According to the Atlantic Monthly, the Grateful Dead as an organization was ahead of its time when it came to growing tightly knit fan communities, crowdsourcing solutions and mastering strategic improvisation. In a way, you could say Jerry Garcia and company were the forefathers of social marketing and commerce.
Tailor-made for the information economy, the Dead's business model is built around the correlation between familiarity and value. The ideas behind the band's model (which might as well have been ripped from the pages of Chris Anderson's latest book) can be summed up in a few core tenets:
- Engage and reward your most loyal fans
- Raise demand by giving some of your product away
- Make a profit through freemium goods and services
John Perry Barlow, Dead lyricist and internet guru, sums up the band's value prop nicely:
"Here’s the thing: if I give my song away to 20 people, and they give it to 20 people, pretty soon everybody knows me, and my value as a creator is dramatically enhanced."
Makes sense to us. After all, if you want to get your friends and fans to follow you around (and buy your stuff), who better to look to for advice than the Dead?
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