Music Business Archive

Why you still want a record label (for now) even as they are dying

By
Brett
 – June 4, 2010Posted in: Interviews, Legal aspects of the music business
Why you still want a record label (for now) even as they are dying
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Music lawyer Donald S. Passman talked with us at Detone8.com about the current state of the major labels, getting their attention and the first thing every band needs to do.

Late last year Donald S. Passman released the seventh addition to his book “All You Need to Know About the Music Business,” and we interviewed Passman about the changes to the book caused by some dramatic shifts in the music industry.

“There has been a huge change from the last edition,” Passman said.

For fans, the most recognizable changes in the music business have been listening to interactive streaming music online with companies like Pandora, and it’s an issue the industry wrestled with right up to the publication of the book. Yet the biggest change to this version of Passman’s book is how the new 360 deals work.

The 360 deal is one of the last ditch efforts by record labels to stay afloat. Simply put, this new contract will not only split the profits from record sales with musicians and labels, but record labels now want a piece of every dollar a band makes. This includes digital sales, merchandise and even performance profits from live shows.

It’s an unprecedented way for record labels to stay afloat, although they have a strong argument in favor of the 360 deal Passman said. It’s not fair that record labels put up most of the money to get a musician off the ground and not share in all of the profit that comes with success.

And the worst part is that this maybe one of the best options for bands right now. As long as record labels are the key holders to major success in the industry, all other business plans are untested. Passman said he has yet to see any completely independent band break into the mainstream.

There is so much competition that even Internet sensations like Justin Bieber have signed with major labels to get mainstream exposure.

“There is what, 7 million bands on Myspace right now, so how do you break through that noise,” Passman asks.

Yet as much as the labels are hoping the 360 deal will save their business model, Passman has yet to see any results. “It’s too early to tell,” he said.

It seems even the experts like Passman are unsure of the future of the industry.

To sign or not to sign is purely academic if you are not even getting noticed by the labels in the first place. So, what is the first thing a band needs to do? Get it in writing.

You don’t need to cough up several hundred dollars it takes to create a business before you make any money, but Passman recommends putting an agreement in writing.

Before the band ever takes in one dollar you need to write down how the band will make decisions, who owns the name and assets of the band and how to kick someone out or bring a new person in. Then everyone signs it.

Passman warns it is harder than ever to get signed. There are less labels, less money and fewer deals made. But the keys to getting signed have stayed the same. You need to build a buzz, a story and learn to manage your fans.

Key Info from music lawyer Donald S. Passman: Before your band makes one dollar put an agreement in writing.

image from flickr.com user NobMouse

Book Review: “Tour: Smart – and Break the Band”

By
Scott
 – May 16, 2010Posted in: Music Business, Touring, Touring Bands
Book Review: “Tour: Smart – and Break the Band”
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“Tour: Smart – and Break the Band” by Martin Atkins is a must read for any and all musicians, bands or anyone in a touring industry. It is amazing that someone actually took the time and effort to write such a comprehensive book on the subject – take advantage of the expertise.

This book is chalk full of insight, not only from author Martin Atkins (PIL, Pigface), but also from dozens upon dozens of interviews and stories compiled from touring insiders, musicians, tour managers, club owners, record executives and roadies – just to name a few.

I think Martin Atkin’s introduction to the book really sets up what you should know and will learn while you read this book:

“You should fail because your band is shit or because you don’t have the balls. You shouldn’t fail because of a lack of some basic advice and a bit of planning. Your music, your band, might be important to some people, very important to a few, mildly important to a few others, but it will never be more important to anyone than it is to you. Apply that principle to everything.”

Don’t let the book’s immense size turn you off (over 500 pages.) This is not a book that needs to be read cover to cover (though, that is what I did.) This book is meant to be picked at little by little. Chapters are short and impressively interesting. The book covers everything from the necessities of a tour to why those on tour shouldn’t do drugs or crap in the tour bus toilet. One resounding message is that you have to treat your music as a business and be responsible for that business at every facet.

The highlights of this book are presented in chapter summaries and lists outlining things that bands should do and not do. These smart tips are enough to guide bands in the right direction, but once you start reading the book, you are really going to get drawn into the witty and relevant stories from the industry insiders. The experiences that these people have went through range from the intensely cautionary to the absolutely hilarious.

