Yes, this blog is finally here. The one that so many have been asking for since I started these. Why has it taken so long???: Well, there are people out there who have gone to college, achieved their MBA's in marketing and STILL struggle on this subject. Yes, for a time, I personally believed that achieving this is a talent that some of us are born with and some aren't. It's just like a poker player's ability to read an opponent or the way a magician plans for you to pick up just the right card so that way you fall further into HIS illusion, just to make you give in.
But, I'm willing to put in that effort with the rest to you to treat it as a skill and give you at least a layout of How To Attract An Investor. So fellas, put your business ties on. Ladies, put on the professional skirt. Yeah, that one you use for job interviews. Use extra starch, too. So, LET'S GET IT:
So, how many of you out there play the stock market? If you do, you'll pick up on what I'm getting at immediately. If not, no worries, we'll take this slow. You need to understand this in order to approach this from an investor's P.O.V:
Let's say you have $3K or so as a gift ready to be invested, because your uncle tells you "If you learn how to play those stocks, you'll never go hungry!" So, what is the first thing that comes to mind? "This better be F$&#% profitable!!!"Nobody plays to take a loss. So, the appropriate way to go about this is very simple: RESEARCH! You take the time to look into what businesses are currently successful. Most likely, they don't need you so their shares are very expensive. But, that doesn't make them any less important, you see. The effect that THEY have on the consumer marketplace will effect every other investment you have within their competitive genre.
Let's take the iPhone for example. THE smart phone of the consumer marketplace. When it first hit, everyone thought the world would crack open, besides that one major gripe that harmed it's major sales: The AT&T exclusivity, due to their company being the first to harness a proper 3G network. So, immediately the stocks sky rocketed for the product, but other smart investors approached the situation by seeing the whole battlefield responsively. The Blackberry also existed, who had the power and potential to run circles around the iPhone, but it's major problem was the development of the app store. They couldn't afford the money to pay the developers, so they allowed venture capital investors(that's all of us) to invest in the marketplace. That business battle continues.
An even better example is one I've experienced myself. You see, when I first started E*Trade a year ago, I just recently became tech savvy(the appropriate word is "Technophile", but I just don't want to go there...). So, when looking at investments, I looked at statistics for the video evolution war (around when Blu-Ray won) which lead to the new DVD war. At this point, it was between Blockbuster, Netflix, Redbox & Amazon.com. I researched the history and future goals of each, but I noticed one thing in particular: Netflix had signed exclusively with Microsoft.
At this time, I had already pieced together that this meant Instant Streaming through Xbox Live, putting videos directly into people's TVs without the mail. After that, I looked at the number of people who own an Xbox 360 over PS3 and it wasn't even a competition. This showed the death of the other companies and they presented the technology to me in an amazing proposal that showed the demographics, expected raise in rate of sales, consistency & the increasing profit in my investment. I was sold and to this day, that is the best investment I've ever made and I'm still sticking with it.
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Now, the reason why I say all of this is because now you understand how an investor thinks. Just like the rest of us, they just don't want their money back; They want MORE. And who can blame them? Why would they invest in something not profitable?
So, you have to show them how you ARE profitable for yourself and them. And the way you do that is to build an amazing BUSINESS PROPOSAL.
Now, remember everything I just taught you on how to find stocks? Just apply it here from the opposite angle:
1. A Proper Distribution Strategy: Now, if you were planning on taking the money and using it to tour or to market yourself before you properly got a distribution plan set up, stop reading this and just punch yourself in the face. This is a business, after all. So, go about the process I have mentioned before in other blogs on how to find a distributor who gives you your own publishing. Plus, you need to show in your investment package the exposure to your distribution, the price of your music and your expected income from it. Now, depending on how you're either paying your investor back in interest or by venture capital is why this is so important.
Because, A) If it's interest then you have an investor who gives you full freedom. But, they most likely gave you a specific time/date to pay them back with interest. So, that means make double the money that they gave you and then some to not only make a profit, but to pay off debt. It's not a bad deal at all, with the right distributor. Just make sure you have a proper business plan and the right distributor. I've done this one myself.
