Freeconomics New Generatives + Impulse-Purchase Pricing = Kickstarter. Better Than Gov’t Grants for Artists!?

Screen shot 2012-03-02 at 4.11.56 PMKickstarter project crowd-funding is a fantastic example of how you can still sell, even when everything (at least in the digital/content realm) is trending toward $0/FREE.

1) Notice the way that the Kickstarter set-up allows for “donation” sales of $1, what I call pure Impulse Purchase territory: The amount is low enough that the vast majority of people don’t need to bring their rational/doubting/calculating brain into the equation at all.

2) More importantly, the various donation levels (=offers) all include the New Generatives principles that can still work with #Freeconomics:

Priority/exclusive access and experience/embodiment (live stream of the performance art event), plus patronage (the self-satisfied feeling from being a patron for the arts, etc.).

Next level up: Input into the creative process – experience/participation.

Next level up: A piece of the paper canvas – embodiment, uniqueness/authenticity/personalization.

Next level up: Lunch with the artist – personalization, experience/embodiment, exclusive access, etc.

And guess what? It works like a charm… almost 4 times the stated fundraising goal!

These principles apply to music and bands just as much as by the way.

[UPDATE: And Jason Calacanis is predicting that we will soon see a multi-million $ independent movie project on Kickstarter, possibly by the likes of Quentin Tarantino. Get the movie you want made by the director/artist you want! -> More here on this Google+ post. ]

Amplify’d from Mashable – Could Kickstarter Be Better Than Government Grants for Artists?

Artist Molly Crabapple has just been given $17,000 to lock herself in a paper-covered room for five days and make art until the walls are covered.

But that sum didn’t come from the National Endowment for the Arts or a wealthy patron; Crabapple, like many in her subversive art-making shoes, turned to Kickstarter to find funding for the stunt.

In her Kickstarter proposal, she outlined the basic premise of the project, dubbed “Molly Crabapple’s Week in Hell.” Anyone who donated a dollar to the effort would get to watch a live stream of the whole five-day shebang. Anyone who pledged $10 or more would get to name an animal for inclusion in the artwork; donations of $20 or more would get an actual piece of the ink-filled paper sent to them. And backers who fronted $1,000 or more would get an absinthe-infused lunch with the artist.

Crabapple set a $4,500 fundraising goal; so far, the total raised is $17,000 — enough to make a short film about the project, which Crabapple says will debut online shortly after Crabapple’s Week in Hell wraps.

REQUIRED READING: The Freight Train That Is Android – by Bill Gurley

Screen shot 2012-01-09 at 8.36.56 AMIf you care about #mobile and smartphones at all, it is crucial that you fully appreciate the depth of what is going on with Google’s Android strategy (which is why I’ve clipped a lot of key excerpts from this great post; by all means keep an eye on Bill Gurley, his stuff is usually excellent and in depth).

The only thing that they are lacking is Apple’s branding finesse, but it is pretty hard to compete with “LESS-THAN-FREE” in the long run…

Why would Google “bare [almost] any burden” (including the $12B purchase of Motorola Mobility, in large part to defend Android in the #PatentWars) to buy their way into this? Because… “The Future Of Mobile Is The Future Of Everything”.

From Abovethecrowd.com – The Freight Train That Is Android:

…the more I wonder if I too may have underestimated the unprecedented market disruption that is Android.

One of Warren Buffet’s most famous quotes is that “In business, I look for economic castles protected by unbreachable ‘moats’.” An “economic castle” is a great business, and the “unbreachable moat” is the strategy or market dynamic that heightens the barriers-to-entry and makes it difficult or ideally impossible to compete with, or gain access to, the economic castle. …

For Google, the economic castle is clearly the search business, augmented by its amazing AdWords monetization framework…and Google would clearly want to put a “unbreachable moat” around it. …

So here is the kicker. Android, as well as Chrome and Chrome OS for that matter, are not “products” in the classic business sense. They have no plan to become their own “economic castles.” Rather they are very expensive and very aggressive “moats,” funded by the height and magnitude of Google’s castle. Google’s aim is defensive not offensive. They are not trying to make a profit on Android or Chrome.

They want to take any layer that lives between themselves and the consumer and make it free (or even less than free). Because these layers are basically software products with no variable costs, this is a very viable defensive strategy. In essence, they are not just building a moat; Google is also scorching the earth for 250 miles around the outside of the castle to ensure no one can approach it…

Because they are “giving away” money to use their product, this creates a rather substantial conundrum for someone trying to extract economic rent for a competitive product in the same market.

This is the part that amazes me the most. I don’t know if a large organized industry has ever faced this fierce a form of competition – someone who is not trying to “win” in the classic sense. They want market share, but they don’t need economics. Imagine if Ford were faced with GM paying people to take Chevrolets? How many would they be able to sell?…

[First curated on Amplify.com]

Related -> This SiliconAlleyInsider Sub Headline Reveals Why You Must Move The Freeline