I am beginning a new series of blog posts regarding the new music industry.  In it I will layout some definitions, myths, and truths as they pertain to the music industry, record industry, radio industry, and more.  These industries are notorious for confusing the musicians, fans, and businesses that work in them.  Let’s try to get some things cleared up.

First, the music industry is not the record industry. Let’s get that straight. The music industry is comprised of musicians; the record industry is made up of corporations and business people.

Secondly, CD sales do not mean the music industry is in a dismal state.  The way that the numbers are skewed is ridiculous.  Rather, the music industry is booming. The major labels want you to believe that they are a product of the economy and the piracy issue.  Even the state of radio has changed dramatically.  We have changed the way we as listeners consume music.  We have changed the way we hear about new music.  Failing companies have tried to change their models while others have stuck to their guns.  The bottom line is that the fans won’t wait for them to catch up.

How many new artists did you hear in 2010 compared to new artists in 1996? The music industry is alive and thriving, regardless of what you read about music downloads and CD sales or radio.  Let’s talk about the condition of radio.

1996

The number of commercial radio stations? Roughly 6,100.

In 1996 the top ten radio companies controlled only 600 or so radio stations.

2010

The number of commercial radio stations? 6,479.  That’s an increase of just over 300 new stations.

Today Clear Channel owns more than 800 radio stations.

One company today controls more radio than the top ten companies of 1996 combined.

I am not happy with the current way that radio stations are run. The majority of major market radio stations nation-wide (USA) are owned by Clear Channel, reaching the majority of the country. I would classify that as a monopoly. Fifteen years ago there was diversity among the markets. Today, the stations are owned by a few large corporations and play the same tracks by the same artists all day long, all over the country.

Number of markets reached by radio in 2008

I for one do not like to be “sold” something. Especially music. I like what I like. I don’t need some major record label spending millions of dollars to tell me why I should buy the latest pop record that the 13 year old girls are buying. I will go to shows, talk with friends, and work with artists. These are a select few ways I find new music.  On a side note, here’s a related post I wrote on buying songs versus buying artists.  Remember that the music industry is changing daily.  Bands need to find new ways to make a dollar.  We all know at this point that it’s not going to be from your next album.  It will be from partnerships, collaborations, integration, and networking.

There is little chance for an independent artist to get serious exposure on the radio without being endeared by Clear Channel. The upside to this situation is that the radio stations in their current format, and as we know them, are on their way out, just as are the major record labels.  The music industry is changing, not dying.

If you haven’t noticed, Internet radio, Pandora, AOL Radio, Shazam, Last.fm, and other digital music outlets are exploding.  These platforms are affecting the way we consume music.  Why would someone listen to a Top 40 station anymore when they can pull up Pandora and have a highly customized library of music literally catered to them?  Why buy a physical CD when you can have your music streamed to you anytime and anywhere?  Services like these are intelligent and adaptive. This is what makes them appealing. Major record labels, and in turn major radio, tells us what to listen to. The digital platforms allow us to decide what we listen to. Pandora and similar platforms listen to the user and adapt. They are embracing social media in its truest sense, encouraging constant communication from both sides.

The old way of doing things is changing.  Major record labels, FM radio, and traditional print advertising will never cease to exist completely. They will, however, cease to be the norm.  CD sales are declining.  Radio is becoming just one big playlist.  Illegal downloads are thriving.  Yet in spite of this we are discovering new working bands on a daily basis and purchasing their music, tickets, and merchandise.

The music industry IS NOT the record industry.  The record industry as well as radio are losing out.  The music will prevail.

That’s a wrap for the first post in the series titled “The New Music Industry Series”.  Coming up, I’ll be writing about how an artist can make money and survive in the new industry without a record label, how to use social media as a band, whether or not you need a manager, and much more.

Here’s my short list.  It is in no way exhaustive, though.  I will be doing more in depth posts on some of these topics in the future, so get the RSS feed now!

6. Have some talent.

You don’t have to be the best, but at least try.  And if you don’t have any talent but have lots of passion, try another part of the music industry like management.  Just because you’re not cut out to be in a band does not mean you can’t have an integral part in the industry.

