The sti music industry bible

MUSIC INDUSTRY BIBLE

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Career Planning, Part One

by Christopher Knab - Fourfront Media & Music - October 2000

Back to Music Business 101

This is the first of 3 columns devoted to what is called a 'Career Plan' for a new band or musician intent on establishing their career in a professional manner. Since most newcomers to the business of music have very little experience dealing with the business side of their music, a Career Plan is a useful tool and discipline for serious musicians to consider. It lays out tasks and strategies for putting a band together by prioritizing those things that are most important in the early stages of a career.

In each installment of this column from October to December of 2000 you will find several issues discussed. It is important to note that this plan is a prototype based on a hypothetical situation surrounding a typical band that had undergone an extensive interview and 'inventory' of their accomplishments and goals. I hope you are inspired by these ideas, and realize that to adapt them to your needs, you would also have to take time to answer questions about your music, your goals, your dreams, your finances, and your commitment to your music as a business.

As a music business consultant I am available to help you plan out your career. You can email me at Chris@Knab.com for details on my services, or visit my website www.4frontmusic.com. For more articles and information on the business of music.

That being said, I hope you find this information beneficial in building your career as a professional musician.

Christopher Knab ***

Organizing Your Band A Prototype Of A Career Plan

By Christopher Knab (with the cooperation of Dianne Caron) (copyright 2000 Christopher Knab) Click Here for Part 2, Part 3

Introduction Starting a band is more than just finding the right musicians, writing songs, rehearsing them and getting out and playing them. For any serious group of musicians who believe they have great songs ready for the consumer marketplace, they should consider setting business goals for themselves. The following prototype of a career plan is an in-depth look at how much work is involved in launching a career.

As with any prototype plan, the following information is advisory only. It contains information about the business of music as it pertains to the initial start-up of a band.

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There are 10 goals to examine, and I hope these ideas get your wheels spinning in the right direction. I also go into some detail on WHY you need to consider doing each goal, as well as providing you with some detailed information on what issues may come up when tackling a goal; as well as some specific advice on how to carry out some of the goals.

Goal #1: BAND AGREEMENT The time to make an agreement is now, when everybody is friendly and you are just about to start out a possible career. It is sometimes simply impossible to solve the problems of a band that's been together for a fair amount of time, signed record deals and performed live. Nobody likes to talk about anything negative (like breakups) when everything is working well, but when everything is going well is exactly the time to discuss it, because you can do it in a friendly way. It's like insurance, you may never need it, but you'll sure be glad you have it if you need it. There is no lawyer needed to put a band agreement into effect. It is a good idea, though, to have an entertainment lawyer go over the agreement before you further undertake any major obligations such as signing a recording contract. Here are some issues you should resolve in a band agreement: 1) Copyright Ownership Set up a publishing company, as soon as you have a commercial market for your music. You do not need a publishing company until there is activity from and with your songs. Please consider the following options:  

Setup a publishing company making all band members owners and equal partners (writers) of that company and the songs previously written.

Setup some kind of participation contract in a situation where there is only one main writer, but the writer wishes to share a certain percentage of writer/publisher royalties with band members for good will.

2) Contribution What kind of vote does it take to make band members contribute to the band (put in money the group needs to buy equipment, cover unexpected expenses, etc.)? Decisions may be based on the concepts of either "majority rules" or "unanimous".

3) Share of Profit and Loss You will have to define how the money (profit or loss) is divided. Either make all band members equal partners and divide profit or loss equally, or distribute the profit or debit the loss based upon the percentage owned (i.e. in case you founded a corporation with each person owning a certain percentage).

4) Band Name You should also discuss if you want to give all members ownership of the name. Please consider the following options:    

No one can use the name if the group breaks up, regardless of how many of the band are still performing together.

Any majority of the group members performing together can use the name. For example, if there are seven people in a group that breaks up, then four of them together can use the name.

Only the lead singer, (name), can use the name, regardless of who he/she is performing with.

Only (name), the songwriter who founded the group and thought of the name, can use the name, regardless of who he/she is performing with.

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(Name of songwriter who founded the group and thought of the name) and (name of lead singer) can use the name as long as they perform together, but if they don't no one can use the name.

"Majority rules." If the band doesn't do anything, what most likely will happen is that the band name will be treated the same way as any other business partnership asset meaning any of the partners has the nonexclusive right to use it.

5) Firing What kind of vote does it take to fire somebody? 

You basically have the choice between "majority rules" or "unanimous."

6) Hiring What kind of vote does it take to take in a new musician or to hire a lawyer, agent, or manager. 

Again, the two basic options are "majority" or "unanimous."

7) Quitting Is everyone free to quit at will? There is no way to force someone to continue working with a group.

Please consider the following options:  

Let people go if they're unhappy, as long as they don't walk out in the middle of a tour.

Stop a band member from working as a musical artist after quitting or require the member to pay his or her solo earnings to the partnership (meaning the other group members get a piece).

8) Incurring Expenses What kind of vote does it take to approve the group's spending money? 

The two basic choices are, once more, "majority rules" or "unanimous."

9) Amendment of the Band Agreement What kind of vote does it take to change the terms of the band agreement? 

I'd suggest the band to either let "majority" rule, or require an "unanimous" decision,

10) Ex-Members What happens after one person is terminated or after somebody quits?  

One option is that the person who leaves the band keeps his/her percentage level for past activities, or another option is that the person who leaves the band does not keep his/her percentage for future activities.

11) Sole Proprietorship, Partnership, or Corporation?

In a later stage of your career you will have to think about and define the "relationship" among yourselves.

Especially once you start generating income you will have to decide what form of business ownership you want to set up. Here are some basic types of businesses you might want to consider:

Sole Proprietorship

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A sole proprietorship is a "business" that is owned (and usually operated) by one person. Sole proprietorship is the simplest form of business ownership and the easiest to start. My recommendation to you is that each one of you opens up his own business - a sole proprietorship.

What's good about it: Ease and Law Cost of formation: No contracts, agreements, or other legal documents are required to start a sole proprietorship. A state and city license is required, but beyond that, a sole proprietor pays no special start-up fees or taxes.

Retention of All Profits: Any profits earned by a sole proprietorship become the personal earnings of the sole proprietor.

Possible Tax Advantages: The sole proprietorship's profits are taxed as personal income of the owner. Thus a sole proprietorship does not pay the special state and federal income taxes that corporations pay.

What's bad about it: Unlimited Liability: Unlimited liability is a legal concept that holds a sole proprietor personally responsible for all the debts of his or her business. This means that if the business fails, the owner's personal property can be seized (and sold if necessary) to pay creditors.

Partnership Often a partnership represents a "pooling of special skills and talents-" at other times it results when a sole proprietor takes on a partner for the purpose of "obtaining more capital."

What's good about it: Ease and Low Cost of formation: Like sole proprietorships, partnerships are relatively easy to form The legal requirements are often limited to registering the name of the business and purchasing any necessary licenses or permits.

Retention of Profits: As in a sole proprietorship, all profits belong to the owners of the partnership.

Combined Skills and Knowledge: Partners often have complementary skills. The weakness of one partner may be the strength of another partner. And, the ability to discuss important decisions with another concerned person often takes some of the pressure off everyone and leads to more effective decision making.

Possible Tax Advantages: Like sole proprietors, partners are taxed only on their individual incomes from the business. The special taxes that corporations must pay are not imposed on partnerships. Also, at certain levels of income, the new federal tax rates are lower for individuals than for corporations.

What's bad about it: Unlimited Liability: Each (general) partner is personally responsible for an debts of the business, even if that particular

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partner did not incur those debts. They thus run the risk of having to use their personal assets to pay creditors. It is essential that each partner understand that he or she is responsible for the other partners' actions.

Corporation The corporation is an artificial person created by law, with most of the legal rights of a real person. These include the rights to start and operate a business, to own or dispose of property, to borrow money, to sue or be sued, and to enter into binding contracts. Unlike a real person, however, a corporation exists only on paper.

The shares of ownership of a corporation are called its stock. And the people who own a corporation's stock are called its stockholder, or sometimes its shareholders. Once a corporation has been formed, it may sell its stock to individuals.

What's good about it: Limited Liability: One of the most attractive features of corporate ownership is limited liability. With few exceptions, each owner's financial liability is limited to the amount of money she or he has paid for the corporation's stock.

What's bad about it: Difficulty and Expense of Formation: Forming a corporation can be a relatively complex and costly process. The costs of incorporating, in both time and money, discourage many owners of smaller businesses from forming corporations.

Government Regulation: Most government regulation of business is directed at corporations. A corporation must meet various government standards before it can sell its stock to the public. Then it must file many reports on its business operations and finances with local, state, and federal governments. In addition, the corporation must make periodic reports to its stockholders about various aspects of the business. Also, its activities are restricted by law to those spelled out in its charter.

Double Taxation: Unlike sole proprietorships and partnerships, corporations must pay a tax on their profits. Then stockholders must pay a personal income tax on profits received as dividends.

GOAL #2: PHOTO In order to be fully prepared for publicity, it is essential to have a current and complete press kit. The photo is an extremely important and basic item of the promo kit that you need to get done as soon as possible.

The photo is probably the most striking, and often the most effective, part of the press kit. Photos have a significant psychological impact on the music. Initially, photos will be sent to publicity contacts in the print media. These contacts will judge you by your visual image, as will fans and prospective fans when they see the photo in magazines and newspapers. In a business that hinges on image, photography represents "image" in its most immediate form. Take great care in selecting a professional photographer, and selecting the "right" photo from the shoot. Remember to choose a photo that will look good reduced down to the size of photos you see in the print media.

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Finding a Photographer: The best way to find a photographer is the local grapevine or word-of-mouth. Ask around and contact other bands or their management, entertainment editors, radio station promotion directors, people at labels or PR firms, and club managers. When looking around for a photographer, make sure the one you pick has experience in the music business. Most professional photographers tend to specialize, so hold out for a person accustomed to music.

Once you've found possible photographers, look at their portfolios. Most portfolios will include widely differing subjects, compositions, and styles, so concentrate on the entertainment work - concert shots, album covers, studio portraits, and shots of parties and other functions. Also, talk to the photographer about his or her experience.   

And does he or she seem to have a feel for your music?

Does the person appear enthusiastic about the project?

Don't be timid about references and previous clients. Contact a few of them and ask how the sessions went.

Publicity Shots The photos you include in your press kit are of critical importance. They have to be artistic and well written (avoid dead spaces between yourselves). Publicity shots are photos taken at parties, or backstage with luminaries of some kind. Also, the photos should capture your (the band's) personality and image and should "say" something about you. You do not have much, if any, chose in photographers for publicity shots, but you should at least ask for approval of the photos that are suggested for use by the print media. Let me point out - once more - that often times you are judged by your photo(s), so consider the image you want to convey. Furthermore, the prints should not be too dark for good newspaper production, and, obviously, they should be in perfect focus, as all your photos should be.

Location vs. Studio Shots Location Shots For outdoor or"location" shots, the possibilities are virtually endless. Regardless of your musical style make sure you have at least a rough idea of an effective shot before going in. Often, you can use locations to help portray your (the band's) identity (i.e. an abandoned prison, a funky old billboard or storefront, bizarre architecture, a sunny beach setting, etc.). The more dramatic and eye-catching your shot, the more it'll be used. Do not, however, go for something so arty or weird that you as individuals aren't recognizable; this will just defeat your purpose. Also, think about getting written permission from property owners for location shots (normally this is quite easy, but if you run into trouble, go elsewhere).

With abandoned buildings, this may not even be necessary.

When you shoot your photo at a venue/show, think about the following:  

Make certain there's no alcohol or tobacco evident in your publicity photos. Many newspapers and magazines won't touch them otherwise.

Showing banners, placards, and other promotional items are okay, but have the photographer watch out for empty beer cans, overflowing ashtrays, and the like.

Studio Shots The advantage of a studio shot is that the photographer has total control over the environment. So he or she will have virtually unlimited lighting resources along with control over backdrops, props, special effects, etc. Shooting time in a studio, however, is expensive, so calculate your budget carefully.

If you hire a studio, there are some basic tenets you should follow:

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Make sure that everyone arrives a little early or at least on time.

If you have to cancel a session, call the studio as soon as possible; if you simply blow off the appointment, you'll be billed for all the time that was booked.

Think about bringing different outfits to the session; this will not only save you time, but also money.

See that all cans, bottles, and other garbage are put in trash cans. If you leave the studio in a mess, you can bet you'll be billed for cleanup.

Generally, when you have some photos taken, what you want are two rolls of black & white and one roll of color photos. (Don't concern yourselves with color photos when all you want and need are a couple of photos for the press kit.)

Proofsheets You'll first see the black & white photo results in the form of "proof sheets." Proof sheets are 8" x 10" sheets that hold all the frames/shots in their actual film size, whether 35 nun, 2 1/4", 4" x 5", and so on.

These are quick-prints that allow you to choose the final shots for careful printing. Each frame is numbered to help in the selection process. Generally you'll pick 3 to 5 photos and blow'em up to 8" x 10".

Ownership The Film Roll The question of who owns and keeps the film has been a big bone of contention.

Here's the rule: Under normal circumstances, the photographer keeps the black & white film, unless otherwise negotiated. The photographer will deliver one master print per ordered frame, unless more prints are specified per frame.

The Work (Photos) Any photographer's work is covered by the same copyright laws that protect musical works. In practice, this means that the photographer retains an rights to his or her photographs except for the rights that you specifically purchase.

When you pay normal photo rates, you are actually leasing the photographic work for specific uses, and you are not free to do anything with the photo that you wish. Publicity shots are a good example: If you pay a publicity-photo rate, then that's all they can be used for. If you later decide to use the same print for a billboard, album cover, or as part of an advertising campaign, additional fees are due the photographer.

It's quite possible to purchase all rights to a given piece of film, but then the applied rates are going to be much more expensive (because the photographer is giving up all rights to his artistic work). In the world of music PR, it's usually inadvisable to buy all rights to a black & white film; it's too expensive and the odds are slim that you'll re-use any of the prints.

Duplication For black & white photos, send the master print to a mass-duplication house. A mass-photo house can also work up logos on the prints, along with the contact info and the credits.

The number of prints you order will vary widely depending on your goals.

GOAL 3: LOCAL SHOWS Local shows will most likely be your first "major" source of income. Expenses involved in local/regional shows will be limited to gas and maybe per diems. - In order to get booked at a local or regional club you will not need the services of a booking agent, instead you will be able to do it yourselves. All you need is

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a complete and updated press kit, lots of persistence, and the ability and confidence to play a 45 - 60 min. set.

Once you've selected local and regional clubs you want to perform at, send out the complete press kit and follow up with a phone call within 5 to 7 working days.. The club will then tell you whether they're interested in booking you for a show or not. If they are, it will be your turn to tell the venue how much money you want for your performance. Once you've negotiated a deal you will have to gather all the pertinent information and set up a contract. (Note that after you've played a club for a couple of times and established a working relationship, the venue might not insist on a written contract anymore.)

Nevertheless, getting things is writing is a very good habit to get into.

Here's a list of issues you will have to address and particularize in a contract:   

"Purchaser" or "Buyer" (Name of the Club Promoter) "Artist" "Deal" - The deal you accepted and the amount of money you will get paid. 

Here are the four most common deals you will encounter: Flat or Guarantee Ex.: Versus Ex.: Plus Ex.: Points/Split Ex.:

          

$ 300 $ 300 versus 30% door, whatever's higher. $ 300 plus 30% door 50/30/20 of Net

Date of Event Set Length Deposit (if any) Who will pay to whom how much and when Admission Fee (Ticket Price) Capacity Act of Nature (Force Majeure) - The force majeure (literally "superior force") clause is applied when there is an unexpected event that causes performance of the contract to become impossible; it releases one or both parties from their rights and obligations.

Cancellation Fees Recording by Permission Only Promotional Commitment - This, for instance, specifies the minimum amount of money you, the band, expect the club to invest in advertising the show.

Merchandise: - How much the club will take from the gross of merchandise sold (usually 10%) Click Here for Part 2, Part 3

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Career Planning, Part Two

by Christopher Knab - Fourfront Media & Music - November 2000

Back to Music Business 101

Click Here for Part 1, Part 3 This is the 2nd of 3 columns devoted to what is called a 'Career Plan' for a new band or musician intent on establishing their career in a professional manner. Since most newcomers to the business of music have very little experience dealing with the business side of their music, a Career Plan is a useful tool and discipline for serious musicians to consider. It lays out tasks and strategies for putting a band together by prioritizing those things that are most important in the early stages of a career.

In each installment of this column you will find several issues discussed. It is important to note that this plan is a prototype based on a hypothetical situation surrounding a typical band that had undergone an extensive interview and 'inventory' of their accomplishments and goals. I hope you are inspired by these ideas, and realize that to adapt them to your needs, you would also have to take time to answer questions about your music, your goals, your dreams, your finances, and your commitment to your music as a business.

As a music business consultant I am available to help you plan out your career. You can email me at Chris@Knab.com for details on my services, or visit my website www.4frontmusic.com. For more articles and information on the business of music.

That being said, I hope you find this information beneficial in building your career as a professional musician.

Christopher Knab ***

Organizing Your Band A Prototype Of A Career Plan, Part 2

By Christopher Knab (with the cooperation of Dianne Caron) (copyright 2000 Christopher Knab) Click Here for Part 1, Part 3

Goal #4: MAKE YOUR OWN CD At the same time as you start booking the first shows you should consider recording a CD not only for it to be sold during your shows but to be distributed on consignment to local and regional record stores, and for marketing via mail orders and through your fan mailing list, and over the internet through such places as the Amazon.com/advantage program. A self-released CD featuring about 10 to 14 of your songs would do the job just fine.

Here are some tips for recording your own CD project.

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Budget Before you even go and check out studios, be aware of your budget. Know how much money you can spend. Also, know which songs you want to record and have them tightly rehearsed so that when you get to the studio you can lay down the tracks quickly and efficiently. This can and will save you lots of time in the studio (remember, time = money).

Studio Walk Check out the studio in person before you book some time. Make sure you feel comfortable in the environment and - provided you engineer and produce the CD yourselves - you are familiar with the equipment.

Negotiate There is always room for (rate) negotiations; especially when you won't need the services of an in-house engineer. Also, consider lockouts (rent the studio for fill days) which in the end might save you money.

For local and regional recording studios and/or manufacturing houses, please consult the appropriate sections in The Recording Industry Sourcebook, The Musicians Atlas, or use the internet to locate recording studios in your area. The good old Yellow Pages of Rock is also a place to start, as are the many free music publications that exist in every good city around the country.

For the initial phase of getting your product into stores, consider 'consignment' of your release at local and regional stores. All you have to do is bring a receipt book with you to the stores, and fill out a receipt in the amount of CD's left and sell them to the store for about a 40% discount off the retail list price. (List prices of a 10 song tape should be around $9.98, and about $ 15.98 for the CD. Let me close this section talking briefly about one more thing: The Tray Card imprint.

Tray Cards It is something that will not take much of your time and money to design and print.They can be very simple. A nice design, logo or photo will do just fine. It can be printed - in black & white - for a limited amount of money. But be sure that all your artwork is up to the high quality standards of the competition.

Make sure you include the following information: - The label name - Your band's name, - The title of the release, - The band members names and instruments played, - Copyright information - Song titles and time - BMI/ASCAP affiliation information - Contact information, including email address and website URL - Barcode if you plan to do business with any chain record stores.

GOAL #5: BOOKING AGENT As illustrated earlier, you won't need an agent to book your local/regional shows. You will use an agent's services, however, if you decide to go on a national tour. He or she will (help you) decide which markets to hit on which route, select and book clubs, take offers and negotiate deals, etc. The agent is the person who is responsible for you having venues to play at on your tour.

But let's be realistic. No artist will be of interest to an agency until the artist has spent their own time developing their career by selling a significant number of CD's and tapes, getting at least some regional radio station airplay, been reviewed and written about in the press, and has performed around a particular region for some time. Once you have accumulated a solid list of accomplishments it is possible agents will

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be interested in you. However, by this time they will probably have found you, but it is possible that you will also be approaching booking agents.

Term The agent often times asks for three or more years, and you will want to keep it to one year. Shorter is better for you, because you can split if things don't work out, or squeeze the commission down if things do. If you give more than a year, make sure you have the right to get out after each year if you don't earn minimum levels. Note that there is a very good chance you will actually never even sign any papers at all.

This varies with the policy of the agent.

