Bob Baker on the Realities of Making a Living as a Musician in 2011

Interesting post by Bob Baker today.

The tools and the channels have changed dramatically but artists have always been self-employed and struggled to balance the pursuit of their craft with the economic realities of survival. More of my thoughts to follow...

The Realities of Making a Living with Music in 2011 via music think tank

Are music consumers stepping on us?

From today's Digital Music News:

Are Music Consumers Stepping On Us?

That was the question posed on Thursday by NPD analyst Russ Crupnick at Digital Music Forum East in Manhattan.

"Consumers are flipping us the bird," Crupnick declared while trotting through slide-after-slide of distressing data. Exhibit A? Crupnick listed a litany of concessions and pro-consumer offers from this industry over the past ten years - all of which have produced few substantive revenue returns.  These include: 

• ubiquity
• disaggregation
• fragmentation
• liberal licensing
• disabled DRM
• disinflation

"These are great things we've done for consumers, but what have they done for us?" Crupnick posed.  Well, the answer is very little, and Crupnick's stats proved it.  Over the past 5 years alone, Crupnick noted that the population of buying music fans declined by 20 million, and per-capita spending has dropped by 40 percent.  Meanwhile, just 5 percent of US consumers are using subscription services, including free trials.  "We're being too liberal," the analyst continued.  "We need to demand more from consumers."

But there's a funny twist: among the buyers that remain, a majority are only buying CDs.  In fact, Crupnick noted that 55% of paying music fans are solely purchasing CDs, down from 80% percent in 2006.  Just last week at New Music Seminar in Los Angeles, Tommy Silverman reported that two-thirds of all album purchases are physical.

And what about the superfan, won't that save us?  Well, Crupnick popped that balloon quickly by noting that superfans are also buying less.  But, their percentage of overall purchases is increasing as more casual fans leave the building.  "Fewer and fewer people are buying music, so the percentage of buying by uberfans increases," Crupnick noted.
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My comment:

"I can't comprehend the logic of "demanding more from consumers." Show me a good product manager who agrees with that reasoning.
 
It is hard to compete with free but that's the reality today for any media business. Consumers have unprecedented choice and an enormous sense of entitlement. If you want to succeed in the marketplace you have to get real about that.

Also, the recording industry was a ridiculous bubble economy for over 20 years. Now it is leveling out and that is painful. The industry will be smaller in the future, more personalized, and consumer driven. 

Things will continue to shake out for awhile.

Join the discussion here...

Rethinking Music Pts. 1 & 2 - Creativity, Commerce and Policy

Check out these two excellent podcasts in preparation for the upcoming Rethink Music conference coming up this April in Boston.

Radio Berkman #168 Rethinking Music Pt. 1
Radio Berkman #173 Rethinking Music Pt. 2 - The Portrait of the Self-Published Artist

Selling the DIY Dream

The larger music business has always contained a smaller industry focused on selling the dream of success to independent musicians. In the Go-Go record label days, this involved access to decision makers and copious amounts of advice on making your music more “commercial”. Musicians hoped that  Mr. Big would hear their amazing song, fall in love with it, and next thing you know, the band is flying around in private jets.

Today's pitch is that relentless, athletic Internet marketing will eventually build a brand and a full-time career. While many of today’s tools are powerful and can be very effective, the business models of these companies are built on selling services to musicians and are not necessarily dependent on the success of the artist.

Marketing is key to the execution of every business plan, but by no means the whole enchilada. Successful businesses create products and services that meet fundamental human needs. DIY Internet music companies are serving the need of the musician to be acknowledged and feel empowered. Are you  just as clear about your market and the needs you are addressing? People don’t buy what you do but why you do it. Without a clear vision of what makes your music extraordinary, and who you are serving, all the marketing in the world will not create a mega-successful brand.

Most pro musicians have multi-faceted careers (performing, recording, producing, writing, publishing, teaching, orchestrating, etc.) and have spent tens of thousands of hours developing their craft. If you are seriously committed to a long term career in music, I suggest studying these people as well as general business and marketing concepts. Be very realistic about circumstances that have influenced individual successes and may not scale.

Internet music marketing is powerful and exciting but it is also a huge time suck. If your marketing is not carefully aligned with a larger plan, you may simply be feeding another industry: the DIY Dream Machine.

Career Tracks: Chi McClean, Part 3

Photo by Andrew Keller

Chi McClean is an independent singer-songwriter currently touring in support of his 2009 release, Something Out There.

In Part 3 of our conversation Chi discusses music publishing, endorsements, branding, and his next release.

Read Part 1 Read Part 2

How are you handling your music publishing?

CM: I set up McClean Music Publishing. I received my first BMI check a few months ago and it (the importance of publishing) really hit home for me. The more I know, the less I know (about publishing). It’s a labyrinth. I went to a Music Row Magazine awards festival at BMI in Nashville. I also met with Stage Three Music Publishing. (Songwriting ) is huge business down there.

At a certain point whether it’s managers, booking agents, or publishing, it’s about bandwidth and how much you can realistically tackle in a meaningful way. You’re not doing yourself any good if you’re spread too thin. 

What’s the timeline on your new record?

CM: I hope to have it out by the holidays. I think it’s going to be more focused on the songs. We were talking earlier about what people react to. I think it will be a simple, honest record. I’ve found my voice a bit more. There are some good songs here. 

You have endorsements with Taylor Guitars and Elixir Strings. How did you put that together and how have the endorsements worked for you?

CM: Whether I had an endorsement or not, I love my Taylor. (I’ve been playing them) since 1999. I’ve been playing a lot of alternate tunings. On stage it’s a pain to retune in-between songs.  So, I put together a kit. You have to have a press kit, a calendar, an album out,  and show that you’ve got something going on and you’re serious. (Taylor) has been really helpful, not only with guitars but with career advice. Taylor is very well networked. They’ve got Dave Matthews, Taylor Swift, Jason Mraz, Leo Kotke, and Doyle Dykes Signature models. Through them (Taylor Guitars) I got an introduction to the Elixir Strings artist program.

Do you do clinics for them?

CM: I don’t. I’d be delighted to. They’ve been so supportive to me. I give them a shout out whenever I can. I don’t really have to do anything. At gigs people come up to me, “What kind of guitar are you playing? What are those strings?” “Well, it’s funny you should ask…” (laughs). It just sounds really good.

