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Charging Money for "Free" Stuff

Just booked a flight on Air Canada. Once I had paid for the ticket, I was given the opportunity to select my seat, which included this upsell...

I think this is brilliant and here is why...

1. Just because something is (or was) "free" doesn't mean it's not worth paying for.

I'm 6'3". The comfort that comes from having a little extra leg room is worth $20 to me and I'm happy to pay it. In fact, I'd rather have the option of paying for it than getting it for free, since $20 takes a lot of my competition for the seat out of the running and gives me a better opportunity to actually get it.

"Competition" in this case is the 5' lady who booked two months ago. She'd probably take the seat for free, because extra room is always nice, but it's not worth $20 to her.

So everybody is happy... I get more leg room, the 5' lady gets her needs met, and Air Canada makes more money.

2. It's money on the table.

The downside for airlines is that airplane exit rows are required by law. Air Canada, like other airlines, has no choice whether to have them or not. The cost cannot be eliminated.

The upside is that people actually like sitting in an exit row.

So why not charge people for the privilege?

If you've got something for sale in limited quantity, even if it's something you've been giving away for free, charging something for it will not only benefit you, it may also benefit your customers.

You've also got fixed costs of running your music business, like recording costs, that could be offset by allowing people to participate in them. Music Producers Institute is a great example of this.

I encourage you to look at what you currently consider "free" to see it charging for it might actually be a benefit to you and your customers. In addition, take a look at fixed costs within your business, because many of them can be offset through options such as what Air Canada is doing with seats in exit rows. 

Why Musicians Who Are Cool Suddenly Start to Suck

If you've ever wondered why musicians who are really talented, come up with great songs, do great performances, and have their fingers on the pulse of what is happening lose the ability to do any of this within a very short period of time, here's why...

They get busy doing other things.

When your music business grows, what you're expected to do changes. For example, when you're first breaking, you write songs, you record them, and you perform them. That's what gets you to the next step.

Unfortunately, for most bands, the next step is everything except writing, recording, and performing. It's stuff like doing interviews where you talk about writing, recording, and performing. And you hang out with guys like me instead of your fans.

Guys like me don't buy music; we get promo copies.

If you're looking for a longterm career in the music business, here are two rules to follow:

1. Dance With the One Who Brung Ya - What got you here is connecting with fans. Don't forget about them when you're trying to make industry people happy. Focus on the fans and everything else will take care of itself.

2. Outsource - Right now, regardless of where you are in your music business career, is the time to bring in somebody to help you with all the "non-connecting" tasks you have to deal with. Your focus should be on things that nobody else can do, which for most musicians will be writing, recording, and performing.

What music business tasks should you be outsourcing to somebody else? Answer below...

You Missed a $251,100 Opportunity

Being first matters. People remember the guy who wins the Gold medal, not the Silver.

And being first pays off...

A Seattle-based band needed money to record an album. Instead of doing the "normal" things that indie bands do, like get jobs, charge up credit cards, or get loans from relatives, they got on eBay and auctioned the naming rights for the band to the highest bidder.

The result is that the band got $251,100 from BuyStock.net and is now known as Buystock.net Band.

Why so much? Because being first matters. Because the kind of publicity BuyStock.net can get from something like this is worth $251,100.

Unfortunately for you, nobody is going to care about the next guy to come along and try this... It's been done and can't be repeated.

The good news is that there is something that hasn't been done yet and it's likely worth just as much money, if not more.

So go do it!

Need a Jumpstart? Get $15,000 for Your Music Business

If you're based in Nashville, have a kick ass idea for a technology-based music business, and want to take things to the next level, Jumpstart Foundry may be for you. Not only wil get you a $15,000 investment, you'll also get access to a team of established businesspeople who can help you grow your company.

Watch this video below and read this post called 10 Reasons to Apply to Jumpstart Foundry and *NOT* Go It Alone if this sounds good to you.

Deadline to apply for this year's 14-week incubator is Friday, so if you're interested, fill out the application in now.

2,200,000 Views on YouTube...in Two Days!

Total viewings as of this post is over 7,800,000.

3/18 UPDATE: Here is an interview she did with Good Morning America:

Discuss...

One Reason Why You May Be Losing Sales...

Just got this payment reminder...

This is a reminder that our records indicate your service is ready for renewal at the end of March. If you wish to pay via PayPal, please visit (web site) and go to the bottom of the page and select the $37.50 option. There is a $1.50 fee to cover PayPal's charge in the renewal fee. Checks can be made payable to (company name) and mailed to (company address).

Thank you for being a customer and have a great day!

The Good: There is an "easy" option of paying online.

The Bad: The "easy" option costs more money.

Paying an extra $1.50 is not going to break anybody, but when you approach it like this, many people will feel that way. And when that happens, they'll go for the really easy option of not doing business with you.

