Thursday, December 23, 2010

Making Free Money Online

The Education Tech Series is supported by Dell The Power To Do More, where you’ll find perspectives, trends and stories that inspire Dell to create technology solutions that work harder for its customers so they can do and achieve more.

Non-profit organizations and passionate individuals have found a slew of creative ways to leverage social media and the class='blippr-nobr'>Internetclass="blippr-nobr">Internet to make the world a better place. Online campaigns help provide clean drinking water, food and malaria-preventing bed nets to people who need them.

Creative uses of the web are helping to provide and enhance education. These four projects, for instance, found innovative ways to help build schools through digital campaigns.

1. Epic Change

Epic Change has become a model for raising money using social media. Since 2008, its annual TweetsGiving has asked people to tweet about what they’re thankful for while making a donation. The strategy was so successful that #tweetsgiving became a trending topic on Twitter during the first year’s campaign.

Starting out, the benefactor of TweetsGiving was a school in Tanzania that was founded by Mama Lucky Kamptoni, a passionate local woman who started the school using money she earned from her poultry business (now there are two more benefactors). Epic Change wanted to help her rebuild and expand the school.

The organization also launched To Mama With Love, a website where users can make a donation by creating a “heart space” for a mother they care about. The “heart space” is a collection of photos, videos and words dedicated to that mother. Other people who care about that mother are invited to donate in her honor.

From one of the classrooms that was built using donations from these campaigns, the students now tweet and connect with the rest of the world.

“So often, we hear the stories of children in the so-called ‘developing’ world from the perspective of the media, non-profits or friends who have traveled or volunteered,” explains the Epic Change Blog. “What happens now – when these students can share their own stories, and build relationships with the rest of the world, for themselves? How will the world be different when these children, who live so geographically far away, move into our virtual backyard? What difference will it make in their lives to know that their voices will be heard?”

2. Stillerstrong

When Ben Sitller launched the Stillerstrong campaign on YouTubeclass="blippr-nobr">YouTube, Twitterclass="blippr-nobr">Twitter and a branded website, he did it with a video that poked fun at Lance Armstrong’s Livestrong campaign. It was hard to tell if he was kidding.

But the campaign, which sells Stillerstrong headbands and accepts donations by text message and credit card, has raised about $300,000 to help provide temporary schools for Haitians displaced by January’s earthquake. At the time the campaign was announced, the organization and its partners Causecast and the Global Philanthropy Group were expecting each school to cost between $45,000 and $55,000.

3. TwitChange

Instead of auctioning off celebrity memorabilia to support a charity, TwitChange hosts eBay auctions for celebrity Twitter interaction. The donation’s bidders put down to have a celebrity follow them, retweet their tweet, or mention them in an update. The proceeds go to aHomeInHaiti.org, which will use them to build a home and school for children with disabilities in Haiti.

The first auction in September raised $531,640.25. The website instructs us to “stay tuned for the celebrity tweet auction coming this holiday season.”

4. University of the People

Less of a “campaign” than a full-blown effort to democratize education, University of the People provides tuition-free higher education through an online campus.

Since launching last year, the university has accepted about 700 students from 100 different countries to its three- to four-year programs for business and computer science. Recently the university opened computer centers in Haiti so that students with limited Internet access could enroll in its courses.

“I do believe that if we take the millions of people around the world who could not afford going to university and teach them tuition free, we’re not only changing their lives, and their family’s lives, we also change their communities, their countries,” founder Shai Shai Reshef says. “And if we have a lot of them, we will change the world for a better world.”

Series Supported by Dell The Power To Do More/>

The Education Tech Series is supported by Dell The Power To Do More, where you’ll find perspectives, trends and stories that inspire Dell to create technology solutions that work harder for its customers so they can do and achieve more.

More Social Good Resources from Mashable:

- How Online Classrooms Are Helping Haiti Rebuild Its Education System/> - Why Social Media Is Reinventing Activism/> - 5 Creative Social Good Campaigns for the Holiday Season/> - 4 Real Challenges to Crowdsourcing for Social Good/> - 9 Creative Social Good Campaigns Worth Recognizing

Image courtesy of iStockphotoclass="blippr-nobr">iStockphoto, urbancow

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Ok Go Explains There Are Lots Of Ways To Make Money If You Can Get Fans

from the everything's-possible dept

Over the last few years, we've covered many of the moves by the band Ok Go -- to build up a fanbase often with the help of amazingly viral videos, ditch their major record label (EMI), and explore new business model opportunities. In the last few days, two different members of Ok Go explained a bit more of the band's thinking in two separate places, and both are worth reading. First up, we have Tim Nordwind, who did an interview with Hypebot, where he explained the band's general view on file sharing:


Obviously we'd love for anyone who has our music to buy a copy. But again, we're realistic enough to know that most music can be found online for free. And trying to block people's access to it isn't good for bands or music. If music is going to be free, then musicians will simply have to find alternative methods to make a living in the music business. People are spending money on music, but it's on the technology to play it. They spend hundreds of dollars on Ipods, but then fill it with 80 gigs of free music. That's ok, but it's just a different world now, and bands must learn to adjust.