5.  Create a roadmap of where you’re going and how you’ll get there.

Take out a piece of paper and on one side put “I’m Here”.  On the other side, make a circle with wherever it is that you want to be.  Connect the two with a line and then put hash tags with “checkpoints”: people to meet, certain number of shows to play, marketing goals, etc.

Make sure that you stick to your roadmap.  Otherwise you’re likely to get lost on your trip and wind up playing cover songs in local bars for the next 20 years.  While that may pay the bills, it probably wasn’t the destination circled at the end of your roadmap.

4.  Cut a quality demo of some of your tracks.

You’ll want to put your best foot forward, so only showcase your best material.  Book time at a real recording studio and go into the studio practiced and prepared.  Don’t try to cut corners and do it yourself.  Choose some songs that show your ability.  You never know who you’ll run into that might be interested in your sound.  Speaking of…

3.  Network and surround yourself with other people who are likeminded and serious.

These people may see some potential in you and take you under their wing.  If they see that you are also serious about what you do, you stand a better chance.  Always have business cards and a copy or three of the aforementioned demo with you.  You’ll run into people in the most unlikely of places.  Be prepared.

2.  Run your band like a business, not a party.

Consult with a music attorney (here’s one – Kenan Farrell in Indianapolis) and they will help you determine how to form your business, tax guidelines, help you copyright your songs, and more.  That person can give you great advice on ways to navigate the industry and keep your head above water.  It will be much easier to take care of these details now as opposed to years down the road after things have gotten more complex.

1.  Take yourself seriously.

If you don’t, no one else will.

As I mentioned, that is the short list.  Obviously there’s a lot more to it, but if you start with these points, you’ll be well on your way.  Good music, passion, and persistance are what will get you through.  Knowing people and being in the right place at the right time can also have a helping hand.  That ties right into point #3, so you’re covered.

Go out, make a plan, and drive till you get to your destination.

Cheers,

Josh W.

The surface answer would be that the labels are taking all of the money for themselves. How much are they taking? How much does the artist get? It varies from artist and label, but typically it’s to the tune of pennies per album sold to the artist and the rest is divided up between the label, management, producer, etc. That huge advance that the artist got for signing a contract? That’s not really their money. The label just loaned it to the artist so they could make a record and eat for a couple of months while doing it. The band has to pay all that money back. Meaning usually they need to go platinum before they even see a penny in profits.

We need to make sure that we don’t just believe whatever it is that we’re told.  There’s always a spin on just about any argument.  So are digital downloads robbing the music industry blind?  I believe that the industry has taken awhile to realize that there are adaptations that need to happen in order to appeal to the consumer and still turn a profit.  If people are downloading music illegally, find a way to capitalize on it.  And lawsuits are the worst way to try and make your money back.

Is the RIAA For Real?

The Recording Industry Association of America (RIAA) has been complaining for years now that illegal downloads were killing their CD sales. Sure, I can believe that.  But are they really hurting that badly in comparision to the independent labels that are trying to sell albums to the same consumer base?  You tell me.  Just look at the major record labels share of the market below.

Image from http://wikipedia.com

But then they started complaining the legitimate digital downloads are the cause of the decline in CD sales. Really? Maybe they need to restructure their sales pipeline and focus more on what people are actually buying in that case. Just a thought.  The RIAA and major record labels should have struck a deal with Napster right off the bat to develop a system where everyone wins.  The Electronic Frontier Foundation has put some serious thought into such a system.  A system where you can download all the music you want and the artists still get paid.

Have the record labels considered that the rest of the country is in a recession?  They’re not the only companies losing money!  Consumers will buy less products overall and opt for cheaper alternatives, i.e. iTunes, Rhapsody, and other digital music services when their dollar doesn’t stretch as far?  Not to mention that it’s easier to acquire these digital files in the first place.  No hopping in the car and driving to the store, only to find out that they don’t have it in stock.

