Profiting from music as much as possible...what most bands overlook!

How to take your music profitability to the next level?  Music (and its business) can be divided into some categories according to their money making schemes as follows:

The sales/downloads of tunes and albums, the sales of tickets for live shows, the royalties and licensing fees collected from the performance and composition sides, and "what most bands overlook...."  

Merchandise!  YES, Merchandise!  Bands and artist do not realize that from the moment they choose a name, a logo, take pics, put up a fan page on facebook and twitter, and/or create a website, they are also creating THEIR OWN ONLINE STORE.  And, as it happens with most acts, the selling of music merchandise turns up to be where most of the money comes from!  Now, what kind of merchandise?  Some examples could be: shirts, caps, sweaters, vinyls, personalized items (CD's, etc.), new musical gear, used musical gear, home recordings, videos, etc, etc, etc....

So, the next time that you feel down about your music being downloaded without the proper consideration, think that this is one of the most exciting and profitable times in the area of music merchandising!

Free website platforms that are great for bands...

Free is the new price we pay for many things on the web.  However, this site building tool offer a great way to build your own band site without getting into the coding part of it.  You actually build the site just by dragging and dropping objects and editing text as you would on Word.  Pretty cool site building platform in order to give your band a proper and professionally looking website.  Try it out!  If at the end you like your product, simple get a domain and hosting space.  More on that in a different post.  Here is the site building platform:  WIX

Control your music distribution!

Getting your music around the country was up to a distributor that got tied to a somewhat effective record deal.  Your record deal specified all of the essential elements of whether or not your audience could be grown in Asia, or Africa, or the Caribbean for that matter.  All sorts of fees were associated to this distribution kind of deal, and any advances were recouped or taken back at an outrageous rate.  Thus leaving your rate of return pretty low if you were a beginning artist working with a small or indie distributor.

Now, we all know that things have changed.  Follow these steps and get your music distributed literally worldwide (web and not web)!  There are aggregate distributors that will give you this service for pennies on the dollar.

This is not a one size fits all and you should read carefully the fine print.  But, for the most part, you will get state of the art digital and physical distribution only comparable to well...now days!

So who is this big time aggregate distributor?  There are many effective ones, and setting up with them is as simple as signing up for a Google account.  By the way your music will be sold on Google Play as well as iTunes, played and sold on Spotify, and many more places on the web and on the earth!

In other words, the days of exclusivity have been over, and indeed the "indie" way is the new pop!

Low cost website for bands...Bandzoogle's the name and marketing is the GAME!

Bandzoogle...great platform for bands and musicians.  Take a look at this video from Berklee Music Marketing Program.  It offers a great review and techniques.  The rates are pretty affordable on Bandzoogle.  They take caer of designing, hosting, and marketing.  Use it as a combination in your music marketing efforts along with Youtube, Bandcamp, and any of the Music Aggregate Distribution companies (these latter ones will put your music on all the major markets)!  Sell some music :) 

The personality of....Tracy Morgan!

Many actors are very much connected to music.  A great example of an actor, comedian, and overall person larger than life is the case of:  Tracy Morgan.

Billboard conducted this interview regarding the 2013 awards viewed by millions...

Check out Tracy Morgan's interview on such event at http://www.billboard.com/video/tracy-morgan-billboard-music-awards-interview-1561395

It shows the great artistic background of a comedian very well connected in personality to music and all its processes.

FYI - Comedy and music have always been connected by one thing:  "performance..."

Reflection on all 12 courses - MS Program: Entertainment Business at Full Sail University

Introduction to the following program Reflection:

The following is a brief reflection of they key information that was learned in the Masters of Science in Entertainment Business at Full Sail University.  There is no way that a paragraph a piece does justice to all of the great experiences learned both at the academic and practical level, but it is a great overview.

The following is the Master’s Degree reflection:

Media Literacy and Research Methodologies:  This course set the foundation for all of what was coming in the following months.  A concentration area was chosen, tools on physical and digital research were given, and a culminating research paper composed.  In this class I got to research via all of the electronic library tools and other methods, the area of music licensing.  This served as the primary platform for the rest of the program.

Executive Leadership:  This second course in the program exposed me to 2 of the best books I have ever read:  The 48 Laws of Power, and Developing The Leader Within You.  I got to research a local leader in my industry, and needless to say, the area of interest chosen for the program changed a bit from music licensing to music production.  The interviews presented by Mr. Cook, the program director were extremely inspiring.

Project and Team Management:  This was the third course.  It actually got us to work in a team-oriented project.  It also introduced us to Google docs, and Yammer (a professional Full Sail networking community).  It started narrowing down a possible inventory for the final business project and ideal, as well as a realistic budget for it.  It was very exciting to see that most of the things I needed for my production company, I already had.  It also exposed us to other students that had the same interests.