Whatever you’re doing, it comes back to being in the relationship business. I just think it’s really important to try and stay in touch. Simple things, wish somebody a Happy Birthday… I once saw a quote, something like, “They’re not going to remember your music. They’re not going to remember anything about you except how you made them feel.” 

What are your thoughts on the ‘1,000 true fans’ theory? Can you make a living off a dedicated segment of the Long Tail?

CM: I think you can do it but it’s hard. You have to control your expenses at home and be out on the road. If you build that network of places to stay you can make a go of it. 1,000 people is nothing to shake a stick at. If you have 1,000 people you can really communicate with, who will respond to your emails and come to your shows, that’s powerful. I think it’s manageable. You have to control your expenses carefully. I’ve been looking into crowdsourcing. As an independent musician you have to get really creative. 

How do think about your brand?

CM: It’s tricky. I come from a marketing background but my focus has been on the music and getting out there. Keyboardist/singer Dave Yaden has been telling me I need to dress like a rock star and walk like a rock star to the point where the first thing that goes through someone’s mind when they see you on the street is, “What band is that guy in?” If you’re a lawyer you wear a suit. If you’re a baseball player, you wear a uniform. There’s a certain look. If you’re a musician, that’s your job. That really stuck with me. Figure out who you are and go for it. Like my music, I just want to be honest and who I am, but in this day and age everything is so competitive, you have to develop a brand that goes beyond your music. It’s a whole marketing package.

I was fortunate enough to work with the Art Director from the last company who did all my packaging design and developed a logo for me. It’s important to think about what you’re saying with your CD cover, your posters, your emails.

What’s your long range plan?

CM: To keep this sustainable. Make records, keep playing. The plan is to develop a plan (laughs)…

You can find out more about Chi McClean and his music at: www.chimcclean.com

California Copyright Conference : “The Music Industry: A Survival Guide for the Future”

Tuesday evening’s panel at the California Copyright Conference dinner in Sherman Oaks was quite upbeat considering the many uncertainties of these times. The panel, moderated by Shawn LeMone, ASCAP’s VP of Film/TV and Visual Media, and Diane Snyder-Ramirez, VP of Royalty Accounting and Administration at The Royalty Review Council, consisted of:

• Russell Emanuel, CEO, Extreme Music
• Amanda Marks, EVP/GM, Universal Music Distribution
• Patrick Russo, Principal, The Salter Group
• Kari Kimmell, Recording Artist and Songwriter
• Victor Rodriguez, Music Director THQ, Inc.

The theme for the evening was, “synch licensing.” Traditional music industry boundaries continue to blur and each panelist discussed evolving practices from their individual perspectives. 

Patrick Russo began the discussion with an entertainment industry revenue analysis. The larger segment is growing and diversifying, although music revenues will continue to decline. The good news is, music is ubiquitous and a key component in a wide palette of entertainment properties. This creates new opportunities for licensing and publishing revenues.

Russell Emanuel described the huge shifts in the music library business. The industry is moving into what was once considered independent label territory. Extreme Music is courting independent, niche artists (mostly songwriters) rather than the more traditional jack-of-all-trades composers. 

Victor Rodriguez is producing video game scores with traditional film composers as well as scoring entire properties from music libraries. Music is being licensed for virtual social networks and multiple co-branding opportunities are emerging across media platforms.

Kari Kimmell’s music has been featured in over 100 film and television shows. She controls her catalog and handles the licensing and business development with music supervisors herself. Although business takes up 50% of her time these days, Kari is very excited about the successes and opportunities available to her as an independent artist. 

Amanda Marks is anticipating a surge of tablet devices, providing a compelling entertainment experience for consumers. She is excited about the potential of apps to filter music, cutting through the noise in the channel and bringing the cream to the top. App developing tools are becoming more affordable and available to artists. Amanda feels that music distribution will be firmly ensconced in the cloud in a few years. A licensed experience where listeners can get anything, anytime, anywhere, will be a game-changing alternative to pirated music.

Revenue opportunities for creators are a mix of licensing fees, back-end residuals and exposure (the highly coveted “Chyron”). How these trends can benefit musicians working in non-pop genres is not as clear but one thing is certain: The music industry is a moving target, accelerating every day. The keys to “Survival” are making great music, working hard, and staying ahead of new revenue opportunities.

Career Tracks: Chi McClean, Part 2

In Part Two of my conversation with indie singer-songwriter Chi McClean we discuss the importance of building personal relationships with fans and industry partners and the challenges of doing it all yourself…
Chi is currently recording his second record. You can find out more about Chi on his website: www.chimcclean.com and pick up his music at CD Baby, Amazon.com, and the iTunes Store.

Read Part One of our conversation here...

You are handling PR and marketing yourself. What’s working for you? How do you decide the best ways to invest your time?

CM: I pick my battles. If I’m going out on a tour, I’ll look at those markets, figure out what the weeklies are (and) target the music writers who have been writing stuff I genuinely like. You have to show that you are interested in them. For example, I got this great review in the San Francisco Chronicle. I liked this guy’s style of writing. I liked the artists that he covered. In my email to him I told him, “I really enjoyed (your) article about so and so, I heard him on KFOG, but this other guy (you) recommended I’d never heard of. I checked out his music and it’s awesome, a great find. What other artists could you recommend? Incidentally I just came out with a new CD (laughs). Do you ever write about independent musicians?” Within ten minutes I got an email back. I know that’s a total exception to the rule, because it’s so much about luck, but I think that stuff helps.

You never know what people are going to be interested in. You have to figure out what’s unique and original, and different about you. For me, when I’m going up and down the coast it can be surfing. There’s a guy who has a surfing blog and is also a music writer. We happened to connect through a booking agent. We start talking about surfing and next thing you know he’s doing a feature on me. That helped me promote the shows in the area. It’s challenged me to think about the other stuff I do that might be of interest to people. You have to figure out, what’s the story? Is there something deeper to tell?

Are you using Facebook and Twitter to stay in touch with fans?

CM: Facebook is the most productive for me. I use it for all of my show invites. Sending an email blindly, often times you just get nothing. With Facebook you have an opportunity to re-engage people. I use Twitter. I use Posterous. It’s free. You can set it up to feed Twitter, Facebook, your own blog, any number of social networking sites. I’ll take a photo with my phone of a set list or a marquee. It’s a really easy way to get stuff up there.

