A
friend recently shared with me that he thinks (based on some actual data) that a willfully given email address from a fan costs $1.50.
This is sort of a follow-up to a past post of mine, "How Much Would You Pay For Someon's Email Address?" which had some great conversation in the comments and even lead to another blogger writing his own post in response.
This means that instead of paying per impression, or per click, one could pay for only goal conversions, which in this case is those that sign up for an email list (via a free download trade-off).
This got me thinking. If I had say $2500 to spend on a new artist, how would I go about spending it? I am currently considering four options and perhaps you can help me make a decision: online advertising, internet radio airplay, PR, or touring. Remember, my goal is to acquire new fans' email addresses.
Online AdvertisingAssuming an email address costs me $1.50 via online advertising, $2500 will get me 1667 emails.
I have bought online ads through Facebook twice now. Once to promote a contest for
Project K-Paz (whose new CD is available
here!), and the other time to promote a show for
Tom Howie. Both ads led to Facebook event pages where potential new fans could learn more about the event and click through to each artist's website. The ads only received 92 and 7 clicks, costing $44.14 and $4.45 respectively.

If I were to take this to a larger scale, I would direct the ads to the artist's website or MySpace where the "clicker" would be led to hear the music. If a click cost $.60, then $2500 would buy 4167 clicks. How many of those would then download the music in return for the email address? If it were 40% (2 out of 5) then that would be 1667 email addresses ($1.50 per email address). Even if it was 1 out of 5, that would be 833 email addresses.
Let's call it 1000. That's 1000 new people located in the areas that I designated when I bought the ads who I can invite to future shows and offer products to as long as they stay on the email list. This seems like a great option.
Buying Internet Radio PlaysWhat about paying for internet radio play?
Jango offers such a service where you can have your music played alongside the artists that you think you sound like while being targeted to your exact demographic in the locations that you choose. This costs $100 for 2000 plays, which will lead to unpaid plays if you are "liked" enough times. $2500 = 50,000 plays.
I'm currently using Jango with Tom Howie and so far we've had only 424 spins and have acquired 4 "fans", which would equate to 472 fans if we spent $2500. This is far less than 1000, but I'm assuming the numbers would increase over the life of the campaign once more people started hearing about it. Additionally, we are receiving feedback from listeners throughout the process, which we wouldn't get with ads.

Who knows what 50,000 listens would lead to. (What is the potential snowball effect?) Jango claims that 1000 listens should lead to 40-80 new fans. That said, the user base for Jango is far less than that of Facebook and you can only contact fans acquired through Jango on Jango... Hmmm.
Hire a PR Company
CyberPR is a digital PR firm that connects artists, authors and filmmakers to blogs, podcasts, Internet radio stations and social media sites. For $2500 you get the following:
- Full online PR outreach with multiple placements on blogs, Internet radio stations, podcasts, zines, video sites, lifestyle sites, and many additional outlets as well as extensive exposure on social networking sites.
- Your own customized VPK (virtual press kit). (example)
- All your social networking profiles written and posted for you.
- A feature profile in our newsletter “Pre-Cleared & Podsafe” delivered to over 7,000+ new media resources.
- Custom station ID scripts so you can record personalized drops for the Internet radio stations and podcasters for additional inclusion.
- An 8-week, step-by-step system for maximizing your campaign and overall online exposure.
- Contest opportunities to giveaway CDs and merchandise on Internet radio stations.
- Monthly coaching calls with our team to keep your campaign on track and moving forward.
The above is their $1500 package, which lasts 3 months, but the $2500 one last four months and also includes the following:
- Your VPK profile sent to several hundred additional new media outlets.
- Personal coaching from Cyber PR founder and social media expert, Ariel Hyatt.
- A full Marketing plan created by our team to help move you along in all areas of your music career.
- Billing as a featured artist at our Digital Press Conferences which take place 2-3 times a year in New York City.
- Full access to Ariel’s workshops (either in person or recorded versions).
- 10 tour dates promoted and publicized (if applicable).
- Your professional bio written for you by an expert in how to craft the perfect pitch and story.
How many new fans would this lead to? How many spins on internet radio would this buy? What increase would one see in fans/followers on Facebook, MySpace, and Twitter? How much of an increase would one see in website traffic? If successful, this option could not only lead to a comparable number of fans acquired through the first two options (1000 +/- a few hundred), but it would also create an online infrastructure fo the artist to build upon.
And the 10 shows they would promote? How much more money would you make from those gigs if this company were to promote them? It seems like there is a lot of potential with this option.
TourHow about spending $2500 on a tour. What are the costs per show?
- Gas - $50
- Food - $50
- Hotel - $100
If the cost per show was $200, then the act could play 13 shows, but if they slept for free at fans/friends' homes they could play 26. Let's figure 20 shows then (because they are using
Better Than The Van to find free accomodations). These 20 shows are mostly in new towns so attendance isn't going to be great. The average email sign up at the gigs will probably be 10. This equates to 200 new email addresses, which would mean that each email address cost $12.50.
$12.50 per email address sounds awful, but think of all the benefits gained from the tour option that are not gained by any of the others:
- Experience playing live.
- CD and Merch sales (minimal, but enough to make a difference).
- The fans that are acquired are better fans because they had a real-life connection with the artist; they saw you live!
- The potential to make money on a second round of touring.
After the tour though, how much further would the artist's online presence be built? What evidence would the artist have to show that their fan base was growing? Would they still be scratching their heads asking, "How can I get more traffic to my website and social networks?"
My gut reaction is to hire the PR company and stay local. Play fewer shows than you would on a 20-date tour, but keep costs down. Practice and watch your online presence grow. As a result, plan a tour then that could potentially be profitable with the new fan base established.
Maybe the answer lies in a combination of the 4 options:
- Do the $1500 CypbePR package
- Spend $750 on Facebook Ads (300 or so new email signups)
- Do a 5-date tour on the cheap to grow your reach ever so slightly
I'm not sure... What would you do with $2500?