Guest post by Jay Frank of FutureHit.DNA.
For the last few days, Iâve seen my social networks light up with people talking about Amanda Palmerâs record breaking Kickstarter campaign. First, she raised $200,000. Then $300,000. Then $400,000. As of this writing (on the morning of Friday, May 4th), sheâs about to pass $500,000. Over 8,000 people have supported her to the tune of $57.43 spent per person. When I look into how she did this just from what I see publicly, I realized something amazing:
Amanda Palmer has pulled off the biggest music hack to date!
Now for those not familiar with my new book Hack Your Hit, this is a huge compliment. To me, a hack is a way to work the system in a positive way to circumvent road blocks and get to your desired goal. In this case, a hit story. To most people, the story is that Amanda raised half a million dollars for her new album without a record label. The truth is a veritable stew of ideas feeding off each other all focused in one place (Kickstarter). To break it down:
25% of the revenue to date is pre-selling a tour.
The first category to sell out was 25 acoustic âpartyâ dates at peopleâs houses for $5,000 or more. That means that at least $125,000 of the campaign came from people paying for a show in advance. Amanda could have done just a tour pre-sell and her fans would have supported in the same manner. By adding it to a new album promotion, she was able to raise visibility. She would also likely have known that these would be in high demand from her fans and sell quickly. Since her âgoalâ was $100,000, all she needed to do was sell tour dates and she would exceed her goal. Which brings me to:
The campaign underplays her worth to appear more successful.
I donât believe that $100,000 was ever her true goal. Amanda likely knew sheâd do more than that in house party revenue. Her previous Kickstarter campaign also raised more than her current goal. But setting the goal low so you can exceed it is a very smart hack. The story becomes how much she raised in excess of what she expected. This leads to more awareness which leads to more pledges.
Multiple campaigns are bundled into one to appear larger.
Amandaâs pledge drive is now being billed as the most successful music campaign on Kickstarter ever. Which is true. But in actuality, this is three campaigns. Itâs promoting a new record, an art book and a tour. Most people would say these are separate projects with separate promotions. Combining them gave her a higher visibility for the new record.
The majority of the revenue is not from the new record.
Amandaâs new album appears to be the strong selling point. Itâs the first item in the description and she uses more all-caps descriptors than other items, such as âBIG, LEGITâ, âBEYOND EPICâ and âBAD-ASSâ. But when you add up the sales (as of now) of people just buying a download, CD or vinyl, the revenue is approximately $132,000. Thatâs just over 25% or about what Amanda is making from the live shows. Certainly, the people buying the concerts, art books, and art shows get the CD too. But if they were getting it solely for the music, thatâs all theyâd buy.
I think Amanda is brilliant. To survive in the DIY world, youâve got to stick out. To stick out, you need to hack. Amanda didnât get to this place overnight. This successful hack is the result of years of hard work building a fan base. But itâs also years of building up knowledge of what works and synthesizing it into something that works on a very big level.
Hacks in music are smart, strategic marketing at their best. Amandaâs Kickstarter campaign does just that. Itâs also a reminder that even people with big fan bases canât just ârelease the recordâ. To the fans, she is delivering everything they want in a very impressive presentation. To musicians who look up to her, they should be recognizing the hacking strategies that truly made this a record-breaking success.