RouteNote’s Free vs Premium Model: Whats Best For You?

by RouteBot on June 16, 2010

At RouteNote we recently launched our Premium platform and it has been a great success so far. In this article we will run through the key benefits of each model. This will hopefully help artists make the right decision when deciding which option is the most profitable for them.

Free Option

  • No Upfront Fees
  • Choose As many or as little partners as you would like. (iTunes, Amazon MP3, Spotify, eMusic, Deezer and more.)
  • Artists keep 90% of all revenues

Premium Option

  • Costs = $10 per single, $20 per EP, $30 per album and $45 per extended album per year.
  • Artists keep 100% of all revenues
  • Choose As many or as little partners as you would like. (iTunes, Amazon MP3, Spotify, eMusic, Deezer and more.)

What is the best option for you?

Example 1: Single

  • Premium Option of $10 for a single and sells 100 downloads for the year. The artist would receive approx $0.64 per download ($0.99 per download less $0.35 store commisions). Totaling = $64.00 – $10 upfront = $54.00
  • Free Option has no upfront costs and sells 100 downloads for the year. The artist would receive approx $0.576 per download ($0.99 per download less $0.35 store commisions less 10% commisions). Totaling = $0.576 *100 downloads = $57.60
  • Optimum Amount for Premium is 140 downloads per year at $0.99

Example 2: EP

  • Premium option: $20 for a EP and sales of 60 EPs. The artist would receive approx $2.65 per download ($3.00 per download less $0.35 store commisions). Totaling = $159.00 – $20 upfront = $139.00
  • Free option: no upfront costs and sales of 60 EPs. The artist would receive approx $2.385 per download ($3.00 per download less $0.35 store commisions less 10% commisions). Totaling = $143.10
  • Optimum Amount for Premium is 75 downloads per year at $3.00

Example 2: Album

  • Premium option: $30 for a Album and sales of 30 Albums. The artist would receive approx $7.64 per download ($7.99 per download less $0.35 store commisions). Totaling = $229.20 – $30 upfront = $199.20
  • Free option: no upfront costs and sales of 30 Albums. The artist would receive approx $6.876 per download ($3.00 per download less $0.35 store commisions less 10% commisions). Totaling = $206.28
  • Optimum Amount for Premium is 40 downloads per year at $7.99

Example 2: Ext. Album

  • Premium option: $45 for a Ext. Album and sales of 50 Ext. Albums. The artist would receive approx $12.65 per download ($13.00 per download less $0.35 store commisions). Totaling = $632.50 – $45 upfront = $587.50
  • Free option: no upfront costs and sales of 50 Ext. Albums. The artist would receive approx $11.385 per download ($13.00 per download less $0.35 store commisions less 10% commisions). Totaling = $569.25
  • Optimum Amount for Premium is 36 downloads per year at $13.00

Previous post:

Next post: