Theater For The Future

Oh, if we only didn’t need money and could focus on art, right?

There’s been a number of creative web fundraising ideas floating around the storefront community – and theaters have been doing a pretty good job copycatting the ones that are easy to use (though it’s still unclear which ones are most financially effective for arts organizations).  There’s those good ol’ web marketplace affiliate programs like CafePress.com or Amazon Associates – where your patrons shop through your site for swag or targeted products or just plain anything – and the e-marketplace gives you a cut.

More recently, major search engines have gotten into the non-profit fundraising game and created programs like GoodSearch.com which donates a portion of its ad revenue to non-profits that send users their way instead of Google. And (perhaps in retaliation?) Google created Google Grants, which sort of works like free AdWords for non-profits and increases exposure. 

There’s never a truly free ride, of course. Affiliate programs are partially there for the benefit of the affiliate, but there’s a much bigger profit to be had in having minions convert their (high-value disposable-income-weilding) patrons into big, giant streams of fresh, flaming consumerism. As I described in Part I, these programs only generate reasonable sums of money for the affiliate when you start amassing a great big critical mass of users on your own, and before that happens, it’s just a trickle.  

But, Chicago Storefront Theaters don’t have a lot of resources to chase that money, so they participate in these programs on a small scale because they require very little effort beyond the initial setup. A little easy money is better than staring into the void of funding a show on the ensemble’s collective credit cards.

About five months ago, Chicago businessman (and actor) Steve Misetic decided to throw his hat into this ring.  Like most Chicago Theater cheerleaders, Steve was frustrated with the way that Chicago Arts Organizations often have to fight with the rest of the country for the attention of our local big businesses. He noticed that theater companies were throwing their patrons’ money to e-commerce companies in California, while local businesses spend ad money with national firms, and both seemed the poorer for it. The result of this frustration – his brainchild SaveChicago.org (which launches this Friday) – was modeled on the success of other affiliate programs and the success of locally powered sites like Craigslist and Angie’s List.  The basic idea, in his words:  

SaveChicago.org is the first online marketplace where local merchants and local consumers are able to find each other on the Internet.

SaveChicago.org mobilizes the audiences of non-profit organizations into a unified consumer demographic as members of SaveChicago.org.

Local merchants then pay to reach this first ever critical mass of local consumers on the internet.
SaveChicago.org then gives 50% of the money these merchants spend back to the non-profit groups who’ve helped us mobilize these consumers.

SaveChicago.org keeps local advertising dollars local and sustainable by re-injecting the money back into our local economy via non-profit organizations, instead of letting the money escape into Silicon Valley.

The website we have built is a completely state-of-the-art e-commerce site that basically does to local advertising what Ebay did to garage sales. We’re putting local businesses together with local consumers and splitting the money with non-profit organizations. No one has figured out how to do local advertising on the internet until now.

If this sounds at all convoluted, it’s because Steve is trying to bring together three very divergent groups together with a common marketing strategy – local merchants, local shoppers, and at this point, even the non-profits that the site is designed to support. His mission, other than the glory of saving chicago theater and culture forever, is to generate those deliciously sustainable and work-free revenue streams for non-profits on a local level – hopefully to the levels they require to turn off the fundraising (aka “begging”) bullhorn and regain some long-forgotten sense of dignity. He’s also learning the PR and marketing and e-commerce games as he goes (with professional PR support and a killer web developer), and trying to bring together two e-commerce models that haven’t worked together thus far – local savings sites like craigslist and national affiliate programs like Google AdWords – with the goal of creating a revenue loop that feeds back on itself and grows the local ad money pie for the benefit of organizations that can do some good with it.

All this wrangling, courting, and dreaming big has I think created a very interesting situation on the eve of SaveChicago’s launch – at least from my vantage point outside the down-and-dirty planning – and there’s a couple big challenges ahead for the site in its infancy. The first hurdle is to demonstrate a clear need in the community – not a need to support the arts, but a need for shoppers to find deals and for merchants to find those shoppers. Without this incentive, the whole growth mechanism falls apart – Google and craigslist built that kind of national name recognition after years of providing free, innovative services that were more convenient than the phone book and classified ads, respectively. In his initial planning, Steve envisioned companies like Starbucks spending their advertising dollars on his site to reach local shoppers. Put that way, there’s no reason for Starbucks to buy in to website marketing when they’re already reaching plenty of customers right on the street. To generate that need, Steve has created an Angie’s List-esque membership program for shoppers and promised deep discounts from member merchants that can’t be found elsewhere to those members. And Neo-Futurist and SaveChicago.org groupie Mary Fons points out, the merchants that will be the biggest beneficiaries of a program like this will likely be that mom-and-pop cafe down the street that need to get you to patronize them instead of Starbucks.

The second hurdle to make a system like this work is one that papa Google and uncle Craigslist actually created pretty organically, over time – a critical mass of market share. For merchants to want to give these secret, targeted discounts, they need to know that the people using SaveChicago.org will grow their businesses. That kind of patronage doesn’t grow overnight, which creates a third hurdle: To help grow the patron base, Steve will be leaning on the member arts organizations to help promote the site and drive traffic, patrons, and merchants his way, at least until the ad revenue is self-sustaining.

