Whales & Baby whales want to give you their money

Whales & Baby whales - terms from the gambling world to refer to big spenders - are, according to this article, responsible for as much as 50% percent of the income where a business model begins with a free option (such as online social gaming).

@Lefsetz pointed this out in an email yesterday:

When you employ a freemium model, a small percentage of your customers will generate a significant part of your revenue. This is why you must offer expensive tickets and merchandise for these diehard fans.

...which he got from this article on allthingsd - a must read for it's views on where the music industry is going in terms of how an artist will earn an income - not from selling recorded music in the long term is the conclusion!

And that's why the freemium model to build a mailing list of fans with whom you engage continually (rather than in an album cycle) will allow you to offer your 'whale' fans music experiences that will form a large chunk of your income.

That article link again.

The modern musician NEEDS time

I could've titled this post in a number of ways and actually deleted and changed he title a few times.

I don't normally do that, but I hoped to attract attention and make people take the time to read the article it links to, because it encapsulates the whole truth about what being a musician is all about today....and it's written in business management speak by a non-music industry writer!

But it's EXCELLENT. Read it here.

Smart managers realize every artist is a standalone business that generates income from multiple revenue streams. A manager's job is to create those businesses and run them well. This requires thinking globally and being agnostic about which revenue stream or territory is the most important. As long as those channels can deliver the aesthetic the artist wants and make a profit, the business is a success.

But the business of relationship building is not a quick one. Artists have to earn the respect of fans, convert that respect into trust, and, eventually, convert that trust into faith. Building communities takes time, and it can only be achieved over the long-term. In this model, artists can no longer be treated as interchangeable hit makers.

This writer understands the turning point we are at.

Make your music, work hard to be as good as you can be, put it out there and grow and develop in sight of and with help from your fans. They will come along with you.

The second KEY lesson in this article is:

Value the artist-fan relationship as highly as traditional rights.

i.e. don't just make music and try to sell records. The value is in the long-term relationship with your fans - and that's not just a monetary value, it's artistic, cultural and emotional as well.

Those fans will sustain you for a far longer period (including fiancially) if you treat them properly and maintain that relationship.

Read the whole thing here....please.

What is the future for the DIY musician

Thanks to @AngeliqueSC (again) for sending this to me.

Dave Kusek's presentation on the future of the music business has a disticntly DIY musician bent.

Slides 16 onwards are very applicable to the indie musician and are must-read from 28 onwards!

View more presentations from Dave Kusek

Future of Music

Go and read the brilliant presentation by JWT on the future of music in our new post on the main site.

It's full of insight and great ideas that you can use.

Read it here.

The music industry is killing music

This is a very long, well written and well argued article from the Quietus site.

I don't agree with it!

Well, I do and I don't.

Read the whole piece and the comments (particulalry that of 'Mitch' towards the bottom).

I won't try to paraphrase what the article is about other than to say that it argues that the demise of the old school industry and the need for musicians to become the archetypal 'DIY musician' will mean the end of opportunity for many would be artists. This is explained at length.

Whilst I agree that there are now obstacles for all aspiring musicians to overcome, I simply don't agree that the evaporation of the record itself (and the record deal) as a primary source of income for bands is the end of a financial springboard (or safety net) for those seeking to live out a career as working musicians - whether they pursue global fame or self-financing niche notoriety.

Sure, it is in some senses a shame that the musician now has to fund the beginnings of their own career (financially and through learning non-musical skills). but that's the way the world is now and pining for an old system will do no-one any good.

The flipside for me is that if you want to build a career, now there are more opportunities than ever to seek out a fanbase and build on it - whilst earning a living. My own experience tells me that if your material is good you can make a living quicker and more reliably outside of the old system.

Maybe it's beyond your ability to earn a living by being a DIY musician because no-one really thinks you're music is worth supporting?

If that's the case, don't moan about the system - get back to your craft and make some better music! Come back and try again.

Someone's got to bring this up, because it's not a pretty picture. Consider, first, direct-to-fan marketing and social networking, said to involve fans so that they're more inclined to attend shows, invest in ‘product', and help market it. In practise this is a time-consuming affair that reaps rewards for only the few. Even the simple act of posting updates on Facebook, tweeting and whatever else is hip this week requires time, effort and imagination, and while any sales margins subsequently provoked might initially seem higher, the ratio of exertion to remuneration remains low for most. It's also an illusion that such sales cut out the middlemen, thereby increasing income, except at the very lowest rung of the ladder: the moment that sales start to pick up, middlemen start to encroach upon the artist's territory, if in new disguises. People are needed to provide the structure through which such activities can function, and few will work for free – and nor should they – even though musicians are now expected to.

