Posted tagged ‘micropayments’

Is Bandcamp Really Worth It?

October 13, 2010

THE ARTIST: Caleb Pogyor (Pittsburgh, PA)
THE QUESTION: I was just wondering if Bandcamp has been good to you in terms of fairness and profit. Is it worth signing up and selling a $5 record? I’m releasing my new album on October 25th and was trying to find a good site to sell through.

THE ANSWER: I really love Bandcamp and I’ve written alot about these guys in the past. Here’s one of those posts: Bandcamp- A Great Place to Pitch Your Tent. But is it worth it financially?  Here are my thoughts…

1. Bandcamp has the artist in mind. Most download sites take roughly 30% of your track sales. On Bandcamp you can set the price of downloads and it routes through your paypal. Bandcamp takes 15% and then paypal takes a cut as well…but it still doesnt add up to 30%.

Bandcamp is also a good place for doing  promotionals. The site allows you to get people’s email addresses in exchange for a free download.  Things like this will help you build your fanbase. You can also run special promotional code discounts and other promos that you wouldn’t be able to run through iTunes or the bigger download stores.

Bandcamp will also give you a good platform for allowing people to hear your full CD before they decide to buy it. Some people might never buy it if they can hear it anytime for free, but some will.

2. iTunes has more customer loyalty. The reality of it is that most people will get your music from iTunes no matter what. Use Tunecore for this. Tunecore is a platform that allows you to submit your music to big dogs like iTunes, Amazon, Napster…etc. Read this post for more on that:  Alternatives – CD Packaging, Production, & Distribution.   iTunes is pretty much a monopoly in this game of digital downloads. So if you’re looking for a spot where 95% of people are already visiting, put your stuff on iTunes.

3. Who says you can’t do both? iTunes in great, BUT  Bandcamp is awesome for the folks who dont want to submit to “the man” 🙂 and folks who are looking for unconventional ways to do what they do.  So who says you can’t do both. Put your eggs in multiple baskets and they’ll both benefit you in different ways.

SOMETHING TO SERIOUSLY THINK ABOUT:
You might want to apply for Paypal’s “Micropayments Rate“.  According to Bandcamp, if the items you sell are under $12, it’ll be more advantageous to go the micropayments route so you get the best bang for your buck.  Think of it this way:

If you’re selling a $.99 track through bandcamp, Paypal will still take 30% of that and bandcamp will take their 15%.  You’ll get roughly $.55 of every dollar. That’s not exactly ideal. But if you set up micropayments, Paypal will take a much much smaller percentage and you make more to the dollar.

This is yet another reason why i love working with Paypal and Bandcamp.

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