Music Capitalists 2.0

6 04 2009

Ever heard the term, Venture Capitalists?  businessman

For many music industry folk (musicians included) a venture capitalist and his/her procedures have nothing to do with the music business – so why do I even mention it?

Venture Capitalists (VCs) invest money and resources in start-up, emerging, and high growth companies (or ventures), with the anticipation that they will get paid back (ROI – Return on Investment) + compounded interest (5X – 10X their investment) in a 3-7 year period of time.

How are Record Labels, Music Publishers, Managers, Agents, and other pros any different than a Venture Capitalist when it comes to finding, investing in, and partnering with you?

THEY’RE NOT DIFFERENT.

So, what does this mean to the aspiring (or established) musical act who wants to get noticed, signed, booked or promoted?

It means – start viewing your music / brand as a start-up company, and you’ll start to see what I mean – and get closer to success.

VC’s and Music Industry Professionals look for the following in the next act:

  1. Differentiation (How unique is the act?)
  2. Market Size (How large is their fan following? Where?)
  3. ROI (Does this act, or can this act produce a return on my investment?)
  4. Musical quality (Is their product demanded for today’s market?)
  5. Payback Period (How long would it take to get paid back?)

Answer these questions – or start focusing on achieving strong results for these, and you will win.

Reagan

Founder

WorldMusicLink.com

Connecting the Music Industry





Why Most Musicians / Bands Fail On Stage

30 03 2009

Audience Engagement A live concert or performance is the ultimate culminating portrayal of a musician or band’s hard work, dedication, and investment to date. Why is it that so many acts fail to capitalize on the tremendous opportunities that materialize during a set?

Live performances are estimated to reach nearly $21 billion world-wide this year (includes concert tickets sales, tour merchandise, music event sponsorships and other forms of concert-related revenues – http://www.emarketer.com/).

For most emerging acts, the average gig-price ranges from free (used for simply gaining more exposure of their music / brand) to $2,000+  for larger music festivals. However, in the hasty preparation of riders, equipment, band members, lighting, etc. — many musicians / bands fail to prepare the business items that coincide with their show. This includes items that encourage additional revenue (that’s money in your pocket) and future revenue. Next time you get booked to play a show, try the following:

  • E-mail all of your friends, family members, fans (let’s hope you actually keep a spreadsheet or email list of these) – letting them know about the show. BE SURE TO INCLUDE: Physical Venue Location, Ticket Price(s), Times, Other Acts (Headliners, Openers, etc.), Age Limits (18+, 21+ ID Required), “Sounds Like” meaning the music will sound like Ex: Beatles meets Radiohead) and add your Group’s Logo – this is important for additional branding. PEOPLE FOLLOW BRANDS. You’re brand can be simple, but needs to convey your name and a message (could even be your website) . Example:  The Leftovers (add a picture of a plate) www.theleftovers.net. Microsoft Publisher works well for this. Make a graphic, save it as a (.TIF or .GIF) and insert it into an email. ENCOURAGE the Recipients to Forward it On & Spread the Word.
  • Give a friend $20 (in advance so they feel good about going) to come to your show and setup a little business table. At the table you should have the following: Large Poster that CLEARLY displays the Act”s Name (I like Glow in the Dark Paint because most venues are dimly lit and shows occur at night). Also include: an Information Sheet (1 page sheet that describes your act, music, theme, location, vision, up-coming show dates/locations, and includes links to where they can hear music, buy merchandise / music / tickets, and where they can follow you (ex: Twitter.com, MySpace.com, Facebook.com, etc.).
  • Setup the table away from the stage / speakers (near the door is best). Customers will have questions, and they need to hear the answers over the sound and be comfortable to exchange money in a place where the entire audience isn’t staring at them / or where the moshpit is. Go to the bank before (or ask the venue) to exchange $50 to get you started. Keep a secure box (simple lock box is best) or briefcase for all transactional funds. Be sure to give each customer the one-sheet along with their items purchased.
  • Have your friend ask all visitors / customers to the table to drop their business card in a hat / bowl or add their name & email to the list for a chance to win 2 free tickets to an up-coming show or a CD / T-Shirt (you decide what you can afford to give away  … keep it under $15).  Start the list with three names & emails of your fans – REMEMBER, PEOPLE FOLLOW PEOPLE. Rule of Thumb: No one wants to be the first one on a list.  This list should grow at each venue you play at, and should be added to your Excel (computer) spreadsheet or email fan database for future e-blasts. You can also thank everyone for attending and invite them to follow you on your Social Networks / Website.
  • During your Set, make 3 announcements (When you first get on stage, half way through, and at the end of the show) about where audience members can buy CDs, Merchandise, Enter to Win Free Tickets / Merchandise, etc. Also mention that your group can be made available for private / corporate events – please see “Bobby – your friend” for more details at the table in the back. People are your audience, they come and go at different times — DO NOT WAIT UNTIL THE END (you might have missed the first 100 people who came through for a drink and left to another venue).

Following these aforementioned tips will help you organize, manage, and grow your fan base. At the same time, it will help you SUCCEED on Stage by properly engaging the audience and impressing them with your strong desire to grow your BUSINESS.

Always analyze the results after a show (or the next day if you’re too exhausted). Set goals for yourself and the group. Example: Last show the venue held 200 people, we had 100 showup (50% capacity). 10% joined the e-mail list, and 3% purchased merchandise of some sort. Next show, we want 130 people to showup, 15% to join the e-mail list, and 5% to purchase merchandise. TRACK YOUR GOALS AND RESULTS. You Will Succeed this Way.

Reagan

Founder

WorldMusicLink.com

Connecting the Music Industry








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