Read the article and let me know what you think!

How your songs make you money

I know that I owe someone for pointing me to this, but, sorry, I can't remember who!

It's a great video that sets out 7 ways that your songs can make you money - and it makes the very good point that once they are out there earning money they will do so up to your demise and beyond - meaning that a somewhat successful musician has a retirement plan built into their songs!

Obviously, they need to be good to get that kind of income.

So, watch the video and learn the 7 ways that your songs can make you money.

And then, go and check out Sentric Music if you're in the UK and Song Trust if you're in the States. Both these companies offer a great service and will publish your songs no matter whether you're signed or not or how successful you are. One takes a commission on what they collect - at a very fair rate - and the other charges a small monthly fee.

Crucially, neither takes your rights from you. So, should you get a hit record or your career takes off some other way you can finish your deal with them and do a 'big money' deal with a major publisher - if you want to.

I really like the guys at Sentric - it's a great service and very fair. I don't know the Song Trust people but I hear similar good things.

Write songs, get them published, collect money - another basic part of the plan for all musicians.

Watch the video here.

 

What will it be like in ten years time?

I got asked to point you all to this survey about where we'll be in the music industry in 10 years time. I've already completed it.

Music Supported Here has launched Ten in Ten. The concept is simple. Ten questions that will be answered by experts from the music industry – musicians, fans, managers, labels etc – to give an overall picture of what we think is going to happen.

“Will illegal downloading become less of a problem? Will recording contracts be fairer? Will there be less new talent emerging? None of us can really be sure of what 2021 holds for the music industry, but we think that the opinions of thousands of people who live and breathe the music industry will produce some pretty accurate predictions’.

Take the survey here. 

We'll do our best to follow up on the discussions that the poll causes at the review event.

 

 

The action is somewhere between the album and the hit single

I loved that line from this great article in the LA Times.

The problem is, we still haven't devised a language to describe the increasingly vibrant area between the two poles of the studio album and the hit single. It's existed since the dawn of the modern-day music industry, this territory of remixes and B-sides and EPs and homemade tapes. And in 2011, this realm is increasingly where the action is.

The article ranges across the very large area that is the modern music business and how artists are taking advantage of the new tools and opportunities to do innovative things with their careers.

It's well worth a read and hopefully it will give you an idea of a new and different way to bring your music to your fans.

Read the article here.

Freeconomics - free white paper study on giving your music away for free

I urge you to download and read this paper, primarily for the case study of Canadian band Mister Valaire's rise over 4 years to solid profitable working indie band - all through the use of 'freemium'.

Bob Lefsetz has recently been banging on about how the album is now just a marketing tool for the act (and their live performances) but adding the twist that chasing the hit and the record deal to provide it is a short term strategy doomed to failure.

For most independent acts, I agree.

Mister Valaire is a flagship testimonial that the modern paradigm is primarily about taking years to develop the craft, and the fanbase to sustain you through a lengthy career. This is the future music business model for most.

Virginie Berger's second report for Midem is well thought out and provides proof not just theory. I loved it.

Read it - you have to sign up to get it - but it's worth it.

 

Giving music away for free really does work

Image by Mark Raaphorst

So, 2011 has been here a week and all the other music advice bloggers have the drop on me!

Well, I'm back. Apologies for the delay but we had some serious work to do with clients to get the year started.

And what better way for a first 'Dailies' post than to talk about the specifics of one erstwhile client.

I have mentioned Laurent and his moniker 'Little People' before, but what he is acheiving as a DIY musician is so impressive, he deserves regular mentions - especially as his second album is due soon. We dont work together directly anymore but we exchange information all the time and I advise and help him on his career.

Laurent released his debut album 5 years ago and thanks to Pandora loving it and recommending it to all it's listeners (get your music on Pandora now BTW), he has built a very vocal and loyal following.

This has only increased since he adpoted Topspin to drive his artist website - and started giving away half of the debut album for free. His sign-ups to his newsletter and his digital sales through his own site and itunes have rocketed. He is now consistently in the top 30 electronic albums on iTunes US - with a 5 year old album. That is astonishing and an indictment of the DIY ethos.