“Tour: Smart” also goes into some great detail about marketing efforts, especially when the band is getting ready for a tour. These marketing tips will give you a great starting point for any efforts, though. The book tells you how to book shows, advance a show, get radio play before a show date, assemble a street team and actually get them to promote, and keep track of it all. Putting your best song first on the CDs you make, knowing your audience, and keeping track of everyone you meet, are a few of the other essentials Mr. Atkins stresses.

Learning the ropes of touring will never be easy, even if you think you are prepared. This book provides stories that show the highs and the lows of touring, what (and who) to avoid, and overall what you can expect out on the road. It is basically the quintessential textbook on the subject of touring.

“You need one voice for the tour. It has to be a benevolent dictatorship.” – Martin Atkins

Every band should have this book in their possession whether they are just getting ready to tour or are in the midst of one. If you are just starting out, you will learn a whole lot of things to do and expect on a tour. If you are already touring, you will not only enjoy reading the book and comparing your own experiences, you will almost certainly learn something new as well.

“Tour: Smart – and Break the Band” by Martin Atkins can be found at Amazon.com for less than $20 new.

Promotions and merchandise surveys

By
Scott
 – March 21, 2010Posted in: Music Business
Promotions and merchandise surveys
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We need your help by filling out our quick and easy survey.

Here at Detone8, we are always trying to find ways to help bands achieve success. One way we are trying to do this is by creating surveys that fans and music lovers can take to help us (and you) determine what marketing tools are actually working.

We have created two surveys to find out what kind promotions are working, where people are finding music, and types of merchandise that are popular. The more fans we can get to take these surveys, the better information we can provide. So, please help us and yourselves by getting people to take these quick surveys.

Post the links to your MySpace, Facebook, or other sites you use.

Show Promotion Survey

Merchandise Survey

image by Rennett Stowe


Music Marketing: Press, Promotion, Distribution, and Retail: book review

By
Scott
 – March 21, 2010Posted in: Music Business
Music Marketing: Press, Promotion, Distribution, and Retail: book review
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Music marketingI am going to start by saying that “Music Marketing: Press, Promotion, distribution, and Retail” by Mike King is a very informative book. The book lays out, in some detail, ways to achieve success in the music business through the various outlets available to bands these days. The book doesn’t strongly emphasize any particular avenue or approach, but does give a fair amount of do’s and don’ts that can really be helpful to bands trying to break through to the next level.

However, this book is not for the fly-by-night reader. I would venture to say that a typical band member picking up this book and trying to grasp the concepts in it, would be pretty hard pressed. Most of the stuff in this book seems to be designed from the perspective of a publicist, marketer, or music business insider. While this does work on many levels and gives some great insight into areas a band may never think of, the reading is more in-depth than I would have ever cared to endure when I was in a band. Even as a Marketing major, some of the concepts in this book are a little beyond my grasp.

The book has a heavy lean toward the Boston-area (which is where the book was published, incidentally.) It’s not that big of a deal, but I mention it because the music scenes vary from one city to the next and a city-centric focus may be off-putting to some readers. The book also has a much heavier focus on bands that have already kind of established themselves and are trying to make it to the next level or get signed. So, I would caution brand new bands from picking this book up. Furthermore, many of the concepts in this book cost a lot of money with little focus on guerrilla tactics of marketing.

A band could get a few key components from this book, however. Since the book does provide press release examples, promotion examples, and insider interviews, a band could use this as a tool to help model their own marketing efforts. Another good thing about this book is that it provides a workshop exercise at the end of each chapter for a band to understand the concepts better and flesh out their marketing strategy.

This book is great for someone who wants to become a music marketer specifically or a publicist perhaps. For a band, however, it might be a little too much to handle while trying to flesh out the best music you can (because that is the most important part, even according to Mike King in his book.) Don’t get me wrong – a band should probably know the stuff in this book as they progress – but, my advice with this book, if you are really interested in picking it up, is to give it to the person running your merchandise booth, to a friend that isn’t in the band but wants to help out, or to a parent that would help. Give it to someone who really has the time to work on and understand the concepts in this book.

“Music Marketing: Press, Promotion, Distribution, and Retail” can be found at Amazon.com for less than $20 new, and is also available as a Kindle edition.

