Using Outsourcing To Further Your Brand

February 15th, 2010

While reading through the blog ‘Gen Y Rockstars’ I came across their blog about outsourcing. We have been spending a lot of time in the trenches with our clients figuring out where the do-it-yourself music business is going and how we can continue to grow as a multi-service company to fill those needs. I decided to give my own insight into the subject and expand on it a bit.

Your an artist (band/DJ/Producer- whatever) out there on your own, trying to take hold of the sea of potential fans in the world. There is an incredible amount of time, tools, and logistics that go into making an artist successful. What does success mean in this new industry? Success when your an independent artist can really be what you want it to be. Focus on smaller successes that go toward your ultimate success goal. Your small successes should be based on obtainable goals you set on a regular basis. So how do you achieve that? Well that is not an easy question to answer and I don’t think there is really a formula per say, but most importantly you need to build a team.

A large reason the “label” exists (besides the obvious financing side of things) is to be your team in doing everything you are NOT good at. So what do you do if your an independent artist without (or with very little) label support. You can’t, and shouldn’t do everything yourself, but the awesome thing is that we live in a time where we have thousands of people completely capable and hungry to BE YOUR TEAM, without taking a huge cut of your sales. The pay for service age is now, it is reality, and it rocks. You can have a 300 hour work week by simply leveraging other peoples time and resources. If you have 3 people working on different tasks, you effectively created 3 times the man hours at the same time. and you now have 3 times as much free time to work on other aspects of your band. Call it DIY… with help. DIY, keep the rights to your music, and make a lot more in the long run. I know that financing is a huge factor and I will get into that later. Ideally you can end up making more and spending less without a label backing you. Now there is a time and a place for a label to step in and I am not saying that you should spit in their face- but more so saying that you may find more freedom and success by going it alone and growing your band like a brand and a business.

The Advantages of Outsourcing
Your musical act is a business and you need employees to run it. Outsourcing is just a means for you to have freelance employees doing the stuff you are not good at and just don’t have the time for. Again this goes back to what I was saying earlier about leveraging other peoples time and skills to your advantage. for each talented person you bring into your team you open up a whole new network of skills and contacts to further your brand (see how we are already moving away from your band and into your brand). When you sell someone a brand you build loyalty. You want to live the lifestyle of furthering your brand, that is what gives you a chance at success. Build it through squeezing the juices of the talent you have on your team. Once you build your ongoing relationship with the person they should need very little direction to complete the tasks. Just like an entrepreneur, you need to spend your time wisely and leverage everyone else’s. In the end, you still did the core of the design work and you can promote it as such.

Outsourcing Ideas

(Endless, however I included some ideas)
- Graphic Design
- Web/blog/social media development (this is a big one when it comes to branding)
- Email campains
- Press releases
- Press Kits
- Viral Marketing
- Styling and costuming
- Professional Photography and videography (but always have your flip cam ready… it is big right now)
- Music Videos
- Video Flyers
- Social Networking
- Merchandise production (manufacturing of or coordinating with manufacturers)
- Digital Distribution (getting your digital content out in the world and managing it)
- Physical product production (CD/DVD/USB Stick manufacturing)
- Physical marketing production (printing stuff like posters, flyers, etc)
- Online retail fulfillment (shipping stuff sold on your site or keeping online retailers like Amazon stocked up)
- Customer service (dealing with merch returns from your site and dealing filtering fan concerns that don’t need your personal attention)
- Storage (storing all of your goods and keeping track of it)
- Street team management (both paid guerilla marketers and your fan based street team)
- Administration (like scheduling meetings, book keeping, accounting, etc)
- Booking
- Tour Management (either having someone help you plan a tour, or hiring someone to run your tour on the road with you)
- Travel booking (Travel Agents are phenomenal at saving you money and helping you with the logistics of group travel… Expedia, not so much)
- Anything else you think you need help with

What You Shouldn’t Outsource
YOU
You need to personally communicate with your fans, you need to create the music, you need to be the personality and you need to live your brand. Mold your team with your brand, don’t let your team mold you. Because so much of your time is going to be spent face to face (or computer to computer) with your fans. If you don’t totally own your brand your fans will see right through it. That doesn’t mean you shouldn’t have a stylist help you with your look or get advice from your team on aspects of your act, but the foundation of what your brand is needs to come from the core beliefs you stem from. Your focus should be on living your life through your artistic persona. Connect with your fans hearts by becoming a part of their lives. You should be out mingling with potential fans even at shows your not playing at. Build that personal relationship with your core fan base and they will fund and nurture your upward success. In most cases it is really best that the updates being written on your social networks like Facebook, Myspace, and Twitter should be the members of the band.

