Today's Rock Stars Keep an Eye on the Bottom Line

Here's an article from the Associated Press that illustrates how musicians need to have an understanding of the business side of music. Enjoy!

5/22/2005

He entered the rock 'n' roll pantheon as a joker, smoker and midnight toker.

But sitting in a gray business suit in front of 400 corporate executives, Steve Miller's message had more to do with knowing how to take the money and run.

"I love playing, but you can't get to the good stuff unless you keep an eye on the business," said Miller, immediately after speaking at a conference put on by Hackett Group, an Atlanta-based corporate research and advisory firm.

The singer --- known for hits like "The Joker," "Fly Like an Eagle" and "Take the Money and Run" ---was part of a roster of presentations that included "Benchmarking for Competitive Advantage" and "Generating a Return on Compliance Efforts."

Miller's speech underlines a truth that's become more obvious recently --- rock 'n' roll is big business, and hard-living stereotypes aside, the rockers who succeed over the long run are the ones paying attention to their finances.

With traditional revenue sources like album and ticket sales continuing to slide, music industry experts say selling out --- once the ultimate insult in rock circles --- has come to mean much less. British rocker David Bowie startled the rock world in 1997 by announcing he would issue bonds backed by royalties from the future sale of his music. But the shock died down and other acts, such as the Isley Brothers and James Brown, have also issued bonds.

"It's a whole different kind of world we live in now," said Doug Brod, executive editor of Spin magazine. "Artists want control over how they're getting paid; a lot of them just want to take it into their own hands."

Experts say changes in the industry are requiring artists to be even more mindful of ways to market themselves, and their music, to the public. Thanks to Internet downloads, album sales have been dropping steadily for the past five years. Concert attendance has seen a similar dip. And with cheaper recording equipment thanks to computer technology, more bands are competing for fans' attention and dollars.

"With less [record company] money to promote them, the onus really falls on the artists to promote their own careers," said Matt Hatau, vice president of Signatures Network, a music marketing and licensing company that has worked with artists like Kiss, Madonna, Bruce Springsteen and U2.

"They're not just looking to the labels and saying, 'Hey, run my business and hand me a royalty check,' " Hatau said.

If any band has carried rock's hippie image into the 21st century, it's Athens-based Widespread Panic --- whose shows pack in legions of tie-dye-wearing "Spreadheads" reminiscent of the scene at the Grateful Dead's traveling carnivals.

Behind the scenes, though, the group is a $14 million-a-year corporation with profit-sharing, a pension plan and health care benefits for its employees.

"We have a board of directors and board meetings; we have conference calls," said Buck Williams, the group's Nashville-based manager and agent. "We discuss what we're going to do, why we're going to do it, how much it's going to cost and what we're going to get out of it."

The band's six members play an active role in the business, Williams said.

"There are some that are more involved, more vocal than others," he said. "But I promise you, at the end of the day there's not a single one of them that doesn't want to know where the money's going and why."

During his recent speech, Miller traced his business impulses back to Dallas, where, as a 12-year-old, he mimeographed letters to fraternities announcing his rock band was available for bookings --- but only for a limited time.

"I never found anybody who could manage my career any better than I could," Miller said.

And he will not apologize for licensing his songs for commercials.

Warren Hudson, a music store owner in downtown Decatur, defends artists who lend their music to commercial uses, saying sometimes it's the only way to get noticed or stay ahead in the crowded industry.

"I don't necessarily consider it a sellout," Hudson said as he slapped price stickers on a new batch of CDs at his shop.

"It all depends on how you approach it."

Demand Drives Distribution

Selling on-line is certainly easier than traditional distribution options, but the same principle applies: Demand Drives Distribution.

Unless you've got people actively searching for you or your genre on any site where your CD is listed, you're not going to generate sales. The entry barriers are lower than "brick-and-mortar", and a few people will happen across your product on the web by chance, listen and buy. But if you focus on building a demand for your music through performances and shameless self-promotion your chances at success will be greatly increased.

Next Time: The best way to get a record deal is to not need a record deal.

band site to check out: Someday New

Marketing Your Music - Part One

Marketing Your Music - Part One

Not everyone has the luxury of being managed by a professional. Marketing is the key element to generating a buzz about your music. Here is a good starting point to begin marketing your music.

Previously we discussed creating a product from your recorded music. Go ahead, produce some CDs to sell at shows to your fans, friends, and family. Why wait for a record deal? You can do it yourself.

CDs can be produced in retail ready packaging for around $2 to $3 a disc. You can then sell them for around $10 to $12 each. You may want to try doing a "short run" (less than 1,000 CDs) first. If you produce 100 CDs, you can test to see if you can sell them without too much of an investment. Remember, your cost per disc on short run will be significantly higher than replicating 1,000+. You can still produce color discs, color inserts and trays and come out with a packaged professional looking product. You can even get your discs screen printed if you want. There are a lot of options available if you want to try a short run first.

Don't forget, make sure you have plenty of promo copies available to send to agents, venues, radio and others.

Collect names for your mailing list anyway, anywhere, anytime. Use these names to mail postcards with your show dates or CDs available. The cost to mail a postcard is cheap. The cost for e-mail is nothing. Don't forget to ask people joining your list to opt-in so you won't be accused of spamming. Make sure you remove anyone from your list who requests it.

Build your own web page to provide useful information about your band, your music and you, list your shows and make your CDs available for ordering online. Convert some of your music to MP3 and offer visitors a sample of your music. Avoid places offering free or cheap services. Do some research and find a web company that offers the best value both in terms of hosting and design. Ask about their customer service policies, availability and track record.