Are you blogging? Do you get a lot of comments?

CM: More often than not I’ll get comments on the blog posts on Facebook. I try to do it every day. Sometimes I run out of time, or the surf is really good! (laughs). It’s important to do it every day. You have to give people a reason to come back to your site.

Have you found it helpful to attend industry seminars?

CM: The first time I went to SXSW was really cool. So much of this business is common sense but it takes on a different tone when you hear it from somebody else. There were some demo listening panels that were helpful. The discussions on music publishing and licensing were interesting. I went again last year (and) felt that the panels didn’t change enough. The networking was helpful, not even talking about music. At the end of the conversation you exchange cards (and) both realize you can help each other in some way. I found out about the unofficial showcases. You just have to meet a couple of people then suddenly you’re showcasing SXSW. (It) means a lot when you can put that on your Sonicbids gig calendar.

West Coast Songwriters has been very helpful. They have monthly songwriting competitions. You get feedback from judges and get the temperature of the local songwriting scene. You can see who’s doing what, figure out if there are other people you might want to share the bill with.

How do you update your email list?

CM: I get fans on Facebook or ReverbNation, but mostly it’s going out and playing shows. One of the toughest things, especially if you’re traveling alone, is to pack up quickly and get out there and start working the crowd, selling CDs, giving away stickers, getting people on the email list. If people like you they want to know where you’re playing again. If you go out and talk to them you meet some pretty cool people. That’s the way to build a meaningful list of people that are going to stay your fans.

Are you selling more CDs or downloads?

CM: (Online) I’m selling more downloads than physical CDs. The CD Baby admin tool tells you who streamed (or) downloaded what song from what service, and your net earnings. Whenever I tour I see a spike in CD sales and downloads. I sell CDs on the road when I’m playing.

Are you giving away music or using freemium strategies?

CM: I haven’t yet and I’m trying to figure out if I want to for this next one. I’m thinking it may be an added value; if you buy the CD, you also get something that wouldn’t be on the record like a solo acoustic performance. I want to get something in return if I’m giving something. I gave away pint glasses at shows if you signed up on the email list. That’s relatively cheap for a good email contact. People want to support you but you have to give them choices.

Are you getting terrestrial and/or Internet radio play? How’s that driving traffic to your gigs?

CM: I’m getting a little college radio through places that I’ve played. There are Chi McCLean stations on Pandora and Last.fm.

Showcase gigs are sometimes 40 minutes or less. You plan something for the day, playing in a bookstore or a radio interview to promote the show that night. Also, rallying the people who are on your email list. It’s about giving people a reason to come back and see you again. It can be hard to find time to really meet (fans) and hang out. When people come out to see your show it means a lot, especially in a town like LA.

Where are you seeing the most revenue, live shows, CD sales, downloads?

CM: It’s gigs. That’s where I connect with people and sell CDs. You drive people to the online stuff when you’re not touring in their area.

Are you pursuing a traditional record deal? What are your thoughts on the pros and cons for your career today and in the future?

CM: It would be really helpful in some ways; a marketing machine to help build a brand identity, (getting) bookings as a supporting act for a more established artist...there is stuff to be gained but you give up a lot in terms of ownership. I’d like to do that but it would all depend on the contract. At the level I’m at right now there is no reason I can’t build my own team. You need to have an established business before they (labels and managers) are going to consider you.

Have you been using online marketing platforms like Topspin or Nimbit?

CM: At the level I’m at ReverbNation is (a good fit). Topspin is really interesting. I’m on all these online sites but I don’t know anything about the person who is streaming or buying downloads. For the physical sales CD Baby gives me an address and an email. That’s great. I can send thank you notes and collect that data. It’s weird not being able to correspond with your customers. With Topspin I think you can. One of the things I’m looking at for this next record is crowd-sourcing.

One of the biggest challenges for me is time management. Where should you be spending your time? I think the answer is, on everything! You can’t afford to not do anything. You need to keep writing music and practicing. You need to book shows with a minimum two to three month lead time. You need to send out posters, make phone calls to confirm, reach out to the press. You need to keep reaching out to your fans and remind the venue that you’re coming and make sure everything’s good. You have to figure out a place to stay and how you’re making money to pay for all this stuff (laughs). None of it is hard in and of itself, but it’s an exercise in time management, discipline, and follow up. It is easy to feel like you’re getting nowhere then when it rains it pours. Somebody you have been contacting for a year suddenly has a slot. You go down, play a gig and establish a (long-term) relationship. The sales pipeline is so unpredictable. One guy said he had 100 MySpace messages a day. Even if you write the best email and your music is awesome, what’s the likelihood that he will even see your email?

What are your priorities in building a team? What questions would you ask to vet potential partners?

CM: Before you do anything with PR you have to have something to talk about. You need a record, then you book shows. The first thing for me would be a booking agent and a PR team to send out posters and contact local press. Booking shows that are pairing me up with people on that next level, bigger venues, getting me more exposure. I’m doing OK on my own but I’d much rather be playing every night.

I’m a lot further along (than a year ago). Exposure will ultimately be the most valuable thing to me in the long term.

Are you going after synch licenses, or writing for other people as revenue streams?How are you managing your publishing catalog?

CM: I went aggressively after music supervisors. “We’ll keep it on file.” (laughs). Who knows? I wish I had bounced instrumental takes of everything from the first record. A lot of places want background music.

I have a song preloaded on a Phillips MP3 player. I retained the relationships I made at Liquid Audio. People get word that you’re trying to do this for a living and they want to help if they can, if they like your music. One friend of mine in that space has been a great supporter of my music. God bless him! You never know. Suddenly you get a phone call, it’s a free thing but there are 50,000 players out there or something. It’s really amazing what some people will do.

Career Tracks: Chi McClean, Part 1

Career Tracks: Chi McClean, Part 1

Photo by Andrew Keller

This is Part 1 of an interview with indie artist, Chi McClean, the latest installment in the occasional Career Tracks series of interviews. You can read Part Two of our conversation here.