The Disadvantages
The main disadvantage to going it alone and doing a lot of outsourcing is you are personally spending the money on overhead to get the work done. But is that totally a disadvantage? When you are tied to a label or using companies that take a large percentage of your retail, you end up making very little. If you keep your day job, be a rock star on a budget, and outsource a lot of the stuff that takes up your time you will hopefully have enough left over to get by until your music is able to sustain you full time. If you are able to pay for a lot of the things a label would, you are going to recoup the costs much quicker then if you were trying to recoup the labels money. Focus on how to make your music make money through your brand (clothing, widgets, CD’s, downloads, etc) and recoup your own expenses with more control over what you spend it on and how you pay yourself back. When you are using your own hard earned cash you really have the burning desire to make things happen and toss out the things that don’t work.

Another disadvantage is the fact that outsourcing a bunch of tasks to a bunch of different people on your team ends up taking a lot of management time. You have to deal with the administration of making sure all of your vendors are paid on time. If you are not rock solid at managing people, time, and money you may need to pass this along to your artist management (usually for a percentage of your earnings) or outsource the outsourcing with a project manager!

The Project Manager
I consider a Project Manager to be different than your typical manager. A Project Manager can work with your personal or business manager to act as the traffic controller for whatever task is at hand. A Project Manager works for a flat or hourly rate rather then a percentage base. This will allow you to only pay someone when you need something done and may actually cost you less then percentage based payment in the long run. If you are a new artist you may not have the ability to hire a manager. A lot of new artists may use a friend or a fan to act as their manager and if this is the case an experienced project manager will help them to make sure you get the best deals and use the right people. If your project manager is part of a multi-service company (A company that provides a grouping of products and services in different areas like our company does) the only you may be paying the person with is giving the company your ongoing business which doesn’t cost you anything because you needed it anyways.

A project manager can be an advocate who makes sure your best interests are always in mind. If you are totally starting from the ground up, you may be able to get consultation from them to make sure the business side of your brand doesn’t lag behind the creative side (ie, do you have a business licence, resale certificate, and business checking account to keep the tax man happy and make sure you are making the most of your profit margins). If you have an artist manager they probably have already done this for you, but if you don’t, be sure to ask your project manager. You can get stuck with a lot of trial and error when trying to build your team off of craigslist or offshore bidding sites. If your using a project manager, they can act as a filter in reviewing who is a good choice for a service or often times, if your using a company for your project manager, they may offer the services in house or have tested and trusted freelancers on hand. When it comes to dealing with designers, developers, manufacturers, etc a client can sometimes feel like they are speaking another language. A good project manager will take what you, the client, wants as an end result and be able to communicate that to the vendors effectively, get feedback and translate that back to something you understand. In the case of using a multi-services company for your project manager may be an added bonus (aka free) to services you were planing on using anyways. In that case a huge time saver is knowing that for all of the different types of products and services you need to run your brand, you only need to cut a check to one vendor. As long as what you are getting is competitively priced (and it should be if you are packaging together groups of tasks) knowing all you have to do is shoot an email to one person and your job is done, is pretty incredible.

No matter who you choose to use as a project manager, it should be someone that has a desire to become part of your artistic family. A good project manager will, after time, know what you want and need without you having to say it. They will be a friend and a sort-of mentor at the same time. A good project manager will maximize all of the advantages of the outsourcing model and minimize any disadvantages.

