Amidst all the recent Music 2.0 wonk and posturing, the preposterous notion of fans as “thieves” has been largely bandied about. Which got me thinking about the art of Picasso-ian stealing:

Good artists copy. Great artists steal.

So then, assuming you, as an artist, naturally wish to be great, the co-opting (stealing) of a pre-existing successful business model is key.

Step 1.

In order to become a bona fide “thief,” you must first swap your music-industry-imposed traditional role as Creative Underling for Opportunistic Vigilante-Entrepreneur.

Voilà.

If I’m not mistaken, we just stole you an all new identity.

Step 2.

Now that you’re an entrepreneur, it makes sense to take (steal) someone else’s ingenious entrepreneurial principles and apply them to your career. If you don’t know former Apple visionary and current Garage Technology CEO Guy Kawasaki, not to worry, you’re not alone. Nonetheless, RUSH out and buy this book.

A few noteworthy highlights:

First, ask yourself if your reasons for making music, for making “meaning” as Guy calls it, are any of the following:

• Make the world a better place.
• Increase the quality of life.
• Right terrible wrong.
• Prevent the end of something good.

If not, to be frank, get the hell out of the music business. Seriously.

If so, read on.

Guy’s Key Principles of Getting Going/Kate’s Examples of How They Might Apply to You:

• THINK BIG. Self-explanatory. Thinking small is pointless.
• FIND A FEW SOULMATES. Going it alone at the beginning is historically risky. Think “strength in numbers” or “The Tribe.”
• POLARIZE PEOPLE. People are either devoted fans or relentless critics. Because you can’t monetize passivity, utterly and completely embrace whatever it is that’s your thing (rare talent, controversy, parody, etc.) and then highlight the fact that it’s the opposite of someone else’s thing. Remember, it’s 7-Up, the Un-Cola.

And lastly, Guy’s Business Model Basics/Kate’s Examples of How They Might Apply to You:

• BE SPECIFIC. In a world where the market is flooded with endless music choices, niche is essential. Know your audience and create music specifically for them.
• KEEP IT SIMPLE. Describe your music. The “sounds like” section on your Myspace page should contain a concise, recognizable answer. Declaring that you don’t sound like anybody is a) impossible and b) stupid.
• COPY SOMEBODY. Commerce has been around a long time, and by now clever people have pretty much invented every business model that’s possible. You can innovate in technology, markets, and customers, but inventing a new business model is a bad bet. Try to relate your business model to one that’s already successful and understood. You have plenty of other battles to fight. Did he say “copy?” I think in this case, it’s safe to interpret that as “steal.”

Eureka.

Step 3.

In order to define your business model — to identify which already successful (THINK BIG) business model you’re going to steal — Guy suggests you answer two questions:

• Who has your money in their pockets?
• How are you going to get it into your pocket?

Obviously, the “who” would be your audience, your fans. But here’s where you need to BE SPECIFIC… what kind of people are your fans? And while you’ll want to narrow it down, no need to get into overly-heady psychographics (KEEP IT SIMPLE). For example:

• Do they drive Volvos and Subarus?
• Do they shop at Whole Foods?
• Are they college-educated?
• Are they taste-makers?
• If you sound kind of like Nick Drake, are they the kind of people that like Nick Drake?

This information will help define how you market your music to your fans and, more importantly, how you can potentially connect with them. So if the answer to the above five questions is yes, chances are that if you have a mohawk you’ll want to consider a new ‘do. On the flip side, if you’re a diehard recycler, requesting blue bins to be available at your next venue might be a connection-savvy idea.

The “how” is, of course, less obvious. So let me suggest a successful business model worth stealing (COPY SOMEBODY): Public Radio.

For instance, the folks at Public Radio are cross-promotion (FIND A FEW SOULMATES) experts, fluidly connecting the listeners of one show to another. If you like Garrison Keillor, check out the Sunday Morning Bluegrass Show, etc.. You get the picture. Moreover, thousands of stations additionally join forces to promote and air specific shows, i.e., All Things Considered and the like. Hence, teaming up with other artists who have a similar fan base to yours and then leveraging your respective audiences is an excellent way to both maximize your resources as well as both your individual profile and that of the whole. Three words: Hotel Café Tour.

