As Michael mentioned after seeing it, it would be great to see a chart of sustainable music careers (rather than gross sales of recorded music) to see if there’s been any change at all in the music business.  In other words, how many artists are making a profit and enough money to live on (say $30k per member) across the entire business.  I think that’s the greatest challenge these days – not to break through huge but to break through enough to make a decent living.  Onward and upward!

“When ecosystems change and inflexible institutions collapse, their members disperse, abandoning old beliefs, trying new things, making their living in different ways than they used to. It’s easy to see the ways in which collapse to simplicity wrecks the glories of old. But there is one compensating advantage for the people who escape the old system: when the ecosystem stops rewarding complexity, it is the people who figure out how to work simply in the present, rather than the people who mastered the complexities of the past, who get to say what happens in the future.” – Clay Shirky

Listen, managers of the world… the place in which we now find ourselves might not be as sexy or flashy as it was 10 years ago. The big advances from labels are mostly gone and all of the infrastructure they provided is out too. But there is a new model rising from the ashes and the artists are truly at the center for once.

“10 years ago I thought I can’t wait to sign up to something… so they can tell me what to do, and give me a bus, and give me a tour so i can sing and realized… that doesn’t happen. They’re waiting for you to say ‘this is what I’m going to do and this is how I’m going to do it and this is who I’m bringing along’. The minute you say that everyone is like “Yeah, Let’s Go!”"

“All I got to do is close my eyes and listen to what’s coming in, man. People are already singing the songs… that I haven’t written yet. And that’s pretty cool.”

It doesn't have to be like this! (Image by bonkedproducer)

Yes, I know it sounds terrible. The door-to-door salesman in the polyester suit trying to sell you a vacuum cleaner you don’t want. But wait, there’s more!

In this business though, in any business really, you must know that you are a sales person. Each and every one of you. We are all selling every day. “Sales” tends to have a negative connotation when speaking of art but if you simply reframe it as the process of spreading the word (describing the value) about your music then it won’t feel like sales at all.

Your live show is either selling people or it isn’t and if you want your business to grow then you want it to sell people. They need to walk away saying “you know that’s the best darn (vacuum cleaner) I’ve ever seen!” How you interact with the fans – that’s sales too. If you’re a jerk to them you’ve probably lost a sale (unless that’s your shtick). Being able to succinctly describe your band to anyone on the street with the hopes of convincing them to come see your show? Sales.

In all of these cases you are helping the potential customer see the value in what you offer. You are also building up a level of trust with each customer/fan.

This same mentality is required when meeting with business people, not just fans. This is where I see many bands stumble. Many bands are fearful or uncertain as to how to approach a booking agent, another band, a venue, or a promoter. This is where the little voice inside the head says “you’re not good enough” or “you have nothing to offer them.” Fact is, if you want to grow your business to the point that you can bring on partners (agent, manager, label), then you need to get over this hump. In this case I’d recommend making a list of all the things you can offer in each scenario. See in your own work what value you are bringing to the table. Reframe your position and see how you can offer them an opportunity, a chance to be a part of something that matters, rather than coming at it from the “can you help me” perspective.

Be strong, be confident, know your value and display that value. Everything you’re doing to grow the band is sales so commit to becoming a great sales person. In the worst case you can always sell vacuums if the music career doesn’t work! I’m guessing you won’t want to do that though so you better get selling!

Image by Nimages DR

There are two effective models to grow your business.  It’s best to recognize and utilize both to your advantage.

“One Fan at a Time” – Grassroots Growth – You need to be able to identify your audience and speak to their interests.  After knowing who they are you need to go find them (this is called marketing) where they hang out in the real world or online.  Once you find them you need to convince them that your product is worth buying (this is the sales part) – or a better way to look at it is to help them see the value that you could contribute to their life.  Continuing the dialogue with your fans is the final part of grassroots business growth.  Once you’ve found them, engaged them, they’ve purchased something from you (tickets, merch, music) then your job is to keep them interested – to make awesome content or products that inspire people.  I know it’s not easy and there’s no real forumla for it either.  But the point is, if you can learn how to make awesome products and find people who will enjoy them then you’ve built a successful grassroots business.

