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How to License Your Music for TV Film and Video Games – FREE WEBINAR

Want to learn how to license your music? Need connections with Music Publishers?

If so, join Aaron Davison of How to License Your Music and I in a free webinar Thursday, June 23 at 1PM EST – Or Signup to Get the recorded Replay.

CLICK HERE TO JOIN THE FREE WEBINAR

how to license your music for tv, film and video games

We’ll be showing you how to get connections with key music publishers and how to prepare your music to DRAMATICALLY INCREASE your chances of getting licensed.

  • LEARN how to license your music.
  • DISCOVER what music publishers look for in songs they license.
  • Learn how to get licensing OPPORTUNITIES sent straight to your inbox.
  • Get easy TRICKS to make your songs more licensable.
  • Find out about the 90 Day Music Licensing Challenge.
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Network your way to Success

Who will help you succeed in music? There is really nothing more important to your career than the RELATIONSHIPS you develop over time. It’s all about who you know and who knows you – and how big your network is.

Are people taking you seriously? Do you know how to approach them and get their attention? The next person you meet may be the one who will change your life forever. Are you prepared for that? You want to network your way to success.

In this final video of my Mini Series I reveal the secrets of Power Networking. I show you how to engage with people and get on their radar screen. Plain and simple, the reason that artists and writers get famous and develop huge fan followings is that they get out there and network effectively.

Watch this video to see how it is done

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I have helped hundreds of musicians cut through the noise and get themselves into positions where they can be successful. Now let me help you.

In the Mini Series I revealed the proven strategies I have been teaching my members and clients including:

  • How to create Communities of Fans and Super Fans
  • How to develop Experiences that your Fans will Crave and Pay You for
  • How to make Money in Music and Monetize your Audience Again and Again
  • How to uncover Opportunities via Power Networking
  • How to unlock Multiple Revenue Streams to support Your Career
  • How to get your audience to go from “Free” to “Paid”
  • Plus much, much more…

If you have not watched all 4 videos, I urge you to watch them soon – while they are still available.

PLEASE – If you know anyone else who might benefit from this Mini Series on the music business, please share this with them.

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Ring Your Cash Register Again and Again

As an independent artist, it’s frustrating to be stuck and broke. You find yourself wondering why others are successful and where all the money is hidden. Yeah I know, it’s really all about the music, but the reality is you need money to operate your business and invest in your future.

In my continuing Mini Series, I reveal tools and specific strategies you can implement to create multiple revenue streams and cash flow for your music. Discover two crowdfunding platforms you can use to support your art and ring your cash register again and again. 2015 can be your best year ever!

Let’s get to it.

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You will learn about Patreon and Pledge Music and how to use those platforms to increase your cash flow through fan funding.

Jump into the video as I show you the money.

Thanks for all of your comments and encouragement. I absolutely love hearing what you’re thinking, so please be sure to leave a comment or question below today’s video. Someone will be very happy that they did.

PLEASE – If you know anyone else who might benefit from watching this Mini Series on the music business, please share this post with them. 

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Creating Amazing Fan Experiences

I hope you are enjoying my new Mini Series on the music business. It’s truly amazing how in the first video you saw New Artist Model students Steel Blossoms and Colin Huntley applying my strategies to turn their passions into a career.

These musicians are just like you. They started with a small following and have grown their audience and income by investing in strategies and success one step at a time.

In this second video of the free Mini Series, I reveal ways of creating amazing fan experiences they will crave and actually PAY you for. Discover unforgettable connections you can offer to your fans RIGHT NOW to set yourself apart from the crowd.

Watch this video and get your fans to fall in love and remember you forever:

creating rewarding musical fan experiences

You will meet Shannon Curtis, a recent New Artist Model member who has perfected the art of the house concert and put $25,000 in her bank account in just two months time. See first hand how she did it and exactly how you can do it too.

To get one step closer to your dream, click here.

 

AND PLEASE – If you know anyone else who might benefit from this Mini Series on the music business, please share this post with them.

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Self Publishing on YouTube

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Everyone knows how important the YouTube platform is for indie musicians. It’s a great way to get your music out to fans, grow your fanbase, and provide your fans with great content from music videos to vlogs. There are plenty of musicians out there who have become successful mainly because of their YouTube channel, with Karmin and Pomplamoose being two of the most successful examples. They grew their audience by targeting young teens with covers of popular songs. Other musicians, like Alex Day, have based their career entirely on recorded music sales and a YouTube channel featuring music videos and hilarious vlogs.

However, there is another aspect of YouTube that is vastly underutilized by the musician community on the platform – publishing. You don’t need a publisher to get your music placed in YouTube videos. You just need to be proactive with social media and reach out to YouTubers you think would be interested in using your music with their creative content.

There is a huge community of amateur and professional video makers on YouTube with topics ranging from beauty and fashion to gaming to health and fitness. There is also a big surge of professionalism among these YouTubers and many of the more popular channels act as full-time jobs for their creators. As a result, many YouTubers are investing in better cameras and lenses to make their channels more professional and entertaining for their viewers.

Many are also looking to music to differentiate themselves from the masses of other channels on the platform. As you probably know, YouTube has a tough copyright policy and videos illegally featuring copyrighted material can be taken down. As a result, many YouTubers seek out free music they can use without violating copyright. There are plenty of royalty-free music tracks out there, but many sound generic and repetitive. Another popular option is to find remixes or original tracks by amateur and indie musicians and get direct permission to use the music – usually in exchange for a link back to the musician’s website or soundcloud page or a shout out in the video.

So why try to get your music in YouTube videos if you won’t get paid? It’s another form of marketing and a great way to reach a potentially huge subscriber base in a really authentic way. Think about how you find new music. More times than not you get recommendations from your friends or another trusted source, not a big flashy advertisement.

YouTubers are tastemakers. People subscribe to their channels and watch their videos because they trust their opinions. When they recommend a product or brand their viewers will be more inclined to try it out, and the same is true with music. When YouTubers feature really great music in their videos, either by mentioning the band or by syncing the music with their videos, tons of their subscribers will go listen to more or even buy the album.

Let’s take a look at a few examples. Day[9], whose real name is Sean Plott, is an ex-pro-gamer, a game commentator, and a host of an online daily Starcraft show, the Day[9] Daily. While he doesn’t sync music in his videos, he often chats with the audience telling them what bands he’s been listening to lately. During one of his videos he mentioned a Blue Sky Black Death song and as a result, the comment section on that song’s YouTube video was inundated with people saying “Day[9] sent me!” A lot of new Blue Sky Black Death fans were made that day because of Sean Plott.

There is an enormous fashion and beauty community on YouTube and some, like Jenn Im of Clothesencounters, are getting really creative with the music they sync with their videos. Instead of using repetitive royalty-free tracks they seek out remixes on Soundcloud, get permission from the artists, and edit their fashion videos to really fit with the track. Other beauty YouTubers, like Michelle Phan, will seek out indie musicians, use their music as a backing track to their tutorials, and link to their channels in the description box.

So, how do you approach YouTubers? First you need to do your research. Know what kind of videos they upload, their personality and style, and what kind of music they have used in the past. Gaming YouTubers may have completely different musical tastes from the beauty gurus. Next, figure out which track would be best-suited for their purposes and contact them directly. You can do this through Twitter, a YouTube message, or an email. Most YouTubers list their email addresses in the “About” tab. Make sure you keep their audience in mind. Try to target YouTubers whose subscriber base shares traits with your fanbase. The key here is to start small and work your way up. You won’t get much traffic coming to your site from the smaller YouTubers, but it’s just one step on the ladder.NAM_FINAL-horizontal-dk.png

The New Artist Model is an online music business school for independent musicians, performers, recording artists, producers, managers and songwriters. Our classes teach essential music business and marketing skills that will take you from creativity to commerce while maximizing your chances for success. We’re offering access to free lessons from the New Artist Model online courses to anyone who signs up for our mailing list.

 

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7 Career Tips for Musicians from Dave Kusek

Dave-Kusek-Studio-1_0

Check out these great tips from Dave Kusek. This article is from DeliRadio. Be sure to check out the full article over on the DeliRadio Blog.

1. Run Your Band Like A Business
“That’s a big challenge for a lot of people. Creative people tend to be creative, and want to write music and play, but they often ignore the business side of things. And you do that at your own peril. That’s a challenge for people.

“It’s hard to have a career in music. It’s very challenging and complicated. It’s way more than writing a great song and putting out a great record. You’ve got to get yourself organized, you’ve got to have goals. You’ve got to figure out how you’re going to finance things. You’ve got to figure out how you’re going to promote. And figure out what’s effective in your marketing and promotion.

“So there’s all those things on the business side that I’m trying to help people with through the (New Artist Model). Whether you do that on your own, or with management or a team member, somebody has to be paying attention to business.”

2. Careful Working With Friends
“Working with your friends is always problematic. If you’re in that position, have open communication with your bandmates and team, regular band meetings, about: ‘What are we all about? What are we trying to accomplish? How can we split up the work so that we can get more things done? Who’s good at what, and can you combine what you need to do with that interest or skill?’…

“It’s all about regular communication, being open about what you’re trying to accomplish, and calling people out when they say they’re going to do something and they don’t.”

3. Streaming Music Is Marketing
“Listening to recorded music is very hard to monetize in the way we used to. Yes, you do want to try and sell CDs or get money from downloads or streaming, but I don’t know you can rely on that as your number one source of income, or even your top five, given the environment. So (streaming) is a form of marketing. There is some potential to sell music to people, sell recordings to people, but it’s not going to be your number one source of income. Certainly not in the early stages of your career.”

The New Artist Model is an online music business school for independent musicians, performers, recording artists, producers, managers and songwriters. Our classes teach essential music business and marketing skills that will take you from creativity to commerce while maximizing your chances for success. We’re offering access to free lessons from the New Artist Model online courses to anyone who signs up for our mailing list.

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Lessons From Macklemore

Photo credit: http://bit.ly/NI6FMK

Photo credit: http://bit.ly/NI6FMK

It’s the success every musician dreams about – making it big on your own. But you know what? It’s no fairy tale. The career of Macklemore and Ryan Lewis has been a long, hard road – one that a lot of people would have turned away from a long time ago.

The duo brought home four Grammy’s in January and, although Alternative Distribution Alliance (ADA) is helping them with distribution, they’re still not signed to a major record label. So how did they get here?

Here are some key lessons to learn that helped Macklemore and Ryan Lewis find their success.

1. Say something with your music. Embrace your brand.  Be different.

Macklemore and Ryan Lewis’s “Same Love,” a song with a more than an obvious nod towards the gay community,  is not commonplace in hip hop. By pushing this issue and standing behind a controversial topic, the duo probably got a lot of haters. But you know what, they also got a lot of people behind them. They stood out.  They were different.  Know who you are, know what you believe in, and say something meaningful with your art. Of course, timing is important too.