Territory Since you are a "new" band, it may be difficult to give an agent less than worldwide rights. However, as you move up the ladder you can sometimes exclude territories outside the United States. This is often beneficial, because you can use agents in Europe or elsewhere who are skilled in those markets. In fact, many U.S. agents often employ a local subagent for foreign territories, and you can thus eliminate the middle-man. On the other hand, the U.S. agent doesn't just sit idly by while a subagent does the work.

The agent oversees the foreign agent and makes sure the shows are properly promoted, that you get paid on time, etc. (Please note that - at any time and level - you might want to reserve the right to book local shows yourselves.)

Fee Agents are only paid for the area where they render services, which is primarily booking concerts. So never give your agent a piece of your income from records, songwriting, or publishing. Usually agents don't even ask for this, but be careful of union forms. Agents are regulated by unions; such as the American Federation of Musicians and the American Federation of Television and Radio Artists. The maximum these unions allow them to charge is 10%. The AFM and AFTRA printed forms have a place for you to initial if the agency commissions your earnings from records. Watch out for it and never do this.

Termination Each of these agreements has a clause saying you can terminate if the agent doesn't get you work for ninety days.

Roster 1) You want to make sure that the bands on the agent's roster play the same type of music as you do.

This way you ensure that the agent is familiar with the clubs he or she is booking which, in tam, will save you from embarrassing experiences.

2) Also, make sure that the agent does not have too many bands on his roster. If there are more than six to eight bands on your agent's roster, he or she will probably not be able to spare enough time for your band.

Personality An agent is ideally genuinely enthusiastic about you and your music. He or she should be a persistent person who fights for his or her clients. Remember, you don't necessarily have to like your agent's personality!

Check out the "Pollstar Agencies Directory" or the "Recording Industry Source Book" to research more agents.

GOAL #6: PUBLISHING COMPANY GOAL #7: AFFILIATION WITH A PERFORMANCE RIGHTS ORGANIZATION GOAL #8: BUSINESS LICENSES

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Since these are goals that closely interrelate with each other we will discuss them in one section.

IN GENERAL: To start out, let's list and briefly describe the three (out of five) basic incomes of an artist (the two types of incomes not listed below are "concerts" and "merchandise" which are self-explanatory). It is very important that you understand the concept of royalties; not only because - if you seriously pursue a career as a professional band - this will be you major source of income, but it will help you understand the concept of publishing and affiliating with a performance rights organization.

Mechanical Royalties Generated by: Record sales Formula: (7.5 Cents x Amount of Songs on the Record) x 75%) x Units Sold Paid by: Label Paid to: Songwriter and Publisher Note: The 7.5 Cents are an Industry Standard as of the year 2000 Performance Royalties Generated by: Public "performance" of your song (theoretically, whenever your song gets play on air, in a club, restaurant, etc. you'll get paid) Collected by: Performance Rights Organizations (ASCAP, BW or SESAC) Paid by: Performance Rights Organizations (ASCAP, BMI, or SESAC) Paid to: Songwriter and Publisher Record Royalties Formula: 90% of ((Suggested Retail List Price - Packaging) x 11%) x Units Sold Paid by: Record Label Paid to: Artist (the Band/Performers) Note: Most everything is negotiable. The 11% (or 11 "points"), for instance, are a prime example for a negotiable part of a contract.

Publishing Company What does a publishing company or a publisher do for you? Well, a publisher has many jobs. Here's a list of his or her major roles: - selling songs - issuing and negotiating contracts - submitting copyright forms - arranging for manufacturing and distribution of sheet music - soliciting songs for TV and movie usage as well as TV and radio advertising - collecting and administrating funds - registering songs with a performance rights organization - suing infringers - maintaining industry contacts - generating interest in songs and writers - keeping track of projects - sometimes helping record and promote a CD - arranging for shopping demos - arranging for internet usage rights - etc., etc.

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If you decide to use the services of a publishing company, you will be offered one of the following three deals (please keep in mind that these are generalizations; each deal is different): 1. Developmental/"Songwriter" A developmental or songwriter deal is common for somebody who is exclusively a songwriter or for a very young band who needs help with recording, duplicating and promoting a product, etc. Advance: $ 5,000ish The money generated from royalties is split between the songwriter and the publisher 50/50.

You surrender all copyright.

2. Co-Publishing The co-publishing deal is great to help bands support themselves. Advance: $ 20,000 - $ 200,000 The publisher gets 25% of the money generated from royalties. The copyright is shared 50/50 3. Administrative Advance: Usually none The publisher gets 5 % - 15 % of your income generated from royalties. You (normally) maintain 100% of the copyright.

Why would you want to sell to a publisher?

Well, - you get some money up-front - some publishers help you record and promote your product - they help collect money for you (mechanical royalties, performance royalties, etc.) not only in the U.S. but also overseas.

But, in turn - you lose if not all, then a big part of your copyright and you definitely get less money in the long run.

Is the loss of all or part of your copyright worth the "goodies" you get from a publisher? Before you answer this question to yourselves, please consider that these days, (major) publishers are often not much more than banking operations. They will compute how much they expect to earn from a given deal, and pay a portion of it to obtain the rights involved. Well ok., some publishers are "creative" publishers, in the sense that they put their writers together with other writers, help them fine-tune their writing, match writers with artists, etc. However, is this worth giving up all or part of your copyright? If you ask me, "I don't think so."

These days a lot of major songwriters keep their own publishing; they are their own publisher, retaining ownership of their copyrights and perhaps hiring 'Administration companies' to do the clerical function of the publishing work.

Performance Rights Organization Affiliation What does a performance rights organization do for you? Publishers and writers sip up with ASCAP, BMI or SESAC who then issue licenses to the users, collect the monies, and pay the publishers and writers.

Performance Rights Organizations collect and distribute your income generated from mechanical and performance royalties.

Why would you want (or have) to "join" a Performance Rights Organization? Well, there are two main reasons why you as songwriters, a band, and/or a publishing company want to affiliate with a Performance Rights Organization: 1. Once you have a product out that sells in stores or gets played on the air, the Performance Rights Organization is the institution who collects the money and pays it to you.

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2. You will have to affiliate when you set up a publishing company.

The major performing rights societies in the United States are ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music Incorporated), and SESAC. Of the three, ASCAP and BMI are by far the largest, as SESAC has only about 1% of all performing rights. BMI and ASCAP are nonprofit organizations, as opposed to SESAC, which is privately owned. Virtually every foreign country has the equivalent for its own territory, most of which are government owned. The contract term for a writer is one year with BMI and two years with ASCAP. The publisher will. sign up for one year with BMI and for five years with ASCAP. BMI charges a $I0 annual membership for writers, and $50 annually for publishers. There is a one-time processing fee for members of ASCAP.

Business Licenses Once you generate income you will have to get business licenses. I'd recommend you to get business licenses for you as a band or individuals (depending on how you decide in the matter of "partnership vs. sole proprietorship and corporation) and the publishing company at the same time State License - The State Department of Licensing issues the state license Federal EIN - You will be able to get a federal tax id.number (or EIN) from the IRS. The federal EIN is for free. Phone: 1-800-829-3676

Some Suggestions Now let's get down to business.

The Absolute First Thing To Do Before you do anything, you positively must take the first step. Affiliate your company with ASCAP or BMI. The reason you have to do this first is that these societies will not let you use a name that is the same (or similar to) the name of an existing company. They don't want to accidentally pay the wrong party, and so they're tough about the name you can use. And you don't want to have a label copy, printed music, copyright registrations, and everything else in the name of a company that can't collect performance royalties.

You can affiliate and secure your name by completing an application and giving the society three name choices, ranked in order. That way, at least one of the names should clear. If you're also a songwriter and haven't yet affiliated, you should affiliate as a writer with one of the two societies at the same time (they won't let you affiliate with both). You'll have to affiliate as a publisher with the same society in which you affiliate as a songwriter. This is because the societies insist on having a song's publisher affiliated with the same society as the song's writer. And for this same reason, if you're going to be a "real" publisher (meaning you're going to publish other people's songs, as opposed to only your own), you'll need to have two companies, one for ASCAP and one for BMI. The publishers and writers affiliation forms are pretty straightforward. You can get affiliation applications by contacting ASCAP or BMI at the following locations and phone numbers:

BMI 8730 Sunset Boulevard 3rd Floor West

ASCAP 7920 Sunset Boulevard Suite 300

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Hollywood, CA 90069 Phone: 310-659-9109

Los Angeles, CA 90046 Phone: 213-883-1000

BMI 320 West 57th Street New York, NY 10019 Phone: 212-586-2000

ASCAP One Lincoln Plaza New York, NY 10023 Phone: 212-621-6000

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Setting Up A Business Every state, county, and city has different requirements for setting up a business. Be sure to research what is required in the area you are planning to do business.

Copyright Registration Next, register the songs with the Copyright Office in the name of your publishing entity. If they have been previously copyrighted in your name, you need to file an assignment transferring them to the publisher's name.

Society Registration To the extent you didn't do so when you originally affiliated, you must register all your songs with the performing rights society. The societies will send you the forms, which are self-explanatory. You only have to register the songs as either the writer or the publisher, not both.

After that, you're in business. you can begin to issue licenses to record companies and other users, as well as make foreign sub-publishing agreements, print deals, and so forth. However, there's no particular need to rush into these deals, nor will anybody be interested in making them, until you have a record released. In fact, unless you've got a product (coming) out, the societies won't even let you affiliate, and frankly there's not much point in doing any of this. You'll just be all dressed up with no place to go.

That's it for this month. Stay tuned for the final installment of a Career Plan next month.

Click Here for Part 1, Part 3

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Career Planning, Part Three

by Christopher Knab - Fourfront Media & Music - December 2000

Back to Music Business 101

Click Here for Part 1, Part 2 This is the 3rd of 3 columns devoted to what is called a ‘Career Plan’ for a new band or musician intent on establishing their career in a professional manner. Since most newcomers to the business of music have very little experience dealing with the business side of their music, a Career Plan is a useful tool and discipline for serious musicians to consider. It lays out tasks and strategies for putting a band together by prioritizing those things that are most important in the early stages of a career.

In each installment of this column you will find several issues discussed. It is important to note that this plan is a prototype based on a hypothetical situation surrounding a typical band that had undergone an extensive interview and ‘inventory’ of their accomplishments and goals. I hope you are inspired by these ideas, and realize that to adapt them to your needs, you would also have to take time to answer questions about your music, your goals, your dreams, your finances, and your commitment to your music as a business.

There were originally 10 goals that I set out to write about, but I have thrown a BONUS 11th goal. Since many musicians think they want a record deal, I layout some useful information about such deals for you…consider it my Christmas present!

As a music business consultant I am available to help you plan out your career. You can email me at Chris@Knab.com for details on my services, or visit my website www.4frontmusic.com. For more articles and information on the business of music.

That being said, I hope you find this information beneficial in building your career as a professional musician.

Christopher Knab ***

Organizing Your Band A Prototype Of A Career Plan, Part 3

By Christopher Knab (with the cooperation of Dianne Caron) (copyright 2000 Christopher Knab) Click Here for Part 1, Part 2

Goal #9: BAND BANK ACCOUNT A band bank account is definitely something you want to have once you generate some income, I don't think it really matters too much which bank you open up an account with, other than going to a bank that you feel comfortable with, and perhaps have your personal checking and savings account with.

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There are two items you'll need in order to open up a band bank account: 1. a business license and 2. a federal EIN.

Always think about keeping good track of your income and expenses. This will make it so much easier to file taxes.

GOAL #10: ENTERTAINMENT LAWYER Attorneys in the music business do more than just look over contracts and advise clients about the law.

They are very much involved in structuring deals and shaping artists' business lives.

One of the major things to look for in a lawyer is his or her relationships in the industry. Lawyers have evolved into one of the most powerful groups in the music industry. Attorneys end up seeing more deals than anyone else and, thus, have more knowledge of what's "going down" around town. Record companies, for instance, can't ignore phone calls from important lawyers, nor can they afford to treat them shabbily in any particular transaction since they're going to be dealing with these lawyers over and over, and they don't want to make enemies out of them So a lawyer with good relationships will get your deals done quicker, and, if they know what they're doing, will get you the maximum that can legitimately be had.

Here are some other aspects for you to consider when "shopping" for a lawyer: Experience Does he or she have expertise in the music business? Make sure that the lawyer you are hiring is an entertainment lawyer with at least some experience in the industry.

Fees There are basically three ways attorneys in the music business charge their clients: 1) Hourly Fee Some lawyers charge on an hourly basis. The rates range from $125 per hour for new lawyers to up to $450 or more for more established, reputable lawyers.

2) Percentage Others charge a percentage usually between 5 % and 1 0%. If the lawyer does a percentage, make sure he or she fully explains how he or she computes it; each firm is different!

3) "Value Billing" Some lawyers do something known as "value billing," often with an hourly rate or retainer against it.

A "retainer" is a set monthly fee that is either credited against the ultimate fee or it's a flat fee covering all services.

"Value billing" means that, when the deal is finished, the lawyer asks for a fee based on the size of the deal and his or her contribution to it. For instance, if the lawyer had very little to do with shaping the deal, but rather just did the contract, the band should expect a fee that is close to an hourly rate. On the other hand, if the lawyer came up with a clever concept or strategy that made the band substantial sums of money, or the lawyer shaped or created the deal from scratch, he or she will ask for a much larger fee. If

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your lawyer "value bills," you should get some idea up front what it's going to be, so that there aren't any rude surprises.

Also, ask your attorney if - in addition to fees - he or she charges for any other costs such as longdistance phone calls, messengers, photocopies, faxes, etc.?

References Ask the lawyer for references of artists at your level, and check them out. Does he return phone calls? Do they get deals done in a reasonable period of time? ("Reasonable" in the music business is not going to be anywhere near the speed you would like. It's not uncommon for a record deal to take four or five months to negotiate, especially if you're a new artist and can't force the record company to turn out a draft quickly. Four to five months is a realistic time frame, but if it goes beyond that, someone isn't doing their job.)

Well, there you have it…10 Goals for you to consider when building your career, but…

Hey, what the heck….we’re on a roll….how about a BONUS GOAL?!

If you do all the things mentioned so far, it might be time to acknowledge the real goal most musicians THINK they want….

GOAL #11: A LABEL DEAL Once you have an attorney and have opened up your own publishing company, and built your career on your own for a good while, a label deal may come your way. These days labels are attracted to acts that have built a strong following and proved to the industry that they are a solid investment. If a label deal is a dream of yours, then consider this information before you rush into anything.

INDIE LABEL VS. MAJOR LABEL: Indie Label When you think about pursuing an independent record label deal please think about the following issues: Distribution Make sure the label has some sort of a working distribution system (if not on an international then at least on a national level).

Roster Make sure the roster is not too big or else you won't be awarded the attention you deserve. Also, make sure the bands on the roster match the type of music you play.

Publishing If the label wants part of your publishing, do not be surprised, but be sure your attorney protects as much of your publishing as possible.

Merchandise If the label wants a percentage, they will probably get it.

Options Find out how many options the label wants. Since "options = number of records and years," you don't want to agree on too many options.

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Indie Promoters and/or In-House Staff Find out if the label works together with independent promoters. It is a good sign when they do since this raises the chances that your record will be seriously and effectively promoted. Also, find out if there is any in-house personnel or if the label is a "one-person-enterprise."

Advertising Find out if the band has an advertising budget for releases.

Tour Support Find out if and how they support you on your tour (financially, morally, etc.).

Points/Mechanicals Find out how much you get paid for each record sold.

Major Label When pursuing a major label deal be absolutely sure that this is what you really want. Here are some points that might help you determine whether this is the right thing for you to do: Options A major label oftentimes signs artists for 6 - 8 records (not years).

A&R Research the A&R person! Know who they've signed, who they've worked with, who they've worked for, etc.

Number of Releases Find out how many records the label releases per year. You don't want to sign with a label that releases too many products. Remember, they only have so much time and enthusiasm to put into the promotion of a record.

Meetings Set up meetings with A&R people and presidents if possible (i.e.: at conferences, special showcases, etc.); note that if they are sincerely interested, they win fly you to the meetings.

Here are some clauses that you will encounter (and sometimes have to watch out for) in a contract with a record label:

Exclusivity Every record contract includes a provision stating the deal is "exclusive." In other words, during the term of the agreement, you can't make records for anybody else. Therefore, an exclusivity clause in a contract refers to the fact that you may only contract with this record company (you are "unilaterally married" to that company). I strongly recommend that your attorney define the extent of exclusivity.

Term The duration of the contract. (Ex: Years + Product / Years + Option) Product/Creativity Who will control the amount of product and the quality of product. You always want as much creative freedom as possible; the record company oftentimes maintains a veto power when letting a band choose the producer, engineer, studio, etc.

Recording costs

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How much (recoupable) recording costs will you get. Don't overdue it! Remember, you will have to pay it back.

Advances How much (living) money will you get that is recoupable (goes usually to lawyer and manager). Also, remember, you will have to pay back the amount to the label.

Royalties The money paid for your service as recording artists (Canada: 75 - 90 % / UK, Japan, Australia: 60 - 70 % / Rest of the world: 50 % - of U.S. rate).

Video Who controls the music video and how the costs are apportioned. Try and have only 50% of the cost recoupable.

Publicity Rights to name, likeness and voice are issues related to this.

Merchandising How will your record company control your publicity.

Union Your promise to join a union (AFTRA, AFM).

Auditing Your right to audit the books. Make sure this clause is included in the contract.

Accounting The label's responsibility is to report financially to you (reports to artists usually occur every six months; i.e., if one accounting period lasts from January till June the label will report to the artists approximately in September).

Assignment The record company's right to sell the contract (see "Label Deals").

Controlled composition How the label will pay mechanical royalties.

Termination This clause specifies the songs you may not be allowed to record for a set time after the ending of the contract.

Sideman's clause You might want to consider including a sideman's clause. A sideman's clause allows an artist to do studio work. The artist still needs permission; the record company, however, can't say no unless they have a very good reason. Sideman performances are freely permitted, on the following instances: I. The performance must be truly a background performance, without any solos, duets, or "stepping out."

2. The artist's exclusive label must get a "courtesy credit" in the form of (artist) appears courtesy of.....

Records."

3. The artist can't violate his/her re-recording restriction for any selection, even as a background performer.

4. If the artist is a band, no more than two of the band can perform together on any particular session.

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This is because the record company doesn't want the band's distinctive sound showing up on another label.

Under normal circumstances - without such a sideman's clause - you would be prohibited to perform for any other band/label under the terms of an exclusive contract. If you have a sideman's clause in your contract, make sure all of you sign the legal document.

Key man clause If a significant label executive resigns, or leaves the company, you may terminate the deal. The label may also put such a clause in concerning a band member.

FOR YOUR INFORMATION Label Deals: There are four basic label deals: First Option The major (larger) label helps finance an independent (smaller) label and in turn has first option on any of the artists' contracts, Or in other words: If you sign with a smaller label that has a first option deal with a bigger label, you might end up on the bigger label.

Co-operative The major (larger) label offers to fund the next release of an artist of an independent (smaller) label and in turn gets to take over the band. This would only affect you if you were already signed to an independent label.

Licensing A label surrenders the right to a recording to another label (usually overseas) Buyout One label buys out another label.

So, there you go. This ends my 3 part series on issues related to putting together a plan for you career.

These goals should keep you busy for a good while. I have thrown a lot at you, but if you can commit to these goals you will benefit from organizing your band as a business, and all the hard work you have put into making you music will have a better chance at success if you approach starting your music career on the right foot.

There are many other goals you will have to address as your career grows along, like developing your own website, and learning how to market your music on and offline‌but all that will come in good time.

Remember too that I am available for personal consultations to help you put together a plan based on your unique situation. You can reach me by email or by phone.

Good Luck!!

Christopher Knab Click Here for Part 1, Part 2

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Music Marketing Ideas on the Cutting Edge 1) Give your music away, hell...if you are a new act, you are unknown anyway, so by giving your music away in either analog or digital ways you can help create a ‘Buzz’ and stand out from the other 75,000 other releases that came out last year. (That is a FACT, by the way). Then, pay attention to how your popularity grows, and as it does, give-a-way less and begin to sell your music at affordable prices for your fanbase.

2) Every record is a new release...if people haven’t heard it. Remember to put ANY and ALL past recordings up at your website as mp3 downloads, and on sale at all your live shows....remember the Long Tail Theory, (www.thelongtail.com) and LIVE IT!! As your fanbase grows your fans will want anything you ever did, and this will expand as you attract more fans over the months and years ahead.

