Caring with cash, or How Radiohead could have made more money

In October 2007, the British band Radiohead released their seventh album – In Rainbows – as a digital download that customers could pay whatever they liked for. The results of this risky venture are a guarded secret, but the album’s popularity was clear. It topped the charts and allegedly sold 1.2 million copies in the first day alone. Even though many fans paid nothing (the average contribution ranged from $2.26 to around $8 depending onthe survey), the band still earned more money from In Rainbows than their previous album, Hail to the Thief. But according to a new study, Radiohead could have earned even more money by adding a slight twist to their plan – telling people that half their voluntary payments would go to charity. Many businesses are trying out new strategies that appeal to the better nature of their customers. Some promote the fact that they donate a ...