The Downward Spiral

Image from http://money.cnn.com

When cassette tapes started being outnumbered in sales to CDs, did the industry try to keep pushing tapes? Or did they instead start manufacturing more CDs and releasing older albums in CD format? They embraced the new format and pushed it (while hiking the cost each year, of course).  How are they making up the difference?  If you want to take a look at their year-end physical CD shipment numbers, they’ll charge you.  If the labels are being hurt by digital downloads, and their sales numbers and cost per unit reflected that, why not make this information free to the public instead of charging $25 for a week of access just to view the very data that could corroborate their claims?  That’s one way they’re trying to make up some lost sales.  Another is by suing people for downloading music online.  We’ve seen time and again where the RIAA slams a huge fine on a person and then spends five times that amount in litigation costs.

While the record labels are claiming a decline in sales due to pirated music, the RIAA then turns around and spends almost $1.4M in lobbying costs in the second quarter of 2010!  Seriously?  They’re dumping millions into lawsuits that only return a couple thousand dollars per settlement, all in the name of “making an example out of someone.”  Are these “examples” working?  Apparently not. (Note: They also forget to mention that one of their top label executive’s very own children were pirating music illegally. I didn’t see the news article on that one.) The RIAA has abandoned its peer-to-peer monitoring and is instead now working with Internet Service Providers (Comcast, Verizon, etc) to deter pirating.

I am a big proponent of artists and musicians being fairly compensated.  An industry group or third party organization can be a great thing for all musicians and everyone involved in the music industry.  Is the RIAA that organization?  I do not believe it is.  They’re deteriorating and not adapting to the ever changing industry like they should be.  As a result, the artists have been conceiving their own ways to further their careers.

I’m here for the artsist.  I love working with independent musicians.  And I will continue to keep a pulse on the industry that I work in.  All of you artists are too busy creating music and trying to avoid being taken advantage of.  Let me help.

Cheers,

Josh

Recently I was listening to a podcast in which Tom Silverman of Tommy Boy Entertainment was talking about the music industry and album sales. He touched on the idea of “buying songs vs. buying artists.”

When you go to the record store (wait, what’s that?  I thought those were mythical places that people only dreamed of) or iTunes, what music are you buying?  Are you buying the stuff that you’ve loved your entire life, or songs that you have heard ten times a day for the last three weeks?  Are you getting the Top 40, or are you getting the latest stuff that nobody else has heard of?  Do you buy music for the content and what the artist stands for, or do you buy it because it’s the coolest new thing?

A Look at the Numbers

The Recording Industry Association of America (RIAA) posts some key information on their website.  This is important when considering trends in the music industry because it helps show how different mediums or formats are doing in their respective sales.  According to the RIAA:

CD singles have decreased by 12.5% ($3,500,000 to $3,100,000) from 2008 to 2009, while digital download purchases increased by 20.2% ($1,032,200,000 to $1,220,300,000).

Full-length album sales for CDs decreased 21.9% ($5,471,300,000 to $4,274,100,000), while digital download purchases increased 18.2% ($635,300,000 to $763,400,000).

What does this mean?  It means that more people are buying digital formats over physical CDs.  As for overall sales, physical CDs are bought in full-length albums more often than singles, while digital downloads are more often single songs than full-length albums.  Physical CD full-length album sales still make up the majority of sales in the industry from a dollar standpoint.  I’m not going to get into it in this post, but there are many factors that impact these sales numbers.  When you’re comparing physical goods to digital goods, you really need to take into consideration manufacturing, shipping, and general overhead costs.  You don’t have nearly as much costs involved with a digital product.  Again, that is another post for another time!