Chi McClean is a singer-songwriter with an intimate, down-home style and classic California good looks. Originally from New York, Chi moved to California to sample the surf and take a shot at the music business. With the release of his 2009 debut recording, Something Out There, (co-produced by Chi and Boone Spooner) he dove full-time into the indie DIY life, touring extensively across the United States. Chi has performed live on national television (The Early Show) and earned several songwriting and performance awards. He is sponsored by Taylor Guitars and Elixir Strings, is touring continually, and in pre-production for his next record. On a recent stop in Los Angeles we had a chance to talk about music, the importance of building relationships, marketing yourself, and the power of the national media. 

You can find out more about Chi on his website: www.chimcclean.com and pick up his music at Amazon.com, CD Baby, and the iTunes Store.

Your songs have been described in the media as “Southern Rock” or “Classic Rock”. What do you think is unique about your music and the way it connects with people?

CM: People say that the recordings and the live performances, particularly when it’s just me and a percussionist...it’s an honest and true performance. People like the fact that you can hear the squeak in the guitar strings and some flubbed notes. They identify with that and like that it’s not over-produced.

There’s a directness and an honesty. That’s what I get…

CM: There’s a lot of introspective stuff in there. I think people grab onto that as well.

You have been touring in different parts of the country to support this record. Where have you gotten the best response? How would you describe your audience?

CM: The release at Cafe Du Nord in San Francisco was awesome. I find that on the Central Coast of California, the beach towns, people seem to really latch onto the music. Most of the time I’m touring solo. I sell a bunch of CDs. I get radio play.

Are you selling merchandise as well?

CM: Mostly CDs. I have some glasses and stickers. I have yet to design a t-shirt!

You’re a surfer. Do people know that about you?

CM: I think so..long blond hair, flip flops, sunburned (laughs)!  On my website (www.chimcclean.com) there’s some talk about surfing. Generally when I go up and down the California coast I’ve got my boards with me. On the blog there’s always a picture of ‘break of the day’ or whatever it is. 

Has your ability to do solo gigs given you a better opportunity to build an audience?

CM: Honestly, for me, it’s the only way to really do it. I would love to have a band that was really well rehearsed and play out with them all the time, but it’s just too expensive to do. Logistically it’s really hard. A lot of (industry) people have told me, “If you write something, make sure you can play it solo.” It makes sense now that I’m out there.

You’ve got to be able to stand on the song too…

CM: Exactly.

You worked with independent artists and record labels at Liquid Audio in the early days of Internet music distribution...really the first wave of Internet-driven DIY. You also have a background in sales and marketing. What have you been able to apply to your music career from those experiences? 

CM: There are all these one-stop shops. For example, I printed my stuff through Oasis. You print 1,000 CDs, they have a hook-up with CD Baby, within a month you’re up in iTunes, eMusic, Rhapsody, Walmart. It’s just so easy to get your music in as many place as possible so people can easily find it. 

I’ve got a background in sales, marketing and business development but the most important thing is just being a nice guy on the phone, being persistent but friendly, doing what you say you’re going to do, sending things on time, showing up on time, being honest with people. If you are trying to play somewhere you’ve never played before and they ask you what your draw is, don’t tell them you can bring 100 people and have 5 people show up. That’s going to be catastrophic for you and it’s not going to do the venue any good. Like any business, it’s all about relationships. 

Put yourself in their shoes. They deal with maybe a thousand people in a week, just blasting them with music. How do you make your email stand out, and if you’re lucky enough to get the gig, how do you make sure they remember you? Maybe they won’t remember your music but they might remember if you did something nice for them, if you offered to coil some cables at the end of the show, asked how they were, or just said ‘thank you’. Even if the mix wasn’t any good, you say it was good (laughs)! Send a ‘thank you’ note after the gig. I think people remember that. Many of the people who book (venues) are also musicians. Maybe you can offer to book a show where you’re from, or turn them onto some musicians that are hot. Share contacts in a way that builds relationships. 

At the most fundamental level you need to have music that people are going to like, but, it really is a relationship business. If you get the call for a local support act when a big name comes through town, they might be thinking, ”The last band was great but they were complaining about the mix the whole time. This guy is really nice. He showed up on time and did what he said he was going to do. He promoted the pants off of the gig and the mix engineer thought he was a nice guy. He was really easy to work with.” They want the easiest possible thing. Have everything lined up so they can just email you once.

How did you build your website?

CM: My friend Boone Spooner is also a web designer. He was really instrumental in getting everything online. He arranged the site so I can add, edit, and create content. Everything is set to go. He was a huge help.

You recently appeared on national television on The Early Show. How did you hook that up and what did the exposure do for you?

CM: A good friend in that business liked my music enough to make some introductions and get my CD into the hands of the right people. It was a really amazing experience. I think I sold, in a day or two, over a thousand downloads, and a bunch of CDs, a big spike for me. It was also a great resume builder. I can say when I’m trying to book a show, “I just recently played on national television, CBS, The Early Show.” That’s a huge help. People start to pay attention. I may have an invitation to come back when this new record comes out which is fantastic.

Career Tracks: Chi McClean, Part Two

Can Positive Deviance identify successful outliers in the music industry?

Positive Deviance (PD) is an approach to problem-solving that has proven to be highly effective at facilitating systemic social change in situations that appear hopeless or intractable. The basic idea is simple: focus on the successful exceptions, not the failing norm. In their fascinating book, The Power of Positive Deviance - How Unlikely Innovators Solve the World's Toughest Problems authors Jerry Sternin. Monique Sternin, and Richard Pascale, present case studies describing applications of PD including; arresting the epidemic of childhood malnutrition in Vietnam, reducing the practice of female circumcision in Egypt, and decreasing infection rates in US hospitals.

"The basic premise is this: (1) Solutions to seemingly intractable problems already exist, (2) they have been discovered by members of the community itself, and (3) these innovators (positive deviants) have succeeded even though they share the same barriers and constraints as others." -The Power of Positive Deviance, Harvard Business Press, Boston MA 2010 

PD is a 'bottom up' approach driven by the community itself. Facilitators do not act as experts but ask the questions that will help the community identify its own successful outliers. Once the community has discovered how its own members are able to succeed against all odds, they can scale these solutions and integrate them into their culture.