3) If you lent out ‘promo’ copies to various gatekeepers in retail, radio, the print media, and at live venues, and one day you see them for sale in used record stores, don’t get angry about it...BUY THEM back, no matter if you initially gave them away for free....then on your website have a special USED CD sale.

4) Another tip from Chris Anderson’s book ‘The Long Tail’... reduce the price of your music, and then cut 50 percent off all your recordings. (Do this for analog AND digital product) 5) Don’t laugh!...come up with some kind of coupon sale. Think up a marketing idea where your fans have to enter a coupon or promotional code at your website to get a discount on one or more of your recordings.(You can do this for digital downloads or for CDs.) and/or for ticket discounts for upcoming shows.

6) Offer to “include” the sales tax in your CDs sales, maybe even "for a limited time only” or for loyal repeat customers...or offer free shipping and handling.

7) Remember this golden thought. “If you are not out there promoting your music, someone else is out there promoting their music”. There is a tremendous amount of competition out there.

THINK....what can you do that no one else has done, or better yet...steal a creative idea from someone else...hell, every advertiser in the world does this, why not you?!

8) Offer a free CD for every 3 CDs bought. You can do this at your live sales booth when you do concerts, or on your website...or BOTH! This way your fans can help you get the word out in an inexpensive way, and all fans LOVE to help their favorite band or artist.

9) Arrange to record a special ‘LIVE’ CD and invite only the fans who signed your email list to attend. You could do this in multiple markets, close to your home base. Charge them $25 for the live recording experience, (feed them spaghetti and salad as part of the deal), THEN tell them if they buy a copy of the LIVE CD that night, in advance, you will autograph the CD and remind them that they can hear themselves applaud and whistle on the recording....everybody wants to FEEL SPECIAL. 10) Never forget WHO your fan is. Study your fans at live shows...what kind of clothing do they wear? where did they buy it? where do eat before or after your gig?

Learn their lifestyle habits...and then use YOUR IMAGINATION to think up a clever co-promotion with an appropriate local merchant, restaurant, or coffee shop.

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11) Get a local record store to help you with a sale promotion...If a customer buys one, they get another one free. (This is different than the buy one-get 2 free idea listed earlier. You have to be understanding of the records store’s needs...they don’t want to be giving a lot of your product away, in fact they would only do this if they felt that your promotion idea would help THEM sell more of the other CDs they carrry.)

12) When your catalog of recordings grow to multiple CDs etc. offer your fans price/packages, i.e.

1 CD at a given price, 2 for a slightly discounted price, and 3 for a more generous discount price, and ALL your back catalog for a super discounted price. You can do this for live concert sales, as well as offering the deal online at your website.

13) Invest in a CD duplicator, and at your gigs, offer fans a CD of ‘tonight’s concert’ for $15, and tell them it will be ready for them either within a few days of the concert by mail, or if you can afford a more elaborate duplicator, make it available to them RIGHT AWAY after the show. (And of course, YOU will be there to autograph that recording of the show you just performed.)

14) NEVER forget to have your email sign up list handy wherever you perform. AND have a place for them to write down not just their email address, but their birthday as well. The point is .... never forget that your fans appreciate being remembered, anyone does who has been a loyal customer, so email them a special song you wrote where you can drop in their name somewhere in the lyric, and send them a link to the song on their birthday....they will remember your kind gesture forever!

15) THIS IS AN EXERCISE! DO IT! Go back over this list and wherever you see the word ‘fan’ or ‘customer’ substitute the phrase “tribal member”....that’s right...I have been using traditional words used in traditional marketing, but really...in the music world today, the niche, or part of the greater music community you have as your fans....they are really like tribal members. In fact think of it this way. Your fanbase belongs to a unique group of individuals who not only like YOUR MUSIC, but music similar to your music. And if you DO STUDY your fans you will see they truly act like TRIBES, where the clothes they wear, the haircuts and body-wear they choose reflect a way of living....So, tap into that phrase “tribal member’. It is much more intimate, and will reveal many secrets to making your fans, LOYAL fans. DO IT!!

VISIT THE FourFront Media and Music WEBSITE @ WWW.FOURFRONTMUSIC.COM Check out the free podcasts and articles, and consider purchasing Music is Your Business, co-written by music marketing consultant Christopher Knab and Entertainment Law Attorney Bartly F. Day. It's available as a downloadable PDF or in a print edition.

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How to Write an Artist Biography: A Bio Made Simple Before you begin to write the bio, be sure you have "taken an inventory" of your background, accomplishments, goals, and objectives as a musician, and remember who you are writing the Bio for: A&R Reps at Record Labels, Media Contacts, Booking Agents, and Management Contacts. These professionals in the music business are busy individuals, who may deal with dozens of "wanna-be's" every week, so make your bio informative, upbeat, and filled with useful comments, descriptions, quotes, and motivational language that can make them want to listen to your music, and help you on your musical way. When you are ready to rock n’roll, writing the Bio using this outline can keep you focused and organized.

1st Paragraph: Start with an introductory sentence that clearly defines the essential band/artist name, your specific genre of music, where you are from, and perhaps a positive quote about your music from a contact you have made in the music business.

2nd Paragraph: This section should address the immediate purpose of the Bio. What are you doing at this time? Mention a current activity you are involved with. If a new CD or Tape is coming out, that should be the main topic of the first sentence of the second paragraph. In other word, a reason why the Bio has been written should be clearly stated early on. Hints about any promotional activities that will be occurring to support the CD/Tape is also useful in this paragraph.

3rd and 4th Paragraph: At this point, information on any other band members can be introduced, and background information on the forming of the group, past experience, accomplishments, and recognition issues can be addressed. If you have developed a plan for your career path, additional paragraphs elaborating on this type of can be written, that demonstrate how your current project is part of a larger career development plan.

Ending: As stated earlier, the Bio should not waste words. For a new artist 1 page is sufficient to get the job done.

For more experienced artists, a page and a half to two pages should be the maximum length. So, ending the Bio in a efficient way should be the aim; use another quote from a gatekeeper who supports the artist, or summarize the 2nd paragraph information, reminding the reader of current activities.

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How To Improve Your Press Kit

by Christopher Knab - Fourfront Media & Music - December 2001

Back to Music Business 101

Quote Sheets Quote sheets can be a useful addition to a demo/promo/press kit. It is simply a document that lists positive comments about you or your music, made by various professionals in the Four Fronts. They give the gatekeepers at distributors and stores, radio, the print media and live venues an easy to read glimpse of what other industry people have to say about you.

You should select solicited comments from some of the following professions: - Producers or Engineers who recorded your music.

- Club and other live performance bookers - Writers from various music, or entertainment publications - Music and Program Directors, and DJs from radio stations - Record store managers or clerks - Other respected musicians Note: You can ask loyal fans to make a comment, but only use one or two of the best quotes from these people.

After you have selected the best quotes you could get, simply select the best 6 or 7 quotes and type them up on a sheet of 8 1/2 x 11 paper, preferably on your own artist or band stationary, and title it something like “ What People Are Saying” or “A Few Comments About My Music.”

Clippings or Press Clips As your career develops, and the reviews of your records and concerts increase, be sure to save as many of them as you can. When you have a dozen or so collected, put together a small collection of these ‘clippings’ or ‘press clips”.

There are a couple of ways to arrange clippings: If the reviews are small (capsule reviews) of live shows, or record reviews, then cut out and arrange several of them on a sheet of paper in an attractive way. Larger reviews can be reduced, copied, and pasted up with several small reviews all on one page.

If longer reviews have been written, or feature stories and cover stories start to appear, then the whole article should be copied. 2 or 3 of these can then be put into your kits. Do not go overboard on these clips. There is nothing more annoying than getting a demo/promo, or press kit filled with a dozen or more clippings.

Folders and Envelopes Whenever you have an opportunity to present something to a professional in the music business, you should remember two things: 1) What type of information does the person receiving your information need from you to do their job?

2) Does the folder or envelope that contains your kit reflect the professional image you want?

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The first impression your music makes is a visual impression. In other words, if the package your music arrives in looks unprofessional, you music may never be listened to.

The professional gatekeepers in the Four Fronts see hundreds of promotional packages a month, and after years of dealing with these packages, it’s very easy to tell what artist or band has their act together professionally, and who doesn’t.

However, different styles of music demand different images. You should become familiar with what kind of image is appropriate for your music. For example, what might be an appropriate image for an alternative rock band, or a rap group, might be completely inappropriate for a country act, or a pop artist. Basically, the more mainstream your music is, the more professional the packaging of promotional materials should be.

Don’t go overboard in your eagerness to please. A folder can be a 35cent folder, with the band or artist’s logo used as a sticker placed on the front cover of the folder or envelope. The promo materials included inside should be neatly written and laid out. A package that looks “too slick” can work against you as much as can a poorly designed package.

If there is any doubt what kind of promotional materials should be put into your kits, think of the possible ingredients that could go into the kit. Those promotional materials are like the tools you have in your home repair toolkit. You have different tools, but you rarely use them all at once. Same with what you put into your folders and envelopes.You have created a bio, a fact sheet, a photo, press clippings or quote sheets, and cover letters. In addition to all those items, you may also created a list of song lyrics, a stage plot for your live show presentations, or an equipment list. So, do you use them all?

My tip on what to put into a promotional kit is this: Ask the recipient of your kit what they want you to send them. It’s as simple as all that.

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Sell Your Music Online, Part 1

by Christopher Knab - Fourfront Media & Music - October 2002

Back to The Academy

Don't say I never did anything for you!

This month and next month you will read about websites that help you sell your music. I spent hours researching this data so that you can have one reference source for the dozen plus sites that help. Over a dozen websites will be presented to you, so you can examine which sites are best for your circumstances when it comes to getting your music to the people.

Every day, web-based music companies are developing programs to help you market and sell your independently released CDs and music files You will have to stay on top of the many changes and improvements these sites come up with, but this is a great starter kit for you to examine selling opportunities on the web. What I have done is visit each of the sites listed, and copied and pasted into this document, in their own words, what these companies have to offer you. The information I have assembled is not a 'review' of who does what the best. The success you have working with any of these companies is up to you, and how you work within their various business structures.

Many of these companies offer their services for free, others ask for reasonable fees for more elaborate music marketing plans. You will find here sites that help you sell your traditional CD, as well as ways for you to promote and circulate your MP3 files.

All I have done is assemble into one place a summary of these site's own descriptions of what they have to offer independent recording artists. Check 'em out, a whole world of opportunities awaits you.

CDBaby.com: Who/What Are We?          

CD Baby is a little online record store that sells CDs by independent musicians.

[Independent: (adj.) Not having sold one's life, career, and creative works over to a corporation.]

We're just a few people in a cool Portland, Oregon, CD warehouse that looks like a playground.

We listen to every CD we sell before we sell it, so we can help you find other albums you'll like.

We only sell CDs that come directly from the musicians. No distributors. Musicians send us CDs. We warehouse them, sell them to you, and pay the musicians directly.

Cool thing: in a regular record deal or distribution deal, musicians only make $1-$2 per CD, if they ever get paid by their label. When selling through CD Baby, musicians make $6-$12 per CD, and get paid weekly.

In business since March 1998. We're the 2nd-largest seller of independent CDs on the web, 2nd only to Amazon.

Current Numbers: 25,116 artists sell their CD at CD Baby.

292,495 CDs sold online to customers. $1,949,539.35 paid to artists.

CD Baby Privacy Policy  

We NEVER give or sell your personal info to any other company - EVER! (No not even your email address!)

Only the musician whose CD you buy will know who you are.

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If you don't even want the musician to know about you, just say so at the bottom of your order form.

Your credit card info is never stored, and never seen by anyone. We don't store it in your permanent customer info. The card number is erased immediately after the sale, for extra protection. There is nothing of yours here to steal.

Yes this means you'll have to type your card number again when you return, but we hope you appreciate the extra safety and privacy it gives you.

Tech things     

Our servers are running 100% OpenBSD - the world's most secure operating system. Powered

by Apache, PHP, and MySQL. No Microsoft products were used in the creation of this website.

Full 128-bit secure SSL connection protects all of your private information from snooping eyes.

Our secure certificate issued by Thawte - a division of Verisign.

We try to stay HTML 4.0 compliant. No special web browser needed. (I recommend the Opera and Mozilla web browsers for their speed and standards.)

CD Baby website (front end and back end) made by me - Derek Sivers. It's my favorite hobby.

Most important of all... 

You can reach us during Pacific west-coast business hours at (503)595-3000 or email cdbaby@cdbaby.com anytime.

Garageband.com and CD Baby (Note: You can obviously deal directly with Cdbaby.com if you prefer…CK) Garageband Records has partnered with CDBaby.com so you can sell your CDs to hundreds of thousands of music lovers around the world. First you need to register or log in then we can begin. It costs just $35 per CD to register. You can sell your CDs for any price, and you'll keep 100% of the earnings minus a $4 processing charge per CD (all prices $US). So you'll be making clean profit after you've sold just five CDs at $10 each. You can do that easily, right?

1. Get some CDs together. Looking for a good CD mastering service? garageband.com artists get 20% discount at Airshow Mastering on a Master Media package. Need some CDs duplicated? garageband.com artists get a $50 discount at Oasis Duplication when they purchase a single speed glass cutting.

2. First you need to register or log in then we can begin. We'll create a custom "Album Profile" page for you at garageband.com and CDBaby.com. You can enter your sleeve notes, and select the tracks on your album that are also on garageband.com. You can link to this page from your own website, so all your visitors can buy your CDs. 3. Set a price for your CD. We recommend a maximum price of $10 (because that's the price of most big label debut CDs) but you can set whatever price you want ($4 minimum). You get 100% of the selling price less a $4 processing charge for every sale.

For example: CD Selling Price What you get $10 $6 $9 $5 $8 $4 $7 $3

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$6 $2 $5 $1

4. You mail at least 5 CDs to CDBaby.com's warehouse, and make a payment of $35.

5. CDBaby scans your album's cover art for display on your album profile page.

6. We promote and sell your CD at garageband.com.

7. People buy your CD. 8. CDBaby handles all credit card transactions, fulfills all orders within 24 hours, and notifies you via email once every transaction is complete.

9. CDBaby mails checks to you. (You can decide how often they send you checks, of $20 or more).

10. You earn millions, run away with Jennifer Lopez, develop a Godzilla-sized drug habit, lose track of the plot, dump Lopez for an aardvark and spend the next forty years living under an abandoned trampoline.* First you need to register or log in then we can begin. (*Important note: Step 10 optional).

Hostbaby.com (spinoff of Cdbaby.com) For $20/month you get...

Basic Features: 1. You can register and own your own domain name (www.yourname.com) for only $20 instead of the usual $70. As long as you're out there promoting your music and your website, you should own it! It's not just for vanity. It's for permanence. So you'll have the same web address even 10 years from now. So pick a domain name, and we'll register it for you for only $20! We worked out a quantity deal. Instead of the $70 it would cost to do it yourself, it's just $20 per year. And yes YOU own it, not us. To find one that's available, go to Network Solutions and try 'em out! But don't register it there. Just do your research there.

When you find which one you want, let us know, and we'll take care of the rest. If you already have a working website somewhere, we'll be glad to transfer it over for you to your new home.

2. We can transfer your exisiting website easily, with no interruption.

Whether you registered your domain name yourself, or someone registered it for you, we'll be glad to do the technical stuff to move it over to hostbaby. We can even do an instant clone of your old site on to your new one, so that there will be no interruption at all, and you won't have to re-upload everything. Since everyone's situation is different, just email us with your domain name, and any other info, and let us know what you'd like to do 3. You get 200 megs of web space to do whatever you want. You're in total control of it. That's enough for TONS of MP3 files, photos, RealAudio, even video clips. You'll have total control over it. You can FTP upload (and download) anything you want there.

4. Endless permanent email addresses like you@yourname.com - so you'll never have to change your email address again. You know what a drag it is to change your email address, especially as you're out promoting your music. Liner notes on your CD, reviews in magazines.... These things are going to be around for years, so what you really need is a permanent email address. When you own your own

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domain name, you keep your email address no matter where you go. You can drop AOL, switch to cable modem, switch to sattellite, switch to gamma-ray access in the year 2053, and your email address will STILL be you@yourname.com. (even if you leave hostbaby.com - your name is yours!) You can give an endless amount of private email accounts for friends, or different aspects of your business. (Example: you@yourname.com, junklist@yourname.com, bookings@yourname.com, guitarist@yourname.com) And you don't need our help or permission to do this. You'll be in control of your own account to do whatever you want. These are *real* personal private POP3 Email accounts. Not web-email like Hotmail. Real email that you can check in powerful email programs like Eudora and Outlook Express.

5. Streaming RealAudio and MP3. CGI scripts. The works. Your website can now do any fancy stuff you ever dreamed of. If you've worked with some other web-hosting companies, you know that whenever you want to do something cool, they either tell you, you can't do it, or they try to charge you extra. At hostbaby you can do CGI scripts, streaming RealAudio, FrontPage extensions, telnet, FTP server, server-side includes, forms, counters - ANYTHING. (Ok - anything except Microsoft-only things like Access and ASP. We only use Linux servers, no Microsoft. But we can do Microsoft FrontPage extensions.) So, in short, if you're wondering if your new website can do ______[fill in the blank]_____ - the answer is YES. 6. A very VERY fast connection on a powerful and reliable Linux webserver. Your website will be in this big corporate Qwest bandwidth building, right next to servers for sites like internet.com.

We have an OC-48 connection from our servers out to the internet. That's 48 times faster than a T3.

That's 2.4 gigs a second. That's about 800 MP3 files in one second. What that really means is your website will come up lightning-fast.Your fans will appreciate it. Your sound clips will play without stuttering. Your site itself will be much faster than anyone's modem, no matter how many people are connected. The webserver itself is a Linux Cobalt RaQ. It's strong, reliable, efficient, bug-free, and almost never goes down.

7. No setup fee. First month is free so you can see if you like it. Not many details on this one. There's no fine print or exceptions. We think you'll be VERY happy with hostbaby, so we'll get it all set up for you, and give you the first month for free. If you like everything up to that point, you can start paying $20 / month the next month. You do have to pay $10 to register your own domain name, if you don't have one already. Other than that, everything else mentioned here is free! There will be no extra charge for all the extra musician features of hostbaby.

MUSICIAN section features: THE BEST PART 8. The REAL mission of hostbaby: To give you musicians' most-needed tools, right on your own website.

As I got my own webserver for CD Baby, I started learning all the things you could do with it. I realized that all these things that other companies ask you to do on THEIR websites, YOU can do on your OWN website. And wouldn't you rather keep your fans on your own site, instead of sending them away to other sites filled with banner ads and things meant to distract them? So - I'll be constantly configuring our webservers to let you do anything you want on your own website, and not be dependent on other companies. (So far: tour calendars, mailing list managers, guestbooks, password-protected MP3 files. If you have ideas for more, let us know!) EXAMPLE: Want a concert calendar? No problem! Emailing list manager? Guestbook? Hit-counters? Password-protected MP3 files? All these things are ready-to-go on your own site.

9. Hostbaby Musician Modules. NOTE: We're opening the doors to hostbaby a few weeks before the last of the modules are ready. So if you're interested, let's get you set up with a basic site first, then add these special features in a few weeks. All you'll need to do is add a few cut-n-paste lines into your HTML code to do anything below. Or we can do it for you if you get stuck.

CONCERT CALENDAR: You have a private area on your site where you enter your upcoming concert dates. Then just stick one line in your HTML code like "show_upcoming_dates" and voila! Your page shows your upcoming concert dates in a pretty little customizable table. And since the website knows what day it is, it automatically moves past your past dates into a "show_past_dates" page. (So you don't

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have to worry about updating all the time.)

EMAIL LIST MANAGER: Instead of sticking everyone you know into the "CC:" field of your Outlook email program, an email list manager on your site will let you email some or all of your contacts, using their name right in the email itself. You can send announcements that say "Dear Bethany..." and "Dear Evan..." instead of "Dear Fans and Friends...". And you keep your contacts safely on your own website, so you can access them from anywhere on the road.

MAILING-LIST SIGNUP: No need to sit and struggle with forms and CGI scripts to do things with forms.

We've got it all done, and ready to put on your site in any way you'd like. Fans can fill out their info to be on your mailing list. It can get emailed to you and auto-added to your email list (described above.)

CONCERT DIARIES: Coming soon: A true concert diary, updated on your site. Write up a few memoirs about each show you do. Perhaps upload a few photos from the show. Fans that were there can talk in a bulletin board about that show, or all your shows. Fans can even upload their own photos of the show.