Buying Songs

So, what exactly does “buying songs” mean?  To start, we need to realize that it’s how people perceive the music they listen to.  Is it a commodity like a bottle of soda, or is it a piece of art like a painting?  Let’s try to be objective while defining this:
If you listen to the radio, and especially Top 40, you’re being sold on songs.  Not artists.  The record labels do their research on various demographics and attempt to create an artist and sound that will appeal to that market.  Instead of letting the people choose by way of calling in to radio stations, buying tickets to shows, and showing their support, the labels are increasingly packaging artists to look, act, and sound a certain way.  Then they are marketed to a particular audience and pumped up on the radio stations.  When a 14-year old girl hears the same song over and over on the radio, she makes the assumption that it must be good if it’s being played so much.  People must be calling in to request it, right?  So what does she do?  She calls in and requests it.  Downloads it on iTunes.  And repeats the process with the next song.  She doesn’t buy the full album because she could care less about the other songs on the album.  The rest of the album isn’t being played on the radio.  That one song is.  And that’s what she wants.  Just like that pair of shoes or some McDonald’s.

People who buy songs listen to the radio.

How, then, does this impact the sales for an artist? For an artist on a major label, chances are his or her singles are being purchased much more than his or her full album.  The musician is not making money because the kids are only buying one song at 99 cents (most of which goes to the label, management, producer, etc).  The label gives the group tour support so that the artist can make a couple bucks doing shows, though.  So the musician goes out on the road to support his or her album, most of which a lot of people probably haven’t even heard because they only bought the single.  It seems as though buying singles wouldn’t be as beneficial to the artist as buying an entire album.  Or better yet, going to his or her show and buying the full album.

Buying Artists

People that buy artists are supporting them.  They show that they enjoy the art that these musicians are creating.  By purchasing full albums, we get to experience the full intentions of that artist.  Many albums are written that have a dynamic flow to them from song to song.  I’m all for buying a single of a new group if you’re not quite sure whether or not you like them.  But if you’ve heard the group before and like them, why not buy the full album?  You often get a discount, especially when you go and get the digital format.  On iTunes, single releases range from $0.99 cents to $1.29.  For instance, Timbaland has an album on iTunes.  ”Shock Value II” is 17 tracks (There’s also a 13 track album by the same name).  Each track individually costs $1.29, bringing the total of all songs on his album to $21.93.  But, if you purchase the full album, all at one time, digitally, you’re looking at $12.99 on iTunes.  That’s a savings of $8.94, or almost 41%!  It only makes financial sense to buy the whole album in that case.  Additionally, you as the listener become exposed to more of the artist’s creativity, hearing things you may very well appreciate even more than the single you heard on the radio.

So, what about fan loyalty?  How does that compare with the current Top 40?  If I show you that it’s on the top of the charts, then it must be good, right? Seriously, though.  Take 10 songs from the top 40 and pull them out.  Pretend with me for a second that these were artists you’d never heard of.  Strip away the large marketing budget.  Disable the Autotune on the vocals.  In many cases, the opinion of the general public would probably change.  (But now we’re getting into reasons why artists are artists, and that’s an entirely separate blog.)

Now, take your favorite band that is playing in your home town this weekend.  They work 9-5′s, practice in the evenings, and drive themselves to their shows every weekend.  They are truly talented musicians writing great music that really connects with their fans.  Why aren’t they in the Top 40?  Because the labels have determined that you won’t like them.  Or more accurately, they’ve determined that the 14 year-old girl who will buy the music won’t like them.  And by “determined,” I mean, “we have had our decision made for us.” And those decisions aren’t always based on quality of music as much as profit potential (again, an entirely separate blog).

Conclusion

So, is it better as an artist to push your singles, or your full album?   That depends, really.  It depends on how the pay structure is broken down, who you have to pay before you get paid, whether your fans are more likely to buy singles or albums, and a whole lot more.  One thing to keep in mind, though, is how iTunes works.  For example, Apple will not let you sell your album in its iTunes store unless you make each of the individual tracks available for single sale.  Which isn’t necessarily a bad thing.

Did you realize that there are artists who don’t release their albums on iTunes or break them down into single tracks?  Kid Rock, AC/DC, The Beatles, Tool, Jay-Z, and more have not released their albums on iTunes.  The usual reason for not selling their music on iTunes? They want their album sold as one piece of work to represent their musical creativity, not split into many fractions.  As a musician, I completely appreciate where they’re coming from.  Tool’s latest release, “10,000 Days” is a perfect example of the previous statement.  After listening to that album I realized very quickly that they had written the entire album with each song in mind.  In an interview between Guitar World and Tool guitarist Adam Jones, they talk about the full album in this way:

“[The songs] start in one place, go somewhere else, and end in a completely different place altogether. It’s as if the songs are telling a story in a linear fashion.”