Using outsourcing as a method to build your band as a brand can help you maximize your creative control by possibly not needing to sign with a label. It can also take the things your not good at and make it look like you are (your fans aren’t going to know or care). Building your brand like a business with a team of people working for you can lead you to greater success. Building that team through freelancers, project managers, and multi-service comapanies allows you to save a lot of time and money, work on other things, and NOT require you to hire a full time staff or sign away huge chunks of your royalties and profits. Making music can be a fun and rewarding business which has never been easier to be independent and still make a mark in the music world.

If you have any questions, comments, concerns, or criticism I want to hear them. Post on the comments or send me an email to me personally and any feedback I get I will be sure to add into this blog.

WMC 2010 DJ Spin-Off!

January 21st, 2010

djspinoff_left

WMC 2010 DJ Spin-Off

The WMC 2010 DJ Spin-Off will be held on Tuesday, March 23rd, 2010 (Beat Matching) and Wednesday, March 24th, 2010 (Scratching) at The Eden Roc Beach Resort & Spa Ocean Garden Poolside with celebrity hosts and judges and DJs from all over the world mixing and scratching their way to the top. Because of the exponential growth and success of the WMC DJ Spin-Off, we had to split the competition into two days!!! Celebrity judges will decide who has what it takes to own first place. If you are a DJ who thinks you can put up some weight, a label head scouting new talent, or a fan of DJ competitions, join us for the WMC DJ Spin-Off where you can truly witness the Art of the DJ.

Prizes to be provided by leading audio and apparel manufacturers.

ENTRY DEADLINE: Friday, February 26, 2010

DOWNLOAD THE WMC 2010 DJ SPIN-OFF APPLICATION FORM

Guidelines for entry:

• All entries must include a completed application, entry fee ($25.00),
bio, and demo (CD or Tape format).

• DJs may enter both Beat Mixing + Scratching competitions.

• Demo’s must be no longer than 5 minutes in length and must be
reflective of the DJs prospective performance.

• Submissions are subject to approval.

• Demo material submitted will become the property of WMC
and will not be returned.

• No submissions will be reviewed after the deadline.
No last minute entries or substitutes are allowed.

• All judges’ decisions are final.

• DJs must bring their own headphones to the competition.

Send to:

Winter Music Conference
3450 NE 12th Terrace,
Fort Lauderdale , FL 33334
ATTN: DJ Spin-Off
For any additional inquiries email: info@wintermusicconference.com

Apple’s Secret Cloud Strategy And Why Lala Is Critical

January 20th, 2010

Michael Robertson’s (former CEO of MP3.com) take on the Apple/Lala deal

Michael Robertson,

For years there’s been speculation that Apple would supplement their $1/song (now $1.29) iTunes business with a monthly subscription service, but their upcoming plans are quite different and once again are positioning them to lead the digital music industry into a new era. Leveraging their ubiquitous iTunes software Apple plans to upgrade their users almost over night to a cloud music service in an ambitious move to beat Amazon and others to a cloud music service. Record labels are wary to give Apple even greater dominance which is why Apple’s new strategy is designed to sidestep new licenses from the major labels.

Apple’s recent acquisition of digital music startup Lala rekindled speculation of an iTunes subscription service. There’s no shortage of subscription offerings (Napster,  Rhapsody, Spotify, Pandora, etc), but none have attracted the millions of subscribers necessary to make the high royalty structures work. Experts have pondered that Apple’s design expertise and hardware integration could make subscription work. And leveraging Lala’s digital library, licenses from the major labels, and a management team who cycled through several business models including the ten cent web song rental could make it a reality. It’s a logical assumption, but after talking to a wide variety of insider sources it’s clear there is no upcoming Apple subscription service and Apple has far different plans.

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Lala will play a critical role in Apple’s music future, but not for the reasons cited above. Lala’s licenses with major labels are non-transferable, so they’re not usable for any new iTunes service. The 10 cent song rental model never gained traction and does not cover mobile devices thus is of little value to Apple. What is of value is the personal music storage service which was an often overlooked component of Lala’s business. As Apple did with the original iPods, Lala realized that any music solution must include music already possessed by the user. The Lala setup process provides software to store a personal music library online and then play it from any web browser alongside web songs they vend. This technology plus the engineering and management team is the true value of Lala to Apple.

