Study: Fans Really Want To Spend More Than $10
Talk of "monetizing the fan base" can get to be a bit much. In a world where so much is available free, doesn't the artist risk turing off fans with pleas for $10, $25, $50 and even $100? No, as it turns out. Fans, particularly the most engaged fans, want to contribute at a higher level than all of the 99 cents ITunes transactions iTunes suggest.
As Topspin and others have proven, there are many kinds of fans and each is willing to contribute at a different level from free to 99 cents to $10 and on up the ladder. But a new study of the top projects on artist and project funding site Kickstarters shows that many supporters want to give well beyond the basic levels that most musicians and others offer.
"Looking at the totality of successful projects, $50 rewards make up 11.44% of aggregate dollars pledged versus Craig’s hypothesized 25% — though it is the second largest tier. $100 rewards are the highest-grossing level, representing 16.36% of collected pledge dollars despite ranking fourth in reward popularity," according to Kickstarter. "But pledges aren’t just about dollars raised. Take the $25 level. Though it only represents 8.14% of aggregate dollars pledged, it’s actually the most popular reward tier, representing 18.41% of all rewards chosen (the tallest blue bar above). $50 reward pledges make up 13.57% of all backings."