Think for a moment about the last time you heard a song on the radio, in a friend’s car, or in a restaurant.  A song you’d never heard before.  Perhaps you found out who that artist was and found them for sale online, only to realize that you had to buy the full album in order to get that one song that you’d heard.

Now, say you went on over to iTunes and found that same album for sale digitally.  But you also had the option to purchase the one song that you’d heard.  You buy it for 99 cents (or $1.29) and listen to it for a few days.  Then you go back to iTunes and buy the whole album because you liked that single so much.

Obviously it varies from person to person and artist to artist, but I do believe that it is a good thing to purchase singles and then go back and get the entire album. There are many positive benefits to buying full albums from the beginning. You become an invested fan; you almost feel a sense of  ownership in that artist’s creative output.  I’d say that the tendency to really hear the artist’s music increases when you’re listening to the other songs on the album, when you’re critiquing their work.  But what if you buy a full album and you’re sorely disappointed?  Well, first of all, you probably wouldn’t have bought the album if you hadn’t heard at least one good song you liked.  Secondly, you now have a well-rounded perspective of the band and who they really are.  Plus, at least you made that judgment call yourself–you were able to base your opinion off of your own perspective. If more fans were music critics instead of radio junkies, I’d guess that our world of music, as we know it, would be drastically different.

Conclusion? Stop buying songs and instead buy artists.   Support the artists that you like.  Don’t buy music for the sake of buying music, either.  Don’t get the song because you want to have it at the next party so people think you’re cool, which leads you to create a party mix of overrated musicians just because they get played on your local Top 40 station every hour.  Critique musicians like you critique ball players or actors or politicians. Get music that you like, that connects with you.  Music that moves you and makes sense to you.  Don’t settle for less.

Thanks for reading, guys!  Let’s hear your thoughts and feedback now.

1: How does music affect a person?

Music is just as powerful as smells, sights, and the sensation of touch.  I might even go so far as to say that music is more powerful than the other senses in terms of emotions.  It has the ability to affect our mood  When we have emotional ties to a situation, our brain will associate whatever we were listening to with that emotion. This is why certain songs conjure up feelings of sadness (a song that was on the radio when your girlfriend broke up with you or when your dog died), feelings of happiness (the very next song you heard when you found out that you got first place in something), or just simple reminiscing (songs that you used to listen to when you were younger or lived in a different place).  Music also has the ability to affect us in conjunction with our sense of sight.  If you’re watching a movie, music plays just as important a role as what you’re seeing on screen. It helps take you up and bring you down with the mood of the actors. It can evoke feelings of sadness that the actors are feeling or make you anxious along with them.  Or it helps build suspense and puts you on the edge of your seat. The sounds attached to the screen are powerful tools that build dynamics and ensure that your emotions are going in the direction the filmmakers intended.  Music is powerful!

2: What are some brief issues when downloading music illegally?

By “sharing” files and then propagating those to even more people (without paying), you are literally stealing from the artists, labels, and management companies. Sure, nobody wants the major labels to make any more money than they already are without justly compensating their artists, but the bottom line is that it’s stealing. Period. The artists don’t always make much money as it is, but by using online services (or even swapping external hard drives), we are cheapening the music. We are saying to the artists that their music isn’t worth our 99 cents. We pay $1.50 for a bottle of water, but we won’t pay $1 for a song that we really, truly appreciate? There is something very wrong with this. Pay for the music you consume. Get rid of the illegal music that you’ve traded online or borrowed other peoples CDs. It’s hard, but it’s the right thing to do. If you were a painter, you wouldn’t paint for free and pass out your artwork to thousands of people without expecting even $1 for it. Come on, people. You’d hate it if it happened to you, yet it happens every day. Do something about it.  Don’t help the industry crumble even more; the major labels are taking care of that.  We need to help compensate the artists with what they deserve so that after the industry has evolved into its next form, the artists will still be there.