Elsewhere in the interview, he talks about the importance of making fans happy and how the band realizes that there are lots of different ways to make money, rather than just selling music directly:

Our videos have opened up many more opportunities for us to make the things we want to make, and to chase our best and wildest ideas. Yes, we need to figure out how to make a living in a world where people don't buy music anymore. But really, we've been doing that for the last ten years. Things like licensing, touring, merch, and also now making videos through corporate sponsorship have all allowed us to keep the lights on and continue making music.

Separately, last Friday, Damian Kulash wrote a nice writeup in the Wall Street Journal all about how bands can, should and will make money going forward. In many ways the piece reminds me a bit of my future of music business models post from earlier this year -- and Kulash even uses many of the same examples in his article (Corey Smith, Amanda Palmer, Josh Freese, etc.). It's a really worthwhile read as well. He starts by pointing out that for a little over half a century, the record labels had the world convinced that the "music" industry really was just the "recorded music" industry:

For a decade, analysts have been hyperventilating about the demise of the music industry. But music isn't going away. We're just moving out of the brief period--a flash in history's pan--when an artist could expect to make a living selling records alone. Music is as old as humanity itself, and just as difficult to define. It's an ephemeral, temporal and subjective experience.



For several decades, though, from about World War II until sometime in the last 10 years, the recording industry managed to successfully and profitably pin it down to a stable, if circular, definition: Music was recordings of music. Records not only made it possible for musicians to connect with listeners anywhere, at any time, but offered a discrete package for commoditization. It was the perfect bottling of lightning: A powerful experience could be packaged in plastic and then bought and sold like any other commercial product.

But, he notes, that time is now gone, thanks in large part to the internet. But that doesn't mean the music business is in trouble. Just the business of selling recorded music. But there's lots of things musicians can sell. He highlights Corey Smith and Smith's ability to make millions by giving away his music for free, and then touring. But he also points out that touring isn't for everyone. He covers how corporate licensing has become a bigger and bigger opportunity for bands that are getting popular. While he doesn't highlight the specific economics of it, what he's really talking about is that if your band is big, you can sell your fan's attention -- which is something Ok Go has done successfully by getting corporate sponsorship of their videos. As he notes, the sponsors provide more money than the record labels with many fewer strings:

These days, money coming from a record label often comes with more embedded creative restrictions than the marketing dollars of other industries. A record label typically measures success in number of records sold. Outside sponsors, by contrast, tend to take a broader view of success. The measuring stick could be mentions in the press, traffic to a website, email addresses collected or views of online videos. Artists have meaningful, direct, and emotional access to our fans, and at a time when capturing the public's attention is increasingly difficult for the army of competing marketers, that access is a big asset.



...



Now when we need funding for a large project, we look for a sponsor. A couple weeks ago, my band held an eight-mile musical street parade through Los Angeles, courtesy of Range Rover. They brought no cars, signage or branding; they just asked that we credit them in the documentation of it. A few weeks earlier, we released a music video made in partnership with Samsung, and in February, one was underwritten by State Farm.



We had complete creative control in the productions. At the end of each clip we thanked the company involved, and genuinely, because we truly are thankful. We got the money we needed to make what we want, our fans enjoyed our videos for free, and our corporate Medicis got what their marketing departments were after: millions of eyes and goodwill from our fans. While most bands struggle to wrestle modest video budgets from labels that see videos as loss leaders, ours wind up making us a profit.

Of course, that only works if you have a big enough fanbase, but that doesn't mean there aren't things that less well known bands can use to make money as well. He talks about an up-and-coming band in LA that doesn't even have a manager that was able make money:

The unsigned and unmanaged Los Angeles band Killola toured last summer and offered deluxe USB packages that included full albums, live recordings and access to two future private online concerts for $40 per piece. Killola grossed $18,000 and wound up in the black for their tour. Mr. Donnelly says, "I can't imagine they'll be ordering their yacht anytime soon, but traditionally bands at that point in their careers aren't even breaking even on tour."

The point, Kulash, notes, is that there's a lot of things a band can sell, focusing on "selling themselves." And, the thing he doesn't mention is that, when you're focusing on selling the overall experience that is "you" as a musician or a band, it's something that can't be freely copied. People can copy the music all they want, but they can't copy you. "You" are a scarce good that can't be "pirated." That's exactly what more and more musicians are figuring out these days, and it's helping to make many more artists profitable. And, no, it doesn't mean that any artist can make money. But it certainly looks like any artist that understands this can do a hell of a lot better than they would have otherwise, if they just relied on the old way of making money in the music business.



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