Think about this in relation to your music and merch sales. Are you making things complicated with a shipping fee chart based on the total amount ordered or different shipping fees for different types of items? Are you charging extra fees to cover your credit card processing?

Make it easy on people! Offer a flat rate, regardless of how people pay and cover shipping costs from the money you get for the items themselves.

Music Business Criminals

Gary Glitter is a convicted sex offender and has been banned from 19 countries. In 1999, he was imprisoned for possessing child pornography. In 2006, he was jailed in Vietnam for sexually assaulting two young girls.

Every week, at arenas across the US, his song "Rock and Roll, Part 2" is played for huge audiences during sporting events.  His music has been covered by Joan Jett, The Human League, Hoodoo Gurus, and too many other acts to list here.

This week, his song "Do You Wanna Touch Me" was featured on Glee and is now climbing up the charts once again.

Some people are pissed. Should they be?

Where do we draw the line on what's acceptable behavior for the musicians we deal with? Is there anything that would keep you from dealing with a certain musician or his music?

Vince Neil has killed a guy and recently pled guilty to DUI. Would that keep you from licensing a Motley Crue record or covering one of their songs?

How about R. Kelly and his alleged behavior with underage girls?  Michael Jackson?

Ron Isley and his tax issues?

Discuss...

Protection for Your Love Gun

Is there any product or service that Gene Simmons won't license?

Is there any product or service that you won't license?

Discuss below...

Big Videos on Limited Resources

Thanks for low-cost innovations like the Flip and iMovie, making a quality video is as easy as it ever has been. Most people don't know what to do with all the technology we have available. 

And we have no filters to keep all the boring videos from clogging up distribution outlets, like YouTube...

And people have seen to many videos it's harder than ever to grab the attention of people...

The good news is what does get the attention of people has little to do with money. A few years ago, "big" was Puff Daddy closing down TImes Square and driving around in a solid gold car, with 1000 bikini models behind him. If you wanted to compete with him, you'd have to do something similar.

Nobody cared about this kind of video today!

Today's "big" means not being limited by limited resources. It's pulling something off without just throwing money at it. Something like this...

It looks complicated, and it is, but not as complicated as you'd think. The hard part is coming up with an attention-getting idea, which for most people, is not as easy as you'd think.

I hope you'll be inspired by the "behind the scenes" video below. Again, this was a complicated shoot, but not nearly as complicated as most people would think. When you break things down into little pieces, you can do really big things!

Making People Wait... Why It May Be a Good Idea

Was in the car today, listening to some channel on XM, and a song by The Cure came on. It took me back to when I was growing up, listening to college radio.

For a minute, I was reminded of what things used to be like...

15-20 years ago, and certainly before that, we didn't have the "access" to music (and other media) we have today. If you wanted to hear a song, there were only a couple of ways for you to do that-- you could listen to the radio and hope that it would come on or you could buy a copy of it...if you could find it.

Today, you can easily get a quality copy of any song you want, even if it hasn't been officially released. And we have so many "radio stations" available to us, whether they be on satellite, cable, online, or broadcast, that you won't have to wait long to hear the song you want.

Almost instant access to any piece of music we want, combined with the constant bombardment of commercial messages, entertainment options, and distraction, people don't "wait" for anything. But I'm starting to think maybe they'd be more happy if they did.

There is a reason for the big ass lines at Disney World. There is a reason a good restaurant will make you wait to be seated, even if they have tables available.

Waiting builds anticipation. It gets you involved in the process. It makes the final outcome seem worth more, because you had to invest something to get it.

Think back to your first crush. You saw her from across the room, perhaps in school. You were scared to approach her, because she made you nervous. But you finally did... You asked her out and she said, "Yes."

Then you found out she wasn't as smart as you though she was...

And she was kind of a bitch...

While the actual date might not have gone well, most people in this situation still have a fond memory of the events leading up to it. That's because, as humans, we enjoy the feeling of anticipation. And not knowing everything (or having total access) can be extremely enjoyable, since we'll make up positive details to fill in the blanks of what we don't know.

Hungry right now? That (insert food here) you're wanting won't taste nearly as good as you think it will. Sure, it will be pretty good at first, because you are hungry, but with each passing bite, as you become less hungry, you'll get less and less enjoyment from it.

Music is the same way. Sometimes it's a more enjoyable experience to wait for the new (insert artist here) album than it is to actually listen to it. Even the best musicianship, recording, and performance can't compete with the fantasy in your mind.

So what can you do to take advantage of this and give your fans what they want?

Make people wait a little. Not forever, but a little. Let the anticipation linger. Give them a taste and let them in on the process, but keep them a little hungry. Let them enjoy not having it.

If you can do this again and again, you'll have a very long career.

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