“Nodes and Networks” – Connections and Top-Down Growth – Who are all of your possible connections that could introduce you to your ideal audience?  The list could include agents, manager, venues, festivals, other bands, local businesses.  As you grow your business think of all the connections that are easy to make and reach out to them.  Even in the early stage of a career there are connections to be made with your local market.  Find and befriend all of the bands in your area that share your genre.  Get to know the owners of the stores that would identify with your brand.  Eventually when you grow your business to a certain point, you will go looking for an agent or manager.  One of the greatest benefits of the right agent or manager is the professional connections they offer.  In fact, if you’re looking for an agent or manager consider whether this person is going to provide you connections into the business opportunities you desire (festivals, clubs, markets).  Connections are an important part of business, just like real life… don’t forget about them!

Grassroots growth keeps you connected to the source – the fanbase.  Connections help network you into pockets of similar audiences where your ideal fans may be hanging out.  Recognize and capitalize on both – all successful businesses do.

The dream of playing clubs and even theaters could be done through grass roots effort alone. Amphitheaters, arenas, and stadiums though… grass roots effort alone hasn’t ever created enough fanbase to justify a tour of these venues as far as I know.  In order to consistently tour venues of this size, a mainstream radio hit is required… ideally several of them.

I know many people will point to The Grateful Dead, but even they had a top 10 hit in 1987.  Phish is another example of a band that mostly built their audience through grassroots but again, they had “Down with Disease” hit mainstream radio (peaking at #33) in 1994.  It was this song that brought them into mainstream awareness (including mine) and not coincidentally the album that contains this single is their best selling album.

The point is that currently, I don’t know of any band that consistently tours 15,000+ capacity venues that hasn’t had mainstream radio success.  (Of course, if you know of any please comment below).  This also brings up the question of whether there will be another media outlet in the future that can catapult a band to this level of success.  As the power of radio decreases, it remains to be seen whether something else can fill it’s shoes.  In the meantime and until it all gets sorted out, if you want to go to the big time, radio is necessary.

1. Once the artist has grown the business to the point that each member can make at least a meager living off of it. At that point they make enough to consider bringing in an outside partner to help grow it even further and that cost will be offset by the continuing growth and extra business the manager brings in.

As a very rough estimate, an artist can figure that they will net 50% of the gross income for a year.  That net will go into their pockets as personal income.  So if you have a five member band and you grossed $100,000 in a year that means the net to the members will be approximately $50,000 or $10,000 per member.  Again, this is a very rough estimate but can be helpful in thinking about things.

To explain further, I think management makes sense at this point because the artist has proven they can make a living and the extra cost of management won’t hurt as much.  It’s also a natural business milestone – moving from part-time artist to full-time – that justifies expansion considerations.  Lastly, it’s a point where the manager can make enough money to work with the artist and devote plenty of attention and resources to the project while feeling fairly compensated (an investment rather than a gamble).  In short, it’s usually a healthy point in the business development.

2. Regardless of size, even if the members are not yet making a living off the business, if you have a friend or family member who would do it for minimal compensation (a percentage of nothing is nothing) then it could make sense as well.  Most likely  this manager wouldn’t be experienced but what they lack in experience they would make up for in enthusiasm for the business (ideally).  If they didn’t have the enthusiasm and interest in the business than it wouldn’t work long term.

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Of course, there are plenty of other unique relationships that make sense for the parties involved.  However, these two seem to be the healthiest starts to many of the long term relationships I have witnessed.

The next day they posted a geo-targeted facebook status update for fans in the mid-western states asking if anyone would like to host a house party with them on the available dates.  The response was fantastic.  Within a week they were able to book 3 more shows.  This not only brought them more money for the tour, but it gives them a chance to connect intimately with fans, and to make new fans in an intimate environment (think of how much easier it is for you to say yes to a free party versus saying yes to pay for a show of a band you haven’t heard of before).

Grass roots development is incredibly important for the early stages of your career.   At this stage, if you can see that there really are no gatekeepers telling you what is possible then the world is your oyster.  In this specific case, why try to cajole a promoter to give you a gig when you can go directly to your fans? Helping fans become promoters is a win-win scenario.