While the music industry is much too eclectic and broad to apply this approach unilaterally, it occurs to me that a PD perspective can be helpful in identifying successful trends. Clearly, the DIY dream will not replace the traditional record industry, but nonetheless, individual success stories can scale across specific industry segments. Professional musicians continually adapt their career models to accommodate disruptive changes in technology and business.

What’s working for you?

Record Labels & Modern Music Industry Careers

In the DIY discussions of the last ten years the utopian idea that artists somehow don’t need "record labels" has been promulgated as the beginning of a new era, but how that career management void would be filled has never been entirely clear. In the most general sense, a “record label” is the total, organizing, business entity that markets an artist, directs their career, and distributes their music. Whether a boutique imprint run by the artist themselves, or a larger partner entity or team, the basic model is the same and the need has never gone away.

The downfall of the major record label system has largely been driven by a lack of scalability and a serious loss of the musical vision that started this industry in the first place. In the Fifties and Sixties record labels were more genre specific and run by business people that were fanatical about the music they sold. Years of consolidation and a focus on generating profits by selling new formats, as opposed to creating extraordinary new music, made the industry less competitive in the face of rapidly developing digital technologies. The label business became dependent on creating massive profits from international mega-hits. The ‘middle-class’ models for marketing artists to smaller, dedicated, sustainable audiences fell by the wayside. For example, jazz, roots, or classical musicians who at one time maintained longstanding relationships with independent labels began bouncing from imprint to imprint as these once highly focused companies were assimilated by the corporate borg, soon disappearing altogether.

Today an artist starts as their own label (whatever that may look like), learns the business, and grows into the right partnerships as their career develops. There is a greater need than ever before for independent record labels, that are focused, frugal, and run by smart business people who are absolutely passionate about the music they promote. It takes a strong, dedicated team to build and sustain a music career amidst all the noise of today’s world.

Entrepreneurship and the New Music Industry

I recently interviewed Jason Fried, co-founder of technology company 37signals for Berklee Today magazine. The article draws parallels between starter companies and music careers. If you haven't done so already check out 37signals' great little business book, Rework.

Thanks to Mark Small at Berklee Today for making this happen...

You can read the full article here:

Entrepreneurship and the New Music Industry

Don't Go For The Masses, Go Direct-To-Fan

Reblog from Hypebot.com:

Don't Go For The Masses, Go Direct-To-Fan


Author: Kyle Bylin - www.hypebot.com
Major labels are mass marketing power giants; it’s what they do. Before the advent of the social web, they  were the only way to reach the masses. Due to their influence on commercial radio stations, big-box retail outlets, and television, much of this remains to be true. If an artist wants the general public to become familiar with their music and know the all words to their songs at the next show, then having the financial support of a major label will help them achieve this feat. 

What’s interesting though, is that despite decades of experience in breaking new artists, major labels still have no idea whether or not their mass marketing is working until the end. Online analytics, small boosts in sales, viral YouTube videos, and conversations—these all serve as little cues that something is starting to happen, but there’s no way to tell when the point of reaching critical mass been achieved.  That is, until it actually occurs. The blockbuster album.

Now, contrast this with the experience of a direct-to-fan marketing manager and an indie artist they represent. Through its easy for both parties to default into thinking like a major label, to try and reach the masses and put off the moment of understanding how successful their marketing has been until the campaign is over—that’s just not how going direct-to-fan works. From the very beginning, the direct-fan-marketer knows if their promotional efforts are working. Why? Because they must get it right in the small. An email can be sent to 100 fans and if it gets a great response rate, only then can it be mailed off to several thousands more. 

“Get it right for ten people before you rush around scaling up to a thousand,”writes marketer and author Seth Godin.  “It's far less romantic than spending money at the start, but it's the reliable, proven way to get to scale if you care enough to do the work.” In other words, artists need to remind themselves not to go for the masses, when they can go direct, one fan at a time, slowly scaling up, until their message and their music is truly ready to be hard. After all, a failed marketing campaign is much easier to fix early on. If an artist is trying to reach the masses, then like a major label, they won’t know if they’ve failed till the end.

Author: Kyle Bylin - www.hypebot.com

Using the "IKEA Effect" to connect with your audience

In his new book, The Upside of Irrationality - The Unexpected Benefits of Defying Logic at Work and at Home, behavioral economist Dan Ariely describes the psychological effects of ownership and creation, what he calls “The IKEA Effect”. In a nutshell, we tend to overvalue what we create or work on. This phenomenon is well documented and anyone who has put together IKEA furniture or lovingly shown off pictures of their kids understands this immediately.

Marketers have exploited this human trait for years. A classic example cited in the book: the instant baking mix products introduced in the 1940s. Initially these all-in-one mixes did not catch the interest of housewives, but when the formula was changed to require adding eggs and oil the market took off.

This effect partially explains the popularity of blogging and user-generated-content on the Internet. Musicians have built strong connections with their fans by encouraging them to contribute, through remixes, blog comments, videos, graphic design contests, etc.

As musicians, do we overvalue our creations? Of course. Music is an extension of who we are and what we stand for. It will always have a unique flavor to its author.

All artists need to put in the hours every day; creating the conditions necessary to welcome The Muse, irrespective of the marketplace. See Steven Pressfield’s classic, the War of Art for the definitive word on this subject. When we change hats to take care of business we must be very clear that making something for others to use is different from making something for yourself alone. Not such a problem when getting paid to write music for a commercial, but a little more challenging when trying to figure out what to do with original work.

Good, objective feedback from trusted collaborators and partners is essential. “Trust" is the key word here. The most meaningful insights come from people who understand business but also truly get your vision and your values.

If we cannot distinguish the two processes we run the risk of compromising our work in an attempt to be more “commercial” or repeat past successes, or we simply give up on taking care of the business side of our careers.

Jazz as a business model

OK, let's face it. It's not easy making money as a jazz musician. As a matter of fact, today it is probably more difficult than it has ever been. The audience is understandably small because the music is sophisticated. It requires the listener's complete attention and an inherent interest in the format. Nonetheless there are two things the mainstream music industry can learn from jazz:

1. The artist and the music are the central focus rather than the particular revenue stream or distribution vehicle.
2. The music has to be truly extraordinary to differentiate the artist and attract an audience.