“I wrote the song in April [2012]. Shortly after Obama came out in support of gay marriage. Then Frank Ocean came out. It seemed like time was of the essence. It was never about being the first rapper to publicly support the issue, but at the same time you don’t want the song’s power to become diluted because all of the sudden it’s a bandwagon issue. 

The fact that there [was] an election coming up in Washington [was] huge. I know that a large portion of my fan base is 18-25, many of whom have never voted. If the song can get people out to the polls to pass same-sex marriage in Washington, that is a very beautiful and exciting thing.” (Source)

In the same way, the smash hit “Thrift Shop” (500 million views and counting on YouTube) is definitely not what you’d expect from hip hop. There’s no gold teeth, big brand names, or flashy bling pointing towards an extravagant lifestyle. Macklemore isn’t trying to fit into the typical hip hop mold. The duo has stayed true to their own ideas and because of that, have stood out. So what do you have to say?

2. It will take time.

There’s no such thing as overnight success. Macklemore and Ryan Lewis met in 2006, released The VS  EP in December 2009, and didn’t get crazy success until The Heist in 2012. Before there was a duo, Ben Haggerty released Open Your Eyes in 2000, The Language of My World in 2005, and The Unplanned Mixtape in September 2009. It was a long road. Do you think you would have continued to press onward?  8 years and still rolling.

Aside from albums, Macklemore and Lewis took years to build a local audience before expanding into a nationwide movement. The first national headlining tour was in 2011. Before that, Macklemore and Lewis focused locally playing at a Colorado College house party in 2010 and Seattle’s Paramount Theatre in 2010. The Agency Group’s Zach Quillen became the booking agent and began testing the duo’s reach by booking small gigs along the West Coast. The duo continued to grow, playing the Seattle Mariners opening day in 2011, and then moving on to festivals like Outside Lands, Sasquatch, and Lollapalooza later that year.

This train is still going. The duo is still operating independently with a relatively small team and being strategic about their plans. As we know so well, a huge hit doesn’t guarantee your future in the music industry.

“We are a small business that’s becoming a medium-sized business. With that, there is a learning curve and there are times when you feel like you don’t quite have the manpower to operate the business to the best of your ability. But we’re growing and we’re adapting to the best of our abilities.” (Source)

3. Keep moving forward.

Even if you feel like you’re further away from your dream than you’ve ever been, keep moving. After some local success with the 2006 EP The Language of my World Macklemore hit a low point, struggling with addiction.

“I was close to giving up. I was broke, unemployed, freshly out of rehab, and living in my parents’ basement. It was a “If this doesn’t work, I gotta get a real job” time in my life.” (Source)

You’re low point may look different. Maybe you feel like you’ll never break out of your home city or state. Maybe you just can’t seem to get to the point where you can quit your day job. The key is to keep moving. Take a small step forward, or even a few steps back. Keep yourself moving instead of lingering in that low point. Everything we perceive or appreciate in the world is based on motion. Stay in motion.

4. Find people who believe in you and build a team.

Having a team behind you is one of the best things you can do for your music. A “team” doesn’t have to be top industry veterans. More times than not, when we’re talking about indie artists, a team of top execs isn’t the best option. You want people who believe in you and your music, not someone looking to make big bucks fast.

Macklemore has shown us time and time again how valuable a team of “amateurs” can be. Ben Haggerty met Ryan Lewis, then 17 and a dedicated producer, guitarist, and photographer, in 2006. He wasn’t an industry veteran. He was another passionate creative out there with the same cause.

“Ryan is one of my best friends in this world. He’s my producer. He’s my business partner. And he’s probably one of my toughest critics, which is an imperative trait of a teammate… Ryan doesn’t make beats, he makes records. I needed that in a producer… I trust Ryan. I trust his ear and his eye. His creative aesthetic. I wouldn’t be in this position if it wasn’t for him. I spend more time with Ryan than anyone else in my life. We’re a team, and I’m extremely blessed because of it.” (Source)

There weren’t any household names on The Heist. Macklemore and Ryan Lewis drew on local talent. Ray Dalton, a Seattle singer-songwriter is featured on “Can’t Hold Us,” Wanz, another Seattle singer was featured on “Thrift Shop,” and Seattle singer-songwriter Mary Lambert is featured on “Same Love.” In addition to that, Macklemore’s finance, Tricia Davis, is their tour and merch manager.

5. Create an authentic connection.

When Macklemore stepped on the stage at the Grammy’s the first thing they talked about was “Wow, we’re on this stage… And we could never have been on this stage without our fans.” Macklemore and Ryan Lewis connect with their fans in a very humble and authentic way. You just have to take a quick trip over to their Twitter and Facebook pages to see just what I mean. The tone isn’t pitchy. It’s kind of funny how we almost have to relearn how to be human when it comes to social media in the music industry.

“For me, being transparent about every aspect of my life is what makes my music relatable and how I’m able to be an individual amongst the mass amounts of other artists.” (Source)

The slogan to remember is that things don’t make things happen – people do. If you want to find your own success in music you need to get people behind you – this means both fans and a team. Create a relationship – and that means two-ways. Give and receive.

Being a musician is a tough gig. You have to be incredibly gifted and ridiculously dedicated all at once.  But that dedication can pay off! It’s been proven time and time again that independent musicians can be successful their own way, and you can continue that trend. The music business was built on that ethos.

Check out the New Artist Model online music business school for more ideas and analysis like this. You can also sign up for the New Artist Model mailing list and get access to free lessons.

Sources:

http://www.interviewmagazine.com/music/macklemore-ryan-lewis-the-heist/#_

http://blog.chasejarvis.com/blog/2014/01/7-lessons-anyone-you-can-learn-from-macklemore-ryan-lewis/

http://www.billboard.com/articles/columns/the-juice/474720/macklemore-reps-talk-the-heist-debut-diy-marketing-plan

http://www.billboard.com/articles/news/1562815/macklemore-ryan-lewis-billboard-cover-story

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Everything You Need to Know About Copyright

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Your copyrights are your business! So it makes sense to take the time to understand how it all works. Unfortunately, “copyright” and “law” tend to have pretty scary connotations. Just hearing the words is often enough to make our heads hurt.

This article from Digital Music News pretty much lays out everything you need to know about your copyrights, publishing, royalties, and licenses in a way that’s easy to understand. Here’s the copyright segment of the article. If you want to learn about royalties, publishing, and licenses, be sure to check out the full article. It’s a really good resource for serious musicians.

Copyright

As a musician you are a creator.  Whether you’re a composer, lyricist or performing artist, you create works.  These works automatically become copyrighted once they are documented; for example through recording or writing.

Copyright is a form of intellectual property.  The creator becomes the copyright owner.  If there are multiple creators, this right is automatically split equally.  Writers are free to deviate from this equal share through mutual agreement.

The duration of this copyright is generally until 70 years after the death of the last surviving author. It differs in some countries.

Copyright ownership rights give control over who can reproduce, distribute, perform publicly, display and create derivatives of a work. These ownership rights can be fully transferred and assigned to others.  Others can also be granted licenses to use your music, typically in exchange for a payment. These payments are called royalties.

There are two types of musical copyright;

Musical Composition Copyright:

A musical composition is a piece of music, in part or in whole.  The authors are typically the composer (writer of music) and the lyricist (writer of text, in case of lyrics). These authors are the owners of the musical composition copyright.  Typically in equal share, as both the composer and lyricist of a track get assigned 50% of the composition’s copyright, unless they agreed on a different split. This can be done when one party contributed more than the other.

The creators have the exclusive right to determine who can produce copies of their song, for example to create records.  This right can be granted to others by giving out a mechanical license, which is done in exchange for a monetary payment (mechanical royalties).

Whenever a record label or performing artist wants to record a song that they do not own, they have to get a mechanical license from the people that do. Always.

All decisions regarding the composition can only be made when agreed upon by all copyright owners.  As mentioned before, the ownership and control of copyright can be transferred to others.  Generally, songwriters get a specialized third party, namely a publisher, to control and manage their songs.  In exchange, they get a cut of the royalty streams which they help generate with the repertoire.

Writer-publisher splits tend to range between 50%-50% and 70%-30%, depending on the clout of the artist and sometimes even on the relevant country’s regulations.

Sound Recording Copyright:

A sound recording is the actual final recording of a song, a fixation of sound.  It often goes by the name of ‘master’ from the old ‘master tape’ expression.  The authors are the performing artist and record producer, who in essence are therefore the owners.  Producers typically get a small share of the master rights (up to 12.5%). However, recordings are typically made in assignment of record labels, whom have negotiated deals with both the artist and producer in which they transfer ownership of their copyright to the label in exchange for royalty payments.

Also, it’s increasingly more common and easy for performing artists to record independently.  In these cases, the master ownership belongs to just them, or them together with the producer.

Royalty payments to performing artists are called artist royalties.  Royalty payments to producers are called producer royalties.

Now that you know about the two different types of musical copyright, it is important that you grasp the difference between the ‘writers’ of a track and the owners of the actual ‘master recording’.  The composition, made by the writers, is typically represented by a publisher.  The sound recording, made by the performing artist and producer, is typically represented by a label.

To learn more about publishers, royalty calculations, and licenses, check out the full article over on Digital Music News.

If you want to learn more about copyright and publishing check out the New Artist Model online course. Sign up for our mailing list and get access to 10 free lessons.

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Top 10 Strategies for Indie Musicians (Part 2)

Photo credit: http://bit.ly/1dCOr9T

Photo credit: http://bit.ly/1dCOr9T

One of the best ways to grow is to look at what’s worked for other indie musicians and adapt it to your own career. I’ve compiled 10 great strategies with 10 real examples to get you going. A lot of musicians I’ve talked to think they can’t start making strategies to move their career forward until they’re making money, until they take some business classes, or until they get a manager. The coolest thing about these strategies is that you can start using them TODAY.

Here’s strategies 6-10.

6. Find Your Niche

The best way to get a really dedicated fan base is to start small. Start local and move up from there. Just focus on your town or city and build up a strong following. Stay after your gigs to get to know your fans. Give them something really valuable and unique. Once you’ve conquered your local scene, move on to the next city. Its a long process, but in the end you’ll have a lot of people who are very excited about your music.

In the same way, you should really focus in on a niche. This can be anything you want – a genre, a attitude, a belief. Aligning with a niche creates the opportunity for a connection – chances are there’s a lot of other people out there who are just as excited about that niche as you are!

Eileen Quinn, is a songwriter and sailing enthusiast who combines her two passions into one by writing sailing songs. She targeted a market that isn’t already saturated with music – the sailing market – and was able to really be the star. It may seem like she limited themselves in terms of audience, but in the mainstream music industry they would have been just another artist. In their specific niche, however she was able to really stand out!