3: Do we spend too much time listening to music?

I don’t believe so. You can listen to music while driving, working, studying, working out, sleeping, and eating. It helps to pass the time, and often encourages creative thought. At the same time, music can be mathematical and highly structured.  This is one reason that so many people in so many different walks of life appreciate it.  It’s a common bond between us.  It helps break the ice in conversation.  But with all things, one can consume too much.  It becomes too much when we replace conversation with human beings with music.

These are my quick thoughts on the three questions my friend presented me.  I hope they spark some interest in you as they did me!

Cheers,

Josh Walker

If you live anywhere in Indiana, this website is a good place to get your quotes from.  But if you live in Northwest Indiana and are looking for auto insurance in Porter or Lake County, this site is a must.   And if you’re looking for homeowners insurance in Hobart, Valparaiso, or Chesterton, they’ve got you covered.  They’ve recently come online and have been active at ensuring that their readers are getting tips and information on ways to save money on auto insurance.  And NWI Quotes does a great job of engaging the community.  For example, they recently gave away gift certificates to area restaurants to winners who simply filled out an online insurance quote form.  A man looking for Hobart auto insurance won himself a free dinner just by filling out a free quote request.  He also got three great quotes that were tailored to his needs.  So, not only do they make it easy to get a quote, they help you have fun doing it.

If you’re in the market for an insurance quote, do yourself a favor and contact NWI Quotes.  It’s a free service, and you’ll be happy you did.

Thanks for taking the time to read.  I hope you all are enjoying the variety of posts here.  Make sure you’re checking back often because you never know what you might miss!

Till next time,

Josh Walker

Which leads me to the reason for this post: you need relationships with people of all professions.

Being an entrepreneur, I don’t have a legal team at my disposal.  A useful way I find information is by researching my issues online, which can be a great asset but also a breeding ground for false information.  That’s one reason I find and rely the same few trusted online sources.

One of the sources I’ve found to be most reliable for legal news and information is the NWI Lawyer blog, especially for news pertaining to law and various topics in Northwest Indiana.  I like to know what’s happening in my community and region, and I’ve found this source to be a very reliable outlet for stories and updates in the area.  Not only does NWI Lawyer post frequently, but they also put out useful information for other attorneys and lawyers.

NWI Lawyer informs and assists people in a myriad of matters concerning their lives, from driving on suspended licenses to divorce cases to general news on the judicial system.  This site keeps a fantastic pulse on the current situations developing not only in Northwest Indiana but in the general Region as well.

In addition to the posts and information on the blog, which I’ve read and found them both interesting and informative, there’s also a useful side bar of even more helpful links.

I am an audio engineer, not a lawyer.  But I do know that there are times when I will have questions regarding law and legalities.  This site is the first place I’ll go to for information.  I know there are hundreds, even thousands, of websites and blogs dedicated to law and such,  but I have yet to come across one that is more accurate and up to date than NWI Lawyer.  If you need local and regional information or want to see what’s happening in your community, you need to keep up with the NWI Lawyer blog.  If you are a lawyer or attorney, you should also check out the blog.  If you live in Northwest Indiana, you should check it out.  It never hurts to know what’s going on.  You can view the blog here or by typing http://nwilawyer.blogspot.com/ into your browser.

That’s where knowing people can benefit everyone.  You never know when their resources and knowledge will come in handy.  With that, I encourage you to get to know the people in your community.  Help them out, and in turn they will help you.

Your old/new friend goes on to describe their dilemma and the fact that they actually happen to have a great need for your “XYZ” service.  So the two of you decide to schedule a time to get together for coffee to talk about how you can collaborate.  You go home happy that you’re just a cup of joe away from sealing another deal and making a couple bucks, all the while getting to help an old/new friend.

As time leads up to the meeting, you quickly jot down a couple of ideas and points that you really want to hit before the deed is done.  Things like overall cost, timeline, and other details.  You might even go so far as to search Google, Twitter, Facebook, and Linked In for your old/new friend.  You make a mental note of any sort of news or related data that would be useful.  And you grab your keys and wallet and head out the door.

