| The 80/20 Rule - Let those willing to pay, well pay | |
In my previous post, Competing with free, I omitted the following points due to length/fit/topic. There’s a long standing business saying that 80% of your profit comes from 20% of your customers.
The rule of 80-20 was first stated in 1906 by Italian economist Vilfredo Pareto, so the rule is also known as Pareto’s Principle or Pareto’s Law. Pareto observed that 20% of the Italian population owned 80% of the wealth. [Pareto never actually stated the split always would be or had to be 80/20, simply that was one used first and most frequently]
One of the best things I’ve heard or read about CD Baby is that they provide the contact info for every customer that purchases your CD. I KNOW most bands fail to make use of that info, but that is part of the solution to maintaining a career in the music industry today. And it’s helping you find that 20%!
Focusing on those key customers willing to support you with their purchases in how bands will become successful from here on out. There is simply too much music out there, that once you find a fan, you need to work to keep that fan. And it’s much easier to focus on fans when you know who and where they are.
The flipside works as well, once a fan has invested in you, they are less likely to up and run once you hit your experimental stage. They’ll either embrace the change or at least give you the benefit of doubt.
Every band [especially touring bands] need a mailing list, or newsletter. Get email addresses and postal codes if nothing else [names would be good too, but postal codes are more useful in my opinion].
Have a website? If you don’t have access to the site’s statistics get them. Or sign up for a free service that tracks that info for you. Knowing who’s visiting your site and where they’re at can be very useful information in planning tours, promotions and the like.
Make an effort to remember the people who support you and they will remember that effort and in all likelihood continue to support you. Trust me it works - experience says so.
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