All About The Music Business

In this article I am going to offer some pointers that can help identify the good deals that come our way:

When a music business deal takes you into a new territory or brings you into a new market; great, consideration needs to be given to it. In other words even when a deal does not offer you what you might consider to be great terms you should still consider the deal. Why? As a new artist, you need all the help you can get when it comes to exposure and opportunities. I am not suggesting giving away your product but at the same time you are not YET a Beyonce or Iron Maiden so be aware that you are in the process of progress.
Let me say this; sometimes people teach textbook concepts that have no place in the reality of how a business works in practice. Let us take an example. If you are given a contract to a territory like the USA without an advance you might say that such a deal should be avoided. But if you are a new artist and the offer is from a credible label you seriously need to give it some thought. One may look to get better royalty rates; better option terms or get the company to pay for a flight ticket and book some gigs. These could be some ways to offset the 'No Advance'. Someone might ask 'why should I do that?' The answer is simple. If nobody knows you in the USA and a company is going to put up some funds to publicize you as an artist; you will be reaching new fans. The point I am making is never turn up your nose on a deal just because it doesn't look good outwardly, always think about making it work before you give up on it.

Obviously a deal that is just an outright robbery should not be considered.

However, even artists can sometimes ask for ridiculous sums of money which is just a sign of naivety rather than good business sense. How much of an advance can a new artist get? First, it depends on who the record company or music business is. If you are talking to an Independent label with ?100k turnover then asking for a ?50K advance is simply ridiculous. If on the other hand they were a Major Label asking for ?50K could be the way you are choosing to gain their commitment!

Another factor to consider with this example could be for us you to understand your selling potential. Here is what I mean. If you have hardly sold any units or downloads you do not know your own potential. Here is where a lot of artists might even sell themselves short. The point is if you sold 10k units on your own and a label becomes interested you already know they could sell 5 times as much. With such knowledge you can ask for advances that reflect 20-30K units of sale.

The point is: think carefully before you say no!

Do you want to learn more about making money with your music? If so, download my brand new free 5 week music business training course here: http://www.musicbusinesstools.com/

View the original article here

Dangers Of Growing Too Fast in the Music Business

Boo.com has spent $125 million in 18 months and was yet to make sales. At launch their whole business model collapsed because the site needed broadband which at the time was only available to a few people. Sales were so poor and complaints were mounting and in the year 2000 the company went bust. The name and some of part of its systems sold for $250,000!

Ambition is good yet every ambition has to be tempered with some element of patient endurance. Growing, learning; then growing and learning, fixing the problems and growing and learning. When anyone; either artists, labels or other music businesses try to circumvent this simple method they most of the time end in the liquidators office.

So how do you know your music business is growing too fast, or that you are beginning to bite off more than you can chew?

Unable to pay running costs - When any business is incapable of paying the small bills like telephone, gas, electricity they are probably in a dangerous zone especially if the business is embarking on an expansion programme of some sort. When a company is growing and expanding well they are well positioned to meet their day to day expenses but the ones without a good growth plan will struggle.
Little or no cashflow- Where is all the money going!? Money/cash is the life blood of any business and we must always have a reserve of about 20 - 30 per cent of the profits if the business is to survive a lean period. If an unexpected event takes place in the business cycle i.e. a distributor goes bust owing money; that could cause a rapidly expanding business to go bust too. However with cash in reserve it becomes easier to ride a business storm.
Poor level of sales in comparison to expansion/activities- Expansion has to be funded by money. It could either be borrowed money of money that has been saved over a long period. Whatever the method a business decides to pursue, sales become even more important during an expansion period because increase sales will affect the cashflow of the business. So when a music business is financing a new product or service it is essential that they keep their eyes on the need to increase the level of sales to match the planned growth.
High gearing- Any business that borrows too much is simply asking for trouble in future because borrowing is and will always be the most expensive type of debt. The finance of a company which has 1/3 of its finance as debt can still survive as opposed to the one who has about 70-80% of its finance on debt. Here is the ultimate question about borrowing -"When the financers call for their money can you pay up without putting the business in danger!?"
Accepting orders you cannot meet or are unable to say no to- At a particular staging of one's business there are certain types of suppliers or service providers you cannot afford to deal with. For example, if you are just starting a label you may not be in a position to trade with a major distributor who may ask you to supply a minimum of 2000 - 10,000 CD's. If you do supply them it means you will need to wait to get paid and waiting affects the cashflow which affects the business.

