven’t been able to retain control of their relationships with fans. Free from the traditional shackles of e-commerce, we’ve entered the age of interactive e-commerce. Now, artists are the source of innovation because technology has virtually leveled the playing field. Any artist can get creative, develop unique merchandise for their fans, respond to their feedback and build a loyal fan base.

We’re seeking new ways to expand our role and remain committed to bringing to market a disruptive technology that is unseating traditional distribution methods. Tell us your thoughts – where could we help you? What will be the next innovation?

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If you got a chance to read our last blog post, “Follow the fans, follow the passion with direct-to-fan e-commerce,” you learned how artists such as Samoa ONSTSU are using our technology to market their music and merchandise through the Reverb Store. Independent artists and music labels have a lot to be excited about with D2F e-commerce.

And we’re excited to be at the forefront of this tech innovation. Our technology is streamlining e-commerce for independent artists and labels.

In fact, Audiolife has been cited by partner companies, such as ReverbNation and Dipdive, and media outlets, such as Wired and TechCrunch, as developing an impressive technology platform that is helping artists and entertainers transition to a new digital business model. Our technology is allowing them to connect directly with their fans and be in control of making money – for the first time in the history of the music business.

How do we do it? Our platform fits perfectly with partner sites, such as Reverb Store. That means our technology drives digital downloads, merchandise fulfillment, Web site development and online marketing services for artists. Whether through Reverb Store or directly from the Audiolife site, artists leverage our platform to deliver value to fans, generate buzz and control distribution of their brand assets.

D2F e-commerce is a nascent business model. However, Audiolife has emerged as the most in-demand technology platform for artists and labels. In effect, artists are harnessing our technology to drive their passions. It’s true; we’re a disruptive technology. We’re changing how the music business operates. Our tools give artists the power to create their own retail channels online easily, tap into the social Web and manage their music catalogs. It’s about time – tell us your story; we want to hear you’re being disruptive, too!

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Last month, we announced the official launch of the Reverb Store following a private beta period involving more than 15,000 bands that are part of the ReverbNation network. What makes us so excited about this announcement is that direct-to-fan e-commerce (D2F) is putting artists back in touch with their fans and in control of the business of making music. We’re lucky to be a music-focused technology company at the forefront of this e-commerce model and believe that D2F will give power back to artists and their fans.

Of course, we’re at the ground floor of this model. Over the next three to five years, we’ll see the industry mature. Artists who previously thought their only way to fame was to seek the approval of major label records will understand the power of social media to drive D2F e-commerce.

D2F e-commerce is a business model independent musicians, music labels, music marketing professionals, promoters and others in the music industry can use to connect with fans directly. Thanks to advancements in the social Web, entertainers can build and monetize their fan bases.

We saw this trend coming and pioneered a technology platform that allows artists to bypass the major record label model. With D2F e-commerce, such as the Reverb Store powered by Audiolife — combined with social media networking on Facebook, MySpace and other sites — artists can generate interest in their music directly with their fans and foster those relationships continually. Plus, with D2F technology, artists can market directly to those fans, monetize the relationships and further build their fan bases.

This is the changing face of the indie artist. So wouldn’t it be safe to say this is the changing face of the music industry? Who will control radio, venue and distribution channels in the future? Our bet: the fans, because they can “vote” for the next big star or breakout band with a mouse click and “fund” their success by buying digital downloads or merchandise directly from artists. When artists embrace the D2F model, they also embrace their fans – giving them direct access through social networking that supports in-person appearances.

Some artists are just beginning to explore this concept. Others are seeing the success already, such as Samoa ONSTSU: “We recently used the Reverb Store to quickly sell our charity song, ‘We Are Samoa,’ and related merchandise to benefit the Samoa Tsunami relief effort. The Reverb Store is an invaluable tool for the independent artist.”

Look through this blog for other inspiring and how-to stories of artists’ who have embraced D2F, and are taking control of their music careers.

Photo courtesy of Yui Mok/PA

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Kimberly Kaye Wyatt is an American singer, dancer, choreographer and a former member of the modern burlesque pop/R&B group the Pussycat Dolls.  Wyatt resides in Los Angeles, California where she is very active in charity work and a major supporter and contributor to RAINN.  She is currently a judge for the UK hit show “Just Dance” and is recording her debut solo album expected to be released in early 2010.

