Rethinking the Marketplace of the Music Industry

Cutting edge companies like us exist to change the ownership structure and the current valuation model that benefits the boardroom executive and does little for the creator. Our aim is to help artists like yourself or any creative for that matter rethink the marketplace and focus more on an ownership/equity relationship. Check out some of the below points and see what we mean. We have your back!...

Don’t take the first offer from a label!

Many artists seem to think that getting signed is an indicator that they made it. A million-dollar deal may sound like a crazy amount, however what people don’t understand is that this money will usually need to be paid back as an advance; basically its a loan against future profits.

This money is the label’s investment - and like all investments in business, they will expect a return. Technological changes in recent years have meant that the artists have more power over labels than ever before. Artists now have the same data available to them that record labels have. The analytics are there for any artist to forecast future earnings and monetize their platform on their own accord. It can be achieved without giving away a hefty ownership stake; without taking an advance with anyone willing to write a check, regardless of the amount, streaming services such as Spotify, Soundcloud and Tidal all provide artists with metrics which can be used as bargaining power, but more importantly determine your true value in the marketplace. And if artists choose to partner with a label or distribution company that’s exactly what it is, “A PARTNERSHIP.” Indie megastar Chance The Rapper exemplified this very strategy in 2016, when he partnered with streaming giant Apple Music to release his Grammy Award winning third mixtape - Coloring Book. Apple received exclusive rights to the project for two weeks. In exchange Chance The Rapper, LLC was compensated with a $500,000 check alongside a hyper-visible promotional campaign.

So if you set up your music up in the right way, as a business, then you make money for yourself. This way you keep the power; you maintain control of your own earnings and you keep all rights to your product – your music!

Understand what the top revenue streams are in the music marketplace

Streaming is important to get your name out there through various playlists, however unfortunately they pay poor rates. In fact, Spotify only pays $0.006 for each stream to the holder of the music rights. This “holder” can even be split among the label, producers, artists and songwriters that contributed to the record. Unless you’re doing crazy numbers, streaming itself won’t make you rich.

Touring, publishing and branding are the top three revenue makers in the industry and it is extremely important to understand how you can reap the rewards from these particular sources. Festivals in the summers are currently at an all time attendance high, so there is money to be made!

The power of branding

Your brand is what defines your music and what makes you, YOU! Branding is more than just a logo and some pretty edgy picture of you against a brick wall... branding is the action of creating a brand. It is how you market your music, or any product for that matter. It determines not only how you are perceived by others but the way in which you are advertised and promoted.

Your brand will help you partner with business organizations, with syncing music and even the selling of merchandise. All of which are huge money spinners for musicians. A successful brand can be the difference between selling a hoodie after a local gig to promoting a product for Pepsi.

Set up a business and take on the start up approach

The start up approach is the ARTIST setting up your business as an entrepreneurial venture that aims to meet a marketplace need, want or problem by developing a viable business model around products, services, processes or platforms. Corporations need powerful brands as critical marketing tools to promote, advertise to scalable targeted audiences. Music is one of the best marketing mediums to promote and advertise product, services etc.

Get a great team around you

Businesses spend thousands every year ensuring that they hire trustworthy, dedicated and knowledgeable staff to their team - so why would it be any less important for your music team. All successful artists have a team that assists them in creating success. These people can come in the shape of radio pluggers, managers, booking agents and sound engineers. They ensure that wheels are perpetually in motion.