NOFX, and having the ambition to survive the music industry

By
Brett
 – March 9, 2010Posted in: Interviews, Music Business
NOFX, and having the ambition to survive the music industry
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NOFX manager Kent Jamieson describes himself as “not that ambitious.”

For example, his lack of ambition lead him to create a highly successful, all-ages, punk club so he could bring top punk band from around the world to play in his home town.  He then learned to work the sound board, and was hired to be the house sound guy for local and touring bands.

The band NOFX must have related to Jamieson’s lack of ambition. A Van’s Warped Tour mainstay, NOFX has being playing together since the early 1980s, recording more than a dozen studio albums, and have been touring for close to thirty years all over the world.

In the early 1990s NOFX was looking to bring a sound guy on a tour in Europe. Jaimeson called Fat Mike, singer and bass player for NOFX, about the job, and Mike immediately hired Jamieson.

A year after being their sound guy NOFX hired Jamieson to be their touring manager. The band continued to grow in popularity and eventually NOFX asked Jamieson to be their full-time manager.

“I manage them, I manage the tours, and I book most of the tours. We have an agent in Europe, but I do all of North and South America and the rest of the world as well. So, I essentially do everything,” Jamieson said.

Oh, and he manages Me First and the Gimme Gimmes, a cover band of punk rock all-stars. Perhaps my definition of ambition is different than Jamieson’s.

The good news is that “non” ambitious people like Jamieson have found success in the music industry. Finding a way to work in the music industry in a small Canadian town helped him create the work ethic and the connections to tour the world for 20 years and more.

Jamieson has also seen the dramatic change in the music business over the decades. According to Jamieson, there was a belief in the late 1990s that bands could continue to make money of their catalogues of music even after a band breaks up.  Yet now that money has all but dried up.

“Touring is defiantly the main income source for musicians now,” Jamieson said. “Putting out your music is really just promoting your band as a live entity.”

In the digital age of music there is not enough money for bands to live on.  NOFX continues to have a large fan base, but too much of this generation of fans do not believe in paying for music. There is not enough money to sustain musicians who do not tour. “Selling music digitally is working out fairly well, but it ain’t nothing like it used to be,” Jamieson said.

The record labels are not helping much either. A few are making the transition, but most are not. And the ones that are struggling have never been know for their musician friendly business models.  “Life for bands on major labels sucked for band in the 90s when things were good. I can’t image how it is now,” Jamieson said. “A new band should absolutely go it alone, because at this point a record label is going to want some of their touring merchandise.”

Yet as much as things change, making in the music industry has always been hard.  “ You’ve got a one in a million shot,” Jamieson said. “There is still a chance to make a living at it for sure…the challenges really haven’t changed that much. You need to be good. You need good songs, be entertaining, and you need perseverance more than anything on top of that.”

“Really good songs are always going to be the mainstay of bands, no matter what the format they deliver,” Jamieson said. You will also need Jamieson’s questionable “lack of ambition.”

image by Edvill

Over 4 million plays on Pandora? It’s just business for Barefoot Truth

By
Brett
 – February 21, 2010Posted in: Distribution, Getting Shows, Interviews, Marketing, Touring Bands
Over 4 million plays on Pandora? It’s just business for Barefoot Truth
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Starting off Barefoot Truth was just two high school friends (Jay Discoll and Will Evans) writing and performing songs for their own enjoyment. When they started playing out they got such a good response that they decided to record an album. By the time they both graduated college Barefoot Truth was no longer just for fun. It was a full band, and it became a career.

Since spring of 2007 the members of Barefoot Truth have been working full time on the band. Recently they have received national attention and an undetermined amount of money from success on Pandora Radio. The internet radio site exposed Barefoot Truth to a much larger audience, and that audience can’t seem to get enough of Barefoot Truth. The band has had more than 4.5 million plays on Pandora.

Although the band had little influence on promoting their music on Pandora, their dedication to making quality music and their professional approaches to the band are key to this success. The band is doing everything right. They made the band into a small business and keep track of all of their money. They even get tax write offs at the end of the year.

Discoll took the time to help answer some our questions about Barefoot Truth’s success.

barefoot truth

How do they afford to be professional musicians?

“We have a pretty good situation, we all live together. So a lot of the money we make as a band stays in the band going towards our own rent…it really just cuts down on costs.”

“When there is downtime…we’ll have our own little things going. Odd jobs and things are always coming up.”

