A month after launching the idea:
20% of customers had downloaded music as "a gift from Jane"
45% Paid by determining price
35% will pay later
of the 45% who set their own price:
9% paid less than the suggested price
81% paid the suggested price
9% paid more than the suggested price
And the average price per track was $1.27 - that's 27 cents more than the iTunes music store cost per track.
Jane explains the idea here:
"You decide what feels right to your gut. If you download for free, perhaps you'll buy an extra CD at an indie band's concert. Or if you don't go with your gut feeling, you might sleep poorly, wake up grumpy, put your shoes on backwards and fall over. Whatever. You'll know what to do...
FOUR choices on pop-down 'buy' button
- free (gift from Jane)
- self-determined (pay now)
- self-determined (pay later so you are truly educated in your decision)
- standard (today's going rate is about .99)
GIFTS: You can still send mp3 gifts to friends with any payment choice.
1/ COST OF DOWNLOADING:
online credit card authorization (about .45/order (not per song); credit card merchants (visa, amex, mc) cost from 1-3% per order; balance goes to artist
- if your order costs $0 (free) these costs are bypassed.
- about $2.50 to manufacture. This doesn't include training as a musician (ok, so my parents didn't charge me rent for lying on my bed playing guitar), studio time, etc."
What a bold move. There's something right and true and good and exciting going on here.
Thanks to Beyond Magazine's Blog for the story.
More links about Siberry's move.