Guide

Stop Counting Fans. Start Understanding Them.

Michael Pelczynski architected SoundCloud's fan-powered royalties -- a system that pays artists based on individual listener behavior instead of pooled market share. His conclusion after building it: the industry is obsessed with counting fans and almost completely ignores understanding them.

"Most of the industry right now is just obsessed with counting. It's quantitative measurement, not qualitative. You're counting my behavior as opposed to understanding the context."

What User-Centric Payments Revealed

At SoundCloud, Pelczynski ran user-centric and traditional models in parallel. The results were stark. For Lil Uzi Vert, just 6.5% of his audience generated 72% of his payout under the user-centric model. Those were real superfans whose listening behavior was finally being economically recognized.

Two of four major labels adopted the model. 130,000 artists opted in. The pitch was simple: participate and get direct access to your superfans across your entire roster. Don't participate, don't get access. He called it "commercial FOMO."

How to Find Your Real Fans

Here's where this gets practical for you as an artist:

Stop trusting streams alone. 300 plays per month looks like fandom. But was it a TikTok trend that passed? A breakup playlist that expired? Without context, the number is meaningless.

Look for action, not consumption. Reposts, shares, show attendance, merch purchases, DMs -- these signals reveal who actually cares. Someone who shares your song with a friend is more valuable than someone who streamed it 50 times on autopilot.

Talk to your listeners. Pelczynski's team cross-checked quantitative signals with actual audience research before drawing conclusions. "Never fully trust the signal until you actually get down to the human aspect." Pull 100 of your most engaged listeners and ask them why they listen.

Build the relationship, not just the metric. In a demo, rapper Doc Cromwell saw his top listener and sent a thank-you message. The fan responded in disbelief. That direct connection is what fandom should look like. But the real question is whether it's sustained -- does the artist keep messaging? Does the fan stay engaged?

The companies and artists that succeed in the superfan economy will figure out sustained engagement, not just initial connection. Start with the 50 people who show up to every gig. They're your business.

Key Takeaways

  • Counting fans is not understanding them. You need qualitative context to know why people listen.
  • User-centric economics reveal true fandom. When payments follow individual behavior, you see who your real supporters are.
  • The novelty problem is real. Direct artist-fan connection is powerful in the first moment. Making it sustainable is the business challenge.
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Upsound

This blog is written by Upsound.

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