Taking the "name your own pricing" model one step further

There are many ways from which I could explore this issue, but as you can probably see by the lack of updates on this blog, I don't really have much time to write about this - I have more important and/or interesting things to do... Anyway, this blog post can work in three ways: 1) to tell you about one experiment I did, how it went, and what will I do now that the experiment is over; 2) to improve my comment on André's blog post about Portuguese people (in Portuguese), where he states that "Portuguese people think that everything that has to be paid is too expensive"; 3) to improve my comment on Miguel's blog post about tips and tip jars, where he says that some tips are "socially accepted" while others aren't...

Yesterday, the 2nd of April 2009, my micro-label Noori Records released its first "Pro CD Audio" (a term generally used by labels and distributors to describe Audio CDs that aren't CD-R's), a limited edition beautiful (as you can see in the picture) compilation called "April in Jazz".

I've been playing in my mind with the concept of the "name your own pricing" model in my mind for a long while: first it was the Nine Inch Nails experiment, releasing an album for free in digital format, selling it also as a physical release that soon was sold-out, and Radiohead's "In Rainbows", where people could choose how much to pay for the (digital version) of the album. From March 2008 I decided to let people buy Merankorii digital tracks at the price of their choice, and in May 2008 I wrote about why wasn't all my music free. Yet, and after many hours thinking, reading and learning, I decided to take the "name your own pricing" one step further.

At the 2nd of April, "April in Jazz" was released, and got sold out. News about the album release were spreaded via e-mail to Merankorii and Noori Records fans and friends, and because I was more of less afraid of the results I decided to tell first (and it ended up being only) about it to Portuguese people (because shipping costs are less that way). And so, the challenge was made:

[...] and doing it in a very special way: you choose the price. That's right: it was your money that made this release possible, so you are the ones who have the right to tell how much is it worth to you, how much you're willing to pay.

There are several things that you have to think about this: probably the most important one is that I wasn't selling the CD on a widely available website where everyone could click and buy, I was talking to true fans, and only to them. Still, here are some data about the results of the experiment:

• More than 50% of the buyers paid more than I would ever dare to ask for a CD;
• I hadn't a "price" in mind, but the price I would probably choose for this release is the same as the lowest price people paid for the CD;
• If the edition had the double of its size, and everywhere else paid 0 € for it, and those other copies needed to be shipped to the moon, it would still be profitable;
  
• 20% of the people who bought it didn't like to have to choose how much to pay for it.



• WOW, Noori Records and Merankorii fans totally ROCK.

So, is it true that Portuguese people always think that everything is expensive? I don't think so, if you make them wanting to get it (whatever 'it' is you're trying to sell). So, is it true that people won't tip artists? No, I don't think so - but you'll have to make them comfortable in doing so. Having a tip jar in Merankorii's website never helped me getting money (well, I got $0.20 :-)), but when people feel they have to pay something for something, they can be very generous. What about this experiment, what will happen next? I really don't know, but one thing I'm sure of: I'll keep thinking and trying to test several models that feel right for everyone: artists, labels, fans, buyers, freeloaders, everyone. If it's fair, it's good for everyone. And I don't think that putting buyers in the position of "OK, now I have to chose an amount to pay for this..." isn't that fair, that good, and, as I stated before, not everyone liked the idea. So, I probably won't do this again. But that doesn't mean that the experiment isn't worthy - it is, and a lot. It let's you be a lot more transparent with your community, and the community will show a lot more about themselves.

Think about it.

Tidbits

Whom rights?

If you're an interested in the developments of the music industry like I am, you'll bump into the sentence "rights of content owners" countless times. 10,200 is the number given by Google if you search for that term. Which doesn't cease to scare me, because people are really serious about talking about it. Shouldn't they be talking about authors rights instead?

Merankorii's new CD

Talking about music, I just announced in Merankorii's blog that Merankorii's 6th release is getting out tomorrow. This is going to be a limited edition CD split with two other bands: Ancestral and Njiqahdda. A new track from the album can already be downloaded from <Merankorii's MySpace, following Merankorii's one free track per month inniciative.

