Paper Internet decisive for DJ career
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Denis Doeland - 20 maart 2014
PAPER: INTERNET DECISIVE FOR DJ CAREER
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Introduction How much is a DJ actually worth? Within five years, content (read: music) will be almost exclusively in digital formats that can be exchanged over the internet. It might sound crazy, but this shift will see a drop in the worth of the DJ. This is because DJs have less and less to do with inventory, hardware, supply and receivables. The world has gone digital. And so these things now contribute less and less to the value attached to a DJ. The attitude and behavior of banks, valuation experts and investors only serve to underline this.
Solid strategy But what can a DJ do to increase their value? Although historical value will continue to play a role in the valuation process, the main focus now is on future revenue streams. What is your revenue going to look like in the future? How large a fanbase do you have?
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The growth of mobile internet, the rise of social media and the rise in the number of internet-ready devices gives DJs the possibility to follow and reach out to their (future) fans.And it is crucial that DJs take advantage of this. DJs must create direct relationships of a kind that were unfamiliar to them in the days of traditional offline marketing.
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Communication is no longer a one-way street for DJs. As a DJ, you have to open a dialogue with your fanbase by using the internet and building a relationship with listeners that can be sustained in the long-term, which means making online posts and content to go with them. The challenge for DJs is to transition from a habit of ‘brand creation’ to creating ‘relevant surprises’, strengthening the relationship with fans. It is important that you create a solid online strategy.
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This solid strategy should be based on the accessibility of your online content. Are you posting the right information at the right time? Are you making sure that what you are communicating is actually of interest to your followers? Does what you’re posting reflect where you are and what you are currently doing? And is the information you are posting varied enough?
PAPER: INTERNET DECISIVE FOR DJ CAREER
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To measure is to know. By making extensive and careful use of your own site and of social media, you, as a DJ, can measure who your target group is. Use your site’s statistics! You can use this information to create new, digital marketing profiles. The value of artists who do these things rises over time.
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“Value creation through the use of the internet and social media is all about being able to create, distribute, maintain and optimize existing and new digital relationships over diverse internet platforms where – (in)directly and in demonstrably – additional and future net cash flows are generated.” (The Voice – A supplementary revenue model? by Denis Doeland and Pim van Berkel, ed.)
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The words above – create, distribute, maintain, optimize – ultimately have to do with the costs of labor and resources. Through which channels can you, directly or indirectly, earn money? And do the costs weigh up against the returns?
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Digital is the key element in this, given that this makes it clear that the address database and other traditional marketing tools are no longer what the game is all about. Of course, there will remain a certain overlap between the digital platforms and the drop-off rate (the so-called churn rate). Twitterers may be the same fans or customers as Facebook fans, and vice versa.
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The step that DJs have to make is to collect and analyze data. Who are the fans? What do they respond well to? What do they like? Using this information, a DJ can create a follow-up strategy or a completely new (marketing) strategy. With a greater reach, more people will come to know who you are, and bookings and record sales (for example) will rise – as will your future earnings. So make sure your business model is watertight, and remember: the internet is now decisive for the career of the DJ.
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The content of this paper was originally written for FanFiber
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Note | Disclaimer | Copyright
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DDMCA and Performance & Investment Management (PIM) are currently working together to refine the valuation models based on data from social media channels. Questions how to value a brand, DJ, DJ or athlete? Feel free to contact denis.doeland@ddmca.com
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This article is issued under Dutch copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of DDMCA the owner of the issued content. You may not alter or remove any trademark, copyright or other notice from copies of the content without prior written permission.
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Need a financial valuation report? An oer for a full complete valuation report provided with a fairness opinion of a register valuator can be required via denis.doeland@ddmca.com
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Contact
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DDMCA Attn. Denis Doeland Keizersgracht 330-b 1016 EZ Amsterdam The Netherlands
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Mobile: +31 6 13520250 Web: ddmca.com Web: denisdoeland.com
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