David Meerman Scott, Brian Halligan

Before the Internet, bands promoted their new albums by scheduling tours across the U.S. and around the world. ...

Fans bought albums at their local record store where they would find the list of top albums for that week taped to the wall next to the cash register. ...

Doing concert tours to promote these moneymaking albums was the fundamental business model for bands, the record labels and sundry hangers-on. The Grateful Dead turned this business model on its ear: rather than focusing on selling albums, like other bands, they focused on generating revenue from live concerts, and in doing so created a fan “experience” that was unlike any other.

Because the concert tours themselves were the main source of revenue, the Grateful Dead ran their concerts in a very different way from other bands. ...

Since the concert tour was at the heart of their business model, the Grateful Dead didn't tour periodically to promote an album; with few exceptions, they were permanently on tour. The Grateful Dead invested heavily in their light show and sound systems, both of which were the best in industry, and in doing made the musical experience much more powerful for their fans.

Due to these factors and others, the Grateful Dead developed a following of people who would see show after show. ...

By changing that one fundamental assumption in a typical band's business model, the Grateful Dead created a cascading effect of benefits for themselves and their fans. ...

The Grateful Dead's business model was the exact opposite of every other band's at the time.