Look at the big guys. I'm sure Keith Jarrett has done very well selling CDs over the course of his career yet there are myriad ways he can make money because it's all about who he is and what happens when he sits down at the piano. No one else can offer the world what he can.

Ask yourself, how many mainstream pop artists pass that test? There are entire genres of music that are intentionally imitative and mediocre; trendy, lightweight, stylized fluff. 

Let's get our perspective straight. Sure, if the sugar water industry suddenly collapsed it would be a huge financial adjustment for many people, but let's not forget, this stuff is not actual food. It's unhealthy for regular human consumption.

Since the traditional record industry is collapsing why don't we think about rebuilding our business models on something substantial, something that really matters and adds value to the world. 

Taking care of business - We're all self-employed

Reading Paul Resnikoff's essay this morning it occurred to me that the 'vehicle' for the future of the music business will be a completely individualized start-up mentality. Everything has changed; what it means to be a performer, a recording artist, a songwriter, an instrumentalist, a composer, a music publisher, a record label... As long as we hang on to the old paradigms we won't see opportunities for the future.

Apple dropped Computer from their name because they're about something bigger; challenging the status quo and and building things that empower individuals. They practically own the word, "i". Computers, smart-phones and music downloads are manifestations of their larger identity. Think like a start up or a game-changing company. Why do you do what you do, how do you add value to the world, and how can you make money with the gifts you give?

Professional musicians have always worn multiple hats and been less dependent on CD sales as their primary source of revenue. Ask yourself what your favorite musicians stand for. What is their vision of music and how have they organized their lives around that commitment?

CDs are a by-product of something much bigger. If we continue to focus on the rapidly shrinking 'what' and 'how' of the past we'll miss the opportunity to do something exceptional today. Get back to why you make music. Forget about how the music business is supposed to work and visualize creating something unique, powerful, and profitable.

Why Do You Do It? - Pt. 2

Most record labels were started by people who loved a particular type of music and wanted to share their passion. They liked to make money, but most were driven by a real love for music. Labels had unique identities - Atlantic, Delmark, Blue Note, Reprise, Prestige, Columbia, Nonesuch, Verve, Folkways, Deutsche Grammophon... As I discovered music I felt a clear loyalty to particular labels that has been absent for decades.

As the record business grew the focus shifted to what they did and how they did it - throwing money at radio, creating mega-stars, selling CDs, music video, etc. By the dawn of the Internet age the music business had been replaced by the CD-selling business. Lacking consensus and visionary leadership the industry completely missed the huge opportunity presented by technology companies like Liquid Audio and Napster. Steve Jobs stepped in to pick up the pieces which is pretty remarkable when you think about it. Apple is all about Why and they understand how music works in people’s lives. So what can we learn and what happens next?

Why first, execution 2nd…

The music aggregators of the future may not look like old-school record labels, but I don’t think success will be based on a particular distribution methodology. The opportunity is for smart business people and artists to get back to the Why of music and build from there. Smart execution is key to creating a profitable business and distinguishing yourself in today’s flattened, over-supplied, music world is a formidable challenge. But first you need to know what you stand for and why you are doing what you do. If that starts to get fuzzy, your business will fade into the noise with everybody else.

Why Do You Do It? - Pt. 1

Reading Simon Sinek’s new book, Start with Why I was struck by his statement that,  “...people don’t buy WHAT you do, they buy WHY you do it.” Sinek describes a simple formula he calls the Golden Circle. The center ring is WHY, the middle circle, HOW, and the outer circle, WHAT. Most businesses he says, talk about WHAT and HOW, but real leaders start with WHY and work outward. WHY is what creates loyalty whether in business, politics, or the arts. I ask myself why I still listen to certain artists and particular pieces of music after decades. It’s not great technique or a killer sound that brings me back, it’s why they did what they did.

Someone told me a story about Ry Cooder many years ago. I don’t know if this is true, but supposedly Ry showed up at a recording studio for a session, to discover that his favorite recording console had been “upgraded” to the latest and greatest. The owner enthusiastically extolled the virtues of his new board but Ry just shook his head, said, “We won’t be making any music today….” and walked out the door. There’s a guy who know why he’s doing what he does.

When I asked LA indie band, Killola what makes them engaging to fans they said, “We tend to reveal ourselves in more realistic light, and show people that we're just regular folks who just happen to have this outlet for making music in a band.  I think that lends to the accessibility.” Sounds like WHY to me.

37signals is a company that is all about WHY. They built Basecamp because it was the product they wanted to use. This flies in the face of conventional Product Management thinking, yet their approach has built a very profitable, devoted, user community.

Sinek talks extensively about Apple and Southwest Airlines. I recently booked air travel to a city that Southwest does not reach with direct flights. When I realized this I very, very, reluctantly switched airlines. Why this loyalty? Air travel is not a big deal for me one way or the other, but something about my experience with Southwest over the years has made them my default choice. WHY explains it.

Last month, Mark Small wrote a great article in Berklee Today speaking with a variety of Berklee alums about why they make music. When I hear great musicians it is food for my soul largely because there is absolutely no question at all why they are doing what they do. I talk about business models, marketing and all the rest, but let us not forget WHY. If music inspires and deeply moves us, that is the true compass we need to follow. The HOW and the WHAT will fall into line...

Career Tracks: Killola

Photo by Thaddeus Bridwell

I recently had the opportunity to speak with the excellent folks in Killola, a four piece “Hardpop Altcore” band formed in 2003 and based in Los Angeles. Consisting of Lisa Rieffel (lead vocals), Mike Ball, (guitar), Dan Grody (drums) and Johnny Dunn (bass), the band’s indie work ethic and unique blend of garage rock, punk, and pop/electronica has created a devoted international audience. The band tours regularly in the US and UK and has a strong Internet presence.

Killola were early Myspace adopters; they had songs posted on the site in late 2003. They have been consistently on the front edge of digital distribution and marketing, successfully deploying many innovative strategies including free tracks, USB flash-drive bracelets and Dog Tags, and a diverse, synergistic media presence. Lisa Rieffel is also an actress appearing in the upcoming feature film/rock-musical "Girltrash: All Night Long" (all the film's music by Killola) and an original cast member of The King of Queens. In 2007 Lisa and Johnny began hosting a weekly radio show (on Dave Navarro's personal Internet Radio Network 'Spread Radio Live') featuring a mix of music, interviews, fan interaction, and general mayhem.

