Value based strategy

Okay, I’ve been thinking again and you know that can only lead to a long pointless rant on the old Blog. But I’m bound and determined to crack this thing. There really can’t be a hard ceiling for a listenership. Some seem to suggest the listener pool is only so big in Second life. But that population only reflects a fraction of the over all online population. One of the more fashionable cultural pursuits is the enjoyment of music. In theory everybody likes music, so why is live music in Second life so marginal?

Easy answer, because the vast majority of it sucks ass. Lame, self indulgent and self-serving posturing is what makes up the lions share of performers in Second Life.

There is no way to salvage the music community in Second life. It values sociability over actual talent. Yes, like little league everybody gets to play. The fan base for little league is Mom and Dad. Mom and Dad reflect a very small portion of the world population.

To sum up, there is not help or hope at a community level. The high tide does not life all boats if most the boats are actually anvils.

So I’ve developed a value-based strategy and hope you’ll follow along with me.

Today I was looking at another artist MP3 vendor. He was charging 250 L$ per-song. This is comparable to what you would buy and MP3 for in the “Real world ™”, and while it might seem fair good and right, he’s probably losing site of what is really valuable to him as a struggling artist in the wacky world of Second Life.

What is really important is establishing his brand and making hard-core fans. This is in fact the cardinal tenant of value-based strategy.

Sell MP3 for 100L$

Consider for a moment Joe Music fan, he likes your music, enjoys a few of your songs right away. Looks at your MP3 vendor and finds out they go for 250 a pop. Joe likes three songs but does not want to invest the sum of money required to buy all three songs. He tries to decide which song he likes the best. After much consideration he decides to pass on the whole deal. Joe would tip you 100 L$ without blinking an eye. He probably did. It seems to be a very consistent tip amount. Come on now, do more people tip you 100L$ or 250L$?

For the record, I get tipped various amounts, but if you averaged the 500L$ tips against the 20L$ tips it would probably average 100L$.

Making the price of an MP3 conform to a tip average, rather then a market value price of 250L$ might seem like a loss of valuable revenue. But the pennies the 150L$ shortfall represent are meaningless. The value of your MP3 in the hands of a listener is almost worth paying for.

Now before you get on your horses and ride off to the far end of the spectrum of giving MP3s away. Let me warn you that doesn’t really work. I’ve posted a few MP3s on the MySpace page for free download as part of fan appreciation day. Nobody downloaded them for free, but when I put them in the vendor and charged people for them. They bought the same MP3s they would not download for free. When things have a price they seem to have value. Perception is reality in marketing.

Now back to Joe Music fan, he’s at your show, having a good time, he’s about to tip you 100L$ because he’s not a cheap bastard. Then he notices he can buy an MP3 for the same amount. Hey… Joe is not even all that crazy about your music, but he thinks “Why not get a little extra for my tip money”. He’s only heard your song once; he’s not even sure which one he likes. But he figures what the heck. He buys a song, and listens to it. Even if he’s only listened once, that is one more time then he’s heard the song on concert. But he’ll probably listen a few times. Maybe he’ll grow to LOVE that song. He sees your name of an event calendar and says, “Hey I love that song he does” and pops in. listens a bit closer then he did the first time. He listening for songs he likes, new songs to love. He’s buying another MP3 and joining your group. He’s telling all his friends about your music and even sending them copies of your MP3s (yes Joe is stealing from you but still doing you a huge favor. He’s helping you establish your brand). I could go on and on. But I hope you see my point.

Always understand what is actually valuable. A few Lindens here and there are meaningless in the long run.

Play a venue with a large group for tips rather then a paying show where they hope you can draw a few people.

Try and share the stage, if you must share one, with other talented performers. The over all effect is an enjoyable experience for the listener. They will react in a more positive manner if they are having a positive experience.

Nurture relationships with venues that let you do your job (which is actually establishing your brand by putting on the best show humanly possible), and be willing to say “NO” to venues that offer no real benefit. Every show should be a step forward.

The secondary tenant of Value-based strategy is, STAY DYNAMIC.

Always have something new. Stay on the move. I’ve seen acts that are the same every time you see them. If you want to GROW you have to be open to CHANGE. Write new songs, record new songs, update the blog, and always look for new and interesting ways to promote your music and establish your brand.

If you wish to maintain your fan base, you better keep providing them with good reasons to remain interested.

I firmly believe that my fate is in my own hands. I’ll not only work hard, but also work smart. I don’t believe in limitations. Never have. My motto has always been, “Attempt the impossible. If you fail nobody is surprised and if you succeed people will be really impressed”.