Notice too that Public Radio excels at what Guy calls “catalyz[ing] passion” (POLARIZE PEOPLE): come fund-drive time, it’s a love-hate thing. But this polarity is exactly what makes fund-drives the most-listened to times of year, overall. No joke. Moreover, it’s this same polarity that separates mere “listeners” from the contributing elite, a.k.a. “members;” if you’ve ever donated to Public Radio, you know that membership affords you outright bragging rights. YOUR individual contribution is directly connected to the success of the station. It’s a pride thing.

It’s not difficult to figure out then, that as an artist, you too want to catalyze this kind of passion, ownership, and connection that gives your fans bragging rights. Which makes the pay-as-you-see-fit model an appealing vehicle for cultivating an interactive environment where fans actually have a stake in your career. Connection. Loyalty. Radiohead. Quite smartly, Public Radio not only celebrates but also perpetuates the whole idea of membership-pride through regular, public acknowledgment, member-only thank you gifts, as well as access to special events, etc. You can see then, that if we’re following the model, it’s not enough to just allow fans to determine how much your record is worth. You can’t stop there. Once a listener has made the jump to fan (fans being your paying investors) you’ve got to keep them hooked. And remember, by rewarding your fans in this way, they will spread the word about you, for FREE. Therefore, you’ve got to continue to thank them, both publicly (perhaps a scrolling marquee listing names on your website) and individually (a personal e-mail should do it). Plus, why not throw in some added value (limited-edition recordings, front row tickets, etc.) to use as leverage for increasing the amount of money you hope each fan will part with? For example, $5 gets the record, $10 gets the record AND a live recording of the upcoming New Year’s Eve concert. I call this the McDonald’s Bundling Model; ordering a #1 is cheaper than separately ordering a Coke, a hamburger, and some fries… but even if you only wanted a hamburger and fries, you’re more likely to go for the bundle because it’s a better deal. Tried and true.

And while we’re talking dollar amounts, again, BE SPECIFIC. “Whatever you feel comfortable with” is NOT specific. $5, $10, $50… that’s more like it. Having worked in Public Radio myself, I can tell you that a successful fund-drive host knows that you get what you ask for. So if you request only $50 pledges, the majority of pledges you’ll receive will — you guessed it — be for $50. However, if instead you ask for $500 pledges (THINK BIG), the majority of pledges will be for $500. Which is not to say that everyone will suddenly have $500… the point is that narrowing options as well as switching them up begets better results. I call this the Ben & Jerry’s Model; if you offer 32 flavors, chances are people will still choose Chocolate, Vanilla or Strawberry… but if you offer only Chocolate, Vanilla or Strawberry and then a rotating few exotic flavors, you’ll sell more Chunky Monkey and Cherry Garcia. Those of you who have been longtime Ben & Jerry’s customers will recall all sorts of wild choices that, over the years have been limited considerably, for what I’m guessing is this reason.

Another Public Radio tactic worth adopting is the “challenge.” That’s when someone who is already a member puts up a high dollar amount and challenges the station to raise that same amount in a certain time frame. If the station meets the goal, they also get the challenge amount. If they don’t meet the goal, it’s off the table. Not only does this create sense of urgency, thereby increasing the possibility of pledges but it also gives potential members a chance to add value to their contribution. Imagine, for instance, that you, the artist, have a benefactor who wants to help you produce a record and they’ve agreed to put up $5,000 for every $5,000 you accrue in donations from your fans. It could work.

And lastly, Public Radio relies heavily on the ability to draw on emotions and experience during a fund-drive. You (a fellow listener) are often asked to consider what life would be like without Public Radio… talk about a rough commute. Or you’re reminded of the iconic Public Radio “driveway moment.” Maybe the host makes a correlation between the $4 you spend at Starbucks everyday and suggests that if you’re willing to pay that much for coffee, why not for Morning Edition? Connection, connection, connection. After all, why wouldn’t that same $4 be better spent as an investment in an artist who’s entertained you for decades, whose music has served as the soundtrack to so many memories? Or maybe it’s a new artist who has captivated you unexpectedly by reminding you how exciting hearing a great song for the first time can be… reminiscent of your youth? Worth $4? Why not?

In any case, now that the whole idea of fan-determined pricing is out there, why stop at the basics? Jump in. Go whole-hog. Don’t settle for good, be great. Steal the whole damn Public Radio model and see what happens. In an age of stealing versus free, what have you got to lose?

If you can’t beat ‘em, join ‘em.

© Outlandos MusicTM 2008