Business Storytelling and Brand Development:  An absolute delight of a class!  This class taught us how to develop a branding strategy.  It also taught us quite a bit about other very useful PR techniques.  It was in this class that the project started to take form and color literally.  I also made a very important professional connection in this course.  An international PR personality (Ariel Hyatt), whom was introduced via the course material, accepted a LinkedIn connection.  

Entertainment Business Finance:  As having an undergraduate degree in accounting and also having professional experience in the field, this class was a great refresher course.  The class was made very relevant and interesting by the professor.  I also learned some new ways in which to perform ratio analysis, therefore giving a better spec of the business and industry.  We also got introduced to the world of crowd funding, and various ways of funding our projects were learned. 

Negotiation and Deal Making:  This course was perhaps the most challenging of the program.  It was extremely technical and practical at the same time.  It taught me to hold the emotional baggage in its very independent place when negotiating with someone.  We also got paired with other students in order to mock a negotiating agreement.

Product and Artist Management:  This course got us thinking about more sources of revenue in the industry.  My eyes got really open to other forms of income.  In this class, I even started to play with the idea of continuing with my book project, and another product made specifically for guitarists.  Well, needless to say, it made me connect with another industry great via the Artist House Management YouTube channel (Robert DeFazio).  The class and teacher walked us through a live event preparation and completion.  All of the prior knowledge had to be part of the project and I got to learn a ton!

Advanced Entertainment Law:  Truly one of the most enjoyable classes for me!  I heard it would be one of the most challenging ones, and although it was, I completely aced it!  The class and teacher made the class very interesting and relevant to my industry.  We chose groups.  According to such group areas, we would complete the projects.  I was introduced here to the ITunes University and all of their resources.  Very informative and empowering as far as knowing “where” to find clearing information.  

Entertainment Media Publishing and Distribution:  This class was a true gem!  We started to research the most up to date distribution channels available in the entertainment industry overall.  Then, we got specific about our own industries, and started a Google doc that would continuously get updated with very much professional resources and contacts for publishing and distribution.  This class made me realize of the common core that exists among all of the specific areas of the entertainment industry.  It also made me realize that there are free and low cost distribution and publishing services.  The final Google doc that we created in the music group was impressive.  I still use it, and will use it for years to come!

Digital Marketing:  This class was just so informative, that it turned overwhelming after a while.  The teacher really made it easy to understand.  It gave me a clear glimpse at topics like SEO, Internet Marketing, etc.  The final project had a pre-project attached to it that served me for the next two courses.  I realized as well that Marketing was one of the most important factors in my business plan.

Business Plan Development:  This class tied it all together.  The most impressive part of it and most useful, was the fact that one got to complete the actual plan in one month.  There was a lot of writing, but a lot of learning as well.  One of the most important aspects of the class was the preparation of the financials.  All of the reports that were relevant to the business plan got prepared here!  At the end, the professor gave feedback and projection for the business.  Very useful!

Final Project:  Business Plan:  This final class was perhaps the most comprehensive one.  All of what we had learned from the prior classes got applied and even cited many times by the professor.  It went hand in hand with the prior class with a slight difference.  Here, we actually tied all of the pieces together and submitted the complete business plan from beginning to end in one shot.  We learned a lot about several organizations that share specific statistical information on any industry and this help solidify present and future research.

Current and Future Trends in the Music Industry:

Current and Future Trends in the Music Industry:

There is no experience like the one you get when you see your favorite band or artist play a live show and you are there to witness it.  This has been one of the oldest forms of entertainment:  the “Live” show.  Thus, “show business” was a term coined by industry professionals and later integrated into common expression.  As the industry of entertainment changes, we must embrace this change.  Why?  Well, there has always been some kind of change in show business.  Whether is music, TV, film, or even education, change in trends have always been part of moving boundaries. 

Taking the Music Industry as an example, some of the current trends have a “back to basics” approach.  This approach has culminated with one of the most emotional experiences an “end-user” (or fan) can ever have:  Live Events.  Some of the most successful artists in the music industry have reaped the benefits of this.  In an industry far from 7 digit CD sales (remember the 90’s?), the live shows have increased not only for local, but also international artists.

Future trends can be summed up in one word:  Spotify.  Why Spotify?  They are taking on-demand radio in a streamed format to a different level.  With some of the most innovative techniques, varied catalog, and creative approach for its users, Spotify has taken the world of on-demand radio by storm.  Besides that, the artists that play on Spotify can expect some of the highest royalties in the industry. 