An upcoming major revision of iTunes will copy each user’s catalog to the net making it available from any browser or net connected ipod/touch/tablet. The Lala upload technology will be bundled into a future iTunes upgrade which will automatically be installed for the 100+ million itunes users with a simple ?An upgrade is available¿? notification dialog box. After installation iTunes will push in the background their entire media library to their personal mobile iTunes area. Once loaded, users will be able to navigate and play their music, videos and playlists from their personal URL using a browser based iTunes experience.

Apple will link the tens of millions of previously sold iPods, Touches, AppleTV and iTablets to mobile iTunes giving users seamless playback of their media from a wide range of Apple branded devices. Since media will be supplied from the user’s personal collection, Apple is freed from the hassles of device and region limitations. iTunes shoppers will be able to continue to buy music and movies as they can now with purchases still being downloaded, but once downloaded they will be automatically loaded to their mobile iTunes area for anywhere access. Again because users are in possession of the materials no new licenses are required from the record labels or publishers.

Some are curious why Apple with thousands of engineers would need Lala talent and technology. For sure Apple could copy Lala technology, but time is of the essence and Lala lets Apple move faster in transitioning from their PC software business to a cloud service. They get a knowledgeable digital music engineering team, plus a code base to build upon which already does uploading and web playback. There’s precedence for this strategy. The iTunes software did not originate within in Apple but came via an acquisition. Finally, Apple gets the quick witted, brilliant, but occasionally loony Lala CEO  Bill Nguyen who will play a future role in Apple. (Although one wonders how Jobs and lime light relishing Nguyen can co-exist.)

It’s critically important that technology companies build and maintain a core strength. This cornerstone allows them to command a significant portion of the profit stream and is a beachhead to launch other initiatives. Think Amazon/e-commerce, Microsoft/OS, Google/search, Apple/media. Jobs is keenly aware of the digital transition from PC to cloud centric programs and services. It’s imperative Apple lead in this transition or risk ceding leadership in media to others such as Amazon, Real,Microsoft, Yahoo, etc. Lala will help Apple protect their media franchise from encroachment by accelerating their cloud efforts. iTunes users can expect mobile iTunes in 2010.

From: The Washington Post

Now your band can be in “Rock Band”

January 20th, 2010

rock-band

MTV Games is hoping to goose sales of its flagging “Rock Band” series with a new service Tuesday that lets average users upload and sell videogame versions of their own music.

The service, known as the Rock Band Network Store, may offer a few minutes of fame to rudimentary garage bands by allowing millions of game players to access their music.

But given the technical know-how needed to format a song for the game—which may require users to hire a pricey third-party developer—the service could wind up serving mostly as a promotional platform for established acts with deeper pockets, rather than the typical shower singer.

“Rock Band” and its rival, “Guitar Hero,” are two of the most successful videogame franchises to debut in recent years. But sales of both titles have slowed significantly in the past year, with combined sales in 2009 of $224 million, according to an estimate from Wedbush Morgan Securities—less than 50% their level in 2008.

Until now, most of the music available for play on either game has consisted of a limited number of songs, mostly by major acts like Nirvana, the Red Hot Chili Peppers and the Beatles.

With the new service, unknown bands are seeing their chance to get in on the act. But popular groups not quite big enough to make the “Rock Band” playlist are also preparing material for the do-it-yourself upload store, including Creed and Evanescence, each of which has sold tens of millions of albums in the past decade.

“We expected this to be an initiative that would appeal to unsigned artists,” says Paul DeGooyer, MTV’s senior vice president for electronic games and music. “What was surprising to us was how many artists with hit records have offered themselves up.”

The Rock Band network has been running in a private, invitation-only testing mode since September. For now, it is to be available only to users of the Xbox 360, made by MicrosoftCorp., which was also MTV Games’ partner in building the Rock Band Network. MTV is part ofViacom Inc. The network eventually is to be made accessible to users of other game systems, like Sony Corp.’s PlayStation 3.