Do you want to learn more about making money with your music? If so, download my brand new free 5 week music business training course here: http://www.musicbusinesstools.com/

View the original article here

How To Survive the Voiceover Business and Get Along With Agents

The voiceover business has changed dramatically in the last few years. Much of the change is due to the Internet and social media. Through these technologies, it's never been easier to self-promote, keep in contact, and manage one's own business.

There have also been many changes in what the industry is looking for.

A lot of voice professionals joke that if they depended upon an agent for paid work, they'd be homeless. Homelessness is no joke, but please remember this important fact: having a good agent is nice, but you don't "need" one to find success in voiceover. Some professionals today will tell you that over 90% of his or her work comes through self-marketing efforts.

Still though, a good agent can get you good work, and you never know what job might become a launching pad. Here are some of the things holding talent back from landing agents and work.

Are you just another voice out there?

Here is a simple reality: no one in the voiceover business, whether agent or buyer, needs another voice. Go to voicebank.net and you'll find every represented actor and actress out there. There are more voices in this pile that will ever be needed, period. But don't lose heart. What they don't have, and what they do need, is you. When I say "you," I mean your heart 'n soul, your mind, the uniqueness of your timing, rhythm and inflections. Most importantly, they need the real you that comes out when you're being casual with friends and family. This is what's in demand today in the voiceover industry--real (and unique) people.

Does your demo have personality?

Ever hear a potential agent tell you there's a "conflict" with your voice? This usually means your voiceover demo sounds similar to some other talent the agent represents. What this also usually means is that your demo lacks personality. Agents hear demos all day, and often after hearing one, he or she has no clue who the voice belongs to. The demo has no branding, no unique characteristics. A demo needs to represent your style and persona, stuff no one else possesses. All buyers have one thing in mind, to match a good voice brand with an advertiser's brand. If you can convince someone that such a marriage is a good thing, and if you're able to adapt different aspects of your personality to fit different advertising styles, you'll go places in this business.

Agents need love too.

You may be having bad luck with agents because you're high maintenance. Agents are only human, and don't we all tend to avoid those that cause us pain? A small bit of advice is this: don't save all your communication with your agent for those times when things aren't going well. Some actors reach out only when upset about something. Others will pester once a week inquiring about the lack of auditions. Your agent knows how busy or slow things are, there's no need to poke and prod about what's going on.

Instead, find reasons to touch base with your agent when things are going well! Try this: a quick note that says, "I had a lot of fun on that audition you sent me. Thank you!" You will get better quality work from your agent if you make him or her feel appreciated. You can also politely and professionally ask for his or her advice from time to time about how you can be more proactive in your career. After all, the more successful you are, the more he or she will be as well.

But what if I don't actually appreciate anything about my current agent?, you may ask. Perhaps he or she is disrespectful, or doesn't bother to return calls or emails. You work too hard for that; move on, find another agent. But don't drop your current one until you find another.

Keep your demo fresh.

On top of appreciating your agent, you'll also want to update your demo regularly. This is where money comes in, but hey, it's your career. Regularly updated demos will "force" your agent to listen to you again thereby reminding him or her of what you can do. The more in mind you are, the better chance you'll get a gig.

A blurb on non-union agents.

With non-union there is no protection. There are horror stories out there of unpaid work. Perhaps a voice talent does a gig, get's a small one-time fee, then finds out later the recording is running national with no more compensation. This would not happen with a union agent. Well, it could, but you can get an attorney to go to bat for you and get back payments and fees.

If you sign a contract with a non-union agent, be sure to ask to include a clause that the agent must pay late fee penalties if he or she gets delinquent. If this happens to you more than once, you can request the buyer pay you and your agent directly. Be sure to keep in touch with all your clients so they can inform you of when payments are sent.

Be positive and proactive!