NIN, Radiohead, ColdPlay...

And this leads me to another thing I was planning to blog about for quite a long time. Some people ask me, knowing my thoughts about music 2.0, the fact that I have a musical project and a micro-label, why don't I "go free". Well, going free is great. I'm a heavy supporter of free music. I have lots of music freely available, all my tracks are licensed with Creative Commons but one - that is in Public Domain. Yet, there are things you can do and things you can't. See, some people sometimes tell me that "it's hard to have a band" or that "it's hard to have a label". No - I think that they're wrong. Having one of those has never been easier. But when you say that "my band drains all my money" I have to argue that, well, probably you aren't managing it the right way. See, NIN (above all, Radiohead and ColdPlay experiments can't measure against Nine Inch Nails in terms of concept exploration and free music money making) have the means (number of "true fans", number of listeners, awareness, carreer, investment budget,...) to do what they do, the way they do. I don't take Trent Reznor any credit for being so: I'm convinced that if he hadn't those means he would manage to do what he wanted to anyway. But doing things "the NIN way" works if you're NIN, won't probably work if you're not. So, each Noori Records release works its own way, and the same thing applies to Merankorii. Surely: I could give all Merankorii music for free, earn from ads and tips. But then I couldn't manage to have profit (which gives me increasing financing budget for both the band and the label) while making physical releases, and both me and some of Merankorii's fans wouldn't be happy without those. For those that think that music must be free, that want Merankorii's tracks but not pay for them, well, they'll have'em anyway, but one track per month. Also, when you have "pay as you want" albums and you can buy the music for a price from $1 to $20 USD, you'll only have to spend a couple of dollars if you're really in a hurry.

Free Software

To end this blog post, and keeping the talk on "Free", I'll end leaving you with a great letter that I'll resume as "Free Software - making the world a better place".

Underneath It All (Nine Inch Nails Tribute)

I'm not really into Nine Inch Nails, but since I know quite a few readers of this blog are fans of NIN, and since I think this compilation is going under the radar, here's some pub:

Underneath It All (Nine Inch Nails Tribute) is a free 2CD's compilation in digital format, a tribute with 31 NIN covers. It was released today, and can be freely downloaded here.

The artwork, where the track listing is, can be viewed and downloaded here.

Open Letter to Trent Reznor

Dear Trent Reznor,

I've read your words, and I agree with you, I really do. I also think that record labels are getting more and more desperate, and they're are screwing music lovers more and more. I agree that "Year Zero" is way to expensive, and I agree with the fact that Interscope Records, ownerd by Universal Music Group, don't give a damn about their artists and their artists fans - those who give them money. Oh, and the concept of MAXI-singles? You're right, it's completely bullshit, a product designed to extort more money from those wanting to get access to art.

The point is, you say that you're trying your best to make sure the products that NIN puts in the marketplace are worth purchasing, but you're failing miserably. Why? Well, while I really think it's awsome (and having the label you have you surely show you also have balls) all the Year Zero's concept and the whole world built around it, awsome that you're going to give for free to your fans, one way or another, all Year Zero's songs, and I really think you understand that goes inside the mind of your fans... You criticize your record label, but you're still sticking with them. For me, any product you put in the marketplace under Interscope aren't worth buying, even for one cent. It's plain simple, I don't support Universal in any way, so I don't give them money, while you criticize them but still put money in their pockets. Those guys don't consider your work as art, but as products, and they don't give a damn about you or your fans, they only care about profit. That's way too obvious when you know that they want to minimize consumers freedoms to maximize their profit. I'm sorry, but being signed with a major, the message you're passing is that, while you don't like your label's attitude, you prefer dealing with it and make more money than being nice to your fans.

Are you really against Interscope and Universal as you look like? Please, do a favor to your fans (and yourself): go indie. You'll even sleep better.