Or B), If it's venture capital, then that means that they approached the distributor with you and signed for co-publishing. Now, if your investor demands that this be your main route of investment, then go all out with the distributor! Make your investor buy a package with you, because they'll also be needing your marketing as much as you! So, a package would include Film/Television/Gaming/Radio Solicitations, BDS/Sound Scan reports, Booking Agent fees, etc.
2. Realistic Sales Projections:
Now, never think you're going to tell someone you have "20,000" albums sold and for them to not have Soundscan reports. They can look up your album and tell the rate of sale easily and even know if you're profitable or not. So, take the time to realistically look at the statistical sales of your genre combined with the strength of your marketing. That includes demographics of your listeners(ages, location and culture). Look at the competition you have and how you would reflect upon it. THEN, you will know what a realistic sales number looks like in your future.
3. A Solid Plan For Recouping Investments:
Hopefully, after all I've said, you already have this figured out pretty well. lol. If not, go back to the fourth paragraph and start again.
4. Present A Well Laid-Out Business Plan:
It's far more simple than you think. Show them your business team strategists(managers, agents, publicists, etc.). Hell, even tell your team, because they will be there to help you! These are the people who are going to pay them, technically! lol. Show them(investors) how each of your investments with your business team will profit the investor or their business. If your investing sponsorship is designed more like a sponsorship, show them how often their label will be displayed, where, when and to what demographic. Show them the length of your business plan, the overall goal and where this will place you and your investor within the near future. And obviously, show them exactly why and how you would be a professional success.
Contact me if you're interested in seeing an appropriate Business Proposal template actually given to an investor from myself.
This blog is meant to be the first of two-parts. I will be finishing this very long chapter soon. Contact me if you have any questions or need info.
Thursday, August 27, 2009
Monday, August 10, 2009
International: The Most Powerful Step For An Indie Artists
My work requires me to travel and see many different areas for business. Whether it's for client relations or to present marketing packages to labels or outsourcers, I meet many new people in the process. This includes YOU, indie artists. And over the past month of July, I've heard many of this said about location:
"Chicago is more of a hater-city. It's hard to get a start here."
"It's all about who you know in L.A. Otherwise, they don't care about you."
"They just not about business here in Miami. Yet, they're all about money. They won't give you an opportunity unless you pay them for it. Usually more than what you get back."
"New York is a tough crowd. No label here wants to sign unless you're already big and everyone else just wants to hustle you out of your money."
Any of that sound familiar? Be honest. That's why this blog is meant to give you all what you need next: DIRECTION, IDEAS & HOPE.
I definitely don't disagree with any of that, but I far from agree with it, as well. Every place has their own style and demographic. But, every place has their own route of doing business, as well. It's one of the tragedies of the music industry. Yes, it's a matter of who you know, but fortunately, you know me if you're reading this. lol. And if you're an indie artist, I want to direct you into the safest route possible.
Now, if you've spoken to me, I've most likely told you my top 3 rules:
1. Make yourself your own business. You don't NEED a major label! Labels will not invest in you until you don't need them anymore. It's ironic, but they won't even touch you until thousands of sales have been made on your Sound Scan report. Guaranteed money.
2. Build your own team. There will be a blog in the near future of how to properly do this.
3. Find your target audience.
And that is why we're here today. #3. I want to educate very briefly on this subject, because I actually want you all to take the time to look up YOUR sound and demographics after reading this. Find where you belong.
You see, location really is more important than some of you may realize. But, the scariest thing I've seen happen to many artists is that some of them fail to find their demographic. The thought of there being fans who actually search for a sound like their's and never gain the opportunity to find it? Scary thought.
There are artists here who have MASTERED the art of spoken word/method Hip-Hop. A very difficult genre that I'm sure many of you see fade in & out of view here in the states. Why? Because it's alive and welcome in Canada! On my first trip to Toronto, back when I was still an intern for Universal Music Group with Vyne Entertainment, I heard one phrase that changed my perception on how I did business:
"Hip-Hop didn't die, son. It just went up north."
