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Commitment to Musicians Payout

Posted on February 24, 2015

A message from Frank Podlaha, CEO

Pile of TokensMany of you have probably noticed the new Payout Percentage we now display on the StreetJelly BuyTokens page. On the right hand side, we show a running average of the amount of cash that we pay back to musicians from the tokens purchased by fans. Let me explain a little deeper how it all works.

We do things a little differently on StreetJelly than most sites. Instead of just tipping in US Dollar amounts, we use tokens (and Rocker Pin awards) to show our love to the musicians. Each tipped token is always paid out at 16¢ (US). However, we sell those tokens for various prices depending on the size of the package a fan purchases. People like a deal when they buy in bulk. No difference with our tokens. The more you buy, the better price you get. The percentage of the money that goes to the musicians then varies depending on which package is purchased. The tokens vary in sale price from 32¢ to 20¢ (or 50% to 80% payout).

Of course, different people buy different packages. If we average out all the packages sold, we consistently get a payout above 70%. It’s been like that from the very beginning. We have just as many fans buy the larger token packages as do the smaller ones.

However, this is not the complete picture because we also give away tons of free tokens with promo-codes, contests, and other events. Think for a minute what happens when you get a promo-code worth 25 Free Tokens. Those extra tokens still become real cash that we payout to musicians. For example: if you buy the smallest package of 25 tokens at $8 with that promo, you actually receive 50 tokens (25 purchased + 25 free).  The payout to the musicians becomes $8, or 50 x .16 = $8.  100% of your purchase goes to the musicians. Cool, huh!?

We are displaying that full Payout Percentage on the BuyTokens page. It’s a running average over the past 30 days, and includes all the extra tokens we give away. On a side note: it does NOT include any fees/royalties we payout to the songwriters associations (BMI, ASCAP, etc). Those artists get their piece of the pie from our revenue, not the musicians. It’s our obligation to take care of that portion.

We are very proud that our true Payout Percentage is running in the mid-80s! It is our goal to always keep that at or above 80% and still stay in business.

Thank you for all the support!

~Frank Podlaha, CEO – a.k.a. Frankie

Payout Percentage - Feb 2015

Payout Percentage – Feb 2015

 

Building Profitable Entertainers

Posted on February 9, 2015

Special guest blog by StreetJelly musician Clifton Printy to help his fellow musicians.

Building Profitable Entertainers

Clifty and Jim

Clifty and Jim

So here’s the deal.

You know at StreetJelly we have been building a series about promoting yourself and succeeding as a musician. Guess what? It is hard work. A creative and diversified approach to generating income will help today’s musicians earn a living.

Your fans, in one form or another, are your customers. But! Don’t try to sell to them. The idea is to be their friend, be in their heart and minds. When they are ready to buy, they will buy. You are their trusted pal.

Did I call your fans customers? Why yes! And if you don’t see them that way, you might quit now and save yourself some time. Your Music is your Brand. If you plan on any monetary success from your fans, then they have to be viewed as customers.

So don’t abuse them like spamming their email with, “buy my this and that.” Remember, they will come to you when they are ready.

Mentally put your suit on. You are a business. This is the music business so get into your business brain. Start spit balling. What would you buy? Here’s a few off the cuff ideas.

A “Love eating lobster and listening to Slam” stickerSummer Red Riding Hood
“That’s my Kind of Music! Danny Campo” coffee cup.
The !clifty: Coffee cup
Summer Russell’s “Red Riding Hood Feet-Pajamas”

So, ideally in a business you deliver a product and your customers pay you for it. For musicians, you are asking them to support your musical livelihood.

Are you making a plan?

Let’s start with some baby steps. Do you have customers? Maybe an email list of fans?
Try this to-do list…

  1. Start a newsletter.
    Goal, populate an email list and send out a bi-monthly newsletter to your fans.
  2. Set a fan base goal. Let’s call it 500 people for this.
  3. When you are at 500 people ask them what they want.
  4. Deliver it for a price.

So here is your assignment. Think up your own ideas. Share them with your friends by commenting below. Make a difference. And thank you for contributing to the livelihood of your fellow musicians, BTW.  ~Clifton Printy