MEMBER-ONLY MP3 DOWNLOADS: Ever wonder who's listening to the sound clips on your site? You can require people to quickly fill out their email address and first name before downloading. They can't download your MP3 files (or any file you choose) until they're authorized with a working email address.

HIT COUNTERS, GUESTBOOKS, MORE... More things like this to come soon. All on your own site, and totally customizable.

10. And of course we'll always give you all the tools and knowledge we can, from one musician to another, to help you promote, design, and run your site for maximum results. Can you imagine if everyone that visited your website signed up to your mailing list, came to a show, and bought your CD? Since hostbaby is all about helping musicians have great websites, we'll always give you all the tools and knowledge we can. Books, articles, examples, advice, etc...

CD Street E-Commerce enable your site to SELL your music merchandise securely within 24 to 48 hours by joining cdstreet! Sell your music, plus all your music-related merchandise through cdstreet.com: CDs, T-Shirts, Caps Vinyl, Cassettes, VHS Tapes, DVDs -- All Your Swag! In addition, our basic service includes a storefront in our site with customizable web pages.

Here's the BASIC Deal:            

Your URL: www.cdstreet.com/artists/name Sell as Many Different Products as you wish with no additional setup fee.

Take Visa, Mastercard, Discover, American Express and JCB Add/Remove Products and Change Prices at Will - No Cost You keep 80% of the sale, we keep 20%.

Email notification of sale in realtime, same for buyers.

We report barcoded item sales to SOUNDSCAN Each Week Simple online administration tools Offer buyers our 1-800 number for orders Get paid monthly for your net sales Manage the Entire Look and Feel of your cdstreet Artist page with a full library of administrative tools and login options.

Non-exclusive service agreement

We Ship Your Orders or You Can: Its your choice. cdstreet ships every day of the week at no cost to you. Fast shipping makes buyers happy

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Enable Secure Ordering for Your Site (optional & free): We can provide code for you to place within your own website so that you can create your own custom cdstreet order form in your own site. Purchases initiated from your site with this code go directly to the shopping cart and checkout. No intermediate store page outside of your site like Amazon.

Buy-Buttons for your pages on other websites to sell your music.

These are easily added to your MP3.com pages or any other site where you wish to sell your wares.

Upgrade to Enhanced Cart Package: For a one-time upgrade fee of $19.95, you can co-brand the entire cart ordering process, from "add cart" to "checkout." Your logo and identity is prominently displayed in all shopping cart and checkout pages.

Indie Labels: We now offer a multi-artist record label solution on cdstreet.com for a one-time setup fee of $24.95. With this option, your label has unique cdstreet pages, and each artist has their own pages.

Label URL: www.cdstreet.com/labels/name Label's Artist's URL: www.cdstreet.com/artists/name Consolidated payments, accounting and management for labels Releases and merchandise can be sold at label pages, site and from individual artist pages. With only cdstreet Basic service, all is displayed on label page and site without individual identity for artists With the Multi-Artist Label Solution, you have artist pages for each artist you manage.

MP3.com What Does MP3.com Offer Artists and Labels?

A Non-Exclusive Agreement: Digital artists retain control of their master recordings and can terminate the agreement at any time. We have always been deeply dedicated to the artist community. We strive to create the best online experience for digital artists and provide incentives to post their music on our site.

Today, digital artists from all over the world come to MP3.com to gain exposure and leverage our salesand marketing tools to generate revenue in a variety of exciting ways.

Increased Exposure: For digital artists, exposure to a global and local audience is secured through the natural boundless reach of the Internet. We enhance their distribution and promotional power with artist web pages that provide the ability to post songs and control the online image. Tools and services have been created that facilitate direct interaction with an artist's growing fan base, allowing targeted messaging and opportunities to announce upcoming concerts or new song releases.

With close to a million visitors accessing our site daily, MP3.com offers exceptional opportunities for digital artists and recording labels to generate exposure and ultimately build profits. Digital artists are promoted in Station pages, consumer newsletters, news articles, MP3.com promotional CDs and other MP3.com-related media.

FREE Artist Web Page and Unlimited Disk Space: All artists receive their own web page at no cost!

Digital artists can add songs, band logo, album graphics, band history, song lyrics, photo album, favorite music, links to their fan club and more. Our simple, easy-to-use interface helps digital artists add songs and make changes in just seconds! Artist sign-up Label sign-up.

Feature Compilations in Each Genre: We select various artists to be part of our online genre compilations. In addition, each genre section on MP3.com has featured artists who change regularly.

Check out our online store to see some of the genre compilations we currently offer.

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CD Program: A fast, FREE way to make and sell CDs that puts a lot more control in the hands of artists!

Produce an MP3/CD formatted CD along with its online counterpart, the netCD, which loads instantly into your password-protected My.MP3 account.

Payback for Playback: Payback for Playback is an exciting promotion that rewards members of the Premium Artist Service with cash, based on song plays. In the two years of its existence, the promotion has continued to encourage Artists to promote their music globally using a variety of tools at their disposal.

Premium Artist Service: Digital artists already know MP3.com offers a broad range of free tools to help effectively market themselves. Now digital artists you have the opportunity to enjoy even more tools and services signing up for Premium Artist Service.

Track Your Success Daily: To hone these marketing and revenue-generating opportunities, we provide daily, detailed statistics about web page visits, number of song listens and downloads, CDs sold and more to enable digital artists to better define, evaluate and connect with their fan base.

Artist Tools and Services: Music Greetings, advertising tools, MP3.com Messenger services, ticketing services, event planning and merchandising services.

Music Licensing: Sign up for MP3.com's Music Licensing service, a low-touch, searchable database system that enables MP3.com digital artists to license their music for commercial use (films, radio, TV, web sites). This service offers music supervisors one-stop "search, sample and license" capabilities.

Promo Auctions: Eligible artists now have another cost-effective way to market their music and potentially earn a share of the monies available in the Payback for Playback pool made available to them each month by MP3.com.

In much the same way that food distributors procure premium placement on store shelves, eligible artists and labels who are seeking additional exposure on MP3.com are participating in an online auction process to secure high-visibility positioning throughout MP3.com's web site. The Promo Auction process can be viewed by visiting www.mp3.com/auction.

Event Calendars: Keep fans posted and drive people to shows and concerts with our free calendar service. Digital artists can add and change their event dates to make sure audiences stay informed of when they are be coming to town. Invite them to shows, notify them about tours, CD release parties and any other planned event.

Advocacy for Artists on the Internet: MP3.com has taken a leading role helping artists distribute and promote their music on the Internet. We host the annual MP3 Summit and participate in numerous conferences and events promoting digital music.

Amazon.com's Advantage For Music Program Why Join?

The Power of the Internet's No. 1 Music Retailer Amazon.com is the Internet's No. 1 retailer and has customers in all 50 U.S. states and more than 160 countries around the world. The name Amazon.com is immediately recognized for service, reliability, and security.

Amazon.com is the No. 1 retailer on the Web according to PC Meter ratings (which measure audience reach much like TV's Nielsen ratings). With so many people searching for music on our site, your CD is more likely to be discovered by new fans.

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Completely Free to Enroll--No Exclusive Contracts There is absolutely no cost to join Amazon.com Advantage. The only thing you have to pay for is shipping your CDs to us when we reorder. Plus, there are no exclusive agreements, so you aren't limited in how or where you market and sell your music.

Get Your Own Web Page on Amazon.com--Just Like Major-Label Artists When you join Advantage, you get your own Web page listed on Amazon.com alongside those for majorlabelartists. Your page includes track listings, cover art, customer reviews, liner notes, and more to attract and educate potential customers who may not be familiar with your music.

When you have a Web page at Amazon.com, fans always know where they can buy your CD. Amazon.com is one of the most recognized and trusted names on the Web. People know our reputation for security and customer service. Just say, "Look for me on Amazon.com," and they'll be able to find you.

Upload MP3s to Help Sell CDs With Amazon.com's Digital Music Network, you can upload MP3 tracks of your music for posting and free download by Amazon.com's visitors. By putting free MP3 uploads of your music in front of millions of Amazon.com customers every day, you're giving a passionate audience of music fans the chance to discover your sound--and to buy your CD. To enter the Digital Music Network, click here.

Your songs can earn you money with the Amazon Honor System The Amazon Honor System lets you collect tips from fans who listen to your free digital downloads. It's like playing beside an open guitar case in the heart of the Amazon.com Music store. Set up an Amazon Honor System account and start making money today.

Quick Shipping and Fulfillment You want to catch fans when they're excited about your music. With Amazon.com Advantage, we keep your CDs in stock at our distribution centers for fast shipping anywhere in the world, usually within 24 hours. It's been proven that items available for immediate shipping sell more copies than ones that can't be shipped for several weeks.

Cover Art, Track Listings and Liner Notes On the Internet, information sells. The more a potential customer knows about your music and your CD, the more likely they are to make a purchase. That's why Amazon.com Advantage gives you the ability to include track listings, cover art, and liner notes on your page--all at no charge. We'll even scan your cover art for free! When a customer comes to your page, they can see your CD cover, view your track listings, read the liner notes, and even read your comments about the CD. These critical elements bring your CD to life on the Internet.

Make It Easier for Customers to Discover Your CD You'll have two kinds of customers who purchase your CD from Amazon.com: 1) people who already know your music and 2) people who are browsing our site for something new and cool. The people who know your music will type your name or the title of your CD into our search engine and find you directly.

The people who don't know you need to be directed to your page. When you join Amazon.com Advantage, we classify your CD so that it qualifies to show up on our Indie Music browse lists. Our Indie Music Store showcases new artists and independent labels to help fans in search of the next big thing in music. We have hundreds of Indie Music browse lists, ranging from proto-punk to classical to Christian to bebop jazz, so there's likely one that's perfect for your CD. Classifying your music properly gives you the chance to stand out in your specific genre.

Online Sales and Inventory Reports When you join Amazon.com Advantage, you get access to our secure server, which is updated daily with full sales reports for all the titles you've enrolled in Amazon.com Advantage. It's a wealth of information that's simply not available from other music stores.

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You will be able to see:     

Unit sales last month Unit sales this month Current inventory Status of the last order that Amazon.com placed with you to replenish our inventory Amount of your next payment

This information is updated daily, so you'll always know how your titles are selling and how much Amazon.com owes you.

Automatic Reordering When our inventory shows that we're running out of stock on your titles, our ordering software willautomatically send you an e-mail requesting more copies. This way we can keep your CD on hand and available to "usually ship within 24 hours." We continually adjust the number of copies we order from youbased on the recent sales performance of your CD. Easy Restocking and Hassle-Free Fulfillment Making and promoting a great CD is time-consuming, hard work. So don't hassle with tedious details and chores such as shipping, credit card fulfillment, phone calls, and packaging costs. Amazon.com takes care of it or you--completely free of charge. Amazon.com serves the world, so you only have to restock one store to make sure all of your customers can get your CD. When we start to sell out of your CD, we'll send you an e-mail requesting more. You mail the copies to us and you're done!

Amazon.com saves you time that could be better spent on what you do best: making and marketing yourmusic.

Quick Payment Terms With Amazon.com Advantage, payment to you is quick and easy. At the end of each month, Amazon.com automatically sends you a check for the copies sold during the previous month. You don't even need to invoice us. Also, you can always check online to see how your CDs are selling and how much we owe you.

Access to Our Marketing Resource Center Amazon.com Advantage is a powerful marketing tool for the independent musician. And like most things, you get out of it what you put into it. The more time and energy that you as an artist put into selfpromotion, the more successful you will be selling on Amazon.com. Advantage members can access our Marketing Resource Center, an online information center for independent musicians, authors, and filmmakers. Inside you'll find information on everything from packaging your CD for shipment to offline guerrilla marketing tactics to tips and success stories from Advantage members who have succeeded in selling their music directly.

We also give you free information and expert assistance with manufacturing your CD through Disc Makers, our recommended audio manufacturer.

Part 2... ……………………………..

So, there you go for this month. I have done a lot of work for you, as far as giving you 'from the horse's mouth' what these web music distribution companies have to offer. Now, the real work begins. But remember, you must decide which of these company's best suit your online music marketing needs. I am not recommending that use all of them. Take it slow and easy at first and add a new Internet marketing

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company to your mix, as you feel comfortable doing so.

I have been saying for years now that the Internet is the future for independent musicians. All I can do is try to get you fired up about how many opportunities there are for you to promote your music. However, I have never felt more confident about the power of the web to kick-start a music marketing campaign then I do now.

Please note, there are several other websites and companies that may help you get the word out about promoting and selling your music over the Internet. www.muze.com, www.soundbuzz.com, and www.peoplesound.com (purchased by Vitaminic) may be worth your while as well, but I concentrated on the sites I did, because they seemed to me to be the most successful for indie musicians. If you find them useful‌great.

If you would like some first-hand feedback from a musician who knows what companies are best at selling and promoting music online, I would suggest you go check out David Nevue's website www.musicbizacademy.com . David has been using many of these companies with various degrees of success, and he might be a good jumping off point for deciding which company to try first.

Web marketing is only a part of your entire music marketing. Online activities must go hand in hand with your offline touring, publicity, radio, and other distribution and sales activities in the 'analog' world. But I sincerely believe that many of the companies I have introduced you to can go a long way to establishing and promoting you as a successful entrepreneurial musician in this new millennium.

Let me know how things are going!

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Performance Contracts This article discusses performance contracts for single performances, commonly called a "BOOKING AGREEMENT" or "ENGAGEMENT CONTRACT".

It never hurts to review and improve even a contract you've been using for years. Intellectual property attorney Brett Trout contributes some great wisdom and provides even-handed contracts that opt for clarity rather than bargaining strength on either the Buyer or Seller's side. "The goal is to lay out the deal so everyone is on the same page. The more fair a contract is, the more likely everyone will agree to sign it." Brett shares.

In some situations, a "handshake" or verbal agreement is quite acceptable--it's legal, but difficult to enforce. But people who think they don't need contracts must either have a well known reputation if you're the talent-buyer, or you really trust the people you've been working with. But times change and miscommunications happen, and a contract protects both parties. Of course, the more money is involved, the more the need for a contract. "If you handle performances like a hobby, then you don't need a contract, but if you want to treat them like a business, you need one," Brett advises. If you're haven't used contracts before, it can be intimidating to ask someone to sign it, but the other party will actually respect your professionalism by doing so, and the worst that can happen is they won't.

There is no perfect contract for any situation, and there are too many clauses to touch on in this article. A common practice is to make a brief standard contract, and attach a rider for specific situations. Here's some important considerations: Date, time, compensation, and signature by BOTH parties. In some cases, this is all you need!

Definition of performance. Both parties should know what is expected for a "performance." Provide a clear yet concise description of the nature of the performance, including minimum length, set breaks, and anything else unique to the performance (1-3 sentences is fine).

Location, date and time. This seems like a no-brainer, but we've heard horror stories about performers showing up on the wrong day, two performers booked for the same time, enough said. Length of performance can be described here or in the definition.

Compensation. It should be clear whether a fixed amount (guarantee), a percent of door or revenue, or both. Include when payment will be made, to who, how, and any deposits. Be very clear here as to payment method and who specifically receives it. For example, if the deposit goes to the agent, and the remainder to the performer, it should be in the contract. If payment is based on percent of door, both parties should have the right to be present in the box office and access to box office records or gross receipts.

Recording, reproduction, transmission, photography. This is usually the artist's right to grant specific permission, but press and publicity is a good thing. Flexibility is key. It is common for the Buyer to have the right to use the Performer's name and likeness in advertisements and promotion, so its good to make sure the Buyer has appropriate promo materials.

Right to sell merchandise on premises. For smaller venues and engagements, this right is usually the performer's, because its a large part of the performer's compensation. But for larger venues, they may have specific terms for merchandise, but they may also have their own people to sell it.

Meals, transportation, lodging. This completely depends on the performance type and gig type.

Corporate and College gigs usually cover most everything, and public venue gigs and benefits are a little less gratuitous. Guest lists, passes, dressing rooms, and other hospitalities vary.

Sound and production. It should be clarified who provides sound and how. It's too often that a

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performance is ruined by improper sound production, so its good to allow the performer to designate a representative to control sound equipment.

Permits, licenses, and taxes. It is customary for these to be covered by the Buyer.

Acts of God. These events, such as weather or illness are intended to protect both parties.

Cancellation. There are a number of ways this is handled, and again, it depends on the gig. Usually if there is enough notice, neither party is penalized. But again, it helps to be clear.

Royalties and licensing. Responsibility for this clause usually goes to the party with deeper pockets.

Brett observes, "a small performer is probably not going to get sued, but a performer with 6-7 CDs and plenty of merchandise sales will." A venue or large promoter on the other hand is an easy target for a lawsuit. But its smart for performers to either have permission or the necessary licenses when performing copyrighted material.

Specific requirements/restrictions for performer. Eating, attire, language. Depending on the gig, there may be certain requirements of the Performer or the Buyer depending on the gig, such as thanking a sponsor, announcing the performer, attire or language at corporate or private gigs, etc., etc.

Agent terms. Often the agent is the Seller, and the agent may draw a separate contract with the performer. Or the contract is between the Performer and the Buyer, and in that case, the agent's compensation should be clarified in this contract, along with any obligations of the agent.

Insurance & Security. Personal liability insurance and property insurance are usually the responsibility of the Buyer. Although not often in the contract, the performer should insure their own equipment.

There are numerous other clauses, but the above are the most common.

Brett recommends that you look at a variety of contracts and decide which clauses apply to your situations. Brett also welcomes you to draw from his example contracts, but only with the awareness that NEITHER these sample contracts NOR the opinions in this article constitute legal advice.

Short Contract Sample | Long Contract Sample You can copy and paste these contract clauses right into your standard contract using "my POWERGIG". Login and start protecting your online bookings today.

Legal notice from Brett J. Trout Esq.: These Agreements and newsletter simply provide[s] information about legal issues related to a Performance for Hire. Information, however, is not the same as legal advice. While these Agreements may indeed be applicable to your circumstance, no Agreement is universal. The author, therefore, expressly disclaims any warranty or representation that they are appropriate for your situation. Please consult your lawyer regarding the applicability of these Agreements to your particular needs. - Brett J. Trout, Esq. (515) 288-0219 Some other sites to check out are below. But they may not all be in the public domain, which means check for permission before using. http://www.musicoffice.com/library/booking_agreement_casual.html http://www.musicoffice.com/library/booking_agreement_casual_agent.html http://www.asha.com/html/c-appear.htm (the music specialist) http://www.legal-forms-kit.com/ - has a kit of legal forms for musicians/performers for purchase. http://www.musiccontracts.com/ - individual contracts for purchase

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What's a Record Label Deal All About?

It is my experience that most musicians think they want a record deal, but know nothing about these ominous 80 –100 page, single-spaced recording contracts. Recording contracts are legally binding agreements between individuals who make up a band and a corporation.

In previous columns, I have given a lot of information about how the music business works, and what an independent artist or band must do to establish their careers. Record labels are attracted to acts that have built a strong following and have proved to the industry that they are a solid investment. When a record label signs an act to a recording contract, they expect to make a substantial return on the financial investment they have made in that act.

The following information is provided to you as a basic outline to the key parts of a recording contract.

Please be advised that should any such contract ever come your way, never sign anything without consulting your entertainment law attorney.

INDIE LABEL VS. MAJOR LABEL Indie Label (See Also, Major Label) By the purest industry definition, an independent label is a record label that is not affiliated in any way with a Major Label, and uses independent distributors to get their releases into stores.

Note: For an in depth article on the types of relationships that exist between independent labels and major labels see the chapter I co-wrote with entertainment law attorney Bartley F. Day in the excellent resource book The Musicians Business and Legal Guide, 3rd Edition, published by Prentice Hall.

When you think about pursuing an independent record label deal, think about the following issues:

DISTRIBUTION Make sure the label has a solid distribution deal on a national level. Be sure to check on the relationship between the label and their distributor(s). Ask some questions like:    

How many records has the distributor sold of the label’s product?

Did the label have any problems getting paid by their distributor?

What kind of working relationship do they have with their distributors on their new releases?

Does the label have a budget to pay for some co-op ads, and in-store promotions through their distributor?

ROSTER Make sure the label’s roster isn’t too big, or else you won’t be given the attention you deserve. Also, make sure the bands on the roster match the type of music you play.

PUBLISHING If the label has an affiliated Music Publishing division, and wants part of your publishing, don’t be surprised, but be sure your attorney protects as much of your publishing royalties as possible. Never allow a label to recoup any monies advanced to you for the recording of your record from your mechanical royalties. (This is the money owed to the songwriter and music publisher of the songs you wrote on your record, for the sales of your record.)