Last but not least, you won't last long in the voiceover business or with agents or buyers without a good attitude. So check it constantly. A good attitude and positive vibes begets more of the same (as does the negative stuff). Be someone that others want to work for; smile and try to have a sense of humor. And don't forget to proactively go out there and find work yourself. Don't depend on an agent or sit around waiting for that phone call. It's your career, and nowadays more than ever, it's your business.

Kelly Libatique is a professional speaker, technical trainer, and author. He has a Master's in Education and a Bachelor's in Psychology. He resides in the San Francisco Bay Area with his wife and Anne and two sons.

Visit http://www.libatique.com/ or Contact Kelly at: Kelly.Libatique@gmail.com

View the original article here

Living the Music, Playing the Game, and Running the Business

The stereotype of a rock star, a country singer, or a superstar musician of our time seems to be one of the ultimate late-night partier, drug user, and manically depressed creative genius. In the case of a man, he's usually considered a sex symbol, with women everywhere, throwing their bodies at him. And then there is the rest of the band, and the groupies who follow them around. Yes that is one side of the music business, but there's a lot more to it than just playing the game.

You see music is a business first and foremost, and therefore excellent marketing and branding is often highlighted promoting such an image, which may or may not be correct behind the scenes. There are many musicians who are at the top of their field who don't do drugs at all, can't stand them, and they're happily married and faithful, believe it or not. And they are often some of the most successful, because they are acting or rather just playing the part, but they are living the music, not the stereotypical life style, and there's a big difference my friends.

Now then, I not one to disappoint all you rockers out there, and there was one famous rock star who once said; "for those about to rock, I salute you." But let's not be naive about the whole thing or the image branding of a rock star. It is much more about marketing than it is necessarily a reality. That's not to say that there are not Meteoric rises to fame and fortune, it does happen. But most of those who become the great rock stars have put in at least a decade the prior, and they have to treat it like a business to even get to that level.

The true creative genius who is living the music, is one with the lyrics, and feels the fiery emotion and passion is not a normal member of society. Their minds are in fire with creativity, they see things and feel things that most people never will, and they've been given the talent genetically, or developed it over a long period of time in such a way that they can convey that in their music to all of us.

It's very unusual to find business savvy, creative genius, and the rock star mentality all in one person. However they do exist, and you'd be surprised, but don't assume everyone is like that. Indeed, I hope you will please consider this next time you buy or download one of your favorite songs. Think on it.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes writing 23,333 articles by May 26, 2011 is difficult because all the letters on his keyboard are now worn off..

View the original article here

Music Business - Airline Business and Cashflow Problems

Recently I watched a documentary on the famous UK no-frills airline owned by Sir Freddie Laker and the ensuing problems that brought the business to a standstill. One might instinctively ask what this has to do with the music business but the problems faced by Skytrain are very similar to those faced by sections of the music business.

Many within the music business can always learn from other industries by seeking to understand the key challenges, business ethics, successes and other aspects that make an industry great.

Pinnacle one of the leading music business distributors went into bankruptcy making about 400 labels homeless. At the same time SPV, a leading distributor in Germany one of the major territories of the world also cried out to be rescued. As someone who has worked within an independent distribution company, the areas of problems will be very close to the cash flow issues as the key reason for their demise. Incidentally Skytrain also suffered from similar problems.

So what are the major problems to watch out for within a music business that were also similar to the way Skytrain went out of business?

Cash flow. Sir Freddie Laker's Skytrain ran into problems when it could no longer pay its bills due to various cashflow issues. This coupled with the fact that they type of borrowing incurred by the company of a kind that could be demanded within days. When this demand was placed the business was unable to meet its immediate debts.

In the same way, distributors are always subject to long credit periods taken (not given) by the independent stores who also struggle to keep up with the download industry. As a matter of fact the years 2002 onwards saw a great number of UK stores leaving the high street. This movement included companies like Tower Records. With the slow repayment of debt by the indie stores and the interest rate repayments by the distributors to the banks, many simply could not survive.

It is noted that cash is king. Whoever has the liquid cash will always be in a better position than the one who does not.