And the biggest hurdle of all? Convincing all three groups that SaveChicago is a brand worthy of their trust. Chicago Theaters are actually quite conservatively-minded businesses for the most part… their risk tends to be small (though proportionally huge to their income), and they tend to feed their creativity into the product, but not so much the actual making of money. The reactions from other industry types that I talked with to Steve’s initial volley of e-mails promoting the site were skeptical at best, and Steve’s language (which was still being retooled for branding and positioning, and of course betrayed his intense personal excitement) didn’t always help:

Subject: SaveChicago.org to make fund-raising obsolete: Launching November 23rd

Could you imagine getting checks in 2011 from a Fund-raising drive completed in 2008?
Take 5 minutes to register your non-profit with SaveChicago.org and earn recurring income from a one-time fund-raising effort.
no cost – no obligation
Launching on November 23rd, 2007

Savechicago.org is the first company in history to attempt to consolidate the supporters of non-profit organizations in order to create the “critical mass” needed to generate real advertising dollars. We want non-profits to stop begging local businesses for the 5% of their ad budget they feel obliged to donate to charity every year. We’ll get you access to the other 95%.

When the spam filters didn’t whisk away his audience, phrasings like “No cost – no obligation” sparked interest but didn’t inspire confidence, despite his best intentions. Since then, Steve has hired a PR rep and refined and focused his language a bit, which will make his merchant patrons a lot happier and his non-profit beneficiaries a lot more trusting. The first checks will also help to change that tune as well. Smirk.

So what does Steve have going for him? Some folks are already way on board, with a non-profit member list that already includes several high schools, hospitals and churches, hotshot neighborhood development organizations like Rogers Park’s DevCorp North, and a few representatives of the theater scene, including Barrel of Monkeys, Rivendell, The Artistic Home, and Raven, which has never shied away from closer neighborhood involvement. Steve’s also aware of what he’s up against. Which always helps.

Plus? I think his idea is truly innovative and creative. If he can manage to implement it, he will at the very least create a locally-based version of an AdWords-like system, even if that doesn’t immediately translate into flowing rivers of cash for his affiliates. That “local” part of the business model is huge – if you’ve ever bought or sold anything through craigslist, you know what I’m talking about. There’s a whole human, dare I say theatrical, element to the transaction because at some point you’re not just exchanging money and goods, you’re coming into contact with a stranger. The time I sold my old iPod to a craigslister was, while brief, an incredibly exciting day for both of us. I used the cash to upgrade to a video model, and I left most of my music on the old one. And I have A LOT of music, so the buyer pretty much jumped up and down at the deal he got. That kind of excitement can only happen on a local level.

There’s a spark of something here – local cooperation, a spirit of being neighbors – that I think needs to continue even if Steve’s web experiment doesn’t pan out. Steve is also going to need to work his butt off to build that trust and enlist help. I know I moved to Chicago because of idealism like that, and I applaud Steve for thinking really big, and taking the big risk. I think there’s a potential renaissance out there for Chicago Theater and interdisciplinary arts, but it will take a big spark and plenty of fuel – and that means we need to build that fire together and share the wealth.

The first check I got from Google AdWords was more than a little intoxicating.

It had been a hard financial month. I had just gotten married and settled down in our six month old condo (with its six month old mortgage), and I was off from my regular gig for two months. It was our first really lean month in a while, our savings were being tested, and while my life was leading me to dream about the future and children and picket fences, my numerous “volunteer” theater projects were starting to look like the biggest hurdle on that road.

One of those volunteer projects was backstagejobs.com, which Patrick Hudson had been doing out of the goodness of his heart for nigh on ten years. And when I say “doing,” I mean manually entering every contact, job, and spelling error on the site – and the site was powering human resources for a national storefront theater movement. It all funnelled through his poor Pentium II laptop, and his full-to-overflowing inbox. Like many others, I got I think my first three jobs out of college from the site, basically launching my career, and the opportunity to relieve this Atlas of the theatrical world though an automated redesign was reward enough.

But then, after the redesign was working and Patrick started blinking his eyes, wondering what to do with his time, he did what he could to compensate me – he handed me over two months of his google AdWords revenue.

And in that moment, I believed money really could grow on trees. It wasn’t an outrageous amount of money, but it made the difference in that month’s mortgage payment. And all this from a completely free site, that doesn’t charge either the poor starving artists looking for jobs or often the equally starving theater companies looking to hire them. Where the hell was all this money coming from? Who was advertising to this market that almost by definition didn’t have disposable income?

It turns out, the economy really can evolve. The market is rewarding companies with innovative revenue streams like Google. The model is basically: Provide a free service, and then get a large chunk of a potentially national or international market share with that free service, and then make your living through selling ad revenue for the sheer number of people just LOOKING at your site. In Patrick’s case, it’s a small compensation for the number of hours he’s already logged building and maintaining the site, but at the same time it’s a useful way to fund his child’s education.