That same kid who could spit poetry and rhymes in the same breath, who played second-fiddle to autotunes and ringtone rappers? He has healthy radio play in Canada. He has a fan following. His ASCAP is showing signs of revenue from people buying his digital, Film/TV insertions and his bookings have gone up due to a more powerful reseme developing. His originality is appreciated and word has spread back amongst his U.S. peers and even to other nations. Want proof? Look up the background of a certain band called Gym Class Heroes. Fun Fact: If they would've started in the U.S., they would've been labeled a Hip-Hop band.
Another (not-so) secret?: Canadian radio stations aren't bias. You won't hear Soulja Boi and Lady Gaga every ten minutes for the next two months. In America, it's about who pays more to have rotation. The days of people calling in and requesting music to be played more is sadly over here in the U.S.... At least in the mainstream. But, Canada has an agreement with you. They will play your song a certain number of times a day and give the people a choice of what they like more. And quality always wins with that crowd. It's a fair contractual agreement that you win by actually releasing well-made music. A shock. I know. lol.
Another funny story belongs to Dave England, who is today CEO of Vyne Entertainment. When he began his music career with the band NYE, he took it to the legendary Mark Berry of Attack Records/Universal. After he payed for his international solicitations and different forms of distribution, he continued with his band to struggle to get gigs over here on American shores.
One day, he educates himself in his own publishing agreement. How to access it digitally and to make sure it doesn't effect his taxes. Next thing you know, he sees thousands of dollars in his name waiting for him. He's a hit in Germany, Canada, Russia! His song has been inserted into MTV's Made(Episode #26, last I checked) and he has an impressive Sound Scan report for both physical and digital distribution. He became a hit and wasn't even aware of it.
You see, if there's any brand of music coming out of America that makes tons of international revenue, it's Rock. And Rock in the highest quality, purest sense of the word(Red Hot Chili Peppers, Queens of the Stone Age, Aerosmith, etc.). This is also due to it's commercial factor and ability to appeal at more sporting events. Many bands based their inspiration on the American style. And once again, people recognize inspired quality outside of our borders. Look up bands from the U.K., Japan or Australia sometime. It's pretty insane.
Even Metal, the genre that is so far in the ground that their highest grossing album is a cartoon (not even joking. Look up the animated series Metalocalypse) has found major success in places like Switzerland and Germany.
Hell, use the fact that you're an American!!! There's always been a joke amongst us agents and promoters hiring a promoter for a band a month in advance for one live show in Japan. And said band has never been there or even know one location, in Tokyo, they will open to a show that will be so filled to the brim that they will need a celebrity level escort to leave the premises. If only I was joking... lol.
Look it up when you can. Hip-Hop over there is alive and well. That's where all our greats go to stay and enjoy what they do! From Busta Rhymes to Wu Tang to Jurassic 5 to Mos Def on his off-season! It's the hardest thing in the world to pull Pharrell Williams from that place, especially when working with the EXCELLENT lyricists, Teriyaki Boyz. Even Pete Rock collaborates with one of the greats, Nujabes! (I even personally consider him the Asian J-Dilla) And they embrace the art of the culture that has been greatly forgotten. From mastering breakdancing to turn-table scratching at a degree we forgot existed. Even their R&B has a special art to it where you'll wonder why we missed out on the next Mariah Carey(who is also a legend there, possibly even more than here). Look up Utada Hikaru, hear her voice and then question why you haven't heard it before. Even take a look at Germany's style with one of my favorite artists, Brainpower, and translate it to see the depth he laid into his craft over beats you may recognize if you are a comic/anime/video game/sci-fi geek. There's passion that exists more than just here to the point where I'll even say that the best concert I've ever been to was to see Kenna in London.
And Rock? You aren't exactly abandoned there either. Ever sat backstage while tuning your guitar at that old shack of a club down the street and imagined what it would be like to be stampeded like The Beetles? It happens there. Trust me.