What was the first step to becoming a regional band and getting shows in different areas?

“Show swapping is defiantly a big thing for us. It has been for breaking into new places…We’ve also been lucky to have interest from a lot of colleges and high school students [then we] go to their student activities board and tell them [the students] would like us to play at their school. It’s been cool to break into new markets. From there we try to get into local clubs.”

How does Barefoot Truth handle management responsibilities?

“Right now it’s pretty much mainly handled by the band. We’ve been though management a little bit and had booking agents and had some help with different tours…but beyond that we are constantly booking shows ourselves. We do a lot of the admin stuff ourselves which definitely gets tedious.”

Barefoot Truth’s first recording was produced by a Grammy nominated producer and has worked with the band Dispatch, how did that come about?

“We’ve always looked up to [Dispatch] and we went to what was planed to be their final show back in 2004. We happened to meet them, and we actually had a cassette tape. We played it for them in our car. They were really cool to us, and they said if we were really serious about making a CD we can hook you up with our producer Jack Gauthier. We said yes. We got to record our first few CDs where they recorded their CDs.

We’re never afraid to talk to people. We love meeting new people in the industry and learn how other people have gone about their career.”

The band has gotten a lot of exposure from Pandora, but how much has it helped Barefoot Truth?

“We started getting requests from different parts of the country to play, then we started seeing CD Baby sales from all different parts of the country. When someone buys your CD on CD Baby they get a chance to tell you how they have heard of you. About 80 percent was coming from Pandora, and we thought wow this is cool. Then our music got on iTunes, and we were making way more digital sales than physical sales…It’s grown exponentially.”

What advice does Barefoot Truth have for young bands?

“The biggest thing for us has been to put all the money back into the band. You can’t grow without putting money into recording, gas, graphic design or publicity. There is so much to put into the band you need to have a money flow. Just don’t get greedy with the money you make at gigs.

And don’t be afraid to play anywhere. One example that I remember we played a very small bar gig we were hesitant to play. We were pretty sure no one was going to come hear us who knew of us, but it ended up meeting a kid there who is an IT guy. He was able to do an internship for us, and he was able to build us an entire website and graphic design and get credit for it…you never who you are gonna meet and what each gig is going to bring to you.

And don’t drive in the snow…We got into an accident, and that sucked.”

Learn more about how to get your music onto Pandora, advice from Pandora’s founder and getting royalties from internet and satellite radio.

How To Get Your Music onto iTunes

By
Kevin
 – February 10, 2010Posted in: Distribution, Marketing, Music Business, Rookie bands
How To Get Your Music onto iTunes
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Getting your music on iTunes, and other digital music outlets, is no longer just a good idea but something your band must do to generate an income.  Unfortunately, many music outlets do not work with individual artists. iTunes is no exception.  This means that you will have to work with a digital distributor to get your music out there. Here at Detone8.com we’ve put together a list of companies that distribute independent music. This alphabetical list gives the differences between theses companies to help you find the one that fits you the best.

Avatar:

  • Avatar has an application process, and it is not guaranteed they will take your music.
  • If accepted, your music should be available on iTunes within 3-4 weeks after you submit all the required items (contracts, CDs, W9, etc.)
  • Avatar does not charge a set up fee, but will keep 20% of earnings as their distribution fee.
  • Payments will be made 45 days after the end of each quarter (mid May, Aug, Nov, Feb)
  • Better Business Bureau: No Rating, no complaints.

Catapult:

  • Catapult offers self sign up, and includes multiple stores in their distribution agreement including iTunes, Amazon MP3, and Zune.
  • Expect a 4-8 week time frame from the time you submit your music, to the time it will be available for download (varies by store)
  • Catapult charges a $25 setup fee, and has a tiered distribution fee starting at 9% and scales down to 5% as downloads increase.
  • Catapult does not require a physical CD, so you can start the process while your music is off to the replicator, or you can choose to scrap CD replication altogether.
  • Payments are made once a month via Paypal.
  • Better Business Bureau: A Rating, no complaints.