If you’d like to be part of The Farm Team advisor program contact me at ben(at)theartistfarm.com or fill out the application at: http://thefarmteam.com/

Launching a music business is no different in theory. What is different is that most artists assume there are gatekeepers who deem you worthy to progress to a higher elevation in your career. As with all businesses, yes it is true that there are strategic partnerships that can help grow your business, but there are no gatekeepers other than those within your own mind.

At The Artist Farm we have a running theory that the most successful artists are the ones who fully recognize their role as business owners. They run the show, literally – from artistic to business partnership decisions. As these strong personalities grow, so do their businesses. And as a business grows it begins to attract attention. Suddenly those “gatekeepers” that you imagined are all clamoring to be involved with this successful business.

The control and growth of your business rests in your hands. It’s ok to be in a position of growth or to feel the struggle – that is all part of growing a business. If you are committed to establishing a successful business then don’t look for the knight on a white horse to save you (i.e build the business for you). The knight is inside you ready to charge if once you find the right path. Read business books that have nothing to do with music to get some ideas. Here’s a start: http://www.100bestbiz.com/more-on-the-100-best/.

Thanks for reading.

Ben Coe, The Artist Farm

Join our new Advisor group for hands-on mentorship in growing your business: http://theartistfarm.com/services/

There is another definition for “lifestyle business” that implies the business is making products or services for customers that choose to live a certain lifestyle. There are many businesses that appeal to people based on their lifestyle.  Businesses that fit into this category include music, yoga, natural grocery stores, and skate or surf shops among others.  The actual product made or sold by these businesses appeal to customers who appreciate, embody, and live a certain lifestyle.

This second definition is the most important one to understand as you grow your business.  In this post I’d like to point out how I have seen artists successfully capitalize on this understanding.

First, think of who your audience is – visualize them.  What defines these people?  What do they have in common?  Next, recognize that you are a business… period.  This means you must sell products in order to sustain yourself.  Yes, I realize that’s not as sexy as just being a musician but it’s the truth.  You are making products for your customers/fans.  What do they want?  Almost every band sells t-shirts and caps but what else might your customers/fans want?  What else fits in with their lifestyle and the lifestyle you promote?  Thinking this way and creating these products is not selling out – it’s giving your customers/fans another chance to get closer to your brand.  This is good, healthy business.

Some examples:

Jack Johnson – Jack comes from the surfer culture in Hawaii and California.  His songs evoke this feeling.  He makes films that speak to this.  Though this isn’t a revenue stream, he has greening partnerships that embody his message.  He has a record label that signs bands of a similar vibe.  Each year he produces a festival on Hawaii that benefits schools on the island.  Jack clearly sees that he’s in a lifestyle business.

Zac Brown Band – A southern rock band (part country, part roots rock) pushes the southern message in their songs and through a beautiful cookbook.  Zac owned a restaurant so it fits with his message and branding.  He also holds a BBQ before shows which you can buy passes to.  I even read somewhere that he sells a line of BBQ sauces.  Zac has created a solid lifestyle business and each product reinforces his brand.

Unkle – Jame Lavelle and his team clearly decided that they are also in the visual art business, not just the music business.  Their vinyl releases and limited edition releases include posters and full books with gallery style art.  Even the packaging is top notch with unusual layout and design. The presentation elevates the music, the image, and the brand of the artist.  Though it must be time consuming to craft such an involved product, it also sells for a higher price than the standard product and fans appreciate it.  Unkle gets that they are in a lifestyle business.

Jimmy Buffet - Of course, Jimmy Buffet is the king of lifestyle business.  He has frozen food products, margarita mix, restaurants, apparel, books, albums, beer, and more all of which strengthen his image as the ultimate summer time, good time brand.

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It’s most important to focus on building your business where the momentum is.  If that’s touring or albums then by all means focus on that.  But as you start to get some traction and business starts moving, see that you are in business just like any other business owner.  Find products for your fans/customers that they will want and that will bring them closer to you.  Creating other products that fit the lifestyle of your fans can be just as artful as creating music and your fans will appreciate it just as much.