MERCHANDISE

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Merchandise deals are deals made by your attorney outside of your recording contract, for your likeness to appear on t-shirts and other clothing and objects. If the label wants a percentage of the income from such a deal, you may have to negotiate how much they get.

OPTIONS Find out how many options the label wants. Since “options = number of records,” you don’t want to agree on too many options.

INDIE PROMOTERS and/or IN-HOUSE STAFF Find out if the label works with independent radio and/or retail promoters. It’s a good sign when they do; this raises the chances that your record will be seriously and effectively promoted.

ADVERTISING Find out if the band has an advertising budget for releases.

TOUR SUPPORT Find out if and how they support you on your tour (financially, morally, etc.) and how much of any advances for touring are recoupable.

POINT / PERCENTAGE of the LIST PRICE You Receive Find out how much you get paid for each record sold. A new act usually gets somewhere between 1015% of the suggested list price of a recording. (Remember too that out of your percentage, you must pay your producer their percentage, for producing your record.)

Major Label By industry definition, a major label is a label that commands a high percentage of the annual sales of records, and has their own distribution system. ( The Big 5 distribution companies currently are: WEA, BMG, SONY, UMVG, and EMD.) When pursuing a major label deal be absolutely sure that this is what you really want. Here are some points that might help you determine if this is the right thing for you to do: OPTIONS A major label often signs artists for six to eight records (not years).

A&R Research the A&R person. Know whom they’ve signed, who they’ve worked with, who they’ve worked for, and how long they have been employed.

NUMBER OF RELEASES Find out how many records the label releases per year. You don’t want to sign with a label that releases too many records. Remember, they only have so much time and enthusiasm to put into the promotion of each record. Many major labels have between 12-25 releases coming out each month.

Here are some clauses that you will encounter (and sometimes have to watch out for) in a contract with a record label: EXCLUSIVITY Every record contract includes a provision stating that the deal is “exclusive.” In other words, during the term of the agreement, you can’t make records for anybody else. Therefore, an exclusivity clause in a contract refers to the fact that you may only contract with this record company (you are “unilaterally married” to that company.) I strongly recommend that your attorney define the extent of exclusivity.

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TERM The duration of the contract. (How many records? Any time constraints?)

PRODUCT/CREATIVITY Who will control the amount of product and the quality of the product? You always want as much creative freedom as possible; the record company often maintains a veto power when letting a band choose the producer, engineer, studio, etc.

RECORDING COSTS How much (recoupable) recording money will you get? Don’t overdo it! Remember, you will have to pay it back from your royalty rate as applied to actual sales.

ADVANCES How much (living) money will you get that is recoupable? What about other advances, such as videos, and touring? Remember, you will have to pay back that amount to the label.

ROYALTIES The money paid for your service as recording artists. Outside of U.S. is calculated differently. (Canada: 75–90 % / UK, Japan, Australia: 60–70 % / Rest of the world: 50 %–of U.S. rate).

VIDEO Who controls the music video and how the costs are apportioned. Try to have only 50% of the cost recoupable.

PUBLICITY The label will need your permission for name, likeness and voice in order to publicize your record. Also, ownership of your website URLs may also be a point of negotiation.

MERCHANDISING Same as with Independent labels UNION Your promise to join a union (AFTRA, AFM).

AUDITING Your right to audit the books. Make sure this clause is included in the contract.

ACCOUNTING The label’s responsibility is to report financially to you (reports to artists usually occur every six months; i.e., if an accounting period lasts from January till June, the label will report to the artists approximately in September).

ASSIGNMENT The record company’s right to sell the contract. Majors sometime shuffle acts around from one affiliated label to another within their family of labels.

CONTROLLED COMPOSITION How the label will pay mechanical royalties. Standard practice is that the label will only pay on 10 songs on your record, and at 75% of the current statutory mechanical license fee. (As of 2002, 8 cents per song, per unit sold.) This rate changes every two years.

TERMINATION This clause specifies the songs you may not be allowed to record for a set time after the ending of the contract.

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SIDEMAN'S CLAUSE You might want to consider including a sideman’s clause. A sideman’s clause allows an artist to do studio work. The artist still needs permission from the record company; they however, can’t say no unless they have a very good reason. Under normal circumstances -- without such a sideman’s clause -- you would be prohibited from performing for any other band/label under the terms of an exclusive contract. If you have a sideman’s clause in your contract, make sure all members of your band sign the document.

KEY MAN CLAUSE If a significant label executive resigns, or leaves the company, you may terminate the deal. The label may also put such a clause in concerning a band member.

I hope this information was useful for you. Knowing some basics about the realities of recording contracts before you get involved with them can save you a lot of grief down the road. Remember, record company lawyers have a reason for every clause in their contracts—so should you.

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Inside Record Labels: Organizing Things

by Christopher Knab - Fourfront Media & Music - August 2001

Back to Music Business 101

There is a lot of work involved with signing, recording, promoting, publicizing, and selling music. The following introduction to the way major labels and independent labels setup the business of music marketing is broken down by departments. As you will see, the larger record labels have the luxury of having many different departments and dozens of employees to carry out the many responsibilities involved in running a label. And, the smaller companies, that have the same work to do, have to be quite creative and energetic to get all that work done.

Major Label Departments What are the key departments at a record label, and what are those departments responsible for? Let's take a look.

For starters, the CEO of a major label will generally oversee the business affairs of all the affiliated labels under their corporate umbrella. Each major label will have its own President who is responsible for all the label activities. For example, at Warner Brothers, there is a president for Warner Brothers Records, a president for Reprise Records, a president of Atlantic Records, etc.

Every department at a major label is usually run by a Senior Vice President, in charge of one of the following:   

  





The Business Affairs Department takes care of label finances; bookkeeping, payroll, et al.

The Legal Department handles all contractual issues and other legal responsibilities.

The A&R (Artists and Repertoire) Department locates and signs new talent. They work with the artist in song selection, choice of producers, recording studio selection and they communicate with the label's Business Affairs Department to make sure all the paperwork and accounting issues involved with the actual recording of an act's record are setup properly. In short, The A&R Department can serve as a liaison between an artist and all the other departments at the label.

The Art Department supervises all product design jobs, (CD, Tape, Vinyl cover art etc), trade and consumer press advertising, retail sales posters and flats, and other needs of the print media.

The Marketing Department is responsible for creating the overall marketing plan for every record the label is releasing. They are also involved in coordinating all the promotion, publicity, and sales campaigns that the label is committed to.

The Publicity Department arranges for any feature stories, interviews, or record reviews in local and national newspapers, magazines, web-zines, as well as the broadcast opportunities for such coverage on radio stations and television. They may also co-ordinate any of these publicity opportunities with an artist's own Publicist.

The New Media Department produces and promotes the music videos for the label's artists that are shown on MTV, VHl, etc. This department also oversees some promotions and marketing opportunities on the Internet that use the audio and video technologies available from online hardware and software sites that support music..

The Artist Development Department usually oversees the career planning of artists signed to the label. This department coordinates a consistent marketing and promotion presence for an artist throughout their career with the record label. The Artist Development Department has changed over the last decade. Many labels no longer have such a department. Others have changed the name to Product Development and concentrate more on "breaking," or promoting artists quickly in order to try to speed up the return on their financial investment. The pressure to

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return a profit to shareholders has changed the face of the music business dramatically in recent years, so the emphasis has been more on Product Development, and securing a hit as fast as possible.

The Sales Department oversees all the retail activities of the label, and concentrates on building relationships with the key record store chains and other mass-market retailers. The Sales staff coordinate their efforts with the major label's distribution company, as well as communicating regularly with the Promotion and Publicity departments at the label.

The Label Liaison is the person who coordinates the business of the major label's distribution company with the needs of their parent record labels. Street dates, (the date that a new release goes on sale at music retailers), must be approved by the label's distribution company The Promotion Department's primary goal is secure radio airplay for their company's new releases. Their ability to get songs played on the radio is central to the success of the whole company. The Promotion department is closely connected to and constantly communicating with other departments within the label to make sure that all strategies being used to market and sell an artist's record are working together properly. Soliciting videos to MTV, VH1, BET and other music oriented television networks and programs may also be the responsibility of this department. At some labels this job is a separate department, or part of the New Media department.

Every department at a record label plays an essential role in the success or failure of the company. They are team members, working together toward the goal of selling their records, cassettes and CDs as one lean, mean machine.

Inside an Independent Record Label Independent record labels come in all sizes and shapes. The large, well-funded indie labels are organized by departments much like the major label operations described above. The more money a label has the more they people they can hire to handle the various responsibilities of a label. Smaller, grass roots or garage labels organize the work of promoting, selling and publicizing their releases by wearing as many different hats as they can. These smaller labels have an awesome task marketing their records because there may be only two or three employees, including the label owner, doing the A&R scouting, calling radio stations about airplay, working with a distributor (if they even have one), checking with the music retailers, and coordinating the publicity efforts, as well as dealing directly with their artists and bands helping them find gigs and put tours together.

Running a record label is a very expensive and time-consuming job. One of reasons so few independent labels succeed is related to the issues I have just outlined. It takes a lot of money, and a lot of time to operate a legitimate record label. The more research and planning a young label does before jumping into the world of music marketing, the higher the likelihood that they will survive, and perhaps even prosper in a very competitive business.

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Releasing Your Own Record: A Legal Checklist

by Bart Day - Entertainment Attorney, September 2002

Back to The Academy

Legal Ease For artists who are releasing their own record for the first time, without the involvement or assistance of a label, the process can be a little intimidating. It can be easy to miss some key legal details in the process.

Here, therefore, is a very basic checklist of issues to be considered when releasing a record. Bear in mind, though, that your own particular circumstances may dictate that you take certain steps that are different from, or in addition to, the various steps mentioned below. Also, it has been necessary to greatly oversimplify some of the issues discussed below due to space limitations.

1) Agreement Between Members of Group. If it is a group (as opposed to a solo artist) releasing the record, and if the group has not already formalized its relationship by way of a partnership agreement, incorporation, or limited liability company ("LLC"), there should at least be a clear and simple written agreement among the group members about how the finances of the recording project will be handled.

Also, it is always a good idea to deal with the issue of the ownership of the group's name as early in the group's career as possible.

2) Investors. If there are investors involved, documents will need to be prepared in order to comply with certain Federal and State securities laws. Be especially careful here.

3) Distribution and Promotion Strategy. Think ahead about how the record will be distributed, advertised, and promoted, and how much money will be needed to effectively market the record.

Sometimes all (or almost all) of the budget for a project is spent on recording and manufacturing costs, and there is little or no money left to effectively advertise or promote the record. This, of course, is not really a legal issue but is such a common (and often fatal) problem that I feel obliged to mention it here.

4) Mechanical Licenses. For any cover songs appearing on the record, you must obtain a mechanical license from the owner of the song (i.e., the song's publisher), authorizing the song to be recorded and providing for the payment of mechanical royalties. In many cases this license can be obtained from The Harry Fox Agency (212/ 370-5330). Allow six to eight weeks for this process.

For songs not licensable through Harry Fox, you must contact the publisher directly. Usually the easiest way to do so is to obtain the publisher's contact info from the "song indexing" departments at ASCAP and BMI. 5) Sampling Clearances. If you are including any samples on your record, you need to obtain sample clearances from the publisher of the musical composition being sampled AND, separately, the record label that owns the master being sampled. Do this as early as possible, as there will be some instances in which either the publisher or label will not be willing to issue a license, or the licensing fee which they require may not be affordable.

Also, some duplicators will require you to sign a form stating that either you have not used any samples, or that if you have done so, you have obtained all necessary clearances. If there is any obvious sampling done, the duplicator may require you to show them the clearance documentation.

6) "Work for Hire" Agreements. For any session people, engineers, etc. whom you are hiring, it is wise

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to have them sign a short and simple "work for hire" agreement, to preclude any possible future claims by them that they are owed royalties or that they have ownership rights in the masters. Do this BEFORE you go into the studio.

7) Producer Agreement. If you are using an outside producer, there needs to be a producer agreement signed, defining (among other things) how the various costs of the recording sessions will be handled, what advances (if any) will be paid to the producer, and what producer royalties will be paid to the producer. Just as in the case of the Work for Hire agreements mentioned above, do this BEFORE you go into the studio.

8) Production Credits. Make sure that the production credits listed in the liner notes--for session people, producers, and others--conform to any contractual requirements. For example, the producer agreement will often be very specific about how the producer's credits are to be listed. For musicians performing on the record who are signed to a label, they will normally need to be credited as appearing "Courtesy Of" their label.

9) Liability Releases/Permission Forms. You need to consider the possible necessity of getting a liability release or permission form signed in any of the following scenarios: (a) If a photograph and/or artistic image of an individual outside the group is included in the artwork; (b) If any of the artwork which you are going to use is owned by any third party; or (c) If any logos or trademarks owned by third parties appear in your artwork. There can be some tricky legal issues in this area, so be very careful here.

10) Copyright Notices for Songs. Be sure that the liner notes contain the correct copyright notices for all of the songs on the record, i.e., both for your original songs and any cover songs that you are using.

Information about copyright notices can be obtained here. Also, make sure that the song credits correctly state for each song the name of the song's publisher and the publisher's performing rights society (i.e., ASCAP, BMI, etc.).

A non-legal sidenote: At the same time you are working on the artwork and the copyright notices, etc., doublecheck to make sure that your artwork meets all technical specs of whoever will be printing the artwork. Also, if you will be distributing the record through a record distributor, make sure that your artwork conforms to the distributor's specs.

11) Copyrighting Your Original Material. Certain copyright applications need to be filed promptly for your recordings and for your own original songs. Use "Form SR" for copyrighting the masters of the songs, "Form PA" for each of your original songs on the record, and "Form VA" for the artwork (if you own the artwork and want to copyright it). You can download the copyright application forms from the Copyright Office's website.

In some instances, it is possible to file an SR form to cover both the musical composition and your particular recording of that musical composition. The instructions for Form SR discuss when and how you can do this.

12) Registering Your Original Songs with BMI/ASCAP. Assuming that the record contains one or more songs that you have written, and assuming that you are affiliated with ASCAP or BMI, or are in the course of becoming affiliated, you will need to file "title registration" forms for each of your original songs appearing on the record. This will enable your rights society (i.e., ASCAP or BMI) to monitor any airplay of your material.

13) Trademark Notices/Registrations. Be very sure that you have the legal right to use the group name and label name which you have chosen, and consider the advantages of filing trademark applications for those names. Also, make sure that your liner notes contain a proper trademark notice for the name of your group, and (if applicable) the name of your label. Information about trademark notices can be obtained at the U.S. Patent and Trademark Office web site.

14) Obtaining A Bar Code. For information about bar codes, visit the Uniform Code Council website, or

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call the Uniform Code Council at (937) 435-3870 (Dayton, Ohio). Also, many CD duplicators will, as part of their service and at no additional charge, provide you with a bar code for your record. Ask about this when getting quotes from duplicators. Also, for the reason mentioned in the next paragraph below, you may want to make sure that any bar code you obtain from a duplicator will identify your particular record, and not someone else's record.

15) Registering with SoundScan. If you anticipate significant sales and want to come to the attention of record labels, it's a good idea to register your record with SoundScan, a private company. SoundScan compiles record sales data based on the scanning of bar codes from sales at retail stores and then sells that information to its subscribers, which include all of the major record companies.You can obtain a SoundScan application form from DiscMakers.

If you plan on submitting a SoundScan application, be sure that you obtain a bar code specifically for your own record. If, instead, you "borrow" someone else's barcode (or the duplicator's general barcode), your sales will be credited to them and not to you.

CONCLUSION Hopefully, the above checklist will help to reduce, at least slightly, some of the stress and strain of putting out your own records. The key, of course, is to think ahead as much as possible. Some of the steps mentioned above, such as obtaining sampling clearances and mechanical licenses, can take some time and a lack of planning can unnecessarily increase your costs and/or delay the release date.

Also, make sure that you have all of your "ducks in a row" before you schedule any record release event.

It's not an enjoyable experience to be locked into a record release date, only to find out at the last minute that you aren't going to be receiving your CDs from the duplicator by the time of the event or that there are legal or technical problems with either the CD or the CD artwork.

By thinking ahead, the odds are much better that your record release will proceed smoothly and that, after the record release, you will be able to spend your time and budget effectively promoting the record, rather than having to spend time doing repair damage.

Good luck!

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How to Write and Send a Press Release In the music business, the press release (or news release) is a common tool used to bring an artist or business "free" publicity. Basically, a press release is a simple, neat-looking sheet that provides news to reporters, editors, and other media people. Any publication you get from your press release will be free, so it's easy to see why writing a good press release is a valuable skill.

When To Use A Press Release You can use a release to notify the media about any sort of happening - such as a new CD release, special gig, or label signing. The key thing to remember is, this is supposed to be "news", so your press release needs to be "newsworthy".

So what is newsworthy? Well, that requires a little research into your media contacts. What types of stories or articles are usually published? Will the readers of the publication care about your music? You need to target your releases to proper sources - that is, someone who actually cares about your news. If you continually send announcements of gigs to a paper that does not print calendar listings, it will be a total waste of time... your time, and the editor's, which is unlikely to make you popular around the paper's offices.

Make sure you do your homework and find out what kind of topics get coverage in each media outlet.

Naturally you will send a press release announcing your new CD to the local music paper. But you will also want to explore different "angles" with other outlets. For instance, if your band has a popular website, perhaps internet magazines would be interested. If you offer a percentage of sales on your CD to the Save the Rain Forest organization, perhaps environmental publications would find your news worthy of printing.

Remember that a writer or editor has a duty to the readers - not you - to report interesting news. They do not owe you a story, so you must make it interesting. If you can send news that will appeal to the readers, you are far more likely to get printed.

The free publicity you generate with your press release will be many times more valuable than any advertisements you could buy. Studies have shown that people respond to articles at a much higher rate than ads, because they are perceived to be more credible. After all, anyone can buy an ad, but if there is an article written about you, you must be "important".

How To Write The Release Most press releases follow a similar format, and it's easy to learn. First, spend some time defining the Main Message you want to get across. You will need to tell the who, what, when, why, and where in your press release.

Start with an 8 1/2 x 11 sheet of your letterhead. Many people suggest double-spacing your type, as well as leaving a minimum 1 inch white border on all sides. Use an easy to read font. You can use any simple word processing program to build your release, and print it on any decent computer printer. Lower-priced laser printers have sharper type than ink jet printers, but lack color printing capability.

The first lines you want to include are: "FOR IMMEDIATE RELEASE" (or FOR RELEASE JUNE 30, 2001) and "For more information, contact:" followed by your contact information. (Make sure the phone number you give will be answered promptly

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during the period right after the release is sent out. Editor's who are interested in running your story may need to talk to you.)

Then, write your headline, which looks good in all capital letters. The headline is the single most important sentence of your press release - if the headline sounds interesting, it compels people to read further. If not - your release may be passed over quickly. Spend some time and creative thought on the headline.

Read other headlines and notice what makes you read an article. This is the same kind of thing you need to accomplish. Don't be afraid to be dramatic, as bold headlines can draw the reader in. Don't make it too boring. "HELPING STOP DEAFNESS: ONE SONG AT A TIME" is a lot more enticing that "LOCAL BAND PLAYS AT DEAF SCHOOL" if you're doing a show at the Deaf School.

After you have crafted the perfect headline, you need to write the body of your release. Here's where you give all the details of your story. Write it in third person (using "He" or "She" instead of "I") and make it read like a news story. Press releases should be, at maximum, two pages long, and one page is better.

Special mention should be given here to the first paragraph. Just like the headline, the first paragraph needs to grab the reader's interest. In fact, many busy editors will only read past the beginning if you have "hooked" them in the first few lines. Make sure you include ALL pertinent details in this paragraph, since often papers will run releases verbatim. Use full city and state descriptions (Seattle, Washington, not just Seattle), and include the month, day, and year in dates (May 4, 2001, not May 4th).

Describe your news without adding flowery adjectives (it's supposed to be NEWS). You can use quotations to add more interest. ("We always wanted to help deaf kids, and this benefit is how we're doing it", said Johnny about the band's gig at the Deal School.)

At the end of the release, summarize your story and add any "About Us" information that is necessary.

Follow it up with a contact for further information.

End your press release with the symbol "###" (without the quotation marks) after your last lines of text.

This lets the editor know they have successfully received the entire release.

----FOR IMMEDIATE RELEASE For more information, contact: Your Name Your Street Address City, State, Zip Code Phone Fax Email HEADLINE

MONTH DAY#, YEAR (CITY, STATE) -- Important information answering the who, what, where, when, and why. Make sure the first paragraph summarizes your news clearly.

