How to Make Money as a Musician (Volume 3: Creative Merch)

28 09 2009
Those Guys

Those Guys

Most people don’t want to be that guy.  You know the guy that rocks the Iron Maiden t-shirt to the Iron Maiden concert.  However, that guy, has helped musicians generate additional revenue for decades.

Today there are many more outlets and many more products that an artist may peddle.  While t-shirts and posters still rule the merch tent, new (and cooler) band merchandise is being developed seemingly every day. Recently one of my clients put out an entire mix tape on a  bracelet.  The LiveStrong looking bracelet ingeniously connects via a USB drive (see below).  This allows a band to sell something that looks cool, is unique and includes the band’s name, logo, design AND their music.  It’s brilliant.  There is even software available that would allow the band to continuously update the USB drive so the fan who purchased it will have updated music and band information and the ability to purchase new music every time the fan plugs the device into her computer.  (contact Vadim at www.customusb.com for more info.)

face usb

Picture Your Band's Name and Logo on a bracelet/album!

T-Shirts are not what they used to be anymore either.  If you remember this post:  Mos(definitely A Great Idea, you know that I am a big fan of including music on non-traditional media.  Computer codes and affordable USB drives can be included with all sorts of merchandise that fans are more apt to buy.  Mos Def included a code on a designer tee which enabled the purchaser to download his entire new album.  Magazines have used this idea for years; purchase the an issue of Spin and you can download the new single from Jack White’s new band, The Dead Weather.  Even beer purchases include mp3 downloads.  Obviously, indie artists do not brew their own beer, publish their own magazine or manufacture their own t-shirts.  However, with a little bit of research and some creative marketing, partnerships with content starved companies can be forged.

Not only are there new products, but with band websites, myspace, facebook, sonicbids, amazon and other e-stores, there are countless new ways to sell the products.  The back of the tour van will always be the primary way that a true indie rocker sells his burned cd’s, but for a couple bucks more, that indie rocker could sell you an mp3 from his couch.  Internet partnerships work just as well, if not better, as partnerships to manufacture and sell physical products.  If you align yourself with a like minded or themed website that has an on-line store, than you can offer exclusive gear to that site.  You take a chunk of the sales and share the rest (and all of your users that visit the site) with the partner website.   Everyone is a winner.

Music is quickly becoming a “value add” to products that people already purchase.  In the battle to grab a consumers attention, companies will pay a bit more to make their product stand out.   “Free” music is a great way of doing that.  And for musicians, the deals that can be struck with these type of forward thinking companies can be fairly lucrative; or at the very least serve as a great way to get music out to a whole new audience.

Creativity has to continue after the music is recorded.  In today’s era, where the only type of music sale that is increasing is vinyl, artists have to think creatively in order to make a profit.  If the public will only pay for select albums and download the rest of their music for free, new income streams must be forged by bands.  Selling your music in a non-traditional way may increase a band’s merchandise sales as well as “album” sales all at the same time.





How to Make Money as a Musician (Volume 1: Perform)

28 08 2009
Can't find fans by playing at home for the folks.

Can't find fans by playing at home for the folks.

Welcome to the first volume of the L4M:  How to Make Money as a Musician.

The music industry has fundamentally changed.  Because of this shift, the way musicians make a living (and consequently the way all of the people that depend on artists to make money) has changed.  The goal of this series of postings is to provide a forum amongst musicians, managers, lawyers, accountants and anyone else associated with music to discuss how to make a living in today’s new music industry.

Building off of my last post (Concerts are the New CD’s), the number one way that a musician can make money is by performing live.  Most artists are not selling out Wembley Stadium, the Staples Center or Madison Square Garden.  However, even in today’s economy, the clubs, bars, theaters, and parks of every size are still booked solid for most nights with live music.  Part of the reason that live music is not as effected as other segments of the industry is that it is usually associated with or tied to alcohol sales.  In a bad economy booze is king (think of people drinking away their sorrows).  To get people to spend their money on alcohol at their venue, club and bar owners will try to attract patrons with music.  So whether it is your local VFW, the town pub, or the neighborhood street fest, as long as their is liquor, there will be live music.

Concerts, specifically summer concerts, are still a huge part of the teen and college age crowd’s social scene.  For example, Lollapalooza ’09 sold out every day.  If you were here in Chicago during Lolla, you would have witnessed some of the most horrible weather in recent memory (torrential rain followed by Amazonian heat).  Yet the kids and their discretionary income were still there in full force.

Concerts and festivals still draw enormous crowds.  They have become a place to be seen and to discover new music.  For an artist, booking a gig at a festival or on a tour, such as the Warped Tour, will expose them to new audiences who are now discovering music by going to concerts rather than hearing it on the radio.  Musicians have told me that they sell more of their cds after a show then they do for an entire month at store.  Which brings us to another reason why playing live is still the number one way for a musician to make money.

While the asking rate for a band may fluctuate depending on their “hottness”, the possibilities of making more money by playing live is always there.  The obvious secondary income stream from playing live is to sell merchandise.  I haven’t been to a concert in recent memory, whether at a stadium or in a dive bar, where there wasn’t a booth with a pissed off looking girlfriend or boyfriend peddling t-shirts, cds, stickers, etc.  Direct merchandise sales at a concert combined with directing new fans to a band’s website, can account for a good amount of cash.  Maybe enough to keep touring.

No matter the size of the room, good music will pack it.

No matter the size of the room, good music will pack it.

The not as obvious income stream that may develop from playing live is that you never know who is in the audience.  The dream of being discovered by an A&R guy cannot come true by playing in your mom’s garage.  Bands are discovered by playing live and getting a reputation for putting on a good show or having a unique sound.  It is true that with the Internet you can get your music out to more people then ever before without ever performing live, but once you are discovered by a label or an investor, the first thing they are going to want to see is you playing live.   In addition, you will undoubtedly develop relationships with other bands by playing a lot of concerts.  Booking with other bands, that are maybe more popular than you can lead to bigger venues and more money.

The bottom line is that people still love going to concerts.  Last time I checked, Ticketmaster and Live Nation were still in business, so that means that people are still willing to pay the ridiculous service and “convenience” fees just to go see their favorite band play.  Festivals are still selling out and clubs are still packed with thirsty fans.  Playing live not only can pay the bills, but can lead to even better opportunities.

Let me know what you think.  Leave a comment or shoot me an email about how you make money as an artist.








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