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.

The new Facebook Terms of Service

Sorry about the lack of links in this blog post, its was written offline

So, Facebook fsck'd up, and then reverted to the old Terms of Service. I'm glad to see that wasn't enough, since lots of people actually ended up reading the previous Terms of Service, that were already bad enough.

The most offending - for me at least - on any version of Facebook's TOS was the "blank contract" clause, a clause unfortunately seen in lot's of Terms of Services, and that basicly say "you're agreeing with this but you shouldn't even bother reading this stuff, because we can change it whenever we like and you automaticly signed the new terms".

Fortunately, it seems, a new set of terms is being drafted and scheduled to replace the old ones by the 29th of March. Now in a phase of discussion (with their users only, so those who don't have a Facebook account because they don't agree with the actual terms - probably the most critics about them - don't have much chance of voice their worries about the new Terms), this terms (until further re-draft, which might happen thanks to the comments being submited by Facebook users) replace the previous "blank contract" clause with this:

12.1 We can change this Statement so long as we provide you notice through Facebook (unless you opt-out of such notice) and an opportunity to comment

12.2 [...] we'll give you a minimum of seven days notice

Unfortunately, I still think this is hardly acceptable. You are warned about the new terms in the service, and if you don't act in seven days, even if you didn't read your Facebook messages in that period, you are automaticly accepting the new Terms.

With this, further discussion about other items is more or less irrelevant, since even if all the rest is acceptable, there's no warranty that one month after you sign it, the Terms are still the same. Remember: this isn't acceptable in any "paper contract" you sign, how come should it be acceptable in an online contract?

Anyway, let me highlight some other items in that Terms that should worry you...

2.3 For content that is covered by intellectual property rights (like photos and videos), you specifically give us the following permission, subject to your privacy and application settings: you grant us a non-exclusive, transferable, sub.licensable, royalty-free, worldwide license to use, copy, publicly perform or display, distribute, modify, translate, and create derivative works of ("use") any content you post on or in connection with Facebook

3.2 You will not collect users' information, or otherwise access Facebook, using automated means (such as harvesting bots, robots, spiders, or scapers) without our permission

4.5 You will keep your contact information accurate and up-to-date

5.6 You will not use our copyrights or trademarks (including Facebook, the Facebook and F Logos, FB, Face, Poke, Wall and 32665) without our written permission

6.2 In the event you change or deactivate your mobile telephone number, you will promptly update your account information on Facebook to ensure that your messages are not sent to the person who acquires your old number

Sorry Facebook, to get me as an user, you still have a lot of work to do.

[Merankorii - Angellore] new album released!

[Updated with link to an online store selling this CD]

Merankorii's 7th album, [Merankorii - Angellore], was released yesterday, 15th February 2009.

This album, a split with Angellore, shows two faces of the same story - We - one noisy and urban (Merankorii), and the other neofolkish and pagan (Angellore).

The album was released in a 60 copies limited edition by NgH Productions, and it is the first Merankorii album in a printed CD.

If you're interested in buying it, feel free to contact me here's an online store selling it. The album price is 8€.

I hope you'll enjoy this new album!