Add additional details here.

About The Band: blah, blah, blah For further information, contact Your Name at (xxx) xxx-xxxx.

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### -----

Sending Your Release Almost any newspaper, magazine, radio station or other media can be an outlet for your music news release. You need to build a media list that you regularly send your releases to, and add to it as often as possible. Make it a habit to pick up copies of all publications you see when traveling, and record the information in a contact management program like ACT! or FileMaker Pro. To build an effective media list that will work for your time after time, you need to build relationships with the journalists. Research the media outlets, and make sure you only send in news that is relevant to the editor's interest.

It's also wise to contact each journalist personally, and find out how they like to receive press releases.

There are no hard and fast rules when it comes to sending releases by mail, fax, or email, so you need to ask. (To be safe, use snail mail if you haven't inquired.) Be aware that most journalists do not like to be contacted via telephone and asked if they received your release. If the release is newsworthy to their readers, they will print it. Writers and Editors are generally very busy people, and will appreciate it if you respect their time.

Address the envelope neatly and clearly, making sure to spell the contact's name correctly.( If you are unsure of the name, try "News Director", "Music Editor", or "Features Editor".) Include a photo and caption if you have one.

Wrapping Up You can get some great free publicity by learning to write effective press releases. The coverage costs you nothing more than time and the paper to write the release on, and can bring invaluable promotion to your music or business.

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25 Things to Remember About Record Distribution 25 Things to Remember about Record Distribution: 1) Distributors will usually only work with labels that have been in business for at least 3 years or have at least 3 previous releases that have sold several thousand copies each.

2) Distributors get records into retail stores, and record labels get customers into retail stores through promotion and marketing tactics.

3) Make sure there is a market for your style of music. Prove it to distributors by showing them how many records you have sold through live sales, internet sales, and any other alternative methods.

4) Be prepared to sign a written contract with your distributor because there are no ‘handshake deals’ anymore.

5) Distributors want ‘exclusive’ agreements with the labels they choose to work with. They usually want to represent you exclusively.

6) You will sell your product to a distributor for close to 50% of the retail list price.

7) When searching for a distributor find out what labels they represent, and talk to some of those labels to find out how well the distributor did getting records into retailers.

8) Investigate the distributor’s financial status. Many label have closed down in recent years, and you cannot afford to get attached to a distributor that may not be able to pay its invoices.

9) Find out if the distributor has a sales staff , and how large it is. Then get to know the sales reps.

10) What commitment will the distributor make to help get your records into stores?

11) Is the distributor truly a national distributor, or only a regional distributor with ambitions to be an national distributor. Many large chain stores will only work with national distributors.

12) Expect the distributor to request that you remove any product you have on consignment in stores so that they can be the one to service retailers.

13) Make sure that your distributor has the ability to help you setup various retail promotions such as: coop advertising (where you must be prepared to pay the costs of media ads for select retailers), in-store artist appearances, in-store listening station programs, and furnishing POP’s (point of purchase posters and other graphics).

14) Be aware that as a new label you will have to offer a distributor 100% on returns of your product.

15) You must bear all the costs of any distribution and retail promotions.

16) Be able to furnish the distributor with hundreds of ‘Distributor One Sheets’ (Attractively designed summary sheets describing your promotion and marketing commitments. Include barcodes, list price, picture of the album cover, and catalog numbers of your product too).

17) Distributors may ask for hundreds of free promotional copies of your release to give to the buyers at the retail stores.

18) Make sure all promotional copies have a hole punched in the barcode, and that they are not shrink-

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wrapped. This will prevent any unnecessary returns of your product.

19) Don’t expect a distributor to pay your invoices in full or on time. You will always be owed something by the distributor because of the delay between orders sent, invoices received, time payment schedules (50-120 days per invoice) and whether or not your product has sold through, or returns are pending.

20) Create a relationship that is a true partnership between your label and the distributor.

21) Keep the distributor updated on any and all promotion and marketing plans and results, as they develop.

22) Be well financed. Trying to work with distributors without a realistic budget to participate in promotional opportunities would be a big mistake.

23) Your distributor will only be as good as your marketing plans to sell the record. Don’t expect them to do your work for you, remember all they do is get records into the stores.

24) Read the trades, especially Billboard for weekly news on the health of the industry, and/or the status of your distributor.

25) Work your product relentlessly on as many fronts as possible…commercial and non commercial airplay, internet airplay and sales campaigns, on and offline publicity ideas, and touring…eternally touring!

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10 Essential Tips for Making a Living with Your Music

by Christopher Knab - Fourfront Media & Music - Posted Jan. 2004

Back to The Academy

Top 10 Lists are a favorite hobby of our society. It’s a fun way to keep up the illusion of the simplicity of things in a complex world. So...why not a Top Ten List on the subject of Making A Living From Your Music? The following list highlights 10 habits you should develop if you want to make a living some day, just from your music. Remember that there are a million ways to get to any intended destination. From my observations over the years, this list of professional habits are shared my most successful musicians who truly have what it takes to succeed in this totally unpredictable business of music.

1. Find ways to get ordinary people who love music, to love your music.

We live in a time when everybody and their sister can and does make their own music. That doesn’t mean however that your music has what it takes for record labels to invest their money and time developing, promoting, and marketing that music. Try your music out on music fans like you solicit opinions from A&R Rep. These talent scouts of the music business are always following tips they hear from their street connections. But remember, your music must truly stand out in some significant, original, dynamic, and creative way. 95% of the independently produced CDs out there contain regurgitated ideas that were ripped off from some other more gifted musicians. Prove to the industry that ordinary music fans in your city love your music. You can find this out by giving away sample CDs of your music on the street, (with contact information included of course.) or putting songs on the many internet websites that allow people to download new music. If people love something they let other people know about it. So, you can find out quickly if your music has what it takes to please the public by bringing your music to the people.

2. Play live often and don’t worry ( at first) about getting paid for every gig.

You can always tell the difference between a musician who is in it for the money, and a musician who is in it for the music. The dedicated musician can’t not play music every chance they get. Money-focused musicians whine about the fact that they can’t get club gigs that pay anything. If you really think that you can make your living solely as a musician in the first three to four years of your career, you are headed for a breakdown and disappointment. Think about it...almost every legendary, gifted musician who has made a mark on our culture has been a musician who struggled long and hard at their craft, and...never gave up. Eat determination for breakfast! Go out there and play on the streets if you have to, play at schools, fairs, festivals, do benefits to help other people and organizations. Offer your services to non- profits, charities, church groups, and any other companies or organizations you can think of. Hang out at clubs, look for jamming possibilities, or start your own jam sessions. Look around your city or town, and you will see many places and venues where musicians can play. As you establish yourself and more and more people show up at your shows, the paid gigs will increase. Remember... play live, and then after you play live, play live again, that’s what musicians are supposed to do.

3. Know your instrument inside-out.

One of the curious developments of the late 1970’s was the huge increase in garage bands, punk bands, rappers, and ‘do-it yourselfers’, who just picked up an instrument, or started to sing with some friends, and 6 months later recorded a record and began to play live. Some great music, and new directions in music, came out of that situation. But now, 30 odd years later, the novelty of hearing amateurish thrashings has gotten a bit dull.

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Prior to late 70’s, more often than not, the music that is our heritage was made by musicians who, from the time they took up their instrument, worshipped at the feet of some master bluesman, jazz player, folk legend, songwriter, or whatever. The habit of these inspired musicians was an appetite for perfection. A need to be not just ‘good enough’, but GREAT. Why settle for less. Whatever developing stage you are at, go beyond it, re-commit yourself to your instrument or voice. Take lessons, or better yet, sit yourself down at your CD player and choose a favorite guitar player’s record, and listen closely to what they are playing. then re-play it, and re-play it again. Challenge yourself to go beyond your limitations. Who knows, maybe you will fall into some new territory, wherein you will find yourself, your ‘sound’, and increase your chance to stand out from all the mediocrity that is your competition. Believe it or not, record labels love to hear innovative, accessible new sounds. Actually in their heart of hearts, that is what they are really hoping to hear on every new demo tape, and from every new act they go see at a live venue. You see...in the business of music, when we hear something new, original, and accessible to people, we can then invest in you with more security, believing that if we put our ‘label brand’ on you, with our talents of promotion and marketing coming to the front, then we ‘have something’, and your music becomes our music, and we work together to broaden you audience appeal. It’s kinda like a partnership ...something about ‘Art and Commerce’...they can work together you know?!

4. Protect your investment...register your songs for proper copyright protection.

I never cease to be amazed how few artists are willing to spend $30 to register their songs with the Copyright office. By the way, these folks are often the same folks who complain about not getting paid to perform their unknown music. All I know is that when an inventor comes up with some new product that they think will appeal to a certain type of customer, the first thing they do is file for a patent on their invention. The same reaction to protecting songs should be there for any serious songwriter. If you really intend to work hard and develop your career as a musician who writes your own songs, don’t wait too long to take care of this simple, but essential task. If you really believe in your unique and original music then take the time to learn the basics of copyright protection. From the Internet to the library, there a number of easy ways to learn what it takes to file for copyright protection. Do it now! Go to www.BMI.com or www.ASCAP.com and follow their links on Copyright registration information.

5. Design and write your promotional materials so they stand out.

The topic of designing and writing effective promotional materials; bios, fact sheets, cover letters, quote sheets etc. is a lengthy one to say the least. As far as some tips that can help musicians promote their careers, and contribute to their getting any deal offers, is to make the promo materials as compelling, and informative as possible. Take the time to inventory any accomplishments, positive reviews, training and awards, past sales, and live appearance highlights; and organize them into professional written bios etc.

Having done that, time also needs to be taken to research who to send the materials to, and to ask each potential recipient what type of information they would like to have sent to them. No ‘generic’ kits should ever be sent out to any gatekeepers in the music business.

6. Know the labels and music publishers you hope to be signed to.

If you were applying for a job with a certain company of corporation, wouldn’t you take some time to ask questions about their stability as a business, their reputation in the industry, and the executives background and experience? The same is true when shopping for a record deal. Some musicians get so excited when a certain label approaches them with a recording contract, or a publishing company offers to sign them. Being approached for a deal is a compliment and recognition by a label or publisher that a musician’s music is attractive to them. But, to rush ahead without taking the time to learn a few things about them is foolish indeed. How have they done with your particular genre of music? What specific ‘points’ are they offering you? Who runs the label or publishing company? What is their reputation in the music business? How do you like them as people? These and other questions can be crucial in making an unemotional decision about an arrangement that could make or break your career.

7. Have your own ‘Entertainment Law Attorney’ to represent you.

The business of getting signed to any deal in the music business has always had, has now, and will always have, the involvement of entertainment law attorneys. No jokes will be inserted here, because any

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relationship between a musician, a record label, a publisher, a merchandiser etc. will come down to two attorneys hashing out the contract for the musician and the respective companies. It should be pointed out here that when all is said in done with the ‘courting’ process, the musician is never present during the actual negotiations. The musicians attorney and the music company’s attorney meet, talk over the phone, and fax their offers and counter-offers amongst themselves. This fact serves to remind you that choosing a reputable, ethical, well respected attorney with lots of deal making experience within the music industry is an absolute necessity for any serious musician who wishes to fight the good fight in the legal arena.

8. Choose a well-connected and respected personal manager.

Self-management is always a valid option in the developing stages of establishing your career as a musician. Much can be learned by taking on the jobs of securing gigs, getting some publicity, planning tours, dealing with personal issues that arise within the band, and schmoozing with A&R Reps and various other label and publishing personnel. However, there comes a time, usually when the daily tasks of doing the business of being a band takes up too much time, and it is at this time that the services of a good manager can be very useful. I have always felt that if any musician or band has worked hard to establish their career, and achieved a modicum of success, they will have a better chance to ‘attract’ the services of a professional, well-connected and respected manager.

Managers who do this job for a living can only take on clients that generate income. Making money as a personal manager is no easy task, and many upcoming artists forget that if any moneys are to be generated from their music, it can takes years for the flow of that income to be reliably there. So, as a band develops self-management, or gets help from intern/student manager-wannabees, can help pave the road for professional management.

Over the years I have heard several horror stories about ‘managers’ that approach upcoming acts and say that for X amount of dollars, they can do such and such for the artist. No... this is not the way legit personal managers work. Well-connected and respected personal managers get paid a negotiated fee for their services (get it in writing) for any and all business transactions they are responsible for (15%-25%) over a particular contract period. No musicians should ever pay a fee to a so-called ‘manager’ who will not do any work UNLESS they are paid up front. Flim-Flam men and women still abound in this business... be forewarned.

One of the most important jobs of a manager is to secure recording and publishing contracts for their clients, this is why it is so essential to choose well connected and well respected managers. The music business is a ‘relationship’ business. Who know who, and who can get to know who, and who did what successfully for who is what this management game is all about. Choose carefully those people who will be representing you in any business dealings.

9. Don’t take advice from anyone unless you know that they know what they are talking about.

At the beginning of this article I stated that there are a million ways to do something, and that these 10 tips were just my comments from years of dealing with the business itself and musicians. Everybody has their own list of Do’s and Don’ts and the only real value they have is that they present you with ‘opinions’ about what to do to get established as a musician.

To be quite candid, the best rules in the music business comes from the experience of building your own career; learning from your own interactions with the gatekeepers at labels, the media, management, and booking companies as to what is right or wrong for you. For every Do or Don’t there is an exception to a so-called ‘rule’. As I reflect on the advice I sought out and listened to over the years, the most valid tips came from people who walked the walk, and talked the talk. If you feel that the source you have contacted knows what they are talking about, and has had first hand experience doing what you want to learn about, that is the only feedback that might stand up over time. Choose carefully.

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10. Musician...Educate Thyself! If you want a record deal, learn what a record deal is, and learn something about the business of music.

Naïve or mis-informed musicians are a menace to themselves. Enough already! Over the decades there have been countless stories of musicians who were ripped off by their record labels and music publishing companies. Why? Exploitation was the name of the game for a long time. Keeping musicians in the dark was standard business practice. However, the past has passed, and today any musicians who sign a record contract (and learns later what he or she signed) have only themselves to blame. Even 20 years ago, it wasn’t that easy to gain access to the inner workings of the music business. (There are more letters in the word business than in the word music.)

Not so today. There are dozens of outstanding books available on every conceivable topic related to the business of music. They can be found in bookstores, libraries, and through the Internet. In addition, there are many schools that now offer 2- 4 year programs on the business of music. Seminars, and workshops are available on a year round basis in most major American cities. Consultants, Attorneys, and Business Organizations are all around and so it is only myth, superstition, stubbornness, and immaturity that stand in the way of any musician making a commitment to educating themselves about the business that exists to exploit their music.

I cannot stress how important I feel this issue is. I am here to tell musicians, one and all, that you have been told many things about music that you did believe. “Spend money on quality instruments and equipment”... you have done that. “Spend time and money on practicing and rehearsing”, you have done that, for the most part (see comments above).

“Spend time and money finding the best recording studio, producer and engineer you can”...you have done that. “Spend time and money learning all you can about the business of music”...well, no one told you to do that did they?!

It has been said about education that we don’t know anything until someone tells us. If that is true, the fault in ‘not telling’ musicians that they MUST spend some time and money on educating themselves on music business issues is the fault of the businessmen and women who kept their clients uninformed.

(Ignorance IS bliss as far as the old guard of music executives are concerned). But, KNOWLEDGE IS BLISS should be the byword for the musician of the new millennium. Please...spend some time and money educating yourselves about the music business, a few hours now, can protect your future forever!

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Do's and Don'ts For Audio and Other Music Oriented Interns: Or, How to Impress Your Internship Employer and Become Successful in the Recording Industry.

by Christopher Knab - Fourfront Media & Music - August 2002

Back to Music Business 101

Today, anyone who wants a career producing, engineering, or working in one of the many music-oriented jobs in the recording industry has many choices when it comes to educating themselves about the business. In addition to the many schools, programs, books, websites, and other informational tools at their disposal, the chance to do a good old-fashioned internship still exists.

In fact, more than ever many companies will not consider hiring someone unless they have had some 'real world' experience in a studio, post-production facility, record label, distributor, store, live performance venue, or other businesses related to recorded audio products.

For example, you may think you are qualified to work in a recording studio just because you have some training in Pro Tools, or have helped setup a school-related recording project. You may also have taken courses where you aced all the written projects, and marketing classes, and think you have what it takes to work for a recording facility or record label. Well, that is all great experience, but it isn't enough!

Nothing is more impressive than having done some work as an intern. Businesses that offer internships may demand a lot of you. They may (and will) test your patience by having you do what you think are mundane, boring, or menial tasks‌Stick it out. Most likely you are being given a form of initiation. Most people in the recording industry started out doing menial tasks and when given the chance to express their skills‌did so, and were rewarded with jobs, job-leads, promotions or recognition of some kind.

I can only do so much to encourage you to get yourself an internship. You have to bug your music industry contacts: teachers, producers and engineers you have met or just heard about. Also, go out and pound the pavement. Talk to guys who are working your favorite club or live venue. Bug the retail clerk at your favorite record store. Hang out in the music scene of your choice. Be pro-active. Ask everyone if they know of any internship openings in their field.

Do research on the types of audio-related businesses in your city. Use the Internet. Go to the library and look up the many directories, and read the weekly and monthly recording industry trade magazines and journals. Get on the phone, and do some informational interviews with the recording industry business you would most like to work for. Even knock on people's doors. Do whatever you have to do to get an internship. Internship opportunities do not come knocking on your door. You have to motivate yourself to get involved with this industry.

This technique has a tradition attached to it. It is called "The School of Hard Knocks". It means that everyone worth anything in this business had to push themselves forward and find a way to get noticed.

Producers have to do this. Engineers have to do this. Certainly recording studio, and record label have to do this. And, artists need to do this. So, while being laid back and mellow is a great way to relax, it will get you nowhere in the whirlwind world of the recording industry. "Get Up, Stand Up!" Do something!

This industry is nothing but competition. Not just for jobs, but competition that finds one company fending of another company for clients and deals. So, businesses are looking for the most highly motivated employees they can find. Are you up for the challenge?

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Once you say "Yes, I'm ready to show the world how good I am" and you have found your first internship, learn how to work that opportunity. You will have to take the good with the bad. Interns may start out as the low men and women on the ladder, but those that impress with their positive attitudes and dedication to their work, whatever it may be…will reap rewards. So, read the following suggestions on how to work with your internship employer for the mutual benefit of your career and their increased business.

DO....                      

Be on time, and better yet, be the first one in, and the last to leave.

Be hungry to learn.

Be friendly. Introduce yourself to co-workers, even if you have not been introduced to everyone during orientation…and network often.

Complete the tasks given to you before taking on other work.

Make yourself invaluable to the company. (Look for things to do.)

Make friends with co-workers, and offer to do some of their grunt work.

Volunteer to take on the responsibilities of a worker who is ill, or going on vacation.

Be willing to do the most menial of tasks. Even the most boring and repetitive work should be eagerly undertaken.

Cover phones while co-workers are on break or at lunch.

Ask permission to use any equipment, software or computer programs.

Offer to help prepare for any studio-setup or tear-down, or to prepare any business reports.

Organize the information you need to know to carry out your work.

Create your own databases of any staff members, and their job titles.

Know that as an intern you are not being trained to take a manager's or executive's job, so do everything you can to learn the jobs that lead to those positions..

Feel free to take the initiative when you the time is right.

Make things easier for your employer or supervisor, they will remember you for that.

Offer your help when you notice help is needed.

Keep in touch once you are gone. Stop by and say hello!

Get a letter of recommendation, and send the company a thank you note for hiring you and giving you the opportunity to work for them Phone your boss or supervisor first, if you aren't going to show up.

Say thank you when any promo CDs or concert tickets, or free studio time are offered Attend as many concerts and events that are not your favorite music. (You will learn a lot by doing this.)

DON'T....           

Ask for free things like CDs, tickets or studio time right away Look like you are lost. Avoid standing around.

Avoid long conversations during work hours with co-workers, or celebrity guests who may be conducting business in your workplace.

Offer your opinion on how you would run things if you were in charge Cop an attitude of any non-professional kind, even if you're being paid.

Make any personal phone calls in front of co-workers during your shift Cruise the internet on your company's time Get caught reading magazines or sloughing off on the job in any way.

Ask at any time "NOW, what should I do?"

Be offended if someone snaps at you. (Everyone has bad hair days) Talk dirt about any recording artists, producers, or other companies while in the presence of coworkers, or at any networking functions. (It's a small world and you never know who your coworkers, boss, or supervisor knows, has dated, has worked with etc.)