The band’s first 4-song EP was released for free on stencil-screened CD-Rs packaged in hand painted sleeves. Their first formal record, "Louder, Louder!" was released in January 2006. It was recorded frugally and sold well on both and 7” vinyl, particularly in the UK. They released a live DVD/CD, "Live in Hollywood" in October 2006 and self-booked a UK tour in the summer of 2007. Their second album, "I Am The Messer" was released in April 2008 on CD and USB flash-drive wristbands which also included extra songs, photos, videos, and hidden 'easter eggs'. The album was made available for free download in August of that year through sponsorships with DW Drums and Skullcandy. The band has self-funded their own videos and has a killer iPhone app. Their website, blog and mobile presence are all seamlessly connected, keeping the engagement with fans strong. Their new album, "Let’s Get Associated" was announced in March 2010 and is available on USB flash-drive Dog Tags which include their entire CD back catalog.

Thanks to Wikipedia for parts of this history. You can read the full entry here.
Oh... did I mention that their website kills?
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Tell me a little about your musical background.
All 4 of us are all self-taught from a young age.  And Dan (drummer) attended the LA Music Academy. We learned songwriting by trial and error, gauging what works through incessant home-demoing - and re-demoing, and rehearsing.  We like a brisk pace... for us, Songwriting Faster > Songwriting Slower.  Less time to question things.

Can you describe what makes Killola’s music and vibe so engaging?
That's probably better answered by fans/listeners...I suppose we try to be personally accessible, and 'real'…. A lot of bands really try to shine themselves up, in their bios for example, to be angelic or plastic, and that truly comes off holier-than-thou. We tend to reveal ourselves in more realistic light, and show people that we're just regular folks who just happen to have this outlet for making music in a band.  I think that lends to the accessibility. 

How would you describe your fans?
Our fans are unique. Snarky and sharp, and dependable. We do a weekly radio show (Monday nights, www.killola.com/radio), and while the weekly listeners flux and grow... we can always depend on the core-group of listeners to be there, hanging in the chat room, reliably for years now.

You’ve been doing innovative DIY marketing since 2003. Your first EP was delivered in hand painted sleeves and you gave away copies. How did that work to for you?

I mean, it was rough guerilla distro of a realllly-rough DIY demo... there was no way to precisely track anything. We'd leave stacks of these cool-looking, hand-painted CD packs in various places around LA... we'd often get curious, and come back later that day and the stack would be down to 1 or 2... sometimes gone completely. And the boring-looking CDRs that were there next to our stack would still be there, untouched.  That was at least indicative that ours were standing-out from others. And when we had an upcoming show in town, we'd tuck a flyer inside... and sometimes we'd meet a few people at the next show who mentioned the demo they'd picked up that week at Amoeba, or somewhere else. 

Are giveaways driving fans to your shows and triggering sales?
Absolutely. We gave away our last album (digitally) to more than ten thousand people. Within 6 months, our CD inventory was totally depleted from online sales. We toured to cities that we had never played before... and people were there, singing along. I have to assume that's at least partially due to all the freeleased music.



Is the business picture different in England and Europe?
Totally different. People buy singles there, physical/tangible singles, in anticipation of an album... and those purchases vault bands into the mainstream. Also, rock music still dominates a large portion of the industry.... and the radio plays a lot of rock music there.  Also, newspapers/magazines still trump blogs... and on and on. Its a highly media(magazine/newspaper)-driven industry there. Plus, touring an album through the UK is a piece of cake, compared to the US.  The entire UK is about the size of Oregon, so you can loop the entire UK, many many times, in a few weeks. One US tour takes one month, minimum... and that's a long, hard drive. 

How often are you touring?
We do a west coast/Southwest tour every couple months... a full US tour every 12-18 months. We've only done the UK once, however we are needing to get back there again, badly, soon....



I love the USB flash drives. How do your fans like them? Are they making you money?
We decided to 'pre'-release our new/latest album via USB Dog Tags. So, this currently is the only way to get the new record. Obviously, the biggest fans are going to jump on this, in order to get the new music right away.  However, I'm certain that CDs are still preferred, because of car stereos, and the nostalgic vibe of the new-CD-process (open, listen while reading liner notes, a defined listening track-order, etc). So, there's a lot of people asking for the new album on CD.  Are the USBs making us money? Oh yes. 

How important are mobile apps?
I don't know how important they are... but they're awesome, that's for sure.  The internet is a wide open click-a-thon.. stream of consciousness, and unconfined, distractions abound.  Good apps are internet-based, but they keep you 'focused' on a task. I love that. Want to browse for pets? Open the PetFinder app. You're going to see the same pets that you would see on their website... but that's it. The URL bar isn't lurking there, temping you to read The Onion...  I like having that focus as an option sometimes.

How many people do you typically get at shows?
Depends on the city, and what day of the week... LA is packed. NY is packed. In-between is a toss-up. Tuesday night in Lincoln, Nebraska... hm... not sure.



How big is your mailing list these days?
Above 7,000. The only reason I know that is because we recently had to upgrade our mailing-list provider to the next tier in monthly mails-allowed... it costs us more now to send-out one newsletter. Yay?

How have you funded the band as you have grown?
Basically, if its gonna cost us... we need to learn how to do it.  That outlook saved us 90% of the costs that most bands just swallow.  Learning exactly what outsourced-services DO gives us more insight into the cogs of this machine... and also makes us keen to what price we WOULD pay, if we were to outsource.  We have lots of music in TV and movies... and that's a fantastic way to raise money for the stuff we wanna do.

Your web presence is really strong. How much of your biz is coming from web sales and how much from live gigs?
Our online store is pretty deep, so its a steady well. There's enough variety on there to pretty much please anyone, so I'd say that's the lion's share of income... unless we are out on tour. On the road, the gigs pay, and the merch sells at the gigs, so its a self-fueling machine. 



How much music and merchandise do you typically sell at your shows?
I have no idea. We have a dedicated merch guy, and a credit-card machine, and he has a computer there to track it all, so I imagine all that stuff is called-for.... I just try to mention the merch-table from stage one time per show, and we try to hang out there for a while, post-gig. There's usually a group of people picking stuff out throughout the night... and I know we're constantly re-ordering new merch, because I design the artwork. So I guess it moves steadily.