7. Get Your Fans Talking

As an indie artist today, you’re most likely in charge of your own marketing. Marketing can seem like a completely daunting task if its just you trying to get the word out, but you actually have a whole team of marketers just waiting to share your music – your fans!

With the constant presence of social media and the internet, most music fans today are bombarded with more information than they can possibly process. As a result, most music fans look to recommendations from trusted sources for new music. These trusted sources could be a good music blog but more times than not it comes from a friend.

The Wild Feathers are a rock band out of Nashville, TN. In the week leading up to the release of their self-titled debut album, The Wild Feathers made the album available early at their live shows. On top of that, the band gave their concert-goers a little surprize. Every album sold included two CDs – one to keep and one to share with a friend. (Source) By selling the album early they are specifically targeting their superfans – the ones who would travel hours just to get their hands on the album before everyone else. Because they are so passionate about the music, superfans are also most likely to tell their friends about The Wild Feathers. Giving them an extra CD to do just that really empowered their superfans to share.

8. Develop a Brand Strategy

“Branding” and “artist image” aren’t new concepts at all. Since the beginning of music artists have been defined by genre and personality attributes. Especially today, there are so many people out there trying to make it as a musician that you really need to consider why people would buy your album or go to your show instead of someone else’s.

There are two common approaches when it comes to defining a brand. Some musicians like to list every single genre they draw influence from. On the other end of the spectrum, some artists are afraid to even approach the task of labeling themselves. No brand is just as bad as a confusing one.

You don’t have to confine your brand to just musical style. Weave in elements of your personality, your beliefs, and your attitudes. Before  Sum 41 made it big, they had a hard time getting a record deal because many labels thought they were just another Blink 182 imitation band. The labels only heard one dimension of the band – their sound. It was their image, personality and attitude that really set them apart and got them the deal in the end. The band took camcorder footage of them goofing around and edited it into an audio-visual EPK. The resulting seven-minute hilarious video showed the labels that they were more than just punk music. They were characters and they were very good at projecting their character through media.

9. Find a Balance Between Free and Paid Content

Your music is valuable, and you can ask people to pay for your music in a variety of ways! Remember that money isn’t the only form of payment that has value. Information can be just as valuable or more than cash in many instances. Free music is one of the most effective ways to grow your fanbase. Even big-time musicians like Radiohead and Trent Reznor have used free music to their advantage. The key is to have a reason for free.

When trying to navigate the realm of paid content don’t let yourself be restricted to the typical music products like the CD and tshirt. Services like BandPage Experiences allow you to sell unique products and experiences to your fans. The sky’s the limit, and the more personal the products and experiences, the better. Rock Camp used a BandPage Experience to host a contest, allowing guitarists to purchase entries to win a spot at the Ultimate Musician’s Camp. Anberlin used a BandPage Experience to sell all access passes to their tours.

10. React to Opportunity

In music, opportunities pop up when you least expect them, and it’s your job to be ready! These opportunities could be anything from a pick up gig, to a publishing deal to a chance to collaborate with a local musician. Either way, the artists that can react quickly are the ones who succeed. While you want to take the time to weigh your options, remember that overthinking an opportunity can be just as bad as under thinking. There comes a point where you need to just decide to take the leap or not!

Amanda Palmer made $11k in two hours by jumping on an opportunity. (Source) Palmer was tweeting with her followers about how she was once again alone on her computer on a Friday night. Fans joined in the conversation and a group was quickly formed – “The Losers of Friday Night on their Computers.” Amanda Palmer created the hashtag #LOFNOTC and thousands joined the conversation. When a fan suggested a t-shirt be made for the group Palmer ran with the idea, sketched out a quick shirt design and threw up a website that night. The shirts were available for $25 and two hours later Palmer had made $11,000!


To learn more strategies that you can be applying to your music career right now, sign up for the New Artist Model mailing list and get access to free lessons! 

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Top 10 Strategies for Indie Musicians (Part 1)

Photo credit: http://bit.ly/1dCOr9T

Photo credit: http://bit.ly/1dCOr9T

One of the best ways to grow is to look at what’s worked for other indie musicians and adapt it to your own career. I’ve compiled 10 great strategies with 10 real examples to get you going. A lot of musicians I’ve talked to think they can’t start making strategies to move their career forward until they’re making money, until they take some business classes, or until they get a manager. The coolest thing about these strategies is that you can start using them TODAY.

Here’s strategies 1-5. We’ll be publishing the second half later this week.

1. Make a Plan from the Start

Making a great plan is one of the best ways to get to that music success you deserve. Not only do concrete goals give you something to aim for, they also help you decide what your first step should be.

Try to make your goals as specific as possible. Instead of saying “I want to be rich and famous,” try something specific like “I want to be able to be a full time musician with a yearly salary of at least $75,000 and be able to tour outside my home state.” Break down your lofty goal into smaller tasks like “gather contact information for local venues,” “contact 5 venues this week,” and “connect with another band to share a gig.” Suddenly finding a way to reach that goal becomes more manageable.

From the start Karmin knew they wanted to be a pop duo targeting a young teen audience. Manager Nils Gums suggested the duo cover current popular songs to get in front of their target audience. They followed the charts and consistently covered the most popular songs every week. The important takeaway here is that Karmin knew their goal, they made a plan to get there, and they stuck with it. If they had given up on the cover strategy after only a few weeks, they would never have gotten to where they are today.

2. Leverage Your Copyrights
Your copyrights are your business. They are your assets and your products, so it makes sense to take some time to understand them. You don’t need to be on the same level as a big-shot entertainment attorney, but it helps to have a general understanding of copyright law.

There are two kinds of copyright: composition and sound recording. Copyright is created when a musical idea is put into tangible form. So when you write that song down (composition) or record it (sound recording) you own the rights!  All those rights are exclusive, meaning you, and only you can leverage your song. Remember that copyrights are power! You own the copyrights, so you have the power. Think about it, without your copyrights would labels or publishers have anything to sell? Lots of musicians have been realizing this and have figured out cool ways to leverage their copyrights.

The Happen Ins are an Austin-based rock band that were featured in a catalog from the clothing company Free People, a corresponding video, many blog posts, and played at the catalog release party. In order to grow their fan base, the Happen Ins offered a free download to Free People’s customers. In many cases this exposure can be far more valuable than money.

3. Focus on Time Management

Today’s indie musician plays the part of the artist, and the business professional, and as a result, many find themselves juggling entirely too many tasks. It’s great that artists today can be 100% in control of their career, the problem comes when you can no longer find enough time for what matters most – your music!

If there’s anything you are doing that’s not bringing you closer to your goals, stop or take a closer look.  If you’re spending hours each day on tasks that don’t have much benefit, eliminate, simplify, postpone, or delegate to your team members. Try to prioritize the list. More urgent matters and tasks that you keep putting off and putting off should have a high priority. AND REMEMBER, make time for your music!

Michael Shoup is a musician and entrepreneur who turned his career around and started making profit with time management. After graduating college with a Bachelors degree in music, Shoup started his career as a musician and effectively gigged himself into $6,000 of high interest credit card debt. Time management has helped Michael Shoup become debt free. On top of that, he’s managed to self-fund an album, started a music marketing agency, 12SouthMusic, and created a social media app, Visualive.

4. Build a Team that Grows with You

DIY may not be the best option for indie artists. There are a lot of artists out there with excellent business chops, but they’re still not experts. And that’s okay, because you have more important things to do like creating music! The key is to find a team who is motivated and passionate. Instead of DIY, move towards a do-it-with-others (DIWO) strategy.

Your team doesn’t even have to be seasoned pros. If you have a band you’re already way ahead of the game. Everyone has their own unique skills, so take advantage of that!

Pop singer/songwriter Betty Who was able to be really successful with a team made of college classmates. Producer Peter Thomas and manager Ethan Schiff attended Berklee College of Music with Betty Who. With Peter Thomas she was able to find and really latch onto her signature pop sound, and Schiff helped set her up on the business side of things. Betty Who’s “Somebody Loves You” began drawing the attention of the pop music world after the release of her first EP The Movement in spring of 2013. In September 2013 the song was featured in a viral gay marriage proposal video and just a few days later she was signed to RCA Records.

5. Get out There and Network!

Networking is really important to success in music, but it’s easy to get overwhelmed with internal tasks and forget to take the time and introduce yourself. You don’t need a big speech or a prepared pitch. Just get into the habit of introducing yourself to one person at every show you play or at every studio you record in. Talk to the guy in charge of the soundboard, maybe he loved your show and wants to produce your next album.

Remember, networking is a two-way relationship, and collaboration is usually the best way to promote this win-win situation. If you collaborate on a show, a song, or a recording, both of you will be exposed to the other’s fanbase!  Always remember to give before you ask. Do something for someone and they will remember you.

Vinyl Thief used their extended network to find success. The band released their first EP, Control, in 2010 but were disappointed in the results. They called on a former high school classmate, now music marketing graduate, Wes Davenport who started working on improving their marketing efforts. Davenport helped them grow their fanbase through the digital releases of single, White Light, and second EP, Rebel Hill. (Source)

 To learn more strategies that you can be applying to your career RIGHT NOW, sign up for the New Artist mailing list and get access to free lessons.

 

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Full Steam Ahead

Photo credit: http://bit.ly/1crjCq1

Photo credit: http://bit.ly/1crjCq1

As the music industry moves forward, revenue streams are expanding into territories we would never have imagined. The live show can now be streamed over the internet, music fans can listen to any song they want with streaming services like Spotify, lifestyle companies like Red Bull and Converse are getting into the record label business, and new publishing opportunities are popping up everyday.

One industry that just keeps growing is the gaming industry, and its presenting more and more opportunities for musicians. Rock Band and Guitar Hero really started the ball going for customizable game music, and since then, many platforms have been integrating in their own streaming or local music players. This definitely presents a great way forward for music. Integration with Spotify could mean more paying customers, and in-game purchases could evolve to include music packages. I really think this segment of the music industry is wide open for innovation.

Last week, Steam announced the beta of Steam Music. Check out the article below from Billboard for more information.

Steam, which passed its tenth birthday last year, operates as both an online marketplace and a media hub for video game players worldwide, keeping their game libraries in a central location and storing game information and their purchases in the cloud. Similar to iTunes with music, Steam makes money the same way, taking a 30% cut of purchases. That structure keeps Steam’s marketplace a click away and Valve’s brand ever-present. While most video games are too complex to be played without having their files stored on a local device, Steam users are able to install the client on a new computer and bring their software with them, along with save game files and similar information. As of last October, Valve put the number of Steam accounts at over 65 million.

