[Image from NYCArthur]
This post was written by Greg Rollett, a music marketing guy from Orlando, FL. Check out some of his free musician resources here or holler at him on Twitter.
Musicians sell music. At least that’s what 99% of musicians think. In reality they are selling a lifestyle, mixed with experiences. And its getting harder and harder to make a living off of this type of business model. We all hear the numbers and they suck. Pretty big suckage going on.
What’s really going on is the laser focus on album sales. This is just one source of income, and one that artists have not been paid on for years. In fact, Tom Silverman from Tommy Boy admits to it in a recent Wired interview stating:
“We’re the labels, they’re the artists, and we make money even if they don’t make money. We reduce our risk, they put their blood, sweat and tears into it, and we only give them money when we sign them and when they deliver a new album.”
So if artists are not making money on the actual music, and people are buying less music – why don’t we look at business models that are working. These are typically value driven business models.
Yes, there is more work involved, but whoever said the music business is easy was drinking too much Ciroc Vodka becuase Diddy told them to. These guys work. The actual music making is in reality only a small percentage of a pro musician’s life and lifestyle.
Late night interviews are no different that getting featured on a blog or getting a review. Radio shows = Podcasts or play on Grooveshark. Find the value that the audience wants. The money will follow. The lifestyle will follow. My favorite line on the Silverman article mentioned above was when he stated:
“[Another focus is on] redefining success. It doesn’t matter if you don’t have a top ten record anymore — it just matters that you make enough money.”
Define your ideal lifestyle and work backwards to create the value driven business model. What do you NEED to cover bills? What would be your ideal lifestyle? Do you want to travel? Or tour? What does that cost?
From there, work to create the business model that fits your vision. If you need to make $100k this year and the only product you have is a $10 CD, then you better start hustling and sell 10,000 copies.
What if you created more business opportunities? Higher priced products with better margins? How about an iPad ready download with graphics, booklet, MP3’s and a custom iPad case? I bet you could package that for $30-50 and run it at an 80-90% profit margin. Does that $100k seem more realistic now?
When looking to get your music on blogs, like Chris asks in his e-book, what value do you bring to the table? Are you a huge MMA nut? Can you find a few MMA blogs and talk about the entrance music, predict the fights or how your music is influenced by the fighters? Do you think the author is more likely to post your blog? Do you think the readers will be more likely to click the link at the bottom of your post?
You bet. It’s all about value my friend. And if there was never much value to an artist in a $10 plastic disc, why place so much damn value on it now?
I know I asked a lot of questions and now its time for you to answer. What are your thoughts?
Another important focal point for today's musicians must be the live performance sector of the biz. Sure, Live Nation's stock recently went down as they announced the poor summer ticket sales, but the fact still remains the same, and many people are saying the same thing: Ticket sales are the way of the future for musicians. So while I completely agree with you, Greg, that Musicians are selling a lifestyle and an image, I think your most valid point is that musicians are and will be selling an experience. Look at all of the top selling live acts in the biz right now, everyone from Lady Gaga to Bon Jovi to Phish are putting on elaborate performances that leave people craving more, and are willing to pay a premium for it. Well put, and great article! :-)
@Jon – Thanks for the comment bro. There is still enormous value in the live show angle of the business. The goal is to match the experience you can deliver with the expectations you have set for your fans. There still needs to be value in place. If you just play some songs off your EP, well there is no value there. But a Gaga or a Jay-Z gives you that ultimate experience. An indie band going this would be the Soliloquists of Sound from Orlando. They deliver a live experience and also know how to work the business angle.
Although I agree that creating other products or experiences of value is definitely needed to have a more steady stream of income coming in, the music is at the core of the musician. If your music is not good and can't connect with other people, it's probably not good. But if people like the music, other things have to be developed around the music. I think you wrote one time Greg that content is essential (videos, blogs, easy to create). Content helps to strengthen that connection with your fans and opens their wallets a bit more.
What models or practices are you seeing work I wonder? I know there are never one-size-fits-all models but there are some basic things musicians must be doing to ensure they can have a comfortable lifestyle doing what they love.
Nice job Greg. It's good to get the word out. Recently I'm finding that giving away music for free(some of it) is a great thing, because I loose no stock but still add value to the consumer. If they are listening to it, its more likely they will buy a shirt. But what if I bundle a shirt with some more free music?! Still trying to work out how to do that. but yeah, would be fun!
Im also trying to work out how to make crazy merch. like vinyl toys and such. I love this business!
Nice job Greg. It's good to get the word out. Recently I'm finding that giving away music for free(some of it) is a great thing, because I loose no stock but still add value to the consumer. If they are listening to it, its more likely they will buy a shirt. But what if I bundle a shirt with some more free music?! Still trying to work out how to do that. but yeah, would be fun!
Im also trying to work out how to make crazy merch. like vinyl toys and such. I love this business!
you got it man – its a trust thing. people buy from people. people that they like and trust. its no different with music.
and yea, the music has to be good first. but we are naive to think that the music itself is going to sell. even eminem, who's new album may be his best music to date has had to work 24/7 over the past 3 months to get people to notice him. that value has opened up a few more wallets.
seth godin's tribes is a great place to start. thanks for the comment man!
get playing on Google and look for Chinese manufacturers. Also find other artists that have similar items and talk to them. See where they got their product. Thomas Net is another cool resource for manufacturers.
I agree. Musicians need to add value, that is essentially what marketing is all about right? First you have to add unique value to the marketplace, then effectively communicate that value in your marketing and promotional materials, and then deliver that value. So I guess the issue that your post raises is, well how do musicians do this? I think musicians can learn from info marketers and other professionals who have had to compete with free. Musicians can bundle their music with additional products that add value for the consumer. No more adding t-shirts with their music. The opportunities are limitless now for musicians. With the affordability and convenience of digital distribution, musicians can now bundle their music with books, movies,etc. How cool would it be as a fan to read a book based on the album of your favorite musician or watch a movie adaptation of an album? A book, mini-movie, or a video trailer of an upcoming single adds value to the fans and increases their overall experience of your music. Indie musicians can create this content now easily and cheaply because of digital distribution. They can hire content creators at sites like elance.com to do it.
Trust is what makes most things happen in relationships. That's why I don't like the word marketing–because it's so one-sided. Relationships are a two-way thing with input and output from both sides.
I forgot to say that defining your own success is the best way to go. The key part is being realistic and knowing who you are. A good example of this is to just watch the first few episodes of American Idol each season. Most of the crazy people who think they're the next Idol are completely unrealistic and don't know themselves.
Yes, Seth Godin is awesome stuff! Haven't read Tribes yet, just read Linchpin, but know of the concept.