Take note - he now SELLS more music because he gives half his album away for free.

Read this email from a fan - he gets several a day - but this one makes it abundantly clear why a deep and loyal fanbase comes from giving away your quality music for free. They are in it with you and want you to win.

From a fan - "Paying for music is something I do not normally do, not digitally anyway. But after hearing a great deal of your work, and visiting you on the web I was moved to purchase your album, as well as a t-shirt. Besides the fact that you're turning out some truly wonderful music, I'm also partial to the mentality behind your work - meaning the generous nature in which you offer up what you've done. As far as I can tell, all of what you've made is available to listen to completely free, and I attribute that to you seeing more value in having your music heard than making money from it. I like that attitude, because it's one an artist should have.

Best of luck to you, and thank you for the beautiful sounds.  I look forward to seeing you in the States."

Can't beat that can you!?

I suggest that you start giving away your music now if you're not already - in exchnage for an email address, of course.

Fan Funded record label officially launches in the UK

We love fan funding - we write about it a lot.

And, in fact, we mentioned this particular innovative model in this post here.

My Major Company is officially launching in the UK this week, although it's been open for business for a few months already.

The two links below to press reports give you the idea so I'll spare you the details ....other than to say that the label's first shot at this in their home territory of France brought about a million selling record. The method of funding from fans to this serious level means that a band has an instant following ready to buy their record plus marketing and promotion resources.

It has more depth than some fan funding methods as it comes with full label support.

Read and watch the pices here on Techcrunch and here on Sky.

And visit My Major Company's site here.

Amazon moves into content - is a record label next?

This is an amazing article - not for what it tells us about Amazon right now, but because it gives a glimpse into the future that traditional media companies just can't see.

The future of music as a business can unfold in a myriad of ways - some of which we just can't guess at. But, it does seem clear that some of the massive companies that have grown from the late 20th century technology boom and the massive growth of the internet in this century may well be the ones that change it forever.

Apple, obviously, have changed the landscape for distribution and retail. Facebook has a reach that no artist can ignore.But there are and will be many others.

What are the existing record companies and live promoters doing to counter it? Pretty much nothing, and what they are doing is too late and way behind the curve!

This article is about how Amazon has announced a scheme for budding directors and screenwriters to pitch movie ideas to them for funding and possible production in Hollywood. It's called 'Amazon Studios'.

But, they also bought a small book publisher yesterday - are they going to do the same as a book publisher?

And if they are, surely they'll end up doing it for music. And if the second biggest online digital retailer wants to sign your record and promote it heavily - will you go there or collapsing EMI?

Take a look at My Major Company for a model that would work for a company like Amazon - a very interesting fan-funded model.

This is the post about Amazon:

Amazon may be the internet's dominant ecommerce company, but its ambitions extend well beyond retail.

It has fast become a key player in a market that is expected to become very large -- cloud infrastructure -- and now it appears to be making some moves into content which could be harbingers of things to come.

Yesterday, it launched Amazon Studios, a website for aspiring filmmakers and screenwriters. The concept is simple: allow those aspiring filmmakers and screenwriters to upload their work, collaborate and obtain feedback from others, and take the cream of the crop forward for possible production.

Read it on econsultancy here.

 

 

 

 

10 truths about the future of music

The music industry is changing at an unprecedented rate and it's often difficult to work out what the future of music will be.

Those at the forefront of the change should get a hearing though - like Jason Feinberg.

I've been covering the digital music business for MediaShift for more than 18 months, and in that time I've chronicled new services and examined key trends and news. Below is a look at 10 things that I've come to believe are true about the modern music business.

Read his 10 truths here.

Imogen Heap does it - you can too

Imogen Heap epitomises the future of music. Self funded, web 2.0 everything, fan friendly etc.

This interview may not tell you anything new about her and the way that she engages with her fans but her holistic approach to her music and her fans is well worth your study.

When the singer-songwriter Imogen Heap heard last December that she had been nominated for two Grammy awards, her very first thought was, 'What am I going to wear?' Heap, 32, who had been nominated for the Best Engineered Album Grammy (as well as Best Pop Instru-mental) wanted an outfit that would capture the LED lights of the studio that she had built in her childhood home in rural Essex to record her third solo album, Ellipse.