As it stands now, Steam Music simply allows its users to listen to tracks from their local digital libraries while simultaneously playing video games — as long as they are in “Big Picture Mode,” a user interface designed to mimic the living room-based functionality of the Xbox and PlayStation’s operating systems. But what if the service integrated a streaming service like Spotify? The result could be a boon for that streaming service as well as music rightsholders; recent revenue gains in Norway’s music industry have been directly attributable to streaming services’ pervasive scale in that country, accounting for 65.3% of recorded music revenues and driving industry-wide growth.

But there are strong indications that Spotify could eventually arrive on Steam. Martin Benjamins, one of two people behind the website SteamDB, a website — unaffiliated with Valve or Steam — dedicated solely to investigating the underlying code of Steam and its attendant programs, found something interesting inside Steam’s guts. “Valve has already done quite a bit of work on Spotify integration in the Steam client, and appear to be using… Spotify’s official API for [placing] Spotify functionality into third party applications.” If you need a translation: Steam is already testing integration with Spotify into Steam Music. Benjamins says that it appears as if Spotify Premium users would be able to utilize the feature.” It’s important to note that, while such digital sleuthing is a worthwhile exercise, unreleased or unactivated code doesn’t mean that a feature will see the light of day.

Valve declined to comment on upcoming or requested features, and Spotify did not respond to a request for comment at press time.

Steam Music’s beta page does state that “we see an opportunity to broaden Steam as an entertainment platform, which includes music alongside games and other forms of media.” The company has taken significant steps to this end recently, developing SteamOS which allows users to all but replace their gaming consoles with a home-built computer intended to be always connected to the living room television, as well as Steam Machines, a prefab console intended to serve the same purpose.

Neither Xbox or the Playstation have a Spotify app available on their platforms, each preferring to push its own products — Sony’s paid Music Unlimited and Microsoft’s Xbox Music., which, like Spotify, offers a free and paid tiers.

As far as their plans to sell music, the company says, alluringly, on its site that “Steam currently offers a number of game soundtracks for sale. Your feedback will help guide where we take things next.” It’s also emblematic of a company well-respected by its customers, largely on how closely it listens to user feedback.

A quick glance at the Steam users online at the time of this writing showed 6.5 million — about 500,000 more than currently pay for a Spotify subscription. If 10% of Steam’s 65 million-strong user base subscribed to Spotify as a result of a trial or bundle deal, it would raise Spotify’s paid subscriber base by over 100%. Playing with games may just mean serious business for music.”

What do you think? Do video games present a huge opportunity for the music industry?

 

We discuss music placement in video games in the New Artist Model online course, but you can also get access to some free lessons by signing up for the mailing list

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The Musician Career Plan

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So we’ve covered the fact that many musicians don’t know the next steps they should be taking in their career and many more don’t have enough time to get everything done. Now, we’re going to address both of those problems with a method commonly used by entrepreneurs – a business plan, or in this case, a musician career plan.

I know, most of you probably didn’t get in to music to write a business plan, but if you’re really serious about making a living off your art, it’s an invaluable resource that will help you succeed. Think about all those choices you face everyday. How long should you spend on social media? Which social media channels should you be on? How much time should you dedicate to touring? Is crowdfunding the right way to fund your album? If you have a plan in place that states where you are, what you’re focusing on, and where you want to be in the future, these choices become a whole lot simpler.

 

Here are some of key points of a musician career plan. To see all 10 points, check out the video. By signing up for the mailing list, you’ll also get access to free lessons from the New Artist Model online course.

1. Business Structure

You probably don’t think of your band as a business, but that’s exactly what you are. A lot of the professional bands and musicians out there even go so far as to organize themselves into a Partnership or even a Corporation. You don’t have to go that far quite yet, but you need to think about what everyone’s roles are within your business and how each moving part works together to make one whole unit. How do you communicate with each other? Is one person responsible for decision making or does the whole group vote? Talking about these things up front will make everything run a lot smoother and more efficiently.

2. Revenue Streams

There’s more revenue streams out there beyond just selling albums and singles. Of course, the revenue streams you draw on depend entirely on your career focus. A songwriter will pull from different revenue streams than a recording artist. The main point here is to be creative with it! The music industry is ripe for innovation. Sponsorships and brand partnerships have grown exponentially lately. Some musicians even make money from exclusive membership sites.

3. Booking Strategies

Playing gigs shouldn’t just be something you do on the side. It should be part of your overall strategy. Depending on your goals, you can use your live show to forge a deeper connection with your fanbase, spread awareness for your music to a new city, or meet new collaboration partners.

What’s your plan?

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Build a Team for Music Success

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Another big problem we know a lot of you are facing is the fact that you just don’t have enough time to get everything done. You probably find yourself spending way too much time on social media, marketing, worrying about digital distribution, blogging, or trying to get gigs. More times than not, these essential tasks push your music aside. You don’t have as much time as you’d like to practice your instrument, write, learn, and create.

It’s the dilemma of the indie artist.

Isn’t the music why you set out for a career in music in the first place? Is it really necessary to push aside the music to be successful in today’s music industry? I don’t think so. Check out this video to learn how to build a team that will progress your music career and give you the freedom to do what yo do best – create! By signing up for the mailing list, you’ll also get access to free lessons from the New Artist Model online course.

DIY has been the phase of the last decade, but I’m here to propose a new phrase: DIWO, or Do It With Others. The truth is, no one has all the skills – or time for that matter – to be successful completely on their own in music. Instead, try approaching your career like an entrepreneur approaches a new startup. Build an efficient team gradually over time. Start lean with the people you have around you already, divide tasks according to skills, and hire in new team members as you grow.

Here’s some of the key steps in building an efficient team around your music. To see all 10 steps, check out the video.

1. Figure out what kind of team you need.

Not every musician needs the same kind of team. Your skills and your goals will influence the roles you need to fill. As a songwriter, you may not need a producer or engineer if you’re writing songs for others to record. Instead, your team may consist of a co-writer and someone who has a good ear and can critique your songs.

2. Assign roles and responsibilities.

This is a key point that many musicians miss out on. If you don’t make a plan that lays out who will do what, you end up with an inefficient mess. Instead, assign roles based on each person’s skills. You may not be able to hire top label executives, but each member of your band has their own unique skills. Your lead singer may be a people person who could be in charge of networking. Your drummer may have a good eye for photography or skills with photoshop or drawing. She could handle your Instagram account or create album art.

Do you have a team?

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Q&A: Dave Kusek Of New Artist Model

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This interview is from CMJ. Check it out here.

Dave Kusek has spent a lifetime working in the music business as a marketer, hardware and software developer, teacher and author. The meat of his career was right in the middle of the transition from the old analog world to the digital blur we’re all still transitioning into. So he has the experience of an old school sage and the knowledge of a cutting edge electronics whiz. After imparting all that as a longtime teacher at Berklee, he’s developed a new online music school, Dave Kusek’s New Artist Model, that aims to clear up the often fuzzy world of the constantly morphing music biz for striving musicians everywhere.


Give us a little of your personal history, and what makes you uniquely qualified to be able to explain this brave new confusing digital music world to green musicians everywhere, via your New Artist Model course?
I have been working in the music business all of my life, as an entrepreneur, teacher, author and marketing guy. I’ve seen a lot of change over the years having lived through the rise of technology in music and in life, and seeing the transformation that has occurred in how music is produced, consumed, and marketed.

 

I started one of the first synthesizer companies, Star Instruments, where we developed Synare electronic drums. That was around the birth of the disco era and during the time when electronic musical instruments started making their way into the vocabulary of musicians and producers. From there I founded Passport Music Software where we helped to develop the MIDI standard, MIDI Interfaces, sequencing software like Master Tracks Pro, and music notation software like Encore and MusicTime. We sold hundreds of thousands of units and worked with musicians all over the world to create software and help them with their careers.
From there I went on to start Berkleemusic at Berklee College of Music where I taught and worked for over 14 years. Berkleemusic became the world’s largest music school. And we taught online and worked with tens of thousands of musicians, songwriters, producers, managers and business people.

I co-wrote the book The Future Of Music with my friend Gerd Leonhard which predicted a lot of the change that happened in the music business. That became a best seller. That work led me to collaborate with lots of musicians, labels, publishers and artist managers coping with the changes in the marketplace that started with Napster and continued through the iPod emerging, iTunes, file sharing and all that has transpired since. At Berklee I set up a partner network of hundreds of companies like CMJ, Topspin, ProTools and many others to collaborate on digital marketing tools, online courses and strategies for independent musicians trying to navigate the changing marketplace.

I’ve worked with big artists and small artists in almost every genre and have coached many people who have been dropped from labels or just wanted to pursue an indie career from the start. I’ve had to learn what is working today and what is not, what tools you can employ to drive your career and what to avoid. It’s been a really fun ride so far, and this next chapter with the New Artist Model is going to be even more fun as we help a new wave of musicians deal with the realities of the market today.

What is the basic difference between the “Essential Class” and the “Master Class” that you offer?
Both classes teach the same material, with the same videos, presentations, interactions, animations, reading and case studies. The Essential Class is a self-paced course, so you drop into the course and go through the eight weeks of lessons on your own or with your band at your own pace. You move through the material and develop your strategy, you develop a brand strategy, publishing plan, touring and booking plan, a recording strategy and a marketing plan by going through a step-by-step process. We take a look at your finances and explore crowdfunding and various ways for you to get organized, set goals and create plans to reach those goals. That’s the essential course.

The Master Class is the exact same material but you’re working with me as a teacher and getting feedback directly from me. You are also working with a group of students from around the world. There are homework assignments, projects and class discussions that I lead. There is also a live chat once a week that you participate in where you can ask me any questions you want. You also receive feedback from the other students in the class which is a huge value. By working with people from different parts of the world you get a very unique perspective on the music business and get to share ideas and learn strategies that are working in different environments.

So basically, with the Essential Class you work at your own pace, and with the Master Class you get me as your teacher and a group of other students to learn from.

Can you give us a quick list of the basic areas of the music business that you hope to illuminate for your students?
The New Artist Model is an online music business course for independent musicians, performers, recording artists, producers, managers and songwriters. The course teaches essential business and marketing skills that will take you from creativity to commerce while maximizing your chances for success. The course is designed to give musicians a strong understanding of the current music industry and to provide the tools and techniques necessary to make a meaningful impact in today’s music market. Students will:

• Understand the dynamic music business ecosystem and your place in it.
• Build a team to support your goals and create opportunities for you in the marketplace.
• Leverage multiple revenue streams: publishing, touring and merchandise and recording.
• Develop an online presence and strategy to grow and monetize your relationship with fans.
• Understand the impact of copyright law and protect yourself and your music.
• Figure out how to budget, crowdfund and finance your projects.
• Get access to resources and people that can help you grow your network.
• Develop a custom and personalized Career Map and Budget for you.