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Starting Your Own Music Business

by Jeffrey P. Fisher - Fisher Creative Group - February 2001 (c) 2001, Jeffrey Fisher. All Rights Reserved. Used By Permission.

Back to The Academy

You have a better chance of starting your own music business than trying to land a job in the industry.

Whether you decide to start a label, put together a band, begin a recording studio, or any number of music industry gigs, follow these basic steps before you take the plunge. * Make plans for the short- and long-term. These plans should be specific with clear goals and ways to evaluate them. One crucial aspect of planning is to determine the resources that you need such as people, things, a place from which to work, money, and more. * What music products and services will you sell? You should have a pretty good idea of how you will make money from your musical endeavors. What benefits do those music products and services bring to people who buy them? * Who is your competition and what are their strengths and weaknesses? Finding out useful information about your competitors can be one of the most difficult tasks. It is important that you know a little about what others are doing as it helps you in competitive bid situations. What makes you different from that competition? Direct on the heels of the above question, you need to know (and promote) what makes you unique from others who do similar work. * To whom will you sell your music products and services? What specific people or businesses are candidates for what you offer? What are their specific characteristics? This information helps you focus your promotions effectively. Also, ask yourself how you will promote yourself? What particular promotional strategies will you employ -- letters, advertising, publicity, sales calls, Internet, and so forth? The ONLY way to ensure your success in today's music world is to master ruthless self-promotion. First, to find new customers and convince them to buy what you sell and second, to keep your existing buyers and, more importantly, get them to buy again (and again). Focus your promotions on reaching the greatest number of people who want what you sell. Determine the best way to contact them, including by what means and when. Launch your promotions. Make sales. Use your initial success to get more business. Follow this basic plan throughout your music business career. Because the minute you stop promoting is the minute your sales plunge and it all goes away. * Set up the business. Decide on the legal structure of your business. Determine your start-up costs if they apply to you. These costs would be the initial money you would need to open the doors such as gear, furniture, professional services, business forms, deposits, licenses, and so forth. You don't need a huge infusion of cash to get started unless you are starting entirely from scratch. Chances are you already have some things in place and you just need some start-up money to take care of some legal and promotional matters. Also, find out what it is going to cost to stay in business. Often called overhead these costs might include rent, utilities, promotional expenses, professional dues, taxes, supplies, insurance, loan payments, etc. * Take care of the money issue. Start a business checking account. Deposit all your music income into that account. Pay all your business related expenses using checks drawn on that same account.

Alternately, use a credit card just for the business. Use the card for business purchases only and pay it off on time from the business checking account. Setup a basic bookkeeping system that lets you record your income and expenses in such a way that makes tax preparation and monitoring your financial situation easier. Also, make sure you fully understand all the tax consequences and how they affect you. You have to make regular tax payments along with the usual year-end tax preparation. Meet with your tax adviser

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or accountant to make sure you handle this issue satisfactorily. * Protect yourself. There are several types of insurance that you must have such as health insurance and property insurance. You may elect to have life insurance, disability insurance, and liability insurance. Talk with your insurance agent to determine what coverage is right for your particular situation. * Attend to legal business matters. If you plan to operate your business using a name other than your legal name, you will need to file a fictitious name statement or doing-business-as (dba) with your local government. Contact your local municipality for the specific requirements. You may also need to secure a tax ID for your business. In most cases, your social security number is all you need. A corporations would need its own tax ID. Also, states with a sales tax may require a separate sales tax ID number. Contact your state's department of commerce and industry. Find out and be sure to meet the specific regulations that pertain to operating in your town. You may need to obtain a business license from your local municipality. Also, there may be other regulations that affect your business. Go to your local clerk's office and ask them what you need to do to start a business from your home. And if you have employees, make sure you know and follow all the regulations that pertain to them.

Because this list is far from complete, use it only for the basics when planning your start-up. Consult with business professionals and/or do some additional research to make sure your music business

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10 Reasons Why Most Demo Recordings are Rejected "Getting a deal" has long been the goal of many would-be artists and bands. For mostly naive reasons, most new talent feel that by securing a recording contract with a significant major or independent label, success will be guaranteed. (talk about naivete). To get this 'belief system' up and running, many musicians figure all they have to do is send off their music to a label, and a recording contract will come their way shortly.

The following list of '10 Reasons Why Demo Are Rejected' was gathered together after years of listening to comments made by Record Label A&R reps at music industry conferences and workshops; as well as from personal interviews with reps, and from many interviews A&R reps have given to the press.

In addition, I can verify that these observations as true, from having personally listened to thousands of demos over the years.

The purpose of providing you with this information is to at least improve the odds that your music will get listened to when you submit your demos. This list will look at the most common mistakes musicians make when either shopping for a record deal, or trying to get the attention of A&R Reps with their demo recordings.

10 Reasons Demos are Rejected: 1. No Contact Information on CDR and/or CDR container (put your name, address, email, and phone number on both) 2. Lack of Originality (just because you can record, doesn't mean your music is worth recording) 3. The Music Is Good, But The Artist Doesn't Play Live ( this applies to all genres of music except electroninca and experimental music) 4. Poorly Recorded Material ( So you bought ProTools....so what!)

5. Best songs are not identified or highlighted on the CDR ( give the folks a break, for demos-send only 3 or 4 songs and highlight the best ones) 6. Sending Videos In Place Of CDRs ( keep it simple, in the demo mode, all anyone wants is to check out your songwriting and musicianship) 7. Sending Unsolicited Recordings (you sent them, but they never asked for them) 8. Sending The Wrong Music To The Wrong Label (you didn't do your research to find out what labels put out what kind of music) 9. Musicians Can't Play Their Instruments Competently (this is so basic, but you would be astounded at how incompetant most start-up musicians are) 10. The Music Sucks ( this criticism is as old as music itself. you may think your music is the greatest thing since frappacinos, but most demo recordings the industry receives are as bad as the first round contestants on American Idol)

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Artist/Band Interview Form

by Christopher Knab - February 2004

Back to The Academy

The following questions are useful for any artist or band if they are serious about conducting their music careers as a business. Thoughtful, honest, and detailed answers to these questions will help prepare the artist or band in writing bios, fact sheets, and any press releases that are necessary for marketing and promoting their music, and will assist them in evaluating their current career status.

Answering these questions NOW will prepare you for the questions when they come up in interview situations LATER.                                   

Name of Artist/Band? (Include all band members names and instruments played.)

Is your stage name trademarked?

Have you filed your songs for copyright protection?

Have any of your songs been published? (If so, by whom?)

Have you affiliated with a performance rights organization? (which one? ASCAP, BMI, SESAC?) What is your background? (Who are you and your bandmembers? Tell your story.)

Do any band members belong to the Musician’s Union?

Do you have a written ‘band agreement’?

Why do you want to record and release your own music? (Be very honest.)

Who is your fan/customer? (Analyze this question thoroughly.)

What are your songs about? (What specific themes do they cover?)

Do you write your own songs? (Discuss the songwriting process in detail.)

Who are your musical influences? (Site specific examples.)

How do you describe your music to people? (This is not a short answer. Discuss it.)

What image do you think your music conveys? ( Do not avoid the image issue!)

What are your immediate music career goals? (Next 1 to 3 years.)

What are your long-term career goals?

How would you define the word “success”? (This is not a short answer. Discuss it.)

Do you have any personal contacts in the music business?

Do you have an entertainment law attorney to consult with?

Are you looking for an independent label deal or a major label deal? (Why?) Do you have a demo or press kit, or any promotional materials?

What live performance experience have you had? (Any industry showcases?)

How do you rate your live performance ability? ( Be very critical. No clichés,) Have you recorded any previous CDs/Tapes? (Which studios? Who produced it?)

How did you sell your CD’s/Tapes? (Consignment? Live sales? Distributor?)

Have you had any previous print or broadcast media exposure or reviews?

Are you financially able to fund the costs of establishing your career? (In debt?)

Do you have a business license? (City, state, federal?)

What is your current “business form”? (Sole proprietor? Corporation? Partners?)

Have you set up a system for tracking your financial activities? (Software system?)

Are you aware of the tax deductions available for musicians?

Do you have insurance on your band equipment and vehicles?

Who handles your daily business activities? (Bookings, promotions etc.)

Have you created an actual career, marketing, or business plan? (Is it in writing?)

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Money for Your Music The Cold Hard Facts About Music Licensing

by The G-Man - NARIP.com and Immedia Wire Service, Posted Nov. 2003

Back to The Academy

Where music meets licensing, there's money to be made. How much money? "I have synched quite a few thousand songs into productions over the years," states Peter Jansson of Janssongs, Inc., "and have charged anywhere between US$1.00 and US$250,000 for each one."

That's correct: he said a quarter of a million dollars. And there are a great many places to earn money from music. For example, there are more TV shows on more cable channels than ever before. There are oodles of commercials. There are tons of electronic games and toys. There are corporate video productions galore. There are big movies, little movies, and direct-to-DVD movies. And they all are potential places to put your music, if the rights can be cleared.

Goldmine or Minefield The world of music clearance can be a goldmine or a minefield. We heard about the quarter-million-buck goldmine. "Having said that," Jansson adds, "I think an average fee is usually between US$4,000 $6,000 per side (i.e. Master & Synch). It depends on how badly they want to use the song and how big a hit it was." Those two words, "Master" and "Synch" indicate part of the problem for the average singer/songwriter who hopes to have a song appear on a soundtrack. Before you can start earning money, there's a lot to know.

The facts are so important that NARIP, the National Association of Record Industry Professionals, had Stacey Powells lead an all-day workshop on the topic.

A Little Tech Talk Music can be used in four broad categories under copyright law: Adaptation, Recording, Reproduction, and Public Performance. Depending on where and how someone is going to use a song, there are mechanical rights and synchronization rights that have to be negotiated, and the various parties involved may include the songwriter, publisher, and record company, usually holder of the master rights.

Well, that last part doesn't sound so complicated. Oh really? Consider that there may be multiple songwriters, each with their own publisher for their share of the song. Song copyrights are held by music publishers (which may be the artist, but more often is a third party), while sound recordings (the masters) are controlled by record companies (which also may be the artist, come to think of it).

The Facts of the Matter So what, exactly, is "Music Clearance"? Simple: getting permission from rights holders to use music in your production. But what rights? The song's copyright is held by the writers (or the estate of the artists, or whoever was sold the rights). The master recording is held by whoever controls the recorded version of the song. Ah, but which version of the song? The one the singer/songwriter recorded? The one recorded with Russian lyrics? The jazz instrumental? The one recorded by the metal-reggae band?

Consider this: you can get permission from the publisher without permission from the record company -- if you record a new version of the song. But without the publisher's permission, the master recording license does you no good at all.

The field is very competitive. Don Grierson, former head of A&R at Epic/Sony, Capitol Records, and EMI-

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America, and often a music supervisor, consultant, and executive producer, notes that "nearly everyone in the music industry seems to be aiming at the film/TV and commercial licensing markets. There is intense competition. It can come down to relationships on some occasions, but often it is determined by the ease with which you can obtain the clearance."

Negotiating the Fees Janssongs' Peter Jansson quickly lists some of the variables: "When it comes to Synch Licensing, there are a number of factors that determine what the fee is going to be, such as: Territory (USA? World?

Provincial?), Media (Theatrical only? Radio? Television? DVD/Video? New technology?), Usage (Featured Instrumental/On Camera? Background Instrumental? Background/Vocal?), Length (Entire composition? 30 seconds or part thereof?), Version (re-record or original recording), to name just a few."

But even once you have sorted out who owns what and where something is going to be used, there's the legal terminology, with contracts likely to contain such phrases as "World excluding the BRT's," "Rear Window," "now known or hereafter devised," "MFN," "Pro Rata Share," "Third Party Payments," and even "Audit."

True, you don't need to know all of these things if you're a songwriter, recording artist, manager, agent, record executive, film/TV production professional, or advertising agency executive. But the more you know, the better. Not only will you be more comfortable with the business side of the music business, you'll be in a better position to guide a career -- your own or your clients' -- to more rewarding choices.

"Just knowing a little about these topics allows you to follow the conversations these clearance guys have with my clients and all their other representatives," says one manager of several musical acts. "And knowing a little can help a lot."

Real-life Examples Sometimes you learn by doing. "The very first time I licensed a song on my own," says Marc Ferrari of MasterSource Music Catalog, "I never got paid for the license. The production company released the movie (Son of Darkness 2) then went bankrupt. What a way to start a business!! I have had better luck with nearly 1,600 licenses since then!"

Don Grierson, when acting as a music supervisor for motion pictures, says "Those who represent songs often call me and ask 'What are you looking for?' and it's amazing how rapidly that can change. The music requirements for any given project, or even any given scene in a film, can change depending on the director, the producer, etc. And whatever mood is being established in the scene may change in postproduction, requiring a change in the music."

Mistakes to Avoid Where people are involved, there can be errors. "Publishing and record companies sell and sublease and assign rights, some of which they did not own to begin with," points out Janet Fisher of Goodnight Kiss Music. She quickly lists a few more potential problems: "New companies file new cue sheets and suddenly a song is attributed to the wrong writer, a title is changed, a publisher forgotten; or sometimes a copyright holder just stops filing all paper work, including change of address forms."

Devin Powers, of Devin Powers Music, has had his compositions in more than 75 television shows. He points out that "Being an indie artist can be a huge advantage. Music supervisors are always looking for quality master recordings. An indie artist can sign off on a master synch music license in a day. Time is always an issue, and TV supervisors love indie artists because of the lack of major label red tape which often leaves them without clearance in time."

Goodnight Kiss' Fisher agrees: "Obviously dealing with an indie catalogue is going to be more affordable, and easier to work with. The large entities are not as hungry as the small, and our songs are no more than once-removed from the source."

Musician vs. Music Supervisor

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Nancy Luca is a musician who plays so often on both coasts, she has an L.A. band, a New York band, and a Florida band, and does session guitar work (her solos were on two Heineken commercials during the Super Bowl broadcast). She observes that "There are people who make a lot of money writing music for television that 'sounds like' other artists. It would be great if they would use the real artists like me who have great songs but no break with a big label. I am for licensing just to let people hear the real music -the stuff that was written with heart and mind, not just for a paycheck."

Joel C. High, Vice President of music and soundtracks for Lions Gate Entertainment, displays the excitement that many of us have for making music work with images. "We often have directors who are greatly inspired by music and who may be passionate about acquiring a song that wouldn't normally fit in the budget of that film or television project. That's when we, as music supervisors, have to try to bring that same fervor to the negotiating process. We try to go to bat for our filmmakers in such a way that it benefits the picture and gives the best possible exposure for the musical artist. We want to get the absolutely perfect music for the scene and often the only way that can happen is by getting the recording artist to see the merits of having their song in a film – to consider the way their song is used so they will see benefits beyond just the financial one."

A Director of Copyright and Licensing at a major independent publishing company had this to say: "Obviously, licensing music in film/TV is a wonderful way to get exposure, although for new artists, it will probably not be lucrative. And of course, there are things writers/artists should take into consideration when someone requests to use their music: Avoid giving broad rights away for free! This sets a bad precedent in the community, especially for new artists/writers, and it de-values their work."

Did this person have any ideas for working out a compromise? Certainly: "If a writer is eager to be involved in a project, and the producer wants the use for FREE, here are a few suggestions when negotiating. First, try and reduce the terms (e.g. instead of perpetuity, reduce the term to 10 years; instead of all media, reduce to all TV or theatrical only; and instead of worldwide rights, try and reduce to U.S. only). If the producer is not agreeable to this, then the writer should request some sort of 'step deal.'

Very little money (if any) is paid up front, but should the production be successful, they are obligated to compensate the writer at certain 'milestones'." The feeling is that "if the producer starts making money, so should the writers of the musical works involved."

Devin Powers has probably the best piece of advice for artists placing music: "When you get the call, be thankful! There are tens of thousands of people trying to get songs on 50 or so shows. Take a fair deal. If you get in the door and create relationships, anything can happen."

The Bottom Line Fisher has a lovely metaphorical summary for this story: "Like any part of the music business, licensing can be feast or famine, goldmine or plain old shaft -- but like any part of any business, the best protection resides in employing those with experience and integrity. If I were looking for a goldmine, I'd find an experienced miner who had found gold before."

---The G-Man creates songs and commercials in Los Angeles. Read/hear what he's up to at: www.gmanmusic.com.

URLs of principals in this story include: www.devinpowers.com www.goodnightkiss.com www.janssongs.com www.mastersource.com www.nancyluca.com www.narip.com www.sladjana.com/pages/don_grierson.htm www.gmanmusic.com

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Planning Your Radio Promotion Campaign

by Christopher Knab - Fourfront Media & Music - March 2002

Back to Music Business 101

The commercial radio industry, at this time in history, couldn’t be less friendly to the independent musician. However, that doesn’t mean there isn’t some significant radio airplay available to you if you know what you’re doing. Outlined below is a plan to consider if you have the three important ingredients necessary for working your record to radio.

1) The money to fund the campaign 2) The time to spend working all the stations consistently 3) A product that is ready for national airplay When it comes to commercial radio, the chances of getting significant national airplay for your independent record are next to none. We live in an era when a small group of powerful media conglomerates own and control the most important radio stations in the land. Unless you are connected to a major label, or are independently wealthy, the costs of promoting your songs nationally to commercial radio have spiraled out of sight.

There are, however, lots of mix shows and specialty shows on commercial stations that may offer limited airplay, and at least will get you some awareness in the markets across the country. There will be a lot of work involved in finding these stations yourself, city by city, and music format by music format. I suggest you subscribe to or get a copy of the annual CMJ Directory.

If you have money to invest in radio promotion it’s possible to hire an independent promoter who may be able to open some doors to these shows for you. Be prepared to spend several hundred dollars a week for their services.

A more realistic approach for airplay is to consider the options available on the noncommercial side of the FM dial. (88.1 FM to 91.9 FM) With the combination of college radio stations, community stations, and even some of the larger National Public Radio affiliated stations, your chances of getting your record played are much better.

Below you will find an outline based on how professional record labels plan for their radio promotions.

You need to prepare:  

A database of commercial and non-commercial stations that you realistically think may play your music.

The timeline you'll use to put the promotional material together (basically setting your deadlines).

Be sure to remember that your plan may be distributed to employees, and any independent promotion people you may hire. This plan will be their introduction to your or your artist, and is the plan they will base their work on.

1) Design a detailed overview of your radio promotion plan.

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Consider all marketing and promotional ideas listed below.

Propose what you think would work best in each of the areas to help market the record to radio.

Remember to keep cohesiveness between all areas: Give reasons why your music is appropriate to each station you approach.

Remember you will need several practical tools/materials to achieve your goals. (Computers, hardware/software, office supplies, etc.).

Address the following specific topics in your plan:          

Background/Goals: Give a brief history of the artist, and describe the goals of your plan.

Image: Describe and maintain the artist's image consistently in all promo materials.

Radio: What radio format(s) will be targeted? What markets? Which songs? Any station promotions? (On-air concerts?) Hiring any Independent promoters?

Publicity: Describe your plans to create a “buzz” in the print media. Any press releases to the music industry trades? Update any bios, fact sheets, and other press materials.

Sales: Describe Distribution and Retail plans. Any in-store play/ promotions? What other specific sales opportunities? Mail order, live shows, Internet website? Any store promotional tie-ins with radio stations?

Video: Is a video cost effective? What airplay opportunities are there for the video?

Touring: Describe the time frame for touring, and other promotional events to coordinate while on the road. Consider specific clubs, halls, fairs, festivals, etc.

Any club/venue promotional tie-ins with radio stations Advertising: Design an ad to be placed in the trades/ consumer music press, and other media?

What funds are available for purchasing ads? Describe the costs/benefits?

Misc.: Record release party? Novelty item? Any other clever ideas? Explain clearly.

2. Design a 12 week plan for the product and promotional tools.    

Lay out what needs to be accomplished each week to get the record out.

Consider the: artwork, mastering, credits, sequencing, printing, pressing, booklets, layout/design.

Include in the timeline when to start working on the promotional tools that you will need for your plan (photos, press releases, novelty items, display material, ads).

Design the timeline with deadlines for each element of your project.

As you can see, a radio promotion campaign is something that is done as part of a wider marketing plan.

Always have distribution and sales plans, as well as publicity, advertising and touring plans coordinated carefully with your airplay campaign. The worst thing that can happen to any song on the radio is that someone hears the song, but can’t find a way to buy it. Professional record labels always have distribution and sales connections set up before they secure airplay. You should do the same.

