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Writer's pictureCasey Graham

How Artists Can Beat Piracy & Sell Music Direct-to-Consumer



In the ever-evolving music industry, artists face a crucial dilemma: to embrace direct-to-consumer (D2C) sales or stick with traditional streaming platforms. Many musicians shy away from D2C, fearing the specter of piracy that looms over the digital landscape. Instead, they retreat to the familiar territory of streaming services, settling for mere pennies per play rather than venturing into the potentially lucrative world of direct sales.


But what if there was a way to navigate this challenge and reap the rewards of selling directly to your most devoted fans? If you're an artist looking to take control of your music distribution while sidestepping the pitfalls of piracy, you've come to the right place. In this blog post, we'll explore strategies that empower musicians to embrace D2C sales, build stronger connections with their audience, and maximize their earnings - all while keeping digital piracy at bay.


You're Selling to Lovers and Goers

When approaching direct-to-consumer (D2C) sales, it's crucial to understand your audience. These people are, in my opinion, experience seekers. We classify them as "lovers" and "goers." For instance: music lovers (audiophiles), concert-goers, club-goers, movie lovers, and moviegoers. These individuals are willing to spend more for an enhanced experience, so you must provide that elevated experience.


Increasing Quality Increases Value

Providing an enhanced experience means packing a lot of value into your music product. This approach appeals to music lovers and concert-goers, who are willing to pay a premium price for that added value. The higher pricing serves a dual purpose: it reflects the product's worth and deters many potential pirates. These "liberators" are less likely to pay a high price for a product they can't profit from. Only a pirate with the sinister motive of harming your profits and brand would buy your high premium-priced product to bootleg it on the streets.


Pay What You Want

Most "liberators" won't bother if you have a "pay what you want" option for the album because anyone can get it at a price they can afford. However, many fans will pay $20 when they see an artist asking for donations, while others might pay just $1. This flexible pricing strategy can deter piracy while still making the music accessible to all fans. Remember $1 accounts for roughly 263 streams. If you have 10 songs on an album that’s 26.3 listens.


Setting a Timeline

A crucial aspect of the D2C process is determining the timeline to meet your sales goal while maintaining the attention of followers who prefer lower prices. This strategy is similar to releasing a movie for purchase on Apple TV during its theatrical release, allowing fans to own it early or experience it in the best format at the cinema. While movies typically allocate two months for this timeline, music aims for a two-week window with the goal of recouping up to 70% of the recording and production costs. Scheduling your streaming release date close to your D2C release date can significantly reduce piracy.


Content ID

Content ID can protect your music for the first two weeks of release. YouTube is the primary platform where most people consume free music, so your songs should be registered through a Content ID service. Sometimes you may need to select a service outside of your distributor, as many distributors prefer to distribute directly to YouTube to implement this service. Be sure to check with them about their Content ID policies.


The Ultimate Goal is Quelling

Quelling is your primary objective. If piracy reduces your revenue by 5% but people still get to listen to and discuss your music, is it truly piracy or just promotion? In the past, we'd call this a promotional copy. Even movie companies intentionally leak their films if they're underperforming after the first week. They do this to spark conversations on social media, improving the odds for their streaming promotions when their initial release strategy falls short.


What's the Price and What's the Product?

It's best to sell a packaged physical product or a digital product with plenty of perks included. A price range of $25 to $60 is ideal for fans and experience seekers to purchase on impulse. This package can include a physical vinyl or CD, plus a digital copy. The CD can be a set containing all versions of the songs and then on top of this some sort of access to you. The possibilities are endless.


What if people leak it anyway?

People who seek leaked versions typically listen only once, so it's a glass-half-full situation. If piracy causes you to lose 500,000 streams, but you accumulate 10,000,000 streams after your release date, you've only lost 5% in revenue. Consider it a cost of doing business and call it promotion. Your name still rang bells in the streets.


What if you never release your music on streaming?

There are a few thousand artists who follow this approach, cultivating a cult following. Their fans tend to be more respectful of their process, and their fanbase is highly concentrated. A cult following almost guarantees a set amount of sales as the artist grows. On the flip side, many fans who want a peek into this cult world will find scattered leaked records. They might discover certain albums released by the artist on streaming platforms, but they won't be able to find everything—which ties back to the concept of quelling mentioned earlier.


Tools to beat Piracy and stay independent

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If you develop methods to quell piracy

You'll put your fears at ease. Utilizing these tactics can yield substantial upfront revenue for your music. Moreover, it can position you to gain momentum and build a dedicated fanbase.


Opening Yourself Up to Piracy

Piracy isn't inherently negative, as some artists seek increased awareness through it. However, a potential downside emerges when you later attempt to sell directly to your fanbase. After providing so much content for free, your fans might feel disgruntled when you start charging for your work.


Conclusion

If you want to utilize D2C in your strategy, start early so your fanbase becomes accustomed to it. However, it's important to never overuse this method. D2C will allow your musical journey to become—for lack of a better term—"worth it." Keep fighting, independents!

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