Would you say that the New Artist Model online course is an extension of the guidelines you set down in your book, The Future Of Music: Manifesto For The Digital Revolution? Or do things move so fast in this world that you’ve got yet newer information to impart?
Well, in the book we did talk about a new artist model, and there has even been at least one song written about that approach, called Download This Song by MC Lars. But honestly, things have changed so much and are changing so fast that an online resource is really the only way to keep current. There are tools and technologies available today that were not around when The Future Of Music was written, most notably the iPhone and streaming services like Spotify—both of which we predicted in the book. So yeah, the New Artist Model course is a fresh and dynamic take on the current state of the music business and where things are headed today.

The general consensus is that touring is increasingly the most reliable way for bands to make money. Do you agree with that consensus? Or can touring be one more thing that gets in the way of an act developing their songwriting and marketing skills? 
This question gets at the central themes of the course, which are what kind of musician are you, what does success look like for you, what are you good at and where do you focus your efforts? I agree that touring can be a money maker for many artists if that is what you are good at and want to do. Performing live takes real skill to entertain an audience and build a fan base on the road, and if that is what gets you going, then yes, you should focus on that. But publishing and licensing are also great revenue drivers if you can write well and can plug into the music supervisors and agencies that pick songs for the media.

Another growing consensus is that musicians today cannot be “just” a musician, that they must be very proactive and entrepreneurial. But we all know musicians—is it realistic to expect musicians to run every business aspect of their career?
No, I don’t think that it is realistic that a single person can run every business aspect of their career. The whole idea of DIY is, in my opinion, a real disservice to the independent musician community. You can’t do it yourself, it’s impossible. You need a team and you need a strategy and focus so that you can move your career forward. It is more like DIWO, or “do it with others.” And to be effective doing so, you need a clear plan that you can communicate to your team members and that you can use to make decisions and figure out where to spend your time and where to invest your energy and resources.

Every artist needs a good manager and business partner to really get ahead. Someone to help with marketing and booking or plugging songs and providing a balance so that the artist can spend time being creative. But, I know and believe that in order for a musician to be successful in today’s environment, they need to have a very solid understanding of the business, even if they don’t do everything themselves. As a musician today, you are an entrepreneur and you better be fluent in the dynamics of the music business so that you can see where you are going and know how to get there.

Sign up for the New Artist Model mailing list to get access to free lessons!

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10 Musician Mistakes: You Aren’t Leveraging Copyright

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Your copyrights are your business. They are your assets and your products, so it makes sense to take some time to understand them. You don’t need to be on the same level as a big-shot entertainment attorney, but it helps to have a general understanding of copyright law.

There are two kinds of copyright: composition and sound recording. Copyright is created when a musical idea is put into tangible form. So when you write that song down (composition) or record it (sound recording) you own the rights!  All those rights are exclusive, meaning you, and only you can leverage your song.

So how does all this translate into actually making money? Other people and companies have to get your permission and usually pay you to perform any of the actions protected by copyright. Think of copyright like property – intellectual property. If you owned a large apartment building other people would have to get your permission to live in one of the apartments. They would sign a contract and money would most likely change hands. It’s the same principle for music. A record label or distributor pays you to be able to make copies of your song and distribute it to online and retail stores. A radio station pays you (through a PRO) to perform your song over the radio. A company pays you to sync your music to their promotional videos or advertisements.

One thing a lot of musicians miss is the fact that copyrights are power. You own the copyrights, so you have the power. Think about it, without your copyrights would labels or publishers have anything to sell? Many more musicians have been realizing this and figuring out how to leverage their copyrights.

Music publishing can be a tricky area to navigate when it comes to payment, especially when you’re just starting out. Many companies don’t have a budget for music and rely on small indie bands to license their songs for free. In these cases, don’t cave in or restrict yourself to just monetary payment. Think about what non-monetary things they can offer you in exchange for your music. Does the company run a blog? If so they could write up a quick feature or interview with links back to your site and social media channels. When done correctly, the publicity could be just as valuable as a check!

The Happen Ins are an Austin-based rock band that were featured in a catalog from the clothing company Free People and a corresponding video in July 2011. In this case, Free People had to get permission to sync the Happen Ins music to their video. Free People is a fairly well known clothing line, so the band most likely got some monetary payment, but we’ll focus on the non-monetary publicity, as it is something most companies can offer even the smallest bands. Members of The Happen Ins were in the catalog, were the feature of many blog posts surrounding the catalog release, and played at the catalog release party. In order to grow their fan base, the Happen Ins offered a free download to Free People’s customers.

If you want to make the most of your copyrights, the key is to find business partners that have a similar image or audience to yours or one you want to reach. In this case, Free People, their customers, and the Happen Ins have a vintage rock and roll vibe. Think about your image, personality, and music when you go out looking for publishing deals. If they cannot offer you enough money, think about what else they could offer you that could help grow your fan base. In many cases this can be far more valuable than any money you can get. This is especially true when you are early in your career.

New-Artist-Model

The New Artist Model online course teaches you specifics of copyright law and creative publishing in detail. By the end of the 8-week course you will fully understand what copyrights you have and can create, what you can do with them, how you get paid, and how to effectively pursue music publishing and licensing.


Make money licensing your music. Sign up for the New Artist Model mailing list for more free lessons.

Get Your Music Licensed

Many musicians dream of their songs appearing on TV or in a film. Just wanting your music on TV isn’t enough! The chance that someone will come out of the blue and hand you money to use your song is very slim. You need to be out there promoting your own music and networking with people involved in the film and TV industries. Start small and work your way up from there! It will be hard to score a place on a hit TV show if you’ve never licensed any of your music before.

Sarah Sharp is one songwriter who has gotten a strong understanding of the publishing industry. Her songs have appeared in ads for Chanel, Dell, Macy’s, and ABC’s “Revenge.” In this article that originally appeared on Hypebot, she shares 7 tips she’s learned about getting licensed.

1. Go to film festivals. Make friends with filmmakers at every level of production & success.

I particularly get excited when I meet editors. Editors will often choose from their personal music library for temp music in their rough edits and often, everyone becomes accustomed to the temp music & it stays. Take a genuine interest in what people are trying to write or get made and help each other on the way up.

I have read my friends’ scripts and given feedback and made them mix tapes of indie artists years before the film finally gets made. The 1st film I music supervised was a Jason Lee, Crispin Glover film called “Drop Dead Sexy”. I probably earned $1/hr by the time it was all said and done for the time I put in, but one of my songs ended up in the film and I have made several thousand dollars in royalties from that one placement. BIG PICTURE.

2. Get a final mix of your entire album with no vocal.

There are a lot of places where the instrumental version of your song can be used. Also, it’s often helpful to be able to comp together both versions around the dialogue. This promo for ABC TV’s “Revenge” used our Kaliyo song “Deep Girl.” It barely resembles the full song, but they made great use of it by weaving both the instrumental and vocal version in and around the voice over.

3. Don’t be a pain in the ass and get out of your own way.

Sometimes people get a little whiff of success and they get so caught up in the idea of what could be or worrying about not “getting screwed”, that they blow the whole thing. If someone wants to use your song and you have never placed anything before, just say “YES & THANK YOU.” Reply immediately. Be the easiest, most reliable person to work with on the planet. Have a lawyer read your contract and then just say yes. A really smart and as yet still accessible/affordable music lawyer is Amy Mitchell. Tell her I sent you.

4. If you have a great cover version of a really well-known song, try to get it to the publisher of that song.

Often their hands are tied because they own the song, but the record label owns the really famous master. Some publishers would love to know about a fantastic version of their song that they can actually clear.

To see the other 3 tips, check out the full article on Hypebot.

Have you ever had your music licensed for TV or film? What are some things you’ve learned from your experiences? Share your own tips and thoughts in the comment section below!

4 Tips for Sync Licensing

Sync licensing has become a viable revenue stream for indie artists in recent years. In the past, many artists viewed having their music on a commercial as “selling out,” but today, this is what many bands and musicians strive for. The great news is that there is a huge demand for indie music in TV and film. Many TV and film networks and companies cannot afford to pay top dollar for music from the super stars.

Figuring out how to approach music supervisors and make your music appealing for sync licensing is another story. To give you a better understanding of what these music supervisors are really looking for, Mallory Zumbach, the Creative Director at Round Hill Music, shared some tips and insights into the world of sync licensing.

1. Watch and Listen, Listen and Watch

When I was in high school, I had a really great band director, Mr. G., who was constantly imploring us to listen to all sorts of different music. His point was that you can’t become a great musician from practice alone—you have to immerse yourself in music and learn from your contemporaries and predecessors. I really believe that the same thing applies for succeeding in the synch world. When you’re watching TV, don’t just regard the music as wallpaper—pay attention to what’s getting used in the shows you’re watching and the ads playing throughout them. Try to observe the trends in song uses, and then go back to your own catalogue and pinpoint which of your own songs might fit into those trends. It’s such a turnoff to music supervisors when you send them stuff that doesn’t fit the mood of their show or sounds too dated for their commercial campaign.  If you have more awareness of what’s currently working for people, that will help you have the kind of targeted approach that they appreciate. It can also help give you ideas for things to incorporate into new songs when you sit down to write and record.

2. Get Happy

In the ad world in particular, there is a constant need for music with positive lyrics. At the end of the day, agencies are trying to help their clients sell their products, and a depressing or angry song, no matter how great, isn’t typically going to help them accomplish that goal. I don’t think there will ever be a time when agency music producers will stop requesting songs with lyrics about positive, universal themes like togetherness, feeling carefree, things changing for the better, etc. Nothing is more of a bummer for me than having a writer I work with send me a song that is musically uplifting (yay!) with negative lyrics (boo!).  Which is not to say that you should only write cheery tunes—no one can be happy all of the time, and there are still synch needs for sad/mad songs in other areas like film, TV, and video games. It’s just that having one or two big, anthemic songs with positive lyrics will give you something to work with across all synch mediums. Our band American Authors has a fantastic song, “Best Day of My Life”, that’s getting all sorts of synchs, from ads to film trailers to TV shows, because it’s a feel good song with feel good lyrics that’s also really genuine.

To see the other two tips, visit Music Think Tank.

On top of the up front money you could get from a sync license, your music and career will also benefit from the exposure. Try not to view your sync licenses in a vacuum. Instead, try to connect the sync placement to the rest of your career. Let your fans know that your song will be on TV. Perhaps you could start a contest in which the fan who finds your song first wins a prize. Be creative here!

Which tip above do you find most useful?

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James Taylor Suing Warner Bros

Gotta love it.