Not only that, she wanted a creation that would involve her fan base, with whom she was in contact during the making of the record via fortnightly video blogs from her home and frequent tweets (Heap has nearly 1.5 million followers on Twitter).

So she asked Moritz Waldemeyer (a British-German designer and engineer who has worked with Zaha Hadid) to construct an elliptical collar for her dress, around which messages sent to the dress's Twitter account scrolled in LED lights throughout the evening. She accessorised with a see-through Fendi handbag containing an iPod Touch that was constantly uploaded with images sent by fans, plus a transparent biodegradable parasol (just because).

Read the whole article here.

Other ways that a diy musician can support their career

Following on from the previous post, what if your life as a diy artist, just isn't quite covering the bills?

Well, maybe some of these ideas will help make ends meet and keep you solidly 'in the game' and making new connections all the time to boot.

As it becomes more evident that the new music industry will in no way resemble the construct of the past, many musicians are left trying to figure out how they can create a sustainable, or even lucrative career in music. Although album sales are on the decline, there is no decline in alternative jobs for musicians.

Read the ideas here.

More musicians making money

This article on Hypebot has postitive implications for the diy musician.

If it's true, as Tunecore's video claims, then more and more self reliant artists will be able to survive in the new music economy.

Read the article here

And watch the video.

 

Money vs Cool

Bob, again, on what it takes to make it and his vision of the future of music.

Lots of people think he rants and misses the point. I don't.

I think he rants and makes some genius, insightful points. This is one I'd urge you to read.

In order to make it and sustain in the music business, it can’t be about the money.

I know, I know, this is the last thing you want to hear.  But that’s why you’re never going to make it.  If you’re going to make it, it’s got to be about the obsession, the need to make it.  That’s what Mr. Nocera points out in his column.  Facebook may have been the Winklevoss twins’ idea, but they never would have made it successful.  They were obsessed with rowing, Mark Zuckerberg was obsessed with coding, with changing the world.

Are you obsessed with music?

And, if you are, do you own the musical equivalent of a Harvard degree? If I mention some obscure band from the seventies, do you know it? You’d be surprised how many successful young musicians do.  They know the history of the game.  You’ve got to know where you came from in order to make it today.

Read the whole thing at Bob's site.

 

Show me the money - where's it at in the music business?

Whilst many cogitate (including me!) on the state of the record business and the future of music, we all know that there is still plenty of money to be made from music.

This weighty article in the Economist looks at the strange state of affairs that sees one part of the industry colapsing and others flourishing.

Yet the music business is surprisingly healthy, and becoming more so. Will Page of PRS for Music, which collects royalties on behalf of writers and publishers, has added up the entire British music business. He reckons it turned over £3.9 billion ($6.1 billion) in 2009, 5% more than in 2008. It was the second consecutive year of growth. Much of the money bypassed the record companies. But even they managed to pull in £1.1 billion last year, up 2% from 2008. A surprising number of things are making money for artists and music firms, and others show great promise. The music business is not dying. But it is changing profoundly.

Read it on the Economist site.

How to make your fan funded project a success

I'm working on some posts about fan funding for the main site at the moment. It is a great way to raise funds and push your career forward in the modern music business.

Photo by AMagill

This article looks at how one person used Kickstarter to fund a graphic novel but gives really good tips about how to set up your fan funding project - what to do and what not to do.

If you’ve never heard of Kickstarter.com before, you really should check it out. Kickstarter is an exciting place where creators can post their projects and get pledges from people who are interesting in their ideas and want to help the projects move forward. I’ve already found myself pledging to a few other projects that caught my interest. Anyway, if you already know about Kickstarter and you are thinking of launching a campaign for your comic or graphic novel, here are a few things I suggest thinking about before jumping in.

Read the article here.

Promoters take the strain, but will it change?

Bob Lefsetz gets his weekly props from me today - I love all his stuff on the future of music.

This is his take on how the power shifted from promoters to acts who now have to overpay for the talent - How much longer can that go on, and do the promoters need to find a way to invest in the talent to grow the stars of the future?

Well worth your time to check out.

You see the last forty years have been about talent getting the lion’s share of the dough. And that’s what killed the major labels. As soon as there were alternatives, the superstars went elsewhere. And will continue to do so. Unless the labels make fair deals. But if they cut fair deals for stars, they’ll have to cut fair deals for wannabes, and unwilling to set a precedent, they’d rather stand on ceremony and fade away.

Read Bob's article here.