According to my research; 98% of band/artists/labels who have put music on YouTube cannot boast of £100 return on their investment.
But, there is another way…
I offer an innovative approach to the music business. Whilst some people have focused on the net as the primary vehicle to success, I focus on building classic business skills as the vehicle to success with the internet acting as one of the tools in your Music Business Tool Kit
Anyone who has witnessed the changes in the music industry can testify to the success of non-traditional business models. As a matter of fact the biggest, most successful distributor of music today, Apple, is not even a record label or distributor but is a system owner; a business system created through sound business knowledge.
The majority of music enthusiasts on the internet lack the necessary business skills for success. Many do not possess the basics skills or are unable to properly maintain the systems they do have in place thereby forfeiting the most expensive resource they possess – Time! So much time is wasted, spent on the web with little or no return.
I once asked someone who already had 4569 YouTube views on his single why he intended to follow the same strategy of simply placing his track on the site. I enquired as to whether he had collected the names and emails of those who had watched his video. His response was a blank face and the answer “No!” He was willing to go through the same experience with the same result. If his videos cost him £500 a time and the recording cost him £500 a track, I wonder how long he will remain in business if he keeps on giving away £1000 every 2 months with no return from his substantial investment.
Apple would never away an iPad or iPhone without gaining maximum publicity worth 100′s times the cost of the product. They understand how business works. 1000′s of bands/artists/labels have not gone through the “School of Business” to understand the thought process behind product giveaways and more often than not come away out of pocket and time poor!
In 2009, one of the most influential Independent Record Labels, XL Recording, who signed Adele, made approximately £17,241,874 in turnover. I bet you don’t get over £17million without being business savvy. Spotify, with its streaming and subscription service surely has business acumen. What about the Orchid, one of the foremost distributor and promoter of music? Are they business savvy? Recently a group of well-schooled businessmen formed My Major Label. Surely this is a wise venture.
Unless we have the understanding of how to make money and not be quick to spend, Cash flow, returns on investment, how my time = £££, how having a business plan that can ensure that your business has been well thought out, the ability to negotiate, understand time management, all of which provide proper balance to our creative abilities, you can really make headway with your music business… Hours on the internet will not produce the results you’re looking for.
You’ve developed yourself as an artist/producer/musician, etc, right? Developing business skills should now be your primary objective. Everything else, including the web with all its bells and whistles, comes next!
Do you want to learn more about making money with your music? If so, download my brand new free 5 week music business training course here: http://www.musicbusinesstools.com.
By Boomy Tokan