James Taylor is suing Warner Bros over digital royalties seeking $2m in compensatory damages from his former label for past MP3 sales.

The Guardian reports that singer-songwriter James Taylor has filed a multimillion-dollar lawsuit against his former label, Warner Bros, claiming they have underpaid millions in royalties on downloads of his songs. As in similar cases brought by Eminem and the Temptations, the principal issue is the royalty rate for downloads or ringtones among artists who signed record contracts prior to the advent of digital music sales.

I reported on this situation in the Huffington Post here a while ago with Musicians may be owed billions in unpaid digital music royalties.

All of this stems from a landmark ruling in 2010, when a company representing Eminem’s publishing rights won a case against Aftermath Records. The label was ordered to pay royalties on downloads and ringtones according to the rate for licensing, not sales. Since then, a wide range of acts have pursued their labels for compensation.

Lots more to come.  The leveling of the playing field.

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Internet Trends – Re-Imagining Everything

I was reviewing this fascinating data from Mary Meeker over the weekend again, and thought I would share it. Meeker, a partner at Kleiner Perkins Caufield & Byers describes what she calls “the re-imagination of nearly everything” powered by mobile and social. For example: News outlets are reimagined on Twitter, note-taking is reimagined on Evernote, scrapbooking is reimagined on Pinterest and music purchasing is reimagined as listening.

Meeker also traces out the story of the mismatch between mobile growth and mobile monetization, pulling together numbers and analysis of one of the biggest weaknesses in today’s Internet industry.

And she gives some context to the state of the global economy. Here’s the full slide presentation:

KPCB Internet Trends 2012

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Investing in Media and Tech from Roger McNamee

Roger McNamee is probably the coolest investor I know.  He has called it right so many, many times and just did it again with Facebook.  You have to pay attention to him.  I have been “schooled” by him on more than one occassion and for that I am eternally grateful.

Here are his thoughts on the road ahead, taken from a Mashable keynote presentation he made the other day.  Great stuff if you want to try and make money in web and mobile tech in the years ahead.

 The shift is away from the desktop experience of free undifferentiated content. Mobile users don’t navigate the Internet with Google searches. They use apps, which deliver a better experience. And they spend much more time within those apps than on any web story.

Instead of needing tens of millions of lightly engaged users in order to be considered successful, McNamee hypothesizes that future success will come from smaller numbers of even more engaged — and thus more valuable — users.

It will, he believes, will be built not on the Google-controlled HTML4 web nor within Apple-controlled apps, but using HTML5, which allows for differentiated, engaged experiences without the downsides of the app store.

“The basic success factors going forward are going to be exactly opposite of those we’ve had in recent years,” he said.

You can get his entire presentation here.

Awesome stuff.  I’m definitely paying attention.

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Build a business around your personality.

I am often amazed at how much today’s musicians can learn from the past.  We all think that we are in the age of digital music and the old rules no longer apply and that there are only new models to develop and pursue.  Wrong.  Instead, we can all learn a whole lot by looking backwards and trying to map the successes of the past to the future.  Lets take a look at the late Dick Clark’s career and see what we can learn.

Dick Clark capitalized on the integration of music and television long before “American Idol.” But his legacy extends well beyond the persona of the laid-back host of “American Bandstand” whose influence can still be seen on TV today.

He was the workaholic head of a publicly traded company, a restaurateur, a concert promoter and real estate investor. Clark, who died of a heart attack in April at age 82, left behind a fortune and is the model of entertainment entrepreneurship.  He was ahead of his time, creating a business empire built around his personality and interests that led the way for many other musician/ entrepreneurs to come.

“Work was his hobby,” said Fran La Maina, the longtime president of Dick Clark Productions Inc.

La Maina started as the production company’s financial controller in 1966. He estimates Clark amassed a fortune that reached into the hundreds of millions of dollars. “He had this never-give-up attitude. He was a great salesperson and a task master,” La Maina said.

Clark was one of the early pioneers of the idea that a public company can be formed around an entertainer’s personal appeal. By the time La Maina went to work for him, Clark already had three shows on air: “Swingin’ Country,” “Where the Action Is,” and, of course, “American Bandstand.”

He promoted more than 100 concerts a year back when promoters, not bands, called the shots. His roster included The Rolling Stones and Engelbert Humperdinck. In the 1970s, he launched shows like the “American Music Awards” and “New Year’s Rockin’ Eve” – shows that are highly valued by advertisers because fans still want to watch them live in an age of digital video recorders.

At one point, he hosted shows on all three major TV networks, including “The $20,000 Pyramid” on ABC, “Live Wednesday” on CBS and “TV’s Bloopers and Practical Jokes” on NBC. All the while, he was hosting shows “Dick Clark’s Countdown” and “Rock, Roll & Remember” on the radio and running a business.

“He had boundless energy and a remarkable ability to do innumerable things at any given time,” La Maina said.

By the time it went public in 1987, Dick Clark Productions had several thousand employees, had launched a restaurant chain with Clark’s name on it, and ran a communications-promotion business. Revenue exceeded $100 million a year and the company was profitable.

His daily schedule was daunting, even when Clark was in his late 50s and 60s, according to longtime board member Enrique Senior, a managing director at Allen & Co. who helped Dick Clark Productions go public. “It frankly was the schedule of a 20-year-old,” Senior said. “This guy was a dynamo. I’ve never seen anybody who would be so personally involved in everything he did.”

What can be learned?  Work hard, diversify, promote, be personally involved, build a great team around yourself, dream, and go for it.

Read more here from Ryan Nakashima at the Associated Press.

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More Equitable Payouts for Musicians

This came in my bi-annual Sony Music statement last week.   It said “You may be Eligible for Increased iTunes Payments (or other permanent Digital Download or Ringtone royalties) as part of the Settlements of Class Action Lawsuits.  Please see the enclosed notice for details.”

Ka-ching!

Congratulations to “Shropshire” and  the “Youngbloods” (great band) in their pursuit of more fair treatment on how royalties are calculated for digital transactions.  Even though this is a small settlement, it represents a step in the right direction of ending years of unfair accounting and payment practices.

Sources in the know infer that progress was indeed made but  – still it ain’t anywhere near fair.  David did not slay Goliath thus far, nor did David get completely slain.  There is more to come.

I’ve written about this before as have many others.  Lots of musicians are suing the labels over the claim of unfair payments on digital transactions.  Here is the latest article about all of this from Variety.

Weird Al Yankovic

Tower of Power

The Temptations

Pink Floyd

Kenny Rogers 

Rick James

Smashing Pumpkins

Toto

The Motels

And many, many more to come.

We have to be patient, and change will happen.  Lots of people are jumping on this train.

The good news is that the powers that be seem willing, at last, to try new things and to negotiate.  As my friend and co-author Gerd Leonhard has said, “when the pain gets great enough, they will compromise and negotiate.”  We must be getting close.

From Billboard.biz yesterday, an agreement was reached between the music industry trade associations for record labels, music publishers and digital music providers.  The Copyright Royalty Board, will create new rates and terms for five new digital music service categories.

It also creates new rate formulas for five new digital business models:

– For the paid locker services like the one iTunes offers consumers, music publishers will get a mechanical rate of 12% of revenue or 20.65% of total content cost or 17 cents per subscriber, which ever is greater.

– For digital lockers that provide free cloud storage with a download purchase, music publishers will get 12% of revenue or 22% of the total cost of content, which ever is greater.

– For the third category, called a mixed bundle such as when your cell phone services subscription rate comes with a music service, music publishers get 11.35% of revenue or 21% of total content cost, whichever is greater.

– The fourth new category, called limited interactive service such as when a subscription service can offer limited amounts of music to, say, one genre or playlists that the user can access at a lower price, music publishers will get 10.5% of revenue or 21% of total cost or 18 cents per subscriber, whichever is greater.

– Finally, for the fifth category, called a music bundles such as when a CD album comes with a download, music publishers will get 11.35% of revenue or 21% of total content cost.

More on this here from Digital Trends.

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The Boss of SXSW

We waited for a half-hour for him to come on.  Not bad for the Boss.  In nearly an hour-long rant from the stage of the Austin Convention Center at SXSW, Bruce Springsteen spoke about his life as a musician and the artists who influenced his career.

As Ann Powers wrote, “Springsteen identified himself as a Motown-loving, Sex Pistolsfearing fan of country’s Silver Fox — Charlie Rich.  He vehemently argues for the belief in popular music as dynamic and flexible, kept alive through constant redefinition by new players and fans.”

This is great stuff for everyone to learn from.

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Artist Revenue Streams Research Project

Artist Revenue Stream Poster

My friends at the Future of Music Coalition are conducting an online survey from Sept 6 – Oct 28th to determine the variety, depth and complexity of the ways that musicians are making money these days.  Not theoretically, but actually.  We are looking for performers, songwriters, composers, band members, session players, producers, MCs and anyone else making music to join in and take the survey.

A while ago, I posted this from my friend and Berkleemusic student David Sherbow showing a pretty comprehensive list of the different ways that musicians can make money.  This might give you food for thought on taking the survey and planning your career…

The artist music business model has been in flux for years. The record deal dream that most artists sought is no longer the viable alternative that it once was.  The leveling of the music distribution playing field by the Internet is virtually complete.  Terrestrial radio is on a path towards destruction that even the major labels can’t compete with.  People now access and download music from multiple sources, usually for free.  D.I. Y solutions are everywhere, but for many artists hard to integrate into their daily lives.

Where does this leave the average independent artist? At the beginning. Every artist wants to know how they can make music, make money and survive to write and play another day. Here, in no particular order, is a list of possible income streams.

• Publishing
• Mechanical royalties
• Performance Royalties from ASCAP and BMI
• Digital Performance Royalties from Sound Exchange
• Synch rights TV, Commercials, Movies, Video Games
• Digital sales – Individual or by combination
• Music (studio & live) Album – Physical & Digital, Single – Digital, • Ringtone, Ringback, Podcasts
• Instant Post Gig Live Recording via download, mobile streaming or flash drives
• Video – Live, concept, personal,  – Physical & Digital
• Video and Internet Games featuring or about the artist
• Photographs
• Graphics and art work, screen savers, wall paper
• Lyrics
• Sheet music
• Compilations
• Merchandise – Clothes, USB packs, Posters, other things
• Live Performances
• Live Show – Gig
• Live Show – After Party
• Meet and Greet
• Personal Appearance
• Studio Session Work
• Sponsorships, and endorsements
• Advertising
• Artist newsletter emails
• Artist marketing and promotion materials
• Blog/Website
• Videos
• Music Player
• Fan Clubs
• YouTube Subscription channel for more popular artists
• Artist programmed internet radio station or specialty playlist.
• Financial Contributions of Support – Tip Jar or direct donations, Sellaband or Kickstarter
• Patronage Model – Artist Fan Exclusives – e.g. paying to sing on a song in studio or have artist write a song for you
• Mobile Apps
• Artist Specific Revenue Stream –  unique streams customized to the specific artist, e.g Amanda Palmer
• Music Teaching – Lessons and Workshops
• Music Employment – orchestras, etc, choir directors, ministers of music, etc.
• Music Production – Studio and Live
• Any job available to survive and keep making music
• Getting Help From Other Artists and Helping Them –  Whatever goes around come around. – e.g. gig swapping, songwriting, marketing and promotion

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Words of Wisdom from Roger McNamee

My friend Roger McNamee, a founding Partner and Managing Director of Elevation Partners has been getting some great press lately on his thoughts on the new music business, investing in technology, Apple, Google, Facebook and much more.  Here is the transcript of a speech he gave at NARM earlier this summer, a must read.

