How to Monetize Your Online Audience Through D2C
To make dollars make sense, it’s important to have clear and objective insight into what type of fan you are trying to reach. Understanding how you create value for fans will determine the what, when, and how the offer is presented to fans. Here are a few questions to ask before kicking off a campaign:
- Do fans want to be part of your journey?
- Do fans connect with the artist or brand on a personal level?
- Do fans see the brand as more of a lifestyle?
- How do fans communicate with each other about the brand?
Crowdfunding has become an extremely popular way for artists at all levels to produce a project. At a basic level, these types of campaigns help with upstart costs for studio time, merch production, and anything else that goes into a project, but at a higher level, it allows fans to become part of the journey. That is, rather than just a single transaction providing satisfaction to the fan, they can witness the process of a project coming to life, and feel truly invested in their artist. Beyond the more common platforms like Kickstarter and gofundme, additional platforms are emerging for more specialized, pre-order style campaigns for merchandise, vinyl, and the like. For a smaller artist, these platforms allow the opportunity to meet the needs of their fans where there would otherwise be substantial financial risk.
Not specific to music, studies show that shoppers are choosing to spend their
money on experiences, rather than physical items. This has many implications for music, and we are seeing more artist branded experiences, both large and small; from Tyler, the Creator hosting his annual Camp FlogGnaw Carnival, to Dillon Francis’ “Awesome Shit” collection which features offerings like prank calls, drunk cooking sessions, and even Ikea furniture assembly. Whether it is on a one-to-one level with a fan, or an event for like-minded fans to get together, creating memories for fans can provide much more value compared to a piece of merch. They also come at a higher price point.
Some artists and brands have developed in a way that warrants a full lifestyle brand, where an artist or an extension of the artist’s brand resonates with fans beyond the music itself and becomes part of their day-to-day lives. In this instance the brand can develop into a proper retail operation via an evergreen store, turning over merchandise seasonally to encourage repeat purchasers, more akin to a retail model than traditional band merch.
One of our favorite examples of this is The Weeknd’s store, which seamlessly integrates his brand into designs that stand on their own feet as desirable apparel. Fans will recognize the merch is for The Weeknd, but anyone will want to wear it — making it much more compelling for fans to actually buy. It’s a more subtle nod to their love for the artist, but one that other fans “in the know” will immediately recognize, cementing their sense of inclusion in a special community built around the artist and their music.
From here, the sky’s the limit for artists and brands. Producing lookbooks and seeking partners for collaborations and capsule collections are additional ways to tap into other brands that fans are already engaging with. Eminem’s recurring partnership with Majestic and the Detroit Tigers is a great example of a successful match between artist and partners; releases sell out within hours, while also perfectly complementing Eminem’s brand. In many cases, we discover that passionate, like-minded fans communicate and get to know each other through the brands that they know and love without being prompted by the brand itself. Whether it is a forum, subreddit, or Facebook Group, it is important to pay attention to what fans are saying and where they are saying it to engage the group organically.
In certain instances, this is where a paid fan club could provide value. In this case, all fans are not created equal. Hyper-engaged fans that are willing to pay for exclusive access to a brand are often more inclined to buy than casual fans, and can help amplify messaging and provide valuable insights. In exchange, it is important for the brand to treat this elite group of fans with care, offering early access to tickets, exclusive first listens, or steep discounts on merch. Ultimately, providing additional value to your fan club wherever possible is essential to cultivating your already rabid fan base.
Originally published in April 2016, from the Fame House White Paper, Owning Your Audience: Building a Direct-to-Fan Strategy in 2016.
You can download the entire white paper for free here.
