When I lost $25,000 I realized that something was going wrong. We suspended advertising, rebuilt the team and I began to study customer interviewing, marketing strategies, and the specifics of both the IT and music businesses.
For the next nine months, we dealt solely with marketing strategies. We studied who our target client was, what their pains were, and how we could help.
It was necessary to do some customer interviews to create a suitable marketing strategy. Fortunately, by that time there were already 14,000 musicians who had registered on Amadei but hadn't bought anything.
That's what I found out after some interviews.
Insights. Musicians don't care about distribution, which we put a lot of emphasis on. The main thing for music artists is to be heard, and that's totally different.
A simple distribution is like bringing potatoes to some Walmart. There are various sorts of potatoes from numerous producers in a store, meaning just the delivery arrangement doesn't provide sales.
Similarly, 180,000 tracks are delivered to streaming services every day. Users simply can't listen to them all, so marketing comes to the fore. That's what we've focused on after the restart and what we've highlighted in the ads.
New marketing strategy results. With a new marketing strategy based on the insights, we put together a landing page. It was much cheaper than the enormous PR campaign we launched at the start.
It all paid for itself in 1.5 months and for the next 9 months, we grew steadily. At that moment attracting a paying user cost $18, while they paid $200 on average.
Nowadays the average bill on Amadei is $400.