The meeting couldn’t have gone better; you talked to them about how you could benefit them, and they expressed a lot of interest in having your help.  They give you an outline of what they’re looking for and ask you that dreaded question, “So, how much will that cost?”

Think before you answer.  You have approximately 17 milliseconds to decide the fate of you and your old/new friend’s new business (and personal) relationship.  The next words to come out of your mouth may very well be what dictates the coming weeks and months of your business with this person.  The road leading you to this fork was inevitible.  However, you are now forced to make a decision.  It will play out one of two ways:

Pathway 1: Your old/new friend has just asked you how much it will cost for you to provide them with “XYZ.”  The friend side of you is trying to justify doing it for cheap.  You don’t want to scare them, offend them, or confuse them.  You certainly don’t want to say something that may cause them to never talk to you again.  And your professional side is vying for your attention, all the while screaming, “Full and normal cost structure!  Charge them what it’s worth!”  You weigh the two against each other and come out somewhere in the middle.

You’ve decided that you will respond to your old/new friend and tell them it will cost $XXX.  The look on their face implies satisfaction mixed with a hint of surprise (that it’s so cheap).  You both shake hands and part ways, happy that you’ve left the meeting at an agreement.

The outcome:  You were forced to give a response.  This is typical of an asked question.  You chose to give a response that had a figure attached to it.  Not good. By breaking under the pressure of a required response, you sold yourself short and gave them an unnecessary discount simply because you felt rushed.  You probably felt that if you told them you couldn’t quote them right then and there that you might lose the sale.  The fact that you’re sitting with them and they’re your old/new friend should tell you that they aren’t going anywhere.  If you would have gone with Pathway 2 it would have shown them another level of professionalism and efficiency.

Pathway 2:  Your old/new friend has just dropped the “How Much?” bomb on you and this is just your first meeting to discuss the simple possibility of even taking on the project.  You were certainly not prepared to actually tell them how much it would cost; you did, however, come to the meeting knowing what ballpark you would charge them, assuming the project fell within the guidelines that you had previously deduced from talking and researching.

If you’ve chosen this pathway, you won’t even attempt to run the numbers in your head.  Instead, you let them know that there is a bit more criteria that you’ll need to gather from them and that you’ll then be able to let them know your quote.  Tell them, “Right now is just too soon to affix a cost.  I need to know a little more about your project and needs to be able to accurately and confidently quote it.” This shows them that you’re serious and interested.  It also shows them that you don’t run headfirst into anything before analyzing the costs, risks, and benefits of a project.

The outcome: After you’ve responded and they’ve shown their understanding, you set up another meeting, either over the phone or in person.  This meeting is specifically to nail down the fine details that will dictate your price.  Then, after you’ve left the meeting and had time to evaluate your notes and estimate your time, money, energy, materials, and other costs, you will give them an official proposal.  This proposal outlines everything from the overall project, how to accomplish the clients goals, a real and actual cost, and an associated timeline.  This is something real and concrete that they can refer back to.

Time goes by and you’ve made it halfway through the project.  You realize that it’s taking longer to accomplish or more of your resources.  Looking back at the proposal (that you both signed), you recall the part that says the overall cost may be affected by unforeseen expenses, needs, and such.  You contact the old/new friend and explain the situation and they pay you accordingly.  The job is soon finished and all parties are happy with the outcome.

If, instead, you were to go with Pathway 1 and just a handshake (you’re old/new friends after all, right?), you end up putting in double the hours you’d originally anticipated and can’t go to the old/new friend and ask them for more money because there was no original agreement in writing.  With nothing to refer back to, you can’t alter the original cost, timeline, or terms.  You’ve effectively shot yourself in the foot.  Good job.

Try using both.  A proposal and a handshake.  We’re real people doing real business, after all.

How do you communicate and interact with clients both old and new?  Is it down and dirty or professional and efficient?  Or a mix of both?