I wish I had a reason as to why it does, as there are many theories ranging from the quality of their music to the fact that American defiance is so popular amongst their crowd that it's become it's own phenomenom there. But, I still just embrace the fact that you can walk down the street and see a bright orange sign on a record store that says "REAL AMERICAN MUSIC SOLD HERE" in the same style that you'll see "BEST HOT CORNED BEEF IN TOWN" over here in America.
My point to all of this is that you have no reason to surrender your hope. I have never met someone with something real to say in their music who didn't have an audience. Be that audience is one person or one thousand. You just have to put in that work and effort to find them. Start your own business, get an international deal, hook yourself up on to websites that speak to the audience you're aiming for. Most countries even speak basic English. Take the time to educate yourself, take it one step at a time and NEVER GIVE UP if you feel this is something you really want. I've never heard of someone going only halfway in becoming successful.
If you have any questions, as always, contact me at mellowmarkeing1@gmail.com
Also, I dedicate this blog to my mentor, Mr. Montaine. He was a man who taught me that giving and making friends is far more important than defeating your competition. That it takes time, but doing things right get you where you need to be in the end. That it's not about who you know. It's about who knows you and love you for it. Rest In Peace... And thank you.
"Chicago is more of a hater-city. It's hard to get a start here."
"It's all about who you know in L.A. Otherwise, they don't care about you."
"They just not about business here in Miami. Yet, they're all about money. They won't give you an opportunity unless you pay them for it. Usually more than what you get back."
"New York is a tough crowd. No label here wants to sign unless you're already big and everyone else just wants to hustle you out of your money."
Any of that sound familiar? Be honest. That's why this blog is meant to give you all what you need next: DIRECTION, IDEAS & HOPE.
I definitely don't disagree with any of that, but I far from agree with it, as well. Every place has their own style and demographic. But, every place has their own route of doing business, as well. It's one of the tragedies of the music industry. Yes, it's a matter of who you know, but fortunately, you know me if you're reading this. lol. And if you're an indie artist, I want to direct you into the safest route possible.
Now, if you've spoken to me, I've most likely told you my top 3 rules:
1. Make yourself your own business. You don't NEED a major label! Labels will not invest in you until you don't need them anymore. It's ironic, but they won't even touch you until thousands of sales have been made on your Sound Scan report. Guaranteed money.
2. Build your own team. There will be a blog in the near future of how to properly do this.
3. Find your target audience.
And that is why we're here today. #3. I want to educate very briefly on this subject, because I actually want you all to take the time to look up YOUR sound and demographics after reading this. Find where you belong.
You see, location really is more important than some of you may realize. But, the scariest thing I've seen happen to many artists is that some of them fail to find their demographic. The thought of there being fans who actually search for a sound like their's and never gain the opportunity to find it? Scary thought.
There are artists here who have MASTERED the art of spoken word/method Hip-Hop. A very difficult genre that I'm sure many of you see fade in & out of view here in the states. Why? Because it's alive and welcome in Canada! On my first trip to Toronto, back when I was still an intern for Universal Music Group with Vyne Entertainment, I heard one phrase that changed my perception on how I did business:
"Hip-Hop didn't die, son. It just went up north."
That same kid who could spit poetry and rhymes in the same breath, who played second-fiddle to autotunes and ringtone rappers? He has healthy radio play in Canada. He has a fan following. His ASCAP is showing signs of revenue from people buying his digital, Film/TV insertions and his bookings have gone up due to a more powerful reseme developing. His originality is appreciated and word has spread back amongst his U.S. peers and even to other nations. Want proof? Look up the background of a certain band called Gym Class Heroes. Fun Fact: If they would've started in the U.S., they would've been labeled a Hip-Hop band.
Another (not-so) secret?: Canadian radio stations aren't bias. You won't hear Soulja Boi and Lady Gaga every ten minutes for the next two months. In America, it's about who pays more to have rotation. The days of people calling in and requesting music to be played more is sadly over here in the U.S.... At least in the mainstream. But, Canada has an agreement with you. They will play your song a certain number of times a day and give the people a choice of what they like more. And quality always wins with that crowd. It's a fair contractual agreement that you win by actually releasing well-made music. A shock. I know. lol.