Before we proceed, do me a favor: I don’t have the readership to justify the effort to make this blog a podcast, but I don’t want to deprive you, the reader, of the full storytelling experience here. So head on over to Amazon and order Joni Mitchell’s For Free or just play it if you’ve got it. Thanks. Life’s too short to not enjoy it.

The first time the economy shifted in such a basic way for American theater was the advent of film. (and I should warn, now that you have this great dramatic underscore rolling: what I am about to say probably has a great deal of ‘truthiness’ to it, but it’s all theory and not so much fact) At the time, there was a premium on the most skilled (read=famous) talent, and people would come far and wide and lavish extravagances on such a talent, and that talent would also tour around to ease the burden a bit, so you’d go to Des Moines instead of having to hoof it to New York. You could make such a name for yourself if you were a big personality, had a clear voice, and could fill the stage with your presence. That economic reality nurtured a style of acting that we now refer to as “Overacting.”

Then, suddenly, performances could be recorded, and seen in every city in the nation. Better yet, you could get up close and personal to the talent. Suddenly, the money changed directions – actors still needed presence, but they needed to be sympathetic and human-sized as opposed to larger and life. And, with expanding markets, projects that were populist and frankly lowest common denominator would suddenly have a great priority to the new studios – if you could bring a film to every market in the country, it better well APPEAL to every market in the country. Over time, the old ways get stigmatized and financially anemic, and the new ways get all that intoxicating money, fame, and – given enough market share – power. Meaning we have a lot of populist entertainment these days, and media conglomerates running way more of the country than they should, because they can literally control access to what people hear, see and read.

But there’s hope yet. Have you noticed how the content peddled by the movie industry has started to suck – repetitively – lately? Have you noticed how recent FCC changes show that cable companies are beginning to scramble for your attention?

Hear about that Writer’s strike?

Well lo and behold – web-based media is changing the rules again, in a big way. Just one tiny reflection of this is how DVD sales and free web access to TV shows has created a a richer and more focused viewing experience than cable and may have actually improved TV serials content as compared with film content. (TV allows for more character development than film due to running time limitations, so it follows that TV can nurture more complete, human characters than film – if the producers get the hell out of the way of the desires of the audience and writers.)

Equally promising – You Tube has created an outlet for user-targeted content which has created some really exciting projects that would never have gotten past the producers in the old days. And those projects are now being funded piecemeal directly by the users who want to see them. The audience’s energy and money is actually fueling the performer’s ability to perform their content.

Sound familiar? Audience Interacting with Performer… hmmm… The secret to this new model is volume, which is the big hurdle for theaters, since each show has a finite number of physical seats and in most cases a single physical location. But let’s take another look at this web theater idea. Throughout this admittedly biased little diorama of history, one thing has remained constant: The public will congregate towards what they want to see and hear. Since most of that pesky attention and money was removed from the equation of theater business back at the turn of the century, Theater has always been a haven for artists and audience looking to drive at deeper human truth and experiment/experience a bit more with the craft of entertainment than mass-market profit-driven companies would ever tolerate. They played their clarinets for free on the sidewalks, and if you happened to catch them, you experienced some breath-halting live-changing moments, that were then gone forever.

People love to have those cathartic moments. I could argue that cathartic experiences are what we want to buy when we see a movie or even when we get that double latte instead of the simple cup of joe. Especially in bubble-gum terror-scared times like these, we trust those moments and use them to recenter our priorities. Theatrical truth and human connection are finally valuable again. It’s what people want, but finding it is difficult, because we’ve become more compartmentalized. People literally are addicted to their iPods and computers, trolling the internet for a blog post or a video that will give them that sensation of human connection. To not create performances for them simply because they’re not looking in the place you’re going to be performing just seems silly.

I also think people are fundamentally smart. They don’t trust the content that is created simply for profit’s sake. They don’t really believe that they can make $20,000 in a month without doing something fundamentally immoral and/or dangerous. They want to interact and create, and theater and the web are far better at allowing that interactivity than film and TV can be on their own. Reality TV? Come on. That’s a silly substitute, but it was the best TV could come up with. How sad is that? People trust people who do things out of love, and they can smell if you’re doing something just for the money. If you see a street musician who’s damn good, you’ll stay and maybe take his card, and download his mp3s from his website, because you know he’ll keep playing even if you were to just walk by.

This new web-based financial model rewards the hard-working and clever street performers of the world. You can now travel the world, dance like a fool, and get paid for it, as long as you do it all the way. In the final analysis, this system is harder for big conglomerates to control arbitrarily for profit and allows for individual tastes and aesthetics to flourish in ways that weren’t possible before. Markets aren’t limited by physical location anymore, they’re delimited by personal interests, so they tend to reward individual and local flavors over nation-wide flavors-of-the-month. Web attention and traffic are also ephemeral, and they reward interconnectedness, which according to the Google Page Rank Documentation is ultimately a factor of trust, volume, and quality.

There’s been a few first gasps of theaters and theater organizations trying to tap new media market business plans, and in part II I’ll outline a little bit of the strategy behind them, and how they may be able to succeed – or crash and burn. Till then, thanks for funding my pipe dream by purchasing wonderful music from my site. Tee hee!