CD Baby:

  • CD Baby is also a self sign up service, and includes over 20 stores in the agreement.
  • Expect your music to start showing up in the different stores after 3 weeks.
  • CD Baby charges a $35 set up fee, with a distribution fee of 9%.
  • CD Baby issues payments the Monday after they received the sales reports from iTunes, Amazon, etc.
  • CD Baby also has a physical distribution offering that includes Amazon (which is required if you plan on submitting to Pandora).
  • Better Business Bureau: A- Rating, BBB processed a total of 18 complaints about C D Baby Inc in the last 36 months, our standard reporting period. Of the total of 18 complaints closed in 36 months, 14 were closed in the last year.

The Orchard:

  • The Orchard has an application and approval process.
  • The Orchard distributes through iTunes, Verizon, Amazon MP3, Zune, and many more.
  • Better Business Bureau: No Rating, no complaints.

QuickStar Productions:

  • Quickstar also has an application and approval process.
  • Quickstar distributes through iTunes, Amazon MP3, Napster, and “almost every other mp3 retailer on the world.”
  • Better Business Bureau: A Rating, no complaints.

TuneCore:

  • TuneCore is completely self service and includes 19 different stores (iTunes, Amazone MP3, eMusic, etc.)
  • TuneCore does not retain anything as distribution fee, however, it does have 3 different setup fees depending on single, album (standard), or album “a la carte” distribution.
  • Better Business Bureau: No Rating, BBB processed a total of 2 complaint(s) about this business in the last 36 months, our standard reporting period. Of the total 2 complaint(s) closed in the last 36 months, 0 were closed in the last 12 months.

**All the distribution fees are based on earnings after the retailer fees.

Good Luck!

image by DeusXFlorida

Is Soundexchange legit or a scam, and how to get your royalties

By
Brett
 – February 7, 2010Posted in: Music Business, Rookie bands, Touring Bands
Is Soundexchange legit or a scam, and how to get your royalties
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Musicians don’t gets performance royalties for music played on the radio, so performance royalties from SoundExchange must be a scam. It’s a logical train of thought, and it’s completely false.

SoundExchange is legit and has money waiting for musicians.

Fifteen years ago the U.S. Congress started changing the laws to create performance royalties for artist. Now, in some situations, not only do the people that write and own songs get royalties, but so do all the individuals involved in the recording of a song.

For over 80 years American radio stations have convinced musicians that radio does not have to pay performance royalties. They found a loophole, and they have made sure to keep it a loophole. Yet, it’s not the same story around the world. In many countries artist do get performance royalties.

Lately things have gotten better in the U.S. You, and your copy write holder, can now collect performance royalties for digital performances. This would be when music is played on satellite or Internet radio. The non-profit company SoundExchange was created to handle the payments music providers would pay to musicians from government licenses. There has been hundreds of millions of dollars collected on musicians’ behalf.

The only problem is that the concept of performance royalties is so unknown in the U.S. that many artist don’t collect the money they are due. It’s why soundExchange is holding more than $10 million dollars in royalties for musicians who they have contacted six times or more. It’s why SoundExchange has sent out 14,000 checks to artists, yet these artist have never cashed the checks.

Musicians are afraid it’s a scam. But the money is legit. SoundExchange has collected over $350 million dollars in performance royalties. Now you need to collect it.

It’s not too complicated, at it is never too late. SoundExchange has royalty payments that date back to 1996.

Read the rest of this entry »

Pandora part 2: Pandora’s founder on Pandora and the future of music

By
Brett
 – January 30, 2010Posted in: Interviews, Marketing, Music Business
Pandora part 2: Pandora’s founder on Pandora and the future of music
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image by alexkerhead

Tim Westergren is an award-winning composer, a musician with more than 20 years of experience and has even owned his own digital recording studio. Yet, Westergren’s greatest impact on the music industry has been as Pandora Radio’s founder and CSO. Pandora Radio has grown to more than 40 million users, and for last year they paid out more than $20 million in royalties.

Still, Westergren has even bigger plans for Pandora and ideas on how musicians can utilize current and future marketing tools.

In late January we talked with Westergren about what Pandora’s value is to musicians, and his thoughts on how to find success in this new decade.

What is the Music Genome Project?

“[The Music Genome Project] is the connecting tissue that powers Pandora.”

“I spent a lot of time in bands and as a film composer as well. And specifically when I was writing music for movies, I spent a lot of time trying to figure out why people like what they like.”

“I kinda developed this taste profiling method, an informal genome in my head. And that eventually became the foundation for the idea of the Music Genome Project.”

