While the previous chapter deals with the process of selling, this chapter
examines ways to expand your product line. I would like to show several
business models, besides the standard purchase-for-money and show examples
of artists, who pre-finance their projects through their fans.
Fan-based project financing
The book author Lawrence Watt-Evans only releases a new chapter of his
current book on his website, when a certain amount of donations is
collected. The donators get the chapter some time before it is being
released on the website. After finishing the first draft of the novel
like this, he revises and refines the book, before looking for a
distribution company and releasing it as a traditional printed book.
Fans, who donated more than 25 Dollars, receive a version of the printed
book.
Singer Jill Sobule has collected a respectable following online over many
years of touring and recording. To afford the costs of the studio
recordings of her album ÒCalifornia YearsÓ, she collected 85.000 Dollars
from her fans. She created different levels of support. For a donation
of 10 Dollars, one received a digital download of the finished album.
200 Dollars brought you tickets to all shows in the year 2008. One also
got an advance copy of the CD and a t-shirt stating that you're a
"Junior Executive Producer" of the CD.
For 5000 Dollars she sang a concert in the donator's house. One fan
supported her on the highest level: 10.000 Dollars. He had the chance to
sing part of a song on the new album after a coaching lesson with Sobule.
50 Dollars was the most popular donation level though.
Fans want to give their idols a sign of their appreciation. By purchasing
a record, a film or an art print, you start a relationship with the artist.
As a fan you are directly supporting his work. If the money goes straight
to the artist, the payment process is uncomplicated and the price fair,
fans will gladly pay.
Offer different versions of finished products
The documentary film "Helvetica" tells the story of one of the most
frequently used typefaces of the world. On the website of the film a
normal DVD ($ 20) is available, a Blue-Ray DVD ($ 26) and a limited
edition Blue-Ray with a special design and director autograph ($ 125).
Additionally there is a poster of the film ($ 20), some art prints, a
t-shirt and a bag. And one may rent or buy the film on iTunes.
The independent animation filmmaker Don Hertzfeld provides a product range
similar in its extent. Besides DVDs ($ 12 - $ 24), art prints ($ 50) and
t-shirts ($ 22 - $ 29) he offers bundles of popular products for a lower
price. US citizens don't pay for shipping for orders over 50 Dollars and
there are seasonal discount codes from time to time. Furthermore, the
shop shows similar articles after you placed a product into the shopping
cart. You will find this so-called "upsale" in many shops. Customers,
who have already bought one product, are more likely going to pick up
another one.
Filmmaker Tiffany Shlain offers an educational version of her short film
"The tribe" in addition to the normal DVD. For 299 Dollars tutors get
several DVDs of the film, a 50-page textbook and discussion cards to
stimulate conversation.
A variety of products offer fans different levels of support. In addition,
the average amount of money spent on your website, increases.
