Posted by Mike McCready | October 31st, 2012 | 3 Responses
When you launch a new Fan Match campaign, you pay $1 for every three potential fans we target for you.
So, a campaign that costs $20 would target 60 potential fans.
If every potential fan we target becomes an actual fan of yours (meaning they agree to give their email address to you), the cost per fan would be $0.33 per fan. Right? You would acquire three fans for every dollar you spent, so about 33 cents per acquired fan.
But not 100% of the people who hear your track are likely to love it, statistically speaking. So, let’s be more realistic and say that instead you acquire 31 fans out of the 60 potential fans. That means each fan will have cost you $0.64. That’s still amazing considering how much fans are worth over the lifetime of your career if you know how to manage your fan relationships.
That’s the basic way we calculate the cost of your fans and we reflect that when we show you the results as seen below:
But now, let’s say you get a $3.00 tip from one of your new fans. That $3.00 means that instead of $20, your campaign only cost you $17. So, if you run a campaign targeting 60 potential fans and you get 39 actual fans out of it, and one of them gives you a $3.00 tip, your cost per actual fan becomes $0.43 ($17 divided by 39 fans = $0.43).
Below, we should you, 1. The number of fans acquired. 2. The amount you’ve received in tips from your new fans. 3. The cost per each fan you’ve acquired. 4. The email addresses of your new fans.
Lastly, if you get enough tips from your newly acquired fans, it is possible to actually offset the cost of your campaign completely or even make money acquiring fans.
It all depends on how much the potential fans like your music – and we target them based on their taste so if your music is good, you’ve got a good chance of getting good results. If your fans show up to one gig per year, maybe buy a T-shirt, and a CD, your fans should be worth many dollars per year. A Fan Match campaign makes sense as long as you can acquire fans for less than they are worth to you over the course of a year, or even over the life of your career.
We think we have the best fan acquisition tool on the market. Give it a shot!
Mike McCready is an entrepreneur at the crossroads of music and technology. He pioneered the introduction of Hit Song Science into the music industry and followed up with Music Xray, the company he co-founded and serves as CEO. His companies have been the subject of case studies at Harvard Business School, IESE and he frequently guest speaks at many of the top business schools around the world. He helps the music industry identify high potential songs and talent and helps musicians get deals, get fans, & get better: http://musicxray.com