Another funny story belongs to Dave England, who is today CEO of Vyne Entertainment. When he began his music career with the band NYE, he took it to the legendary Mark Berry of Attack Records/Universal. After he payed for his international solicitations and different forms of distribution, he continued with his band to struggle to get gigs over here on American shores.
One day, he educates himself in his own publishing agreement. How to access it digitally and to make sure it doesn't effect his taxes. Next thing you know, he sees thousands of dollars in his name waiting for him. He's a hit in Germany, Canada, Russia! His song has been inserted into MTV's Made(Episode #26, last I checked) and he has an impressive Sound Scan report for both physical and digital distribution. He became a hit and wasn't even aware of it.
You see, if there's any brand of music coming out of America that makes tons of international revenue, it's Rock. And Rock in the highest quality, purest sense of the word(Red Hot Chili Peppers, Queens of the Stone Age, Aerosmith, etc.). This is also due to it's commercial factor and ability to appeal at more sporting events. Many bands based their inspiration on the American style. And once again, people recognize inspired quality outside of our borders. Look up bands from the U.K., Japan or Australia sometime. It's pretty insane.
Even Metal, the genre that is so far in the ground that their highest grossing album is a cartoon (not even joking. Look up the animated series Metalocalypse) has found major success in places like Switzerland and Germany.
Hell, use the fact that you're an American!!! There's always been a joke amongst us agents and promoters hiring a promoter for a band a month in advance for one live show in Japan. And said band has never been there or even know one location, in Tokyo, they will open to a show that will be so filled to the brim that they will need a celebrity level escort to leave the premises. If only I was joking... lol.
Look it up when you can. Hip-Hop over there is alive and well. That's where all our greats go to stay and enjoy what they do! From Busta Rhymes to Wu Tang to Jurassic 5 to Mos Def on his off-season! It's the hardest thing in the world to pull Pharrell Williams from that place, especially when working with the EXCELLENT lyricists, Teriyaki Boyz. Even Pete Rock collaborates with one of the greats, Nujabes! (I even personally consider him the Asian J-Dilla) And they embrace the art of the culture that has been greatly forgotten. From mastering breakdancing to turn-table scratching at a degree we forgot existed. Even their R&B has a special art to it where you'll wonder why we missed out on the next Mariah Carey(who is also a legend there, possibly even more than here). Look up Utada Hikaru, hear her voice and then question why you haven't heard it before. Even take a look at Germany's style with one of my favorite artists, Brainpower, and translate it to see the depth he laid into his craft over beats you may recognize if you are a comic/anime/video game/sci-fi geek. There's passion that exists more than just here to the point where I'll even say that the best concert I've ever been to was to see Kenna in London.
And Rock? You aren't exactly abandoned there either. Ever sat backstage while tuning your guitar at that old shack of a club down the street and imagined what it would be like to be stampeded like The Beetles? It happens there. Trust me.
I wish I had a reason as to why it does, as there are many theories ranging from the quality of their music to the fact that American defiance is so popular amongst their crowd that it's become it's own phenomenom there. But, I still just embrace the fact that you can walk down the street and see a bright orange sign on a record store that says "REAL AMERICAN MUSIC SOLD HERE" in the same style that you'll see "BEST HOT CORNED BEEF IN TOWN" over here in America.
My point to all of this is that you have no reason to surrender your hope. I have never met someone with something real to say in their music who didn't have an audience. Be that audience is one person or one thousand. You just have to put in that work and effort to find them. Start your own business, get an international deal, hook yourself up on to websites that speak to the audience you're aiming for. Most countries even speak basic English. Take the time to educate yourself, take it one step at a time and NEVER GIVE UP if you feel this is something you really want. I've never heard of someone going only halfway in becoming successful.
If you have any questions, as always, contact me at mellowmarkeing1@gmail.com
Also, I dedicate this blog to my mentor, Mr. Montaine. He was a man who taught me that giving and making friends is far more important than defeating your competition. That it takes time, but doing things right get you where you need to be in the end. That it's not about who you know. It's about who knows you and love you for it. Rest In Peace... And thank you.
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