“The genome project itself is this enormous musical taxonomy. So it’s a collection of hundreds …of discrete musical aspects that collectively describe a song.”

How are royalties paid by Pandora?

“We pay a publishing fee and a performance fee for every song we play. And a publishing fee is paid to the composer and the performance fee is paid to the performer.”

“We pay the publishing fee to ASCAP, BMI and SESAC, and we pay performance fees to a company called SoundExchange. And they in turn distribute that money to artists and labels.”

“The nice thing is that musicians are getting paid. It’s been a real strain for us on a business standpoint, and I think it still remains a pretty unjust fee.”

Can musicians get feedback on play counts and thumbs up/thumbs down from listeners?

“It’s certainly something we would like to offer and eventually will. Where an artist can go in and investigate that, and ultimately make use of that.”

“So, not just find out what songs people are liking and who your fans are, where they are. But, communicate with them as well. So you can maybe plan a tour and e-mail all the people who ever thumbed up a song of yours to let them know you are coming.”

How can artist promote themselves on Pandora?

“[Musicians] can go in and buy advertising. That would essentially mean buying graphic visual advertising that surrounds the tuner, banners around the tuner. That currently is the only method we have for artists to advertise.”

What advice do you have for new bands starting out?

“I think it’s time now where if you’re a musician you need to take advantage of the web.”

“In order to do that you need someone to help you. If I was starting a band now, one of the people I would add to the band is a person whose job is to be the online member, not necessarily some one who plays an instrument…But, this person’s full time job is just to figure out all the ways in which you can take advantage of the web.”

“Think of that person as a member of your band just like anybody else. But they play a mouse instead of playing guitar…give them a cut of the door, credit them on the album and make them part of the band.”

How will musicians fair as labels are struggling to stay vital?

“I think there will be now a potential for a musician’s middle class. And in some ways you are going to see a compression overall where… the top selling artists aren’t going to make nearly as much, and that’s not news, so you’re going to have this layer of artists that [in the past] couldn’t quite make it that can start making it. Meaning, make a living.”

This is part two of a three part series on Pandora Radio. Part one was how to get your music on Pandora Radio.

The third part of the Pandora Radio series is on promoting your band and making money on Pandora. We will we talking with the band Barefoot Truth, a band with more than 4 million plays on Pandora Radio.

Forget Shakespeare to write powerful lyrics

By
Brett
 – January 28, 2010Posted in: Music Business, Rookie bands
Forget Shakespeare to write powerful lyrics
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image by markhillary

Writing is difficult, and writing quality lyrics can seem impossible. Yet the biggest obstacle is not that you can’t write, but how you approach writing. Forget all that nonsense you learned in freshman English class that Shakespeare is the greatest writer in the world.

If you want to write the songs people will love, you need follow the rules of great writing today. But first you have to shake some misconceptions about good writing.

1.) Good writers are born good writers.

Contrary to popular belief, great writers are not born good at their craft. Great writers are created with hard work. No one expects a guitar player to be great as soon as they start, so don’t expect your writing to be strong until you have practiced, practiced and practiced some more.

2.) Great writing is complex.

Bullshit. The best writing is the most direct writing, and direct writing is when the way you speak and the way you write are nearly indistinguishable. Shakespeare is the greatest author in history because his writing could connect with people like no one else. But that is history. We don’t talk like that anymore.

Now that  your head is clear, you need to start filling it with what you really need to know. The first step to being a better song writer is to read good writing.

No one is better at teaching American English writing than William Zinsser. His book “On Writing Well” should be owned by every song writer. Fittingly, the best description of the book comes from Zinsser.

“The life-changing message of On Writing Well: simplify your language and thereby find your humanity.” -William Zinsser

So what are you doing reading this article? Get to work. Write the next great song.

BONUS:A few writing tips I learned as a journalist.

  • Keep to one topic – If a song is about your friend Pete, don’t write about your dog, your job or your car. If you don’t have enough to say about Pete you should pick a new topic.
  • Seek honest feedback – There will always be people who will cut you down, and there will always be someone who can’t say anything bad. These people are useless. Ask people who will be honest with you to review your songs.
  • Put it out there – Sometimes your writing will seem pure genius, and no one will notice. Sometimes you will knock a piece out in 10 minutes and it will be the next big hit. You’ll never know if you don’t put it out there.
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