It used to be that in the old days you could record a demo, put together a decent press kit, and ship off a few copies to the labels. They’d listen to them, and if you were good and what they were looking for, they’d give you a call or show up at one of your gigs. Or perhaps you were lucky enough that you were just gigging like you usually did and there was an A&R rep present who dug your sound. Things were good if you were a truly talented band. And if you did in fact get signed, you were set. Think of the artists who have been around for years. Aerosmith, Mettallica, U2, Led Zeppelin, Bon Jovi, and so many more. Then think of any artist today that will be around in the next 10 years still making hits. Or who will be considered one of the “greats”. You’ll be hard pressed to come up with more than 3. And this is sad.
With the advent of the internet, we thought that it would be easier to be “found”. Record a demo, put it up in (the disgusting) MP3 format with a few pictures, and then sit back and wait for the calls from the labels.

Those calls never came. So you improved your site, worked on your songs, and then sent them to the labels. Still, the calls never came. All thanks to the influx of mediocre garage bands. Don’t get me wrong. I think it is absolutely fantastic to have these outlets for your music. I wish I’d had access to them when I was younger. But it all seems too good to be true. A little misleading. You think you’ll be able to get your music to millions, and you’ll be rich and famous. You’ve got that next big hit, right? Well, sorry, but no, you don’t. Because no longer do we as musicians and listeners decide what we want to hear. The labels have taken it upon themselves to “research” the industry and see where the trends are. They take an artist who has visual appeal and market the life out of them. If you see an artists face enough and hear their name enough, eventually you start to think there must be something to them. They’re getting all this attention, right? Well, they’re only getting it because the labels are generating the buzz. It’s a self-fulfilling prophecy. And the labels will go to extremes to make sure the artist sells millions of records. If they don’t, the labels drop the artist or sell their contract to another label. And there is nothing the artist can do about it…unless your name is Madonna or you’re in U2. Then you can do whatever you please.

For you bands out there that are trying to “make it big”; stop trying. Start focusing on the market that you already have unlimited access to. Your hometown. Historically, hometown fans have been the base that really supports a band and show any prospective label that the band has a truly loyal fan base. This conveys hard work and determination on the band’s part. And those local fans will spread the word about your band so you can focus on playing. Why work so hard when you can have people do it for you? And other listeners and radio stations will believe a fans word over yours. You’re trying to sell your product. The fan doesn’t have anything to gain from promoting you, though, and this is evident to potential listeners, stations, and labels. Keep that in mind.

Concentrate on making good music that you’re passionate about. This is why you began playing in the first place. Don’t rely on anyone else to get you somewhere. You have to do it yourself. Good luck!

For all you bands out there:  If you have music on your site, you should be VERY CAREFUL!  

If I were to go to your MySpace, listen to and like one of your songs, I could download it, figure it out by ear, record it, release it, and make millions.  And you wouldn’t get a penny.  You could even sue me, but if you don’t have it registered with the U.S. Copyright office, you’ll lose.  I could steal it, and then register it MYSELF.  Then, a judge won’t care what you say, because I would own the copyright.

In the world of MySpace, correct copyright is more important than ever.  That’s why I’m telling you this.  Here are the basics:

Is the “poor man’s copyright” (mailing it to yourself) valid? NO!

Benefits of registering your song with the U.S. Copyright Office

1. You can collect mechanical royalties
2. You can sue an infringer in federal court
3. If someone tries to steal your song, you have the best proof that it’s yours.

As the copyright holder,

you would then have the EXCLUSIVE rights to:

Reproduce the work
Add/remove/change the words, music, etc.
Do re-mixes
Distribute copies of it
Perform the song(s)
Perform the work publicly via digital audio transmission

YOU NEED TO COPYRIGHT YOUR SONGS

It’s extremely affordable and provides peace of mind.  Why wouldn’t you secure your songs and ensure that you’re safe?  If you have questions or need help copyrighting your songs, let me know.  It isn’t as difficult or time consuming as one might think; it’s all about knowing where to start.  Let me help you out!

Cheers.

Josh W