“Our band – Moonalice – is inventing new opportunities in music. We would like you all to join us.

I have been a working musician for more than 30 years, and a technology investor for 29 years. I have played about 1000 concerts over the past 15 years, which means I have personally experienced everything in Spinal Tap except the exploding drummers. I also spent three years helping the Grateful Dead with technology and many more advising other bands, most notably U2.

My band is called Moonalice. We play 100 shows a year in clubs and small theaters, mostly on the coasts. Moonalice was the first band broken on social networks. What broke us was 845,000 downloads – and counting – of the single “It’s 4:20 Somewhere.” We’re the band that Mooncasts every show live, via satellite to thousands of fans on iPads, cell phones, and computers. We’re the band that has a unique psychedelic poster for every show. After four years, Moonalice has 371 poster images from the likes of Stanley Mouse, Wes Wilson, and David Singer. Licensing those images will eventually a big business for us. We’re the band that offers the EP of the Month for $5. And we’re the band that uses the latest technology to radically improve both the production cost and commercial value of the content we produce. Now I’m looking for people who want get on this bandwagon with me.

The first question I hope you ask is “Why now?” The world of technology is beginning a period of disruptive change. The old guard – represented in this case by Microsoft Windows and Google search – is under assault and hundreds of billions of dollars may become available for new and better ideas. I hope that gets your attention!!!

The biggest beneficiaries of this disruption should be the people who got the short end of Google’s business model, especially creators of differentiated content. For the past twelve years the technology of the internet has been static. Every tool commoditized content by eliminating differentiation. The most successful companies monetized content created by others. Google was king.

I believe Microsoft and Google are about to get a taste of what the music industry has been dealing with for a decade. Their world is going to change and they won’t be able to stop it. Not so long ago Microsoft’s Windows monopoly gave it control of 96% of internet connected devices. Thanks to smartphones and tables – especially the iPhone and iPad — Windows’ share of internet connected devices has fallen below 50% … and it will fall much further in the years ahead.

Consumers are abandoning Windows as fast as they can. I expect businesses to follow suit.

This is a HUGE deal. Businesses whose employees use smart phones and iPads instead of PCs will save up to $1000 per employee per year in support costs.If corporations buy fewer PCs, they will save tens, if not hundreds of billions per year.

This is happening because today’s strategic applications – email, Facebook, Twitter, LinkedIn, YouTube and other internet applications – don’t need a PC . . . in fact, they are far more useful on a phone.

Microsoft has been in trouble since it first missed the web in 1994. Then it was unable to prevent Google from taking charge in 1998. When Google showed up, the World Wide Web was a wild environment. No one was in charge. The prevailing philosophy was “open source” . . . and free software.

Google had a plan for organizing the web’s information that treated every piece of information as if all were equally valuable. To create order, Google ranked every page based on how many people linked to it.

What we all missed at the time is that by treating every piece of information the same, Google enforced a standard that permitted no differentiation. Every word on every Google page is in the same typeface. No brand images appear other than Google’s. This action essentially neutered the production values of every high end content creator. The Long Tail took off and the music industry got its ass kicked.

Google captured about 80% of the index search business, which gave it a huge percentage of total web advertising. Google’s success eventually filled the web with crap, so consumers began using other products to search: Wikipedia for facts, Facebook for matters of taste, time or money, Twitter for news, Yelp for restaurants, Realtor.com for places to live, LinkedIn for jobs. Over the past three years, these alternatives have gone from 10% of search volume to about half.

As if all this competition wasn’t bad enough for Google, then along came Apple with the iPhone and App Store. Apple offers a fundamentally different vision of the internet than Google. Google is about the long tail, open source, and free, but also had to remove 64 apps from the Android app store for stealing confidential information. Apple is about trusted brands, authority, security, copyright and the like. In Apple’s world, the web is just another app; it is called Safari.

People who have iPhones and iPads do far fewer Google searches than people on PCs. The reason is that Apple has branded, trustworthy apps for everything. If they want news, Apple customers use apps from the New York Times or Wall Street Journal. If they want to know which camera to buy, they ask friends on Facebook. If they want to go to dinner, they use the Yelp app. These searches have economic value and its not going to Google, even on Android.

When Apple and the app model win, Google’s search business loses. Like Microsoft, Google has plenty of business opportunities, but the era of Google controlling all content is over. Consumers compared Google’s open source web to Apple’s app model and they overwhelmingly prefer Apple’s model. Software development and innovation has shifted from “web first” to “iPad first” . . . which is a monster long term advantage. Get this: Apple may sell nearly 100 million internet connected devices this year!

Apple’s strength can be seen best in the iPhone vs. Android competition. There are many Android vendors. Together they sell more phones than Apple does. But Apple gets around $750 wholesale for an iPhone. The other guys get between $300 and $450. This means Apple’s gross margin on the iPhone is nearly as big as its competitors’ gross revenues. Game over.

The other thing that makes Apple amazing is the iPad. No electronic product in history – not even the DVD player – can match the adoption rate of the iPad. Apple may sell another 30 million this year. At this point, the competing products have not put a dent in the iPad. Image what happens if Apple’s share of the tablet market remains closer to the iPod (at 80%) than to the iPhone (20%)?

This sounds like, “Game Over, Apple wins” . . . but it’s not . . . at least, not yet. The open source World Wide Web has finally responded to Apple. A new programming language has come to market called HTML 5. HTML is the foundation of the World Wide Web. For the past decade, HTML has been static, which allowed Google to dominate.

HTML 5 is a new generation of HTML and it changes the game fundamentally. It allows web developers replicate the iPhone experience, but with many extra bells and whistles … and no App Store. One reason HTML 5 matters is because it eliminates Adobe Flash, which has been an inadvertent barrier to creativity

Creativity enables differentiation. Differentiation can be monetized. Huge differentiation can be monetized hugely. With HTML 5, creative people can now use the entire web page as a single canvas. For the first time in a dozen years, web pages will be limited only by the creativity of the people making them. They can create experiences that will be more engaging to consumers and more profitable for advertisers than network television.

New forms of entertainment will emerge. New forms of business. Companies the size of Facebook and Google will develop in categories I can’t guess at. Companies as important as Amazon, iTunes, and Netflix will emerge to support what new content comes to market.

Whether you view Apple as friend or foe, HTML 5 offers real opportunity. Why?

Because you can deliver a better experience than an app . . . without an app. HTML 5 is cheaper to build, cheaper to support, no 30% fee . . . oh, and the apps perform better, too.

I believe Apple’s best response would be to focus on selling hardware and accept that consumers will demand products that happen to bypass the app store. Based on the argument with Amazon, I sense Apple is not ready to concede the point. That’s ironic, because the only way Apple can get hurt would be if they try to force all commerce through the App Store. The would create a real reason for customers to buy a tablet other than iPad.

Let me review my key points so far:

Google and Microsoft will remain huge, but their influence is evaporating, which means we can ignore them

Apple is winning big, which means we have to support their platforms first

For people who make content, Apple is a better monopolist to deal with than Google.

HTML 5 will give you a better product than the Apple app model at a lower cost and with more value.

Now let’s figure out what we can do together. My band Moonalice exists because T Bone Burnett wanted to produce an album of new and original hippie music in the old school San Francisco style. We put together an all-star band with in late 2006 and recorded the album. T Bone was about to win the GRAMMY for the Alison Krauss/Robert Plant album, Raising Sand, so we thought we were made.

We had a budget
We had an A-list PR guy
We had a really fine manager
We had custom label deal with a nice budget
T Bone’s innovative sound technology would make the album cutting edge

Old school music is good. Old school marketing wasn’t going to work for us. About four months before release, I reviewed the media plan with our PR guy. He said, “Sorry, man, but nobody cares.”

A few moments of somber reflection followed. Then, with great regret, I let our manager go. I let our publicist go. I let our label go. For all intents and purposes, we wrote off an album everyone was extremely proud of and which accounted for half of T. Bone’s portfolio the following year when he was nominated for Producer of the Year.

But I freed up most of our operating budget. Real money. And I focused it all on Twitter and Facebook. Our goal was to build an audience of dedicated fans around a Moonalice lifestyle. Three years later, we have 57,000 fans on Facebook and 75,000 on Twitter. We learned a great truth: as hard as it is to get people to spend money, it is much harder to persuade them to spend enough time listening to you to become a long term fan. We traded our music for their time. We discovered we could build an audience by giving away stuff that costs nothing to produce and distribute. These are serious fans who engage with us dozens and often hundreds of times a year.

The first thing we invented was the Twittercast. Before us, no one had ever done a concert over Twitter. Now we have done 103. Our marginal cost is exactly zero. Next we created Moonalice Radio, which has broadcast one song every hour on Twitter for the past two years. Then our drum tech bought a video camera and started recording the shows. Then he bought more cameras, put them on mic stands and started doing live video mixes. About a year ago, he figured out how to mooncast our concerts over the net for free.

Nearly all of our past 100 shows have been mooncast live on MoonaliceTV and then archived. Because we play mostly late shows on the west coast, only 10% of the audience watches in real time. But approximately 3,000 people watch EVERY show on a time shifted basis. Fans like the Moonalice Couch tour because they can chat, make friends, and do things that are not permitted at a live venue. They even buy Couch Tour tee shirts. And they are helping us create a new ecosystem where most of the music is free, because Moonalice art and life style products have huge economic value.

Thanks to HTML 5 and a satellite dish, Mooncasts can now be viewed on a smart phone without an app. Our video quality competes favorably with the best you have seen on an iPhone, and the technology to do all this costs the equivalent of six months of our former manager. He was a really good guy, but a satellite-based tv network is more valuable.

I want to finish up by recommending a course of action for you

Step 1: Remember that HTML 5 is just getting started, but the learning curve is less expensive and more profitable for those who commit to it from the beginning. The new business is going to emerge over a few years, not overnight

Step 2: Don’t wait for the labels to figure this out. Labels are not organized to get this right, which leaves a big hole in the new music market where labels used to be.

