This will be the first in a multi-part series on how to navigate the waters of Music 2.0 using the limited financial resources available to a new band, indie or management company. What I'm hoping to do is to formulate an action plan for the new artist using real business techniques as well as emphasizing the limitations of the "old" music biz and it's methods - such as the reliance on CD sales and inflated importance of chart rankings. We'll explore why these things just aren't relevant anymore, and why this is good for you.
For this first entry, I thought it would be appropriate to highlight some core values - my strongest recommendations - before you begin to put yourself out there and begin your venture:
#1. Your mailing list is PRICELESS!!!
Begin constructing your mailing list - emails, addresses, phone numbers, screen names - NOW! Do not wait. These are going to be the people you work for. This is your core fanbase. These are the folks that will keep your career afloat because they believe in you! Treat the list like GOLD and keep building it. Your list represents a targeted group of consumers who have already expressed their appreciation just by signing up. They know who you are. They're into you. These are the people you will OVERDELIVER to - beyond their expectations!
#2. Build community before commerce. The Trust Component.
In music, you're in the business of hearts and minds. Build a relationship with your fans FIRST, and everything else with follow. Invite their input - give things to them for free - make them feel exclusive. You are building a town placing yourself as the mayor. Make sure to get the support of your constituents by any means neccessary.
#3. Songs should be forever - but not recordings.
When it finally comes down to recording your music, look at the big picture. The CD is dying (dead.). Why? Hell, there are so many reasons that I can barely conceive of them all. My opinion? The labels intent was always for you to RENT the music, not to OWN it. [I'll be sure to explain this later.] Give your music away. Once you record it, send out the MP3s to everyone on your list for free. If you insist on printing CDs, hand them out for promotion too. Make sure you use this valuable opportunity to GROW your mailing list. Free music is not only a great incentive for an email address, but it helps build community and goodwill with a new potential fan. It's probably the best way to bring people into your circle!
By now it should be obvious what the common denominator is: FANS!
Treat them like family - ignore them at your peril.
100 Careers In The Music Business
You are in the Touring (Gig) Industry, make no mistake.
Your mission, should you choose to accept it, is to get as many bodies through the doors of your show as possible.
Then, get them on the list. Then, give them things. Then, sell them things. Then get their friends on the list...
Friends? Yup.
What do you do if you want to see a movie? Most people will read a review or ask a friend's advice. Most people want an endorsement of some kind before they can get into it. Even if they've never heard of the movie, chances are they'll go based on the buzz generated by someone else's opinion.
You have your list - your targeted group of consumers. Lets use these people as marketing "hubs". Think of them as the center of a bicycle wheel and their friends as the spokes. It will be a good idea to incentivize your list to get their friends in the fold as well.
Now that we got the lingo down...
The best way to incentivize your hubs will be to either a.) bring them closer or b.) give them things.
Try offering a free t-shirt for each fan that gives you the mailing address of 5 friends. You can then send these 5 each a free CD. From there, the process will continue with these people as well as you continue to incentivize THEM in turn.
So, how long do your keep doing this? Let's stop the giving at 1000 and get into marketing a solid product for purchase - which I'll get into later.
If you're wondering if the cost of 1000 CDs and 200 T-shirts are worth 1000 fans, the answer is YES!
What I do is consider the LIFETIME VALUE of each fan. If you treat them right, their investment in your music won't end with just 1 CD or show, or t-shirt. It will be helpful to think of Lifetime Value in order to draft your long-term marketing plan. And NO, it's not as dry as it sounds - it just makes good sense to do a little thinking, if not planning.
A Little Math
1000 promo CDs, copied and printed at home: $1000
200 T-shirts @ $3.50 per: $700
Total fan investment: $1700 / 1000 fans = $1.7 per fan.
You can call this your Aquisition Cost.
We'll now have to do a bit of estimating in order to figure out each fan's Lifetime Value:
Let's say you play 1 show every 2 months in your town. It's safe to think that if you communicate with your fans effectively, 7-10% may show up at each show.
6 shows per year, 70 fans per show, $5 cover charge: $2100
$2100 / 1000 fans = $2.10 per fan.
That's without merchandise sales, without marketing A SINGLE ITEM to your fans. You've turned a profit - albeit a small one.
Hell, your break even point is only $1.70 - that's only 57 bodies a show. ONLY 5.7% OF YOUR MAILING LIST!!!
Meanwhile you're building goodwill and loyalty which will last alot longer than you realize.
Fan Incentive Idea
Make sure this gets out to as many non-fans as possible. Hopefully before each show, you've hung posters in as many places as you can, advertising the gig. Hold a contest where you give away (free is good!) something cool to the person that takes a photo of themselves doing something crazy in front of your poster. (Pick a few winners) Let them know that they can email the photos to you, or send them via postal mail. Either way, you now have a form of return addresss in which to contact these people again because you'll need to now where to send their prize. More fans, more marketing hubs, more goodwill, more loyalty, more people at your shows, more fans, more LIFETIME VALUE per fan.
Folks, that's not how you build a band, that's how you build an enterprise.
That's how you make a LIFE in the New Music Business!
Aaron Trubic has sinced written about articles on various topics from Keyboard Synthesizer, Music and Interest. Some have called Aaron a "new music philosopher" for his writings on recording industry practices and the evolution of digital music. A believer in the Free Music Philoso. Aaron Trubic's top article generates over 60500 views. Bookmark Aaron Trubic to your Favourites.
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