What Potentially Profitable Marketing Lessons Can Savvy Entrepreneurs Learn From The Music Industry?Part
Did you notice, and hopefully appreciate, as you went deeper and deeper into part one of this ongoing series, about how the music industry, can teach some of today’s savviest entrepreneurs, some extremely profitable, yet equally painful marketing lessons?
Even though, for many an aspiring, (up and coming artist), unfortunately they had to learn and experience, some extremely painful emotional and financial lessons!
The all too brutal reality is, when you and I first enter, the often rough and tumble world of business.
(Whether) it be on or offline,sadly there are an equally number of extremely painful, (yet) super value character builder, (as well as) vitally important financial lessons to be learned in the journey as well.
Because sadly, in the beginning, (entrepreneur) you and I, (initially) just don’t know, what we don’t know! You know!And that leads to a lot of hit and miss, trial and (mega) error frustrations!Remember?
Part two of this post, will reveal “how” one of these, (now) extremely savvy, young up and coming recording artist, will now strategically use the tools and tendencies of the (big bad) music industry, to make a whole lot more money!Sound interesting?
So What Exactly Are These So Called Extremely Profitable Marketing Lessons The Music Industry Can Teach Some Of Today’s Savviest Entrepreneurs?
Just to quickly recap, two of the most important concepts from part one. Unfortunately, for far too many, aspiring young, up and coming recording artist, (and the modern day) hip hop artist is certainly no exception!
These wide eyed newbies, learn the real meaning of two, potentially, and often painful concepts, the hard way! Meaning; severely painful experience teaches them!
Case in point. The very first “hard core” financial lessons they learn, are from a concept, simply referred to as “the advance!” Now clearly, to those of you, who have been around the block a few times, you understand the unspoken implications, of a multi million dollar corporation,(stacked to the gills) with high powered lawyers and CPA’s etc. 😀
Whatever monies they initially put up front, (aka) “the advance”, they most certainly will be doing everything (legally) within their powers, to recover it,at some point on the back end correct? 😀
Moving on, their very next sticker “shock” moment, comes when they discover the big (and sometimes) really bad IRS, is seeking x% of that cash advanced, because it’s previously undeclared income! Say what? Nod your head cadets, it’s true!
And of course, since that money has long been spent and or squandered etc. They simply don’t have it!Which means, the (sophisticated) record label, will (in all likelihood), definitely need to “advance” even more money!
Aspiring Recording Artist Soon Discover Why It’s Called The Music Business!
Now, (as their) real world education continues, the very next “hard core” lesson they learn, is the (all too real) meaning, behind the term “recapture!
“Because it’s right about now, (the big bad) and super financially sophisticated record company, starts the wheels in motion, to recoup their initial upfront investment!
So now that the CD is complete and approved to be mass marked!It’s here, where the young artist discovers, before they receive a dime in song royalties, they are in line behind the label, until X amount of CD’s are sold, sufficient enough to repay their “advance!”Bummer!
But wait, not only did the artists debut CD, probably not even sell enough to repay the initial advance, but there was also the unresolved matter of the record label, advancing additional funds, to pay the artists tax (and or) other outstanding bills, remember? 😀
So guess how this all eventually plays out! After the artist & the record label finalize all the necessary contractual agreements, in order to begin their live tour.
You guessed it! The record label, once again bolts to the front of the line, and they will typically do, something like an 80/20 split, (favoring the label) of course.
At least until the label is completely repaid, any and all, previously rolled over, unpaid advancements! Then and only then, does the newbie artist start consistently receiving any worthwhile paydays!
It’s at this point, the artist is “finally” starting to come of age! Congratulations! And welcome to the real world!Now, let’s talk about “how” they can (and should) strategically go about using this standard arrangement to their full advantage!
Who Says Recording Artist Can’t Think Like Extremely Savvy Entrepreneurs?
Clearly, once you put a pencil to it, without a doubt, the vast majority of the savvy recording artists money, most definitely comes from their back end, correct?
That said, why don’t they make that their primary marketing strategy, to produce a ton of income, going forward!Say what?
Here’s how! First, as soon as the ink dries on their contracts with their record label, announcing all of their future live performance dates on their (state of the art) WordPress website!
They will (immediately) start an aggressive list building campaign! They will offer two grand prize winners, every month, until they actually hit the road for their first live performance!
Next, they will agree to appear on an and every live talk and radio show they can! And with each live appearance, especially when they’re on radio, they will direct their audience to text a special number, for a chance to instantly win $5,000 ( or X amount of ) dollars in cash!
And as they’re systematically and strategically building this massive opt in email and or mobile marketing database, of (literally) hundreds of thousands, or (best case) scenario, millions of subscribers!
Three days before they actually play their first tour date, they will email and or mobile blast their entire list, and offer them the chance to purchase a discounted price live stream, for just $14.95! (Or X.)
The Music Industry Gets It!( So Why Don’t The Recording Artist?)
However, when they pay just $19.95, they automatically get entered into a one day raffle, for a chance to win $25,000 dollars by days end!If they’ve aggressively promoted themselves correctly!
Their list, will either be hundreds of thousands or millions strong!Meaning; if 400,000 ( or X) number of fans, pay anywhere from $14.95 or $19.95 apiece, to sit at home, with friends and family members, and watch one of their live events!
The savvy recording artist, not only gets paid a percentage of each concert ticket sold! (That’s standard!) But they’ll also net the lion’s share of any and all of the live stream income, for their entire tour!
And of course they can and should create some other potentially lucrative, back end joint venture arrangements!But in any event, can you now see, and appreciate,some of the potentially profitable marketing lessons,the music industry can teach some of today’s savviest entrepreneurs? Say yes!Great!
Let’s see what else they might potentially have up their marketing sleeve!Now as is customary during this part of our show.
Please share your extremely valuable comments (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!
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The music industry is tricky thanks for shining some light on it.
You’re welcome Lorenzo!
Thanks so much for stopping by and sharing your
thoughts. Greatly appreciated!
Very interesting Mark
I was talking to someone yesterday about this topic. In essence, you’re suggesting the artists should see themselves as business people who just happen to have a creative skill.
If they make the mental shift they can learn how to wrench back control of their careers from major players such as recording studios and find their own customers. Some are already doing it. In fact, one guy (John Oszajca) became so good at selling his music direct via his website and email list, that he established another business teaching struggling musicians how to do the same thing.
Great topic, Mark
Kim
Kim Willis recently posted…Affiliate Marketing – Small Ticket Versus Big Ticket Products
Bingo Kim!
Sorry for such a long delay in replying, but my site got hacked!LOL!
And it took the techies a minute or two to get everything under wraps!
But they tell me, it’s all back to normal, thank goodness!
Mark Newsome recently posted…How Really Savvy Small Business Owners Jump Start Their Profits From Scratch!