nicholas lovell - how to turn your freeloaders into superfans (darker music talks march '14)

Freeloaders, superfans and the future of

business culture

Nicholas Lovell@nicholaslovell

#DarkerMusicTalks

How do we make money when everything is going

free?

• “We’ve got to make people start valuing content again”

• “I deserve to be paid for my work”

You can• “You can’t make money from apps”

You can’t

You don’t

You need to earn the right

Free does not mean no revenues

Flip your thinking

Revenue opportunity

Marketing opportunity

Am

ou

nt

each

pers

on

is w

illin

g t

o p

ay

The Curve

The Curve – in 3 steps• Find an audience• Use technology to figure out what

they value and to talk to them again• Enable superfans

Freeloaders

Source of revenue

Word of mouth

Potential converts

Gawkers

Technology• Understand what your audience

values• Earn the right to talk to them again

Superfans

Let those who love what you do spend lots of

money on things they truly value

Let those who love what you do spend lots of

money on things they truly value

Let those who love what you do spend lots of

money on things they truly value

Let those who love what you do spend lots of

money on things they truly value

Target: $400,000

Average pledge:$38.28

An unsurprising distribution

47,946

24,636

1,090

11,530

900 148 100 10 40

10,000

20,000

30,000

40,000

50,000

60,000

$15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000

Number of pledges

Number of pledges

A very surprising distribution

719,190 739,080

65,400

1,153,000

225,000 74,000

100,000 50,000

40,000 $0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000

Double Fine Project revenue

Double Fine Project revenue

A very surprising distribution

• Total raised: $3,336,371Pledges Money

>=$250 1.3% 15.4%

>=$1,000 0.1% 6.0%

>=$100 14.7% 51.9%

The Curve for music

What are you going to give away for free?

How are you going to earn the right to talk to them

again?

What are you going to sell for 10x, 100x, 1,000x the previous “average” price?

Love your superfans

Love everyone inbetween

Love your freeloaders

Thank you

@nicholaslovell

www.nicholaslovell.com