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Tax Tips for Musicians

by Christopher Knab

Back to The Academy

Musicians - you probably spend a lot of money supporting your craft every year, paying for instruments and amps, photos and photocopies, practice room space and van rentals. Wouldn't it be nice to deduct some of lose expenses on your income taxes? Maybe you can.

Business or Hobby?

First you need to figure out if making music is your hobby or your business.That is, do you do it for pleasure, or to make a living? If it's a business, you can probably deduct the cost of your equipment and other expenses and fees on your tax return. If it's a hobby, you can only deduct only up to the amount of income you earned from the hobby. Intuit offers expert advice on their website, with several sections dealing with common questions about the hobby/business differentiation.

Sections include "What you need to know about turning a hobby into a business," "How do I convince the IRS that I'm serious about my business?" "What can I do if my business is audited?" and "What if my business really is a hobby? Can I write off my expenses?"

What if it's more than a hobby, but you're not in it for a profit (and haven't made a profit)? See this page from the New York State Society of Certified Public Accountants, particularly the section about 3/4 the way down the page, entitled ACTIVITIES NOT ENGAGED IN FOR PROFIT. (Keep in mind that this site was created for people who are accountants, not for those of us that need accountants.)

Play the Part If you have decided that yes, your music is indeed a business venture, you need to know that the IRS says "The music business... present(s) unique problems in an income tax audit." Translation: tread carefully. While you are entitled to deduct expenses from your business, you have to make sure to learn what you can and cannot claim, ensure that you report all your earnings from music and document everything.

Solid Business Advice        

Make sure you are operating like a business.

Keep good books and accurate records.

Advertise.

Get business cards.

Get a business license or separate taxpayer ID number (TIN).

Incorporate your band. Open a P.O. Box. Join Musicians' organizations and/or unions.

Copyright your work. Register your songs with a performing rights organization (such as ASCAP, BMI or SECAC).

How You File

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To deduct business expenses, fill out a Schedule C and file it with your Federal Form 1040. If you're selfemployed, you will probably have to also file a Schedule SE. (According to IRS Publication 533, you must pay self-employment taxes if your net earnings from self-employment activities were over $400.)

On Schedule C, Line A, you'll need to know your principal business code. It's listed in TurboTax under "Services: Personal, Professional & Business," then under "Amusement & Recreational Services." (So that's what the IRS thinks musicians are!) Code 9811 is for musicians - as well as theatrical performers, agents, producers and those in related fields.

Having a hard time getting the forms you need? Try the IRS' Tax Fax Services or download them over the Internet. Many of these forms are in PDF format, which requires you also download the free Adobe Acrobat reader.

What can you deduct?

If you spent money to run your music business, you should be able to deduct it from your income taxes.

The IRS says in Publication 535: "To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business."

Here are some categories to think about (while keeping in mind that you'll have to separate business use from personal/pleasure use, at least in the eyes of the IRS):               

Instruments Equipment/gear & accessories (amps, pedals, effects, straps, carrying cases) Consumable supplies (such as drum skins & sticks, guitar strings & picks) Music business books, record company directories, venue directories Subscriptions to trade magazines (such as Billboard and CMJ)) Sheet music and "How-To" books and manuals Promotional: CD/tape duplication (for demos), photos, bios Office supplies: paper, envelopes, photocopies, stamps Fees related to maintaining your website and e-mail access for your music-related activities Rent for storing your gear and for your practice space Membership in professional organizations, associations & unions Professional fees (attorney, manager, agent, accountant) Copyright and registration fees Lessons & instruction Travel expenses

Losses by theft Some of these expenses can be deducted in full, while others must be depreciated. See IRS Publication 946 ("How To Depreciate Property") for more information.

Can you deduct for a home office?

If you're a performing artist, Certified Public Accountants tell us that no, you can't take a home office deduction: For musicians, the principal place of employment is where the performance occurs, not the home practice area."

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If you run a studio out of your home, or your principal business is not to perform but to record or sell your music otherwise (such as by the sale of CDs or tapes, or if you operate principally as a songwriter/jinglewriter), that rule may not apply.

Be Prepared I remember hearing that self-employed people are at more of a risk for an audit, and I can believe it. Add into that equation that you're an artist (which may make the business side of things a little harder to substantiate) I’d suggest that your expenses may well exceed your profits, and you're live bait. That's not to say it's not worth claiming legitimate expenses because you run the risk of an audit, just that you need to be accurate and be prepared.

You need to also be ready to answer questions like these below, culled from an IRS audit guide. This document was secured by AIM's Tax Center from the Internal Revenue Service through the Freedom of Information Act. (As it is part of a government document, I'm reproducing this list here.)

Important Questions that the IRS might be concerned about:

1. Explain all the different roles you play in the music industry. (Such as performer, songwriter, studio musician, recording artist, etc.)

2. What form of organization have you designed to be involved in these ventures? (Such as sole proprietorship, partnership, corporation, etc.)

3. Are you self-employed for any of your activities? (File Schedule "C" and "SE").

4. From what sources do you receive income?

5. How are these sources of income reported to you? (Form W-2, Form 1099, statement, settlement sheet, contractual agreement, partnership Schedule K-1, etc.)

6. Who keeps up with all your records and where are the records currently located?

7. What type of expenses do you incur?

8. Who keeps up with your expenses and where are the supporting records located?

9. What contractual agreements do you have through your business? Furnish copies.

10. Have you been examined [audited] previously? If so, what were the results?

11. What assets have you purchased that you use in your business?

12. How have these assets been handled for tax purposes?

13. Have you ever made or received any "payoffs" to obtain or maintain a position in the music industry?

14. Do you ever receive cash payments? If so, what is done with the money? (Used to pay bills, deposited into a bank account, etc.)

More of the document is on the AIM website, and is well worth reading, at least to get an idea of what the gameplan might be in case of an audit.

Proving It So now you know - if you didn't already - that the IRS are absolute sticklers for detail. Document everything! I suggest you make a copy just for your tax file of pretty much anything related to your music, such as:

1. Every letter and every press release you sent 2. Responses from record companies, radio stations - anyone - to verify that you have been active in the pursuit of your music

3. Gig fliers/postcards (even the postmarked "return to sender" ones are helpful for this)

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4. A copy of your mailing list 5. All press mentions - and if you have none (or very few), keep the ad or newspaper listing from any shows you play 6. All receipts and invoices for everything you pay out or earn that's band-related. Make sure everything has a date and any other supporting information written down on it somewhere.

7. If you haven't already kept detailed records, start now - and do your best to reconstruct everything up to this point NOW, rather than some random point in the future when you might get audited. Really put some effort into keeping this up - if you don't, and you get audited with a poor end result, you could owe back taxes and penalties otherwise, and any future music-related deductions will be closely scrutinized.

8. When in doubt, ask a professional or don't deduct it. (I recommend that you keep those "questionable but not deducted" receipts, though - if you ever get audited, they might be helpful.)

Keep all of your tax-related records for at least seven years.

Is It Worth It? You definitely should take whatever deductions are allowed - we don't get many tax breaks in the country... well, not unless you're rich. ;-) While I'm not a tax professional, these tips represent some of what I've learned when filing several IRS Schedule C's over the years. When all is said and done, and especially if you have earned a lot or are deducting a lot of money, you might be better off doing what the guys Hyperreal suggest: get yourself a tax attorney and/or have her or him advise you. This is particularly true if you're not used to filling out tax forms.

Many happy returns!

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What is Artist and Product Development?

There was a time when record labels committed themselves more seriously to developing the careers of their recording artists. Today, it is much harder to find a record label committed to this goal. When a major label signs a new artist or band, they presume the act has sufficient musical, songwriting, and performance talent, and are ready for the big time.

Up until the late 1980s most, record labels had a department within the company called Artist Development, and the job of that department was to support their acts' creative side, while steadily developing a following for them. When sales of records increased with each release, the label stood by their acts, believing that the more the public heard their music, the bigger their popularity might grow, and the greater their popularity, the more records they would sell. Most of the '70s Rock bands that dominate today's Classic Rock radio format are examples of the old school version of Artist Development.

By the early '90s most labels had changed the name of their Artist Development departments to Product Development. In other words, the emphasis changed from nurturing the growth of an artist and their music, to high-pressure sales development tactics and strategies. Product Development today, for most major labels, means putting the label's energy into creating sales for a new release, and doing so quickly.

If you had three strikes in the past, you have one strike now, and if you don't get a solid hit, you'll probably be forgotten in favor of some other act waiting for their one at-bat.

You can still see cases of a major label committed to Artist Development when you look at the careers of bands like Radiohead, The Barenaked Ladies, Smashmouth, or the Dave Matthews band. Artist Development is also behind the success of today's teen acts that dominate the pop music charts. If a thirteen or sixteen year old boy or girl has the looks, personality, and musical talent at such a young age, and the labels can sign long term contracts with them, it leaves many years for their investment to pay off.

The labels may collect revenues from dozens of new releases over the (potentially) long careers of these kids as some of them make the transition into adult superstars.

For the most part, in today's competitive music business, the responsibility for Artist and Product Development has changed hands. Independent labels and entrepreneurial artists have inherited the responsibility of nurturing new talent by fine-tuning their artistic and business development, and slowly growing their careers over several album releases. Developing a music career for the long haul is all about controlling one's own destiny.

Artist and Product Development go hand-in-hand. They should work in combination and coordination with each other. When a balanced approach to developing your music and your business affairs are respected equally, you create a more realistic opportunity for achieving some success with your music.

Art is no less important than commerce for today's developing musician.

Artist Development: Preparing Your Career In the music business, everything starts with a song. Without great songs, there is no music business.

Songwriting is not just an artistic expression; it is the axis upon which the music business rotates.

So, the first order of business in Artist Development is the music itself. Good songs are not good enough when you are preparing to market your music. People only respond to what they feel are great songs Your songs must have some commercial appeal, if only to a certain music niche. (Folk, Hip Hop, Alternative Rock, New Age, Jazz, Blues, etc.) Finding that niche, and learning how to manage its growth is essential to becoming a successful act. So, your songs must be of a very high caliber.

Artist Development is also about protecting the great songs by registering them with the copyright office.

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Songwriters and music publishing companies need to affiliate with the Performance Rights Associations (ASCAP, BMI, and SESAC) as well, so that if and when those songs are played by the broadcasting industry, or in certain public places, they will receive proper payment for the uses of those songs.

Many songwriters have to decide if and when to look for a publishing deal or start their own publishing company. In my opinion until there is a demand for your songs, (meaning that there are a lot of people who want to hear your songs, or buy them), don't worry too much about getting a publishing deal. Don't get me wrong, the pot of gold at the end of the music rainbow is the income received from the use of songs. The business of music publishing, which is really the business of finding uses for songs, is very important topic to explore, but only when the time is right.

Choosing a name for your act, and filing for a trademark to prevent others from using your chosen name are also part of the business organization of developing an artist's career properly. It is strongly advised that you invest in registering your band name or stage name by trademarking it.

Artist Development should also include writing up a band agreement that defines the issues related to running your career as a business and how you will work with the people in your band.

In the beginning, managing your own career will be your responsibility; with a goal of creating such a buzz about your music that you attract professional management. Many developing acts encounter some resistance to the lyrics or cover art they have created. Be prepared to deal with the fallout from any controversies surrounding your music from critics, special interest groups, or even the record labels you may be dealing with. There could also be some situations you get into that may lead to potential, ethical and moral decisions that you must make.

Starting your own business (sole proprietor, partnership, or corporation) will also be a necessity if you want to have control over career. There are many questions to be answered about operating your own business, financially and professionally. You will also have to update any changes in your business operations as they may occur, because the different city, state, and federal laws affecting any business are constantly changing and evolving.

As your career develops, you may wish to improve on some of your creative talents by taking voice lessons, or master classes from more experienced musicians. Investing in the best equipment and musical instruments is another necessity if you are going to be a professional, working musician. No artists can perform their best work using mediocre equipment.

One of the most delicate issues involved with Artist Development is the matter of creating and consistently maintaining a clear and honest image. What people hear in your music must be seen in how your dress on-stage, and can help or hurt you when you create promotional materials, and artwork for your CDs etc. So, weave a thread of consistency with your chosen image throughout the Four Fronts of music marketing.

As you become more successful in your career you will need the services of an entertainment law attorney. Use lawyers who have had experience within the music industry. You will need them to look over any band agreements, record label contracts, publishing deals, or any other number of legal matters.

Artist Development as you can see, is a combination of creative and business issues that must be dealt with to make your music, and the business surrounding you music, run smoothly.

Product Development: Making and Selling Your Music Product Development is about preparing your music product for the marketplace, and finding ways to sell it. Product Development issues become much easier to deal with when all the details addressed in Artist Development have been taken care of. Not all musicians take the time to deal with these responsibilities. They prefer to rush the songwriting process and move right into the recording studio, in

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their eagerness to get their music out. That is a big mistake.

The first thing a professional label does after signing an act is to start thinking about the marketing or sales plan for the act. That's right, a good record label executive, perhaps the A&R rep that signed you, can already envision how your music will be promoted and sold by the time you enter the recording studio.

Researching the right recording studio, right producer, and engineer become key issues in Product Development. Where will your record be recorded? Who will record it? Both of these questions must be considered quite seriously before you make a final decision.

The choices of what studio to record in and what producer or engineer will be hired to make the record are uppermost in the mind of a label person. Record labels are aware that if a certain sound, for a certain music genre isn't recorded properly, the chances of radio airplay could be hampered. If so, there may be no significant sales of the record. So, production choices are part of the Product Development equation when deciding how to market a new artist or band.

Never cut corners when recording your music. Once the recording is finished, you will have to live with it forever. You never want to say, " Gee, I should have done such and such." Find the best studios and recording team you can afford. Music production sounds are changing constantly and it is your responsibility to make sure your records sounds as contemporary as possible.

Up next is mastering. Mastering is not something to be passed over lightly. The mastering engineer can enhance or hurt the recording you made. Choose a mastering engineer who understands your genre of music. This is a must.

Who will manufacture your record? Who will design the artwork for your release? These are two more essential questions. Your finances will most likely determine this, as they probably determined production decisions. Take the time to make a record that sounds and looks like something you would want to buy yourself. Album cover artwork, packaging material design, and printing issues are important because you are creating a product that will be competing for the attention of music fans who have an abundance of music releases to choose from. Is there something about your album cover that will attract a customer to your record?

Once a record has been manufactured and is ready to be sold to the public, Product Development turns its attention to Distribution and Sales Arrangements. Many developing acts forget this in their rush to record their music. But, if you're going to spend thousands of dollars recording your music, don't you think it would be a good idea to find a way to sell it? Well, that is exactly how professional record labels think.

They make sure a system is in place to distribute and sell their records to their fans. Many musicians make the mistake of trying to get some radio airplay, or other media attention, before they've found a way for the public to buy it. Make no such mistake.

Product Development, after a record has been recorded, focuses on all the business arrangements involved with selling CDs, tapes, and vinyl recordings.You will soon learn that the business of distribution, like the business of music retail, is a complex and challenging undertaking. Welcome to the world of major label distribution companies, independent distributors, rackjobbers, mass marketing retailers, momand- pop independent record stores, and the evolving world of Internet music sales.

So, my explanation of what Artist and Product Development are about has had one main purpose; to tell you that what you have or have not done in these two development areas will make or break your chances of making some money with your music, as you go on to promote, publicize, and perform it.

MUSIC INDUSTRY BIBLE

7/31/2016

The "Creative" You and the "Business" You

by Christopher Knab

Back to The Academy

I have been watching, studying, and analyzing why some people 'make it' and others don't for a long time, and I have given up trying to discover some magic formula that every musician can follow on the road to so-called 'success'.

Today, more than ever, there are countless advisors like myself who offer tips to developing acts and 'struggling musicians', and all too often we try to inflict some step-by-step process on musicians that will help them become tomorrow's superstar.

I have been asking myself some questions about this phenomenon: Is there a difference between the attitude of successful, well known acts and the attitude of upcoming acts? Why do some musicians make it big, while other equally talented people songwriters and musicians never get their music heard by the masses? What specific skills and/or inherent talents do the successful artists embody that so many 'wannabees' do not?

Is it charisma? That special something that many artists seem to exude the minute they walk into a room?

I think that is part of it, but many successful acts have as much charisma as a pitcher of milk, and yet do quite well for themselves.

How about a lot of money? That seems to be the one thing behind so many successful names these days. There are always major labels owned by huge multinational conglomerates behind so many superstars. They can buy their way into the hearts and minds of the public, right?

Wrong.

Money can only push something out to the public for their acceptance or rejection‌that's all it can do.

Nobody reaches into the public's wallet and forces them to spend their hard earned money on anything unless the public sees some real value in it.

Think about it. Today there is a lot of (what some observers) call 'shallow and immature' lyrics and disposable pop music, and yet, no one who bought that music would cop to that criticism. No indeed, the people who buy the latest sounds on the pop charts buy that music because it gives them some kind of pleasure. It means something to them.

I think we should look at what sells and what is successful from this standpoint; music fulfills the needs, wants, and desires of any group of fans because they identify with it. .Basically, they like a song because they can hum it in the shower.

The one thing that all successful acts have in common when they cross over to mass appeal is great songs! This is true as well for the more edgy artists who eek out a living from smaller fan-bases‌ they still write compelling songs that touch the hearts and minds of their fans.

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I think that is the reason why some musicians succeed and others don't.

Whether or not you personally 'like' current popular songs has nothing to do with it. Enough 'somebodies' coughed up $10 each to prove your tastes may not be in-tune with what the general public likes.

But there must be something else that separates successful artists from those who don't connect with the public. What other thing is it that successful artists and bands have that separates them from struggling artists?

My answer is business savvy. Yup…that's it. Somebody somewhere in every successful acts history had enough business savvy people behind them to make them the stars that they are or were.

NOW…listen up! It isn't as simple as you think. In the past having some business savvy may have been the domain of a weasel-like manager, or record label executive. It may have been the unscrupulous business practices of shady lawyers and booking agents, as well as greedy club owners, or money hungry publishers. My point is that no matter what the behavior of a particular music business gatekeeper may have been…they got a certain part of the job done…they broke on through to the other side of the competition, and got their act's song into the ears of the thousands of music fans. And to do that, I can assure you they had a plan.

There are no short cuts to success, and there just isn't enough room at the top for everyone who makes music to make a living from their music. But there is a balance that can be obtained in one's life. With the tools available on the Internet, and the technology of downloadable music now an every day reality, no musician who writes great songs should have that much problem realizing modest successes with their music.

Be careful of the "10 Steps To Musical Success" and the " What every A&R Rep Is Looking For" articles and books. I myself have written some articles with similar such titles, only because they are my means of getting the attention of an ever growing group of music star 'wannabees'. Once I get their attention, I try to give them proven tactics and strategy tips that are time-tested ways that record labels and industry professionals work.

In reality, there are no 10 steps to anything! There is the conscious involvement, and commitment to your songwriting and musicianship, and to the business of music.

Remember that the world of commercial music is a world of dollars and cents, whether you like it or not.

But that does not mean that Art and Commerce cannot walk hand in hand…they must do that.

I teach a history of popular music course, and it never ceases to amaze me how often history repeats itself when it comes to the question of artistic achievement and music business savvy.

Most 'artists' in the truest sense of the world are narrowly focused people who never take no for an answer. No matter what challenge comes their way, they have no recourse but to turn to their creative side and get lost in their music as a way of staying alive. Then, along comes a businessman or woman who either is or is not ethical, but knows the music business inside out. They hear the magic in a client's music, and they do what it takes to get that music into the marketplace.

More and more however, those businessmen and women are the artists themselves.

We live in a capitalist, consumer-driven society. The successful musicians of tomorrow will be those people who either attract dedicated, knowledgeable businessmen and women to do the marketing and promotion for them, or they take that responsibility on themselves and realize that no artist has to sell hundreds of thousands of copies of their music to make some money with their music.

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However, you do have to be able to write and perform great songs, and then produce them with the 'sound' of your particular genre carefully understood and honored, AND you have to take the time to read trusted consultants and advisor's articles and books and also find time to stay on top of this ever changing business by attending a few music business conferences or seminars.

But you also need to do some 'grunt-work'. Call club bookers (over and over), read good and bad reviews, put on a great show when you're exhausted or sick, and tirelessly promote your music. This is where the 'entertainer' steps in and handles things.

The 'entertainer' is someone who knows that the show must go on. They know that no matter what obstacle is put in front of them, they will persevere. Looking at the work habits of most big stars