Step 3: Don’t wait for major artists to figure it out. The great new stuff is going to come from artists who have nothing to lose. Artists who come out of nowhere will create huge value for next to no cost.

Step 4: Make sure you are successful addressing the needs of next generation content creators … not just listeners. There are WAY more of content creators than you may realize. Thanks to Moore’s Law, Karl Marx is right at last: the means of production are in the hands of the proletariat. At the peak, there were 8 million bands registered on Myspace. They weren’t playing gigs, they were creating stuff, mostly for their own entertainment. Those people spent a lot more money creating the content they posted on Myspace than they did on recorded music. Thanks to Apple’s Garageband, the population of people capable of mixing something is now measured in tens of millions. Making these people successful is the key to creating new markets and new music products.

Step 5: Do everything in your power to encourage new product ideas and new forms of content. HTML 5 is a blank canvas and there is no telling what people will do with it. For all I know, HTML 5 may produce five or even ten amazing categories of product.

Contests, prizes and publicity will give you an opportunity to associate yourself with whoever creates the cool new stuff. If you have local stores, do local events. Think Alan Freed.

Step 6: Near term, focus your platform strategy on Apple.

Step 7: Long term, focus on HTML 5. The sooner you commit to HTML 5, the more likely you will produce something of economic value.

Step 8: Remember that HTML 5 will produce companies as important as Amazon, iTunes, and Netflix. It costs musicians practically nothing to create good digital video and fantastic audio, but they need distribution systems optimized for their content.

Step 9: Make music fun again”

And if that isn’t enough, Roger was kind enough to share with me his thoughts on investing in technology related businesses.  TechInvestingHypotheses

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How Will Musicians Earn Money in the Future?

Here is an excerpt from a great piece from Wyndham Wallace of The Quietus on how the music industry is killing music and blaming the fans. This rather dark opinion is spot on in so many ways and raises some very difficult questions about the future of the music business that most people do not want to talk about.

“All the time the industry talks of money: money it’s lost, money it’s owed. It rarely talks about the effects upon artists, and even less about how music itself might suffer. But no one cares about the suits and their bank accounts except shareholders and bankers. People care about their own money, and the industry not only wanted too much of it but also failed to take care of those who had earned it for them: the musicians. And it’s the latter that people care about. Because People Still Want Good Music.”

“In March this year, for instance, the RIAA – the Recording Industry Association of America – and a group of thirteen record labels went to court in New York in pursuit of a case filed against Limewire in 2006 for copyright infringement. The money owed to them – the labels involved included Sony, Warner Brothers and BMG Music – could be, they argued, as much as $75 trillion. With the world’s GDP in 2011 expected to be around $65 trillion – $10 trillion less – this absurd figure was, quite rightly, laughed out of court by the judge. The RIAA finally announced in mid May that an out of court settlement for the considerably lower sum of $105 million had been agreed with Limewire’s founder.”

What is questionable about all of this is exactly how much of the settlement of $105 million will flow to the musicians, songwriters and producers whose work was the subject of the infringement to begin with. In previous settlements including Napster ($270 million), Bolt ($30 million), Kazaa ($130 million) and MP3.com ($100 million) it is unclear how much, if any, of the money received by the labels ever reached the pockets of the artists. I have yet to see an accounting of this and many managers I have spoken with have simply laughed when I asked the question if they ever received any payment from these settlements. I suppose that proceeds from litigation may be considered recoupable costs.

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

“Still, if an act can find time to do these things, or has the necessary capital to allow others to take care of them on their behalf, then they can hit the road. Touring’s where the money is, the mantra goes, and that’s the best way to sell merchandise too. But this is a similarly hollow promise. For starters, the sheer volume of artists now touring has saturated the market. Ticket prices have gone through the roof for established acts, while those starting out are competing for shows, splitting audiences spoilt for choice, driving down fees paid by promoters nervous about attendance figures. There’s also a finite amount of money that can be spent by most music fans, so if they’re coughing up huge wads of cash for stadium acts then that’s less money available to spend on developing artists. And for every extra show that a reputable artist takes on in order to make up his losses, that’s one show less that a new name might have won.”

“Touring is also expensive. That’s why record labels offered new artists financial backing, albeit in the form of a glorified loan known as ‘tour support’. Transport needs to be paid for, as do fuel, accommodation, food, equipment, tour managers and sound engineers. These costs can mount up very fast, and if each night you’re being paid a small guarantee, or in fact only a cut of the door, then losses incurred can be vast, rarely compensated for by merchandising sales. Again, financial backing of some sort is vital, but these days labels are struggling to provide it. In the past, income from record sales could be offset against these debts, but with that increasingly impossible, new artists will soon find it very hard to tour. Everyone’s a loser, baby.”

From Beck’s ‘Loser’

Forces of evil in a bozo nightmare
Banned all the music with a phony gas chamber
‘Cause one’s got a weasel and the other’s got a flag
One’s got on the pole shove the other in a bag
With the rerun shows and the cocaine nose job
The daytime crap of a folksinger slob
He hung himself with a guitar string

Soy un perdidor
I’m a loser baby, so why don’t you kill me?
(Know what I’m sayin?)

“Whether the industry likes it or not, music is now like water: it streams into homes, it pours forth in cafés, it trickles past in the street as it leaks from shops and restaurants. Unlike water, music isn’t a basic human right, but the public is now accustomed to its almost universal presence and accessibility. Yet the public is asked to pay for every track consumed, while the use of water tends to be charged at a fixed rate rather than drop by drop: exactly how much is consumed is less important than the fact that customers contribute to its provision. Telling people that profit margins are at stake doesn’t speak to the average music fan, but explaining how the quality of the music they enjoy is going to deteriorate, just as water would become muddy and undrinkable if no one invested in it, might encourage them to participate in the funding of its future. So since downloading music is now as easy as turning on a tap, charging for it in a similar fashion seems like a realistic, wide-reaching solution. And just as some people choose to invest in high-end water products, insisting on fancy packaging, better quality product and an enhanced experience, so some will continue to purchase a more enduring musical package. Others will settle for mp3s just as they settle for tap water. Calculating how rights holders should be accurately paid for such use of music is obviously complicated but far from impossible, and current accounting methods – which anyone who has been involved with record labels can tell you aren’t exactly failsafe – are clearly failing to bring in the cash.”

“The problem is, it’s not really the industry that is being cheated. It’s the artists and their fans. People get what they pay for, but – whatever the industry claims – most fans know that. They just don’t want to hear the businessmen fiddle while the musicians are being burnt. Revenues are unlikely ever again to reach the levels of the business’ formerly lucrative glory days, but in its stubborn refusal to recognise that both the playing field and the rules themselves have been irreversibly redefined without their permission, the industry is holding out for something that is no longer viable. Lower income is better than no income, and the industry has surely watched the money dwindling for long enough. Musicians, meanwhile, are being asked to make more and more compromises as they’re forced to put money ahead of their art on a previously unprecedented scale.”

Read the whole ugly story here at The Quietus.

The comments alone tell the sad story of the state of affairs in the music industry today.

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Making a Living as an Artist in the Future

Photo by Robert Couse-Baker on Flickr

Photo by Robert Couse-Baker on Flickr

From the Wharton School, an article on the new economics of life for creators and how they will be compensated in the future.

Making a living as an artist has never been easy — whether in film, music or publishing. But the digital revolution — and to a lesser extent, the global economic crisis of the last two years — is transforming the business of content creation. One of the biggest shifts is in how filmmakers, musicians and writers are compensated. There is an evolving relationship between creator and publisher in which the artist bears a larger percentage of the upfront costs for the production and marketing of his or her work. In this new world, artists’ pay is based to a greater degree on how their product sells in the marketplace, a change that has major implications for the content creators themselves, large firms like Hollywood studios and music labels, and consumers.

“In the past, it used to be the case that content creators got paid the bulk of their salary in advance and whoever made that payment — whether it was the music label, the book publisher or the studio — would take on the risk of marketing and distributing that product,” says Kartik Hosanagar, a Wharton professor of operations and information management. “If [the project] was a success, [the publishers, studios, etc.] kept the upside, and if it was a failure, they bore that failure. Now the upside — or downside — is shared with the content creator.”

This shift is largely driven by the move away from shipping physical products toward increasing digital distribution. In music, the threat of digital piracy has made the business of selling songs more challenging, even as the shift from album sales to digital singles has further undermined traditional revenue streams in the music industry. In film, the decline in home entertainment revenues as consumers switch from DVD purchases to online streaming video has also put pressure on profits. And in book publishing and journalism, the move toward e-readers and online news platforms where revenue models are still in flux has created additional uncertainty. The difficulty in predicting the profitability of these products, Hosanagar notes, means that marketers are trying to shift their cost base. “A lot of firms are asking, ‘How do we move from fixed costs to variable costs?'” he adds. “That makes a lot of sense when you have unpredictable returns.”

In the music industry, the pressures on the business model have been even more intense. Ed Pierson, a Seattle-based attorney who represents musicians, says the 1990s were the heyday of big advances for musicians. According to Pierson, easy credit and a war for talent led labels to pay escalating upfront fees to musicians. But as music sales began declining, in part due to piracy and digital downloads that allowed consumers to buy just the songs they wanted and not the entire album, the flush times came to an end. The result these days, notes Pierson, is that labels are making fewer advances and the upfront money they do dole out is smaller.

Artists have responded by taking greater control of their business. “The risk is shifting away from the label and toward the artist,” says David Kusek, chief executive officer of online music school Berkleemusic.com and a digital music technologist. Some big names, including the Dave Matthews Band or the Eagles, have created their own recording labels. Lesser known artists have been forced to become entrepreneurs of sorts. Kusek points to firms like ReverbNation and Top Spin Media that have sprung up to help artists sell their music on platforms like iTunes, to promote a group or artist, or to help sell merchandise. Those firms, in many cases, will charge a small upfront fee and then get a cut of the sales the act generates. “It is a different gamble now,” adds Wharton’s Whitehouse. “The corporate players may be gambling a bit less and the artists may be gambling a bit more. But those artists can now have more control over their work than they did before.”

Read the whole article here.

Listen to the podcast here.

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Direct to Profit – Trends in the Music Industry

Photo credit: http://bit.ly/17JbZsJ

Photo credit: http://bit.ly/17JbZsJ

Last Friday I was interviewed by Dr. Amy Vanderbilt @DrAmyVanderbilt from the Trend POV Show where we discussed the changing distribution in the music industry and what it means for businesses everywhere.  Here you go:

http://www.trendpov.com//sites/all/modules/swftools/shared/flash_media_player/player-viral.swf

Check out lots of great interviews on trends in business at Trend POV.