Give fans a reason to make repeat visits to your site. Keep your information and links updated frequently. Maybe a newsletter, continuous show updates, etc. Here's an example of an indie band site I really like: The Getaway Car.

Gig, gig, gig (even for free)! Perform as often as you can. Collect names, sell CDs, and pass out cards with your contact information (name, telephone, web site address). Make every effort to meet and greet as many fans as possible. Keep in touch through mail, e-mail and your web site (add a guestbook, message board). These people are your client base. They are the people who pay to see you perform, buy your music and merch and more importantly, bring new people to see you. You're working for them. They are your customers. Treat them with respect and provide them with great service. They are your life blood. Don't forget that.

Send out press releases and reviews of shows to local newspapers, magazines, and event papers. You can write these yourself. This costs practically nothing. Make sure you research the correct person to send your press release to at the publication. Send it out 30-60 days in advance.

Spend some time, money and energy on branding - a professionally designed logo, press kit, photos and an EPK (Electronic Press Kit) are important marketing tools to add to your package. You can be creative and get these things produced on a shoe string budget if you work at it.

Find the public and local radio stations that play your type of music and try to meet the key people who can help get your music on the air. A lot of stations offer programming that spotlights local or indie talent.

Print some posters or flyers and put them up in the local area where your type of fans would be. Have your show date or CD title with a web address or phone number of how to order.

Word of mouth is critical. Form relationships with your fans. If you make people feel special, they will take pride in sharing your music with their peer group. Free advertising! Perhaps have a newsletter to your fans. (Remember, you should have a list of names from your mailing list.)

If you have any other marketing suggestions, please contact me.

Turn Your Demos Into Profits

So you've written a bunch of songs, the band's rehearsed them and they're ready to record, now what?

First, after you've decided what to record and you've come up with a budget that will allow you to cut the songs, think about creating a product that you can sell through gigs, fan club, internet distribution and consignment arrangements with various music retailers.

There's more to creating a product than song sequence and a CD master. Think about what you need to manufacture a CD while you're in the recording process. Graphic design, photography and selecting a replication vendor to help you through the disc manufacturing process will help keep your project on track, on schedule and within your budget. Talk to various graphic designers and look at their previous work until you find someone who shares your vision. Find a company that understands design, manufacturing, and distribution of independent music like (shameless plug) Focus Media Concepts. Look at samples of their previous work for other clients. In short, talk to everyone you can about how to create and manufacture the CD product that you want. Make a decision on this vendor while you're in the pre-production phase of your recording project and communicate frequently as you move through the project. Finding an ally who understands how to manage your project to make all of the pieces fit together at the right time and for the right price is key to getting a quality product in a timely manner without going crazy in the process. I would also think about value for your dollar rather then who has the cheapest price. Remember, you're competing with everyone else, other indies and major label artists, for your piece of the consumer's music dollars. You've got to offer a quality product that will compete with everyone else's stuff. Don't sell yourself short with getting it done "cheap". Find people who believe in quality and value.

There are a lot of options for selling music today: CD, E-CD, DVD and MP3. Incorporate as many choices as possible for your fans.

Don't overlook the power of online distribution of your music. It's great to have CD's to sell at your gigs, but as you grow your business add other products and merchandise to your inventory. Spend some budget on creating a quality web site. Sell your music online through various distribution channels like CD Baby or Awarestore.com. Take CD's to your local record retailer and work a consignment deal to get your product on their shelves. perform any chance you get and shamelessly hawk your product. Get involved in a good cause - it's great publicity and you'll feel good about helping your community.

We'll talk about other promo and marketing in the days and weeks to come.

If you would like to discuss a specific topic of interest please contact me.

Getting Started

The first thing you need to do is establish some short range, medium and long term goals regarding what you want to accomplish. By the way, "Get a record deal" shouldn't be one of your goals (more on that later).

Think like a small business person who's trying to set goals and establish a plan to make a successful business. After all, a career in music is just that . . . business! You need to put your creative hat on a hook for a while and figure out how to turn music making into profit taking.

Decide what type of gigs you need to setup to get started. What merchandise do you need to create and most importantly, how do I make a CD of my music, first for promotion and most importantly for resale. Create a plan and stick to it. Sure it will morph and change as you go forward, but you'll have created a clear vision for what you want to accomplish with your music career.

Remember, play, play, play . . . everywhere and anytime you can at first. You need to be seen and heard, start a following and start a buzz about your music.

Next time . . . How to turn demos into profits!

A Career in the Music Industry

So you want a music career. Let's talk about what it means to have a "career" in the music industry.

I've been involved in the music business professionally since 1976. That's right, I'm a fossil. Although a lot of things have changed in my 25 years in the industry, one thing hasn't . . . to be successful you have to have talent, passion, drive and ambition to succeed. Having a "diva" attitude without the credentials to back it up doesn't work. Sitting on the couch waiting for the phone to ring doesn't work. It's a job. You have to get up every morning and put in the work to make it happen.

Indie artists have to be able to handle all of their marketing, promo, pr, management and create their music on top of all of that.

So the first thing you need to realize is that your goal shouldn't be to get the record deal. Your goal should be figuring out how to make a living as a professional musician without losing site of your creative muse in the process.

It's hard work. The competition is fierce. But take heart. If it's what you're meant to do and you have the drive to do it, chances are that you'll find the path that's right for you.

Initial Thoughts

I decided to create a blog where Independent musicians can discuss issues regarding their careers. A place to seek guidance on industry issues, discuss how to create a product and market it, and most of all, to provide a resource where musicians, producers and managers can share their specific talents and knowledge.

Have fun and remember . . . it's all about the music!