Preparing a song is complicated, and involves preparing an array of specialized digital sound files, lyrics, transcriptions and even instructions for virtual camera angles, lighting and choreography for the animated characters that perform the music within the game itself.

It has already spawned a cottage industry of companies offering to format recordings, for fees that can get steep. These contractors, with names like Rhythm Authors LLC and RockGamer Studios, typically charge $500 per minute of music.

Other costs involved in creating a song include the purchase of an Xbox 360 console, “Rock Band” game discs and instruments, as well as a subscription to an online Microsoft game-development “community” that costs about $99 a year.

Rock Band Network lets users set prices anywhere from 99 cents to $2.99 a song. The company retains 70% of the sale price, with the rest going to the user. Given the figures, musicians must be fairly confident they’ll sell real numbers of songs to justify their investment.

Sub Pop, a prominent independent record label, is paying various contractors to prepare 25 songs that it plans to upload to the store—all of them by acts among the label’s most commercially successful.

Those include the Shins, whose 2007 album “Wincing the Night Away” reached No. 2 on the Billboard 200 album-sales chart; comedy-music duo Flight of the Conchords; and indie-rock stalwarts like Mudhoney, Sleater-Kinney and the Postal Service.

Sub Pop was the original record label of Nirvana, but much of that band’s catalog is already available for “Rock Band.”

The label is treating the undertaking as a serious creative endeavor. It hired a prominent record producer, Phil Ek, to mix the music before delivering it to the contractors who format it for the game.

“At $3 apiece nobody’s looking to ‘Rock Band’ as a discovery tool,” predicts Tony Kiewel, head of artists-and-repertoire at Sub Pop. “That’s not going to happen,” he says.

From: WSJ.com

Potential Revenue Streams

January 20th, 2010
  1. Publishing
    1. Mechanical royalties
    2. Performance Royalties from ASCAP and BMI
    3. Digital Performance Royalties from Sound Exchange
    4. Synch rights TV, Commercials, Movies, Video Games
  2. Digital sales – Individual or by combination
    1. Music (studio & live) Album – Physical & Digital, Single – Digital, Ringtone, Ringback, Podcasts
    2. Instant Post Gig Live Recording via download, mobile streaming or flash drives
    3. Video – Live, concept, personal,  – Physical & Digital
    4. Video and Internet Games featuring or about the artist
    5. Photographs
    6. Graphics and art work, screen savers, wall paper
    7. Lyrics
    8. Sheet music
    9. Compilations
  3. Merchandise – Clothes, USB packs, Posters, other things
  4. Live Performances
    1. Live Show – Gig
    2. Live Show – After Party
    3. Meet and Greet
    4. Personal Appearance
    5. Studio Session Work
  5. Sponsorships, and endorsements
  6. Advertising
    1. Band newsletter emails
    2. Blog/Website
    3. Videos
    4. Music Player
  7. Fan Clubs
  8. Selling fan created products like videos and mashups
  9. YouTube Subscription channel for more popular artists
  10. Artist programmed internet radio station.  A mid level or up artist with a base could program the music he is into including his own. Fans could pay for shout outs and sponsors could pay for blocks of time or ads to support it.  It could also be a subscription podcast that people could pay a couple of bucks a month for.
  11. Financial Contributions of Support – Tip Jar or direct donations
  12. Patronage Model – Artist Fan Exclusives – e.g. paying to sing on a song in studio or have artist write one for you
  13. Mobile Apps
  14. Artist Specific Revenue Stream -  unique streams customized to the specific artist, e.g Amanda Palmer
  15. Music Teaching – Lessons and Workshops
  16. Music Employment – orchestras, etc, choir directors, ministers of music, etc.
  17. Music Production – Studio and Live
  18. Any job available to survive and keep making music
  19. Getting Help From Other Artists and Helping Them- Whatever goes around come around.

Let me know if you think I have missed anything important.  Put your suggestions in the comment section and anything relevant and sensible will be added.  I’d like to compile as complete a list as possible with your help and approval.  Artists need to get paid quickly and as much as possible.  I thought a list like this was as good a place as any to start.

From: MusicBizGuy