MAKING MONEY: Digital Distribution and Shows

MAKING MONEY: Digital Distribution and Shows

In the music business, it takes money to make money. Starting out for any independent music artist can be hard and artists almost always invest more money than they make initally. This generally means that the less money you have to invest, the less likely you will be noticed. However, the amount of money isn’t the only factor because the effectiveness of your investments determine how far your money will go. I covered exposure in my last blog and now I will discuss how an artist can capitalize on the exposure and translate it to income.

Prior to the digital music age of ITunes and file-sharing, hard copy album sales (Vinyls, tapes, and CDs) and shows were the most profitable sources of income for independent artists. Now that CDs are becoming a thing of the past and MP3 players are about as common as cell phones, independent artists must adjust to the revolution. The hard copy sales are primarily focused on by elite, major label artists with a hot product and independent artist get the most revenue from digital distribution.

Independent artists have to shell out thousands of bucks for studio sessions, duplication, and promotional materials and at the end of the day, each CD unit usually comes out to around 3-4 bucks if done professionally. Now when the artists take their prized possessions to the local record store or distribution company they can negotiate the selling price. If the store sells it for $9.99 you get around 6 bucks back per copy and if they sell it for $6.99 you get 4 bucks per copy. To get a decent deal, most artists must purchase the minimum of 1,000 copies which is pretty much the standard for most duplication spots. So if all these numbers get confusing, remember that independent artists can only expect to receive around $2-4 per copy sold! So for all the time and money invested in getting the hard copies, it’s hardly worth it for an artist to sell hard copies unless they can sell at least 1,000 units.

So if you honestly feel like you don’t have the following to sell 1,000 units, don’t feel trapped. There are a few ways local artists can make a few bucks to make your time and investments worthwhile. Firstly, ITunes is your BEST FRIEND!! For $35, you can sell your music on Itunes, Rhapsody, etc... through CDBaby. A few album sales and you get your money back, then it’s all profit from there. You can even send in a homemade CD to them and they will still sell it as long as all the material is original. For each 99 cent download, you get around 60 cents and that adds up especially if you have a few singles which stand out from the other tracks on your album. Realistically, most people would rather just buy a few songs that they like instead of the whole album so this gives the audience more options in purchasing and enjoying your music.

Also, if you have a decent amount of exposure from free shows and your reputation for putting on a good show gets around, start charging! Be humble and charge venues reasonable amounts to perform and if you bring a good crowd, they will bring you back! And another tip in getting good venues is to offer a discount if they give you free tickets. That way they get more traffic that buys there drinks and you can get a familiar crowd in the spot to help get your audience crooning. Even simply charging the venue for gas money can be valuable for artists since they can break even while reaching a wider audience.

Even though the hard copy sales are decreasing, ditching hard copies entirely is not a good idea. Making free promotional CDs or cheap demos to pass out to potential buyers is a good option for low budget artists. With that said, digital distribution and shows remain the most profitable for local independent artists. Another way to get money on the side is to branch out and offer services to other artists that they don’t have. This can be a business or bartering system that is called networking, the topic of my next blog.

Exposure – Why is it Important and How to Get it

We hear it all the time, “Hey take a second to listen to my music, I promise it’s good.” And some of us at some time probably felt bad for the artist and shelled out $5 for some unsavory music on a blank CD just to help them out. Artist promotion comes in many forms and a successful promotion plan can help any artist or band separate themselves from the everlasting pool of sub-par musicians.

First off, remember you are an artist everywhere you go. Don’t be ashamed of your work and take advantage of the personal connections you make everyday. Let’s be realistic. Most up-and-coming artists have at least a plan B to lean on if they don’t blow up or get signed. Getting a degree or working a job is a must when trying to make it because it takes money to make money and 99% of underground artists never make it to a truly profitable situation. So when you are at work, at school or even at the gym, make sure you keep flyers or business cards with you to direct the public to your music. Free promo CDs are valuable in giving the public an immediate ear to your work. TV commercials are useful in getting your image out there, but they won’t translate to record sales unless you have the rest of your maketing plan in place. Realistically, most people who get flyers won’t actually follow-up and check out your MySpace, add you and buy your music like a true fan would so giving them a free CD is convenient and effective in getting ears for your tunes. However, make sure that you are reaching your targeted audience with your CD promos because CDs cost the most out of all the promo giveaways.

Now let’s tackle the latest phenomenon: MySpace. Nowadays, major labels don’t take “MySpace famous” artists as serious as they did when Cassie got signed off MySpace because everybody is doing it and some even resort to artificial buzz enhancers. Companies actually sell programs which increase the play count on an artist’s page which give the appearance of a successful artist. In reality, the cheating artists are only cheating themselves. This is because they aren’t getting the feedback and true fan base of a genuine artist who puts in work for his or her plays, comments, and friends. 5,000 fake plays a day and three actual comments per week don’t add up. Also, MySpace prohibits using these programs or putting your player on other pages so the risk of getting your profile deleted isn’t worth it. Also, cheating is bad for an up-and-comer because it clouds his or her perception of their buzz level plus you don’t get the satisfaction of reaching a higher level of MySpace buzz on your own. Posting bulletins, clickable comments and ads on everyone’s page is the best way to relay fans your way on MySpace. Also, updating your page with new and downloadable music every few months is a must to keep your buzz going. Once you reach a respectable level of authentic MySpace stardom, the fans will come to you. MySpace is a powerful tool to reach fans you normally wouldn’t reach by doing shows or passing out flyers and should act as a complement to the rest of your artist promotion.

Finally, in order to maximize your exposure, you must be seen by the fans! Doing free shows and passing out promotional giveaways in person always has a better connection to potential fans than a stack of flyers sitting at the door in your local record store. When people see you acknowledge them they are more likely to give your music a chance. Your goal is to hit fans from every direction because most of the time, a person who bypassed your spiel the first time will take your second approach more seriously. They say, “Ohh yeah, I’ve seen you guys before, ” and subliminally in the back of their mind they are thinking “well maybe they are good since their stuff is everywhere.” Lastly, don’t get tunnel vision and focus on one method of promotion because a balanced system which incorporates them all is the most effective way to maximize your exposure.