Therefore, both, the current trend of live events, and future trend of increased on-demand radio really respond to the same cause.  The cause here is that the end-user, the fan, the average listener, or whoever she or he may be, wishes for a more direct and tailored experience.  And, a concert, or premium online and on-demand station are some of the ways by which we could see the present and future trend in the music industry.  

Music marketing and social media tips for musicians and bands…

The marketing department in a company takes care of too many things to mention.  However, when you get more specific into the breakdown of what they do it all comes down to educating the customer on the product or service offered via advertising, public relations, etc, etc, etc...

Benefits in outsourcing your music marketing needs go exactly in that this will be a company that will take care of all of your music marketing needs.  As the web is filled with lots and lots of companies that boast from offering the best of the best, I, AS A MUSICIAN, have found a great resource for your music marketing needs.

CyberPR at http://cyberprmusic.com/ has been in the forefront of the music marketing business offering, in my opinion, a proven method for musicians to launch and keep their careers going in all of their many aspects of marketing. 

Founder Ariel Hyatt's new book "Music Success in 9 Weeks" musicsuccessinnineweeks.com / could be the bible in an industry where information on the topic seems to blend well with business theory and little with music marketing practicality.

To add to the expertise of CyberPR, many other musicians have been reaping the benefits of setting up their own website using a “band friendly host”.  A great way to start up in this avenue is to look into www.Bandzoogle.com.  They have, for years now, assisted musicians and bands in obtaining a web presence.

Besides the normal distribution avenues (CD Baby, Tunecore, etc), taking advantage of a personalized website could really mean a better return on investment.  For one, music merchandising such as band T-shirts, promotions, souvenirs, etc. will probably account for a good portion of the initial revenue.  Therefore, take advantage of having a personalized webpage and all of the benefits that this entails.

Keep playing, but get your career in gear as well!  

Business plan development (post #2)

According to the business planning experts chosen on blog post #1 (the blog post right before this one), they both coincide on a very specific way of making business.  This way of making business is called: network marketing infrastructure.  Here is a brief list of some of the biggest network marketing companies.  Social media could be said to have exploited the idea of network marketing as an infrastructure, and companies that have been around in network marketing for years such as Amway have been able to use this technique very effectively.

Some of the changes that I will be making to the business plan of my own company will be the way in which my company sees its marketing.  Just like Robert Kiyosaki mentions, network marketing should be the way of the future for several industries.  Although, the music industry is gravitating toward it slowly, it seem like there is a greater return when network-marketing techniques are used.  Therefore, my marketing plan will be changing quite a bit, focusing more on the merchandising and retailing of the add on products in order to maximize revenue for artists.

From Jon Acuff I learned that although I may be new in an industry, the people that one surrounds one self with are crucial.  This has proven true in the composition of the financial statements produced for the business plan development class.  I realized that there was another thing that needed to change.  Looking at the assignment, I noticed that there was plenty of room for budgeting “HR” related costs.  I realized that my plan had to change from being the “one man show” to delegating.  This will definitely change my approach.

Well, those are some of the things that I learned and reviewed in class this past month, as well as some of the changes I will make.  My business plan will change its marketing focus, and its cost allocation with respect to employees. 

Thanks for reading,

Jonatan Perez

Business Planning

Many business people have attempted to put in a concise manner the idea of what a business plan is.  Very few have done it in an educational way.  At the end of the day, for someone that may be entering a new industry, education on the subject of business planning should be at the forefront. 

One person that has followed a very educational approach due to his business planning method has been Guy Kawasaki.  His style comes from the many disciplines he comes from, but mainly from a psychological and sociological background.  Due to the fact that he was not a business major initially, and also rejected a family desire of becoming a lawyer, he went on to graduating with an MBA.  At the time of graduation, he started to work in the educational software industry.  He has written and spoken on business planning.  One of the key points he makes in his business plan methodology has been to stress the importance of the technical knowledge behind the plan.  According to Kawasaki, it is extremely important to know your craft and industry well before you begin to plan.

Another individual worth investigating when it comes to business planning is a person that has written not so much about planning but rather about fear.  His name is JonAcuff, and he has made it a point to set great foundations for those of us needing a push in order to pursue our enterprise.  He has written extensively about the cycle that one should take (and retake), beginning with the end in mind.  He recently admitted to being a writer first and foremost.  One of the key points he talks about when getting into the planning of businesses is to first of all, kick fear in the face.  He stresses the fact of preparing the ground in order to bring the least apprehension and pre-suggestion to the table.  Mr. Acuff considers having a productive attitude as a ground rule before starting any business plan.