How have you learned the business side of music? Did you take classes, read books, talk to people in the biz?
There's no better way to learn it than getting out there and doing it.  We manage ourselves (something that we are more and more eager to offset), so we've dealt with 7 years of business/issues first-hand. We've skinned our knees on contracts, and fended for ourselves in negotiations... and we all fairly headstrong in both business, and common sense. If something smells strange, 99% of the time its because it IS strange... don't be afraid to ask the difficult questions and usually the source of the odor is revealed.  We also picked a lot of people's brains over years of coffee. 



Who are your partners? Mob Agency handles your bookings... How about personal and business management, attorneys and music publishing? Are you handling the Internet marketing drive yourselves?
We work heavily with Aderra (a digital/music technology company), on both strategies and tour-support. And MOB Agency is a fantastic company for booking those tours. We will soon be putting out feelers for a good manager, because we have a full movie coming out next year (a musical, in which Lisa is the lead-role, and Killola wrote all the songs... Lisa and I co-produced). And so far, we are self-published. All marketing has been from within, however we did work with a PR company (Reybee) on this last tour they were great. We will be sticking with them for future press campaigns.

How did you vet your partners? How did you know what questions to ask?
If you're friendly to people, they'll introduce you to their friends, and so on... for years. In 2008, we played the 'wrap-party' for a big movie (hint: Nakatomi Plaza part 4)... a guy we met in 2006 (who worked on our video for "I Don't Know Who") did special-FX for this movie, and he asked us to play. People from MOB Agency were there, and a few weeks later MOB contacted us for a few shows... we hit it off with them as people, and have worked together since. We didn't have a TON of questions for MOB, because their work ethic and track-record spoke volumes.  Similarly, we met Aderra through a friend of the band, and Killola ended up as the first band Aderra ever recorded live. Aderra now tours with some of the biggest bands in the world, recording live shows.  We've worked with them since that first show.  We want to work with people who 1) we get-along-with as human beings, AND 2) they do good work in the music business....  This industry is saturated with people who are only good with one or the other.

How much of the web and app development do you do yourselves? It all feels really well integrated and personal.
I'm a web designer by profession, so everything you see out there is all from within the band.  The Killola iPhone app was built by an app team, but we designed the graphics/skin so that it rightly matched our existing look.


How much time do you spend each day communicating with fans and updating your social media network?
We're mobile as crap.  So our iPhone keeps us socially synced throughout the day.  All the sites are tied-in together, allowing one single update to propagate throughout our network.  But sometimes we just turn everything off for a day or two.  That helps with sanity.  We stream live video from our phone, to the web, from rehearsal, from the van, from parties... anywhere. It keeps us connected to fans, and keeps it fun.

How do you balance practicing/writing/recording, etc. with the business stuff?
Usually (when not on tour) we get together once or twice every week or two, just to hang out, and we often do that at our practice space.  Music often ensues.  Things were super hectic earlier this year, as we shot a full-length feature movie for nearly 3 months.  This took us out of our 'normal' band mode, and sort of inserted 40 new band members into our life...  there was no balance, just two gears: Learning, and Go.

How would you chart your growth? In other words, when did things kick in and what was the sequence; gigs, Myspace, YouTube, CDs, website, giveaways?
I'd say we were adolescent at the exact time Myspace hit adolescence, in late 2007... our numbers and fanbase popcorned in parallel with that site, and we sort of rode the Myspace mechanism into 2008 with our first full US Tour.  Once that site starting losing efficacy, we had already rendezvoused with our fanbase at more intelligent websites, we had tours in place, and were able to convert the web-presence into real-life encounters on tour.

demo>Myspace>giveaways>CDs>website>tours>other_sites      That formula lacks the underlying "extremely hard work" ingredient, but that's to be assumed.  :-)

In what order did you add partners, and why?
MOB (booking) was our first partnership.  Good booking is the only situation that is almost entirely shut-off to independent bands.  Clever and hard-working independent bands can do 'almost' anything that labels can do... however booking agents are still absolutely powerful and necessary.  Aderra offered an outlet to technology that no other company offered; we wanted to work with them because it's a fresh, new medium (live recording distro) and the people behind Aderra are fantastic people and smart cookies.

How involved are you in music publishing? Are you making money with synch licenses, and performance royalties?
For non-radio-bands, and independent acts, music publishing and synch licenses are the quickest way to BIG checks in this business. Placing one song in a movie or commercial can totally change your entire year/decade.  And the pretense factor in music licensing is surprisingly low. Record great songs... movies don't seem to care what band you're in, what label you're on, or what blogs are saying... they tend to buy music that works. Which is refreshing. 

What are your thoughts on making a living in music?
All the successful musicians I know are a highly skilled jugglers, in the professional sense.  If you want it bad enough, you can make art/music work without a 'day job'. I wouldn't recommend trying it outside of a major metropolitan area... but if you're smart, and flexible... and humble...  it works because there's always a need for determined artists.

Are you interested in moving to an indie or major label? What do you see as the advantages and disadvantages of working with a record label?
Certainly.  We've only gotten to where we are by listening to reason.  If a label provides something desirable, then there might be reason to work together.  A record label has the built-in power of a catalog.  If Label X has a successful back-catalog of great releases.... that label's 'newest' artist is almost immediately granted 'credit' based on the past-successes of that label's catalog.  Labels can mean great exposure in the proper scenario.

Thanks for sharing all of this great stuff!

Nonesuch knocks it out the park with Brad Mehldau's 'Highway Rider'

Nonesuch Records is doing some very cool stuff with their promotion of the extraordinary Brad Mehldau recording, Highway Rider.

The website is engaging and features an innovative scrolling musical score and a fascinating story book (with streaming audio) that takes the listener/viewer through the programmatic trajectory of this unique project.

Highway Rider is available on CD for and for download in audiophile quality 320 kbps MP3 format (with bonus tracks). Nonesuch has created a compelling online campaign. The website alone is a real trip! I’ve been listening on Rhapsody and ordered the CD as well. One of the drags about downloads is losing the direct segues between tracks and of course, I want to hear this in highest audio quality available.

Kudos to Nonesuch for supporting such great music and creating an awesome promotional campaign.