So how do we ensure that a music business is always in a cash rich position? Here are 3 things to do:

Ensure you are paid early- Most people in business want to hold on to your money for as long as possible and pay their bills as late as possible. It is in the interest of the music business to offer as many incentives to get people to pay quickly. Discounts for early payments and penalties for late payment will always produce good results.
Get longer credit periods- In business, efforts must be made to secure repayment terms that are more filling to the operations of the business and of the industry in which it operates. Where people do not pay their bills late it is important that they also have a longer payment time otherwise they could simply be paying interest on behalf of those who owe money.
Get cheaper debt- The cheapest debts have to be family money followed by equity financing and then bank/lending institutional financing. The cheaper the debt the greater the impact on cashflow. More expensive debt means higher payouts and less money in the business.

Do you want to learn more about making money with your music? If so, download my brand new free 5 week music business training course here: http://www.musicbusinesstools.com/

View the original article here

Marketing Your Music Is Key To Your Success In The Music Business

What's So Different About the Music Business?

The music business isn't very different from the retail stores you buy your gear from. The minute you open your mind to this reality... the easier it's going to be for you to market your music more effectively.

So why is that? What is it that keeps your local music store operational for 20 years or more? What are they doing to succeed that you're not? More importantly... how can you start applying some of their success techniques to your music business?

Let's face it. The music business is probably one of the most difficult industry's to find any kind of success in. I mean, you've got to gig and travel and then there's your online presence with social networking and updating your website regularly. So when do you have time to think about marketing?

Therein lies the problem.

Most musicians that I consult with, simply aren't thinking about marketing their music at all. Can you believe it? Do you think the music store in town would survive without some type of marketing system in place? I think not... and if you're thinking that all those packages you sent out to everyone on that list or that bible book you just bought is going to score you some new business... guess again.

The reality is that in order for you to succeed in this business you need to be out in the "real world" building a loyal following of new fans. At the same time, you need to be in touch with your existing fan base on a regular basis to ensure they're happy with you. Yes... happy with you.

The Build It and They Will Come Approach Doesn't Work

If you're like most bands and musicians nowadays, you're assuming that the fans who came out to your gig last week are naturally going to show up to your next gig just because you email blast them. You did get their email address the last time they came out to your show right?

It's unfortunate, but this is the mentality that a lot of bands are walking around with and it's this same apathetic approach to dealing with your fans (customers) that's losing you a ton of money. So why do I say that?

Be a Giver. Your Music Fans Love It When You Share

Well let's look at it like this... let's say that rockin' band you went out to see last week offered you a freebie just because you showed up to see them play. Maybe they gave you a digital card for a few free song downloads or heck, maybe they splurged a little and handed you a free CD when you gave them your email address.

And let's say that a few days after their show, they sent you an email telling you how great they thought you were for showing up to their gig and that as a thank you, they were offering you insiders access to the VIP section of their band website where you could log in and see some of their cool videos they shot as they recorded their last album.

Now if that isn't cool enough... what if they offered you a signed poster and their latest album free, if you came out to their next gig... but this time you brought a friend with you?

Wow! That's customer service. And that's follow up at it's best!

Sure you might lose a little money by giving away some of your music, and the cost of CD's isn't something to scoff at nowadays, but what if that fan thought you were so cool, they brought 3 new fans instead of just the one. What would that mean to your FUTURE sales?

This is how the retail music stores do it. They entice you back to their store with seminars, music clinics, coupons and cool stuff that you're into. They build a long-term relationship with you. This is what you need to start thinking about when you communicate with your fans. This is where the real money comes from. The relationship.

Loyalty Pays The Bills

Loyal fans who love you so much they rave about all the cool stuff you do for them and bring their friends out with them to see you. And when they do... don't drop the ball. Start the process all over again with your new fan and watch your music business grow in some big ways.

When you get these techniques down into a system, you'll be on your way to being a music marketing machine but if this isn't enough for you and you want even more ideas on how you can outshine most of today's indie musicians, head on over to Mass Music Marketing and hear it from over 8 music business experts as they tell it like it is and leave no marketing stones unturned. It's like being a fly on the wall as they reveal their closely guarded secrets on what they, as music industry insiders, think it takes to succeed in today's new music business.

View the original article here