… it looks doubtful that musicians will be able to make much of a living from their recordings given the kind of pittance that trickles down from streaming services after record labels and others have taken their pieces of the pie. It appears that it will be harder and harder for musicians to even get to the level of audience where they can make a living based on income from live shows… Music consumption through streaming grew 32% from 2012 to 2013 in the U.S., while overall music sales fell 6.3%. (Source) At present these services are, in some countries, a small ancillary revenue stream for musicians, and in those cases they’re viewed as another welcome revenue stream. But I’m curious as to what happens to musicians when these services become more ubiquitous—when streaming becomes the new download (just as the download took over physical CD sales)…
Musicians – Working Hard for the Money!
So how will musicians in the future make a living in the music industry? Good question which I am often perplexed as to answers I get from musicians when asked. Those who are serious about their music career are focused on doing whatever it takes to get the attention of label scouts. But what exactly are scouts looking for in a musician? Another good question.If a musician or band wants to improve their chances in getting noticed and a shot with a Record Label, then there are a few things musicians should be aware of. In an article found in Music Clout, there is a huge emphasis on being consistent in selling CD’s as well as merchandise. Artists also need to stay up to date with technology and be “forward-thinking” in ways to develop, maintain and engage their fans. It is rather ironic that record companies “want to see that you can move units without their help... if you can’t sell records on your own, labels no longer have the interest nor the resources to sign and develop you.” That one statement should make all artists stand up and take notice. Who actually benefits the most from the artist’s hard work should they get signed onto a label? And speaking of an artist’s hard work, think about this – what does it really take to even get noticed in order to be signed by a label, or even to have a shot at an endorsement or a sponsorship deal?
Here is an example of what may go into the process of becoming successful in the music industry:
- When a musician or band works hard in perfecting their craft, their fanbase grows
- When a band’s fanbase grows, they become more popular
- When a band becomes more popular, they start to get noticed
- When a band starts to get noticed, major corporations and/or label scouts knock on their door
- When a band’s door gets a knockin’, the band gets label deals, sponsorship and/or endorsement -deals
- When a band gets deals, they get asked to perform at concerts
- When a band performs at concerts, they get more fans and make more money
- When a band makes more money, they have more options
- When a band has more options, what do they do with those options and where do they go from there?
Isn’t this what any musician would love to accomplish, get to the point where they have unlimited options? The question is, how long will/does it take, and who actually pulls most of the weight… who works the hardest and who actually benefits the least? It will always be the musician or band. Who benefits the most? Not the artist.
But of course corporations and labels do work hard, but in a different way. Once they find the dedicated artist, they go into gear to further promote the artist… but there is an expense involved and it is the artist that is liable for that cost. Ironically, musicians seek out labels so they can become successful however, not always is there money to be made by signing a label deal. Here is the other challenge… there are now fewer labels available for a larger number of musicians. The deck is stacked against the average artist. The problem lies in the fact that musicians are looking for that one chance to be discovered however there are only a “handful” of these industry moguls available – on the other hand, these movers and shakers have an enormous and endless pool of musicians by which to choose from – other artists who are also looking for their one chance. These artist are the competition and the competition is fierce!
So in the meantime, artists have to begin putting into action all those things the labels and scouts are looking for to even have a chance of becoming discovered. In the meantime however, like everyone else in the world, artist have to make money which most do by working full- or part-time jobs. Either in addition to, or in lieu of, there are other ways which musicians can make money. According to one source, The DIY Musician from cdbaby, there are 101 ways with which musicians can make money which tells me the sky is the limit – but can they do it on their own? Now that is another challenge. How many musicians have the experience? How many are willing to take a chance knowing there are only so many times one can fail before becoming frustrated and giving up on their dreams altogether. And if we are honest with ourselves, this may be the main reason why so many artist simply don’t even bother to begin with - they’ll keep their full- or part-time job and simply accept doing what they love as a hobby, attending a few gigs here and there every month or so. Why? Probably due to a lack of business skills, especially skills they believe they need within the music industry. And all too often, musicians have been told by friends and family about the horrors of the industry. Can’t deny the fact that the music industry has a reputation for being a dog-eat-dog world, and who wants that?
Making the Sale – What? I have to sell?
I found there are several good ideas for making money as publicized in the DIY Musician article. Some of the 101 ways are presented below however CAUTION, the list does contain the dreaded 4 letter word “SELL”. Music is a business, and like all businesses there is either a product or service which when rendered money is exchanged… aka a sale is made. Like it or not, everyone sells! If you ever got a job, you obviously sold yourself to your boss. If you are married, there is no doubt you sold yourself to your partner. We all sell so as Kool & The Gang would say “Get Down on It.” Here are 16 ways found in the 101 ways for making money, but believe it or not there are more reliable, and far more effective ways to cash in on one’s musical talent:
1. Sell video recording
2. Sell CD’s at a local store
3. Record backing tracks and sell them online
4. Join various digital download sites or channels and sell your music there
5. Build your own website and sell your music there
6. Sell Merch
7. Sell your old instruments online
8. Sell sheet music
9. Start a blog and package up information and sell them online
10. Sell vinyl (seems it is making a comeback)
11. Record lessons and sell them online
12. Sell instruments after a live performance
13. Create a premium fan club and sell premium or annual subscriptions
14. Sell Merch online through your own website
15. Go on tours and sell albums and other items
16. Perform in someone’s living room and sell tickets to the event
Another consideration musicians must keep in mind is it all comes down to the same old challenge… do I have the skills or determination to accomplish this by myself, and can I make a substantial living. For the average person, that question just might turn them away, convincing themselves they don’t have what it takes for up till now, only a few have been successful compared to the thousands of musicians in America.
So back to David’s article – the idea of making money from recorded music is as he puts it, “… is so 20th century. Suck it up and move on.” Oh? And where do we move on to? David makes a great point… if no one can make money from recordings, then why spend the money on making them? Why are so many artists living in what could only be defined as a mad, mad, mad, mad world – where artists spend most of their “hard earned money” hoping for a miracle in being discovered. It’s like purchasing a lottery ticket – what are the odds of winning? What are the odds of being discovered? And if the musician has limited resources by which to get themselves out there to begin with, then the odds are really stacked against them. Once again this comes right back around to what was stated above, “can they do it on their own?” Of course not! No one can do it on their own. But we know many will try.
Loss Leader. What’s that?
Music basically has become a loss leader. What is that? When you see a store advertise a ridiculously cheap price on an item, that price usually draws or “leads” people into that store. That item is what’s known as a “loss leader”. The store knows they will be losing money when people purchase that one item but they are banking on the odds that people will purchase other items while in the store. Well, if musicians are no longer able to make a living off just their music, but their music is what draws people to them giving them exposure, popularity and often times “credibility”, then how else will musicians make money off their music? They have the draw, what else can they do to capitalize on their talent? Their music has successfully drawn people to them, but there is no real money to be made in selling music so therefore their music has become a loss leader. So how then can the artist capitalize on their talent and obvious popularity?
In this new world of digital recordings, music is now being used to draw or lead people into purchasing services and/or products at many different levels. But who benefits? According to David, the world of streaming services is taking its toll on the music industry and musicians. No matter how many different ways people talk about the music industry, it has remained a dog-eat-dog world… but what if there was a way musicians could use this dog-fighting mentality to their advantage? Well it all has to do with Leveraging.
Leverage – How to make money and increase odds for getting noticed
So there are two “basic” areas which bands or artists are focusing:
1. Making enough money so they can concentrate on those areas to increase their chances of getting discovered
2. Becoming successful in the Music Industry
The point is, we either leverage, or we are leveraged. If we work for someone they are actually leveraging us hence we are being leveraged – we have far less control over our life and too often work hard when leveraged. If on the other hand we take control by working for ourselves, we then put ourselves into the power to leverage. So how does that work and where can musicians go to take advantage of leveraging? Don’t they have to have a large network and resources at their fingertips in order to leverage? The answer is yes, networking is probably the most important feature or asset which is enjoyed mostly by successful businesses, agencies, and yes, even record labels. At the beginning, small businesses, startup businesses, entrepreneurs will not normally have those assets, but eventually they will have to cultivate and build those resources if they too want to become successful. But what if… what if for the very first time musicians are able to tap into and leverage those very same resources normally found within the traditional business world? Resources were musicians are able to operate on a level playing field, capable in taking advantage of and leverage networks, resources and even advanced technology?
That is precisely what Conquer Entertainment, a division of Market America and SHOP.COM, has accomplished by creating a paradigm shift within the music industry, and to be honest all industries. This shift allows artists to maximize their potential to select who they wish to become a spokesman for, what products they wish to endorse while leveraging technology in a laser effective landing zone for fans to meet, interact, socialize, and share their experiences with music, events, videos, products and services. People love to share, and rather than musicians vying for an extremely limited piece of the pie in music sales, they can bask in a sea of fans who will talk about their own lives, experiences, and challenges and share solutions. More often than not, those solutions can and are available through the artist’s platform, and with proper training, support, and guidance musicians are able to provide their fanbase with unequaled solutions which will pay dividends above and beyond artist’s expectations. Not by trying to sell people, but through the art of leveraging technology, along with an environment of networks and consumers thirsty for great deals, great music, and a wide selection of “valuable” solutions.
At a recent event in Atlanta, Ga, a Conquer Entertainment artist, Walter Finley, showed us just how it’s done… not by trying to sell anyone anything, but simply telling a true story about challenges and costs, and the solutions he found and what he personally got out of it. It was a brilliant example in just how musicians can turn their lives around.
The BIG TAKEAWAY – Equal Opportunity for Everyone!
The biggest takeaway from all of this? What do labels, managers, publicists, or any of the many service providers within the music industry do as business owners? What is their main focus? Isn’t it about making money? They provide services to musicians, to fans, and even to businesses who pay endorsement deals. So if these heavy hitters in the industry can do it, what’s wrong with musicians having an opportunity in becoming an “equal” partner? Nothing! But here is the real payoff from the brilliance of what Conquer Entertainment did within the business world; there are no losers – the opportunity is equal for everyone. Service providers can leverage the exact same way as artists and vice versa. Now that is brilliant marketing which is what Market America is, a product brokerage company that specializes in “matching” products to people, and people to products. A company that, through their genius marketing strategy has enjoyed over 22 years of continual growth, and by their actions and forward thinking there is no reason to believe that will change anytime soon. They continue to make it profitable for everyone who takes advantage and leverage their networks, their enormous buying power, their resources, their technology, their services, their training, and the list goes on and on. In other words, everyone wins, and in the entertainment industry, the sound of making money, (caching, caching) is music to their ears.