The Situation

After starting a blog called Beautiful Movements on Dipdive.com, founded by Will.i.Am, Kimberly decided to launch her own line of Beautiful Movements apparel and “Love the Planet” organic beauty products.  To achieve this she needed a platform that would allow her to do sell her products on-demand.

“BeautifulMovemens.com is an online community for growth through self-expression. The apparel and designs represent my journey for positive change,” remarked Wyatt. “Ultimately this line is about my fans…to inspire personal growth through the Beautiful Movements lifestyle.”

Audiolife Solution

Audiolife’s partnership with Kimberly was twofold. Kimberly firstly needed a customized storefront that would seamlessly embed into her existing Beautiful Movements blog on Dipdive.com.  This was achieved through the customization of both her Viral Store and her Web Store.  Once the design was set in place, her online store was filled with her clothing line and beauty products.

Kimberly also needed a fulfillment solution that would handle warehousing of all her items and processing and shipping of all the orders.  Now, whenever one of her fans orders an item through her store, Audiolife ships directly to her fan on her behalf.

Added Wyatt: “This is one of the most exciting moments in my life. I finally have a way to communicate and offer something tangible directly to the supporters who have kept me going throughout the years! I am truly looking forward to this launch and to offering something unique and personal to the Beautiful Movements community.”
The Beautiful Movements Store: http://beautifulmovements.dipdive.com/ecommerce/

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The following video illustrates how you can sell your merch on Facebook in less than two minutes through the Reverb Store powered by Audiolife:

Selling Merchandise on Facebook in Two Minutes or Less from ReverbNationBlog on Vimeo.

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New York, NY (February 24, 2010)ReverbNation, the leading marketing platform for more than 550,000 artists, labels, managers and venues, has partnered with Audiolife, the leader in direct-to-fan e-commerce, to announce the official launch of the Reverb Store following a private trial period involving more than 15,000 bands.

“Artists are constantly asking me how they can monetize all of their online promotional activities,” said Ariel Hyatt, CEO of CyberPR and music marketing maven. “The Reverb Store is the answer!”

The Reverb Store is the first and only e-commerce solution that empowers musicians to sell t-shirts, hoodies, hats, CDs, downloads and ringtones directly to their fans on Facebook and other social networks, as well as their blog and homepage, without any out-of-pocket expense for setup, store usage, or inventory.

“Any artist can connect with fans to sell music and products in less than two minutes using the Reverb Store,” said Michael Doernberg, CEO of ReverbNation. “Reverb Store integrates seamlessly inside Facebook with two applications for artists: the leading all-in-one promotional application for bands called ‘MyBand,’ and the stand-alone store application for musician pages called ‘Store.’”

Every product purchased through the Reverb Store is produced on-demand and delivered directly to the fan, via the Audiolife direct-to-fan e-commerce engine. Artists simply set the final price above the cost and keep 100% of the profits from every sale. In addition, artists can use the Reverb Store to order larger quantities of their CDs and merchandise at highly discounted wholesale prices for sale at shows.

“The Reverb Store was designed with one thing in mind: to create a streamlined tool for the artist that would require no financial investment but would afford the musician, band, or label a way to monetize their products through leveraging current technologies,” said Brandon Hance, founder and CEO of Audiolife.

Many bands have taken advantage of the Reverb Store to create multiple versions of t-shirts, analyze fans’ merchandise preferences and order in bulk for tours. Some bands have also used the direct-to-fan eCommerce model to integrate fundraising into their music.

“We recently used the Reverb Store to quickly sell our charity song, ‘We Are Samoa,’ and related merchandise to benefit the Samoa Tsunami relief effort,” said artist, Samoa ONSTSU. “The Reverb Store is an invaluable tool for the independent artist.”

For key personnel interviews, or to interview artists who have utilized the Reverb Store, please contact:

Jed Carlson (ReverbNation): jcarlson[at]reverbnation.com

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Cofféy Anderson was born to perform. While he began his singing “career” in church at age 6, the Texas native fell in love with basketball as he got older, and grew to a 6’5 Texas High School Basketball standout. Music was on hold…at least momentarily.

Cofféy attended college and in 2002 while on a basketball trip with the university decided he wanted to learn to play an instrument. Buying a beginner’s guitar book and borrowing a guitar from a friend, he started to play. After learning only a few chords, writing songs became an obsession and walked away from his first love to focus on music. He then got the courage to test his talent with the best in the business and moved to Los Angeles.

He performed all around the country, doing over 100 dates in 7 months, finishing 4 albums. His talent has ranged from street performing in Santa Monica and rodeos in Texas to exclusive parties in the Hamptons. For all of his various experiences, Coffey still remains dedicated to his fans first and foremost.  His love of music translates directly to how he interacts with people, and this can be seen through his approach to staying connected with his fan base.

The Situation

As DIY technologies became readily available, and artists worldwide began to produce and distribute their own content, the new music business was rife with opportunities for musicians to creatively pursue new revenue streams.

“For me, the best part of being an artist is figuring out how to creatively communicate your thoughts to people who can relate to what you are saying. Once you are taken out of the creative process, packaged and sold to the masses with which you have no relationship, then the ‘true artist’ cannot be seen.  By using all of these amazing new technology platforms, assuming you have something fans can relate to, you can cost-effectively and easily create, produce, distribute…..over and over while it’s fresh.”

Audiolife Solution

Working with Audiolife and Ustream, Cofféy launched a “Direct-to-Fan Live Sessions” series.  From October 22, 2009 to mid-November, the Internet broadcast gave fans the opportunity to purchase real-time exclusive content available only during the live sessions.

Cofféy performed original songs and created specially designed merchandise that was released in “real-time” and available for a 24 hour period immediately following each session. The content produced during the Live Sessions was available in a bundle at a one-time only promotional price.

Coffey’s Store:

http://www.audiolife.com/store/coffey/Merchandise.aspx

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With her unique voice, disarmingly frank lyrics, melodic gifts, and exotic good looks, singer and songwriter Anjulie announces herself as a commanding new presence on the music scene. On her self-titled debut album, the Los Angeles-based songwriter comes across as a confident young woman who examines her life, loves, obsessions, and heartbreaks with fearless introspection.

The youngest of four children, Anjulie grew up in the Toronto suburb of Oaksville, Ontario, raised by immigrant parents from Guyana — a South American nation culturally influenced by its Caribbean neighbors to the north. As a result, her household was filled with everything from Afro-Caribbean calypso, reggae, and South American Latin music, to the pop and rock emanating from her older siblings’ radios. The mélange has definitely influenced Anjulie’s debut —a sophisticated blend of indelible pop smarts, hip-hop edginess, and world-music spice, topped by Anjulie’s sultry vocal stylings that she created with her producers and songwriting collaborators Colin Wolfe, who has worked with Dr. Dre and Monica, and her longtime collaborator Jon Levine, keyboardist for Toronto’s funk-pop combo The Philosopher Kings.

The Situation

Anjulie and her label, Concord Music Group, wanted to capitalize off her recent tour by offering her fans from across the globe access to exclusive content including ringtones and merchandise.

“Audiolife offers a fully-integrated Direct-to-Fan platform that caters to the new music business and its unique set of demands. Their platform will give Anjulie the opportunity to turn every song, album, and live event into a unique offering and experience for her fans,” remarked Dave Henson, New Media Manager of Concord Music Group.

The Audiolife Solution

Providing Anjulie with custom merch to support her tour was only the first step in solidifying a deeper relationship with Concord Music Group to provide an eCommerce solution for their entire artist base.
Through Audiolife, Anjulie will not only be able to sell her existing merch, but will continually be able to create exclusive content for her fans for no up-front costs.

http://anjuliemusic.com/store

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Topspin co-founder, Shamal Ranasinghe, recently shared some data on music marketing at MidemNat based on a studies they’ve conducted over time.

One of the most interesting points according to the study is that majority of the revenue for artists comes from items that are priced over $20 despite the fact that majority of sales are from items priced under $10. Furthermore, the impact of physical goods versus digital only is huge–76% of sales for artists include some sort of physical product.

With an Audiolife account, you can easily create and sell physical products for no upfront costs.  With our warehousing and fulfillment service you can even create bundles that include both physical and digital products. For example, creating a limited edition merch item, marking it up and including a “free digital download” of a never before released song.  This exclusivity is a major selling point and very attractive for fans.

Below you will find a slide show presentation of the music marketing study Topsin presented. I’d love to hear your thoughts in the comments.