Trent
Reznor is considered a genius among the music industry, he has developed the
formula of the success of music business models. He had started out in working
with a record labels to help him produce his music, while he had been thinking
of ways to increase his success he had thought of this formula:
Connect With Fans (CwF) +
Reason To Buy (RtB)
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The Business Model ($$$$)
When
he had thought of it the first thing that he did was try to connect to the
audience by Alternative Reality Games (ARG) on his website, by selecting all
the highlighted letters of a t-shirt that he was selling in a concert would
then create a link to show some secret message, this had brought excitement for
the audiences and interest to the artist. Another thing that he did was put out
some of his new songs in USB’s and scattered it around the concert stadium in
order for fans to find them, this again had brought excitement towards the
audience. As for the his record label they did not like what he did because he
was giving out new free music which was later shared around the internet. From
then on he had started doing things his way without the record label, he had
even started out giving free music to the audience; they were able to get the
first 9 songs of his new album but then if you want you were able to buy the
rest of the album for 5 dollars (which consisted of 36 tracks), it is a much
better price than the iTunes 1 dollar for 1 song deal. One important part of
what he did was that he had given options to the audience rather than giving
only one deal, the biggest deal that he had done was a Ultra Deluxe Limited
Edition Pack (as seen on the bottom picture) which consisted of all of his albums along with a personal
autograph from Trent Reznor, in total the pack cost 300 dollars. Well only
under 30 hours of it being online to purchase it had become sold out, and he
had made 750,000 dollars just from that pack. There are so many example that he
had used the formula for.
A
lot of different artists had become to use this formula due to the success of
Trent Reznor, and it had helped the artist to connect more to the fan base and
to make it stronger. The best thing about the formula is that it has no
possibilities to what could be done with the formula. In usual music groups the
record labels set up some band merchandise for the audience to buy, but Reznor
had stated that it is more difficult to sell products without doing a very good
job convincing fans why they should buy it. If you don’t put any effort to
connect to the fans, then you might not have as many fans.
Although
there are new technologies being created in this point in life which also means
that more and more possibilities to connect with the audience, by doing so then
you will make them happy, and by making the fans happy they give you money that
you deserve. The more you think about it the more you understand that it is a
huge chain of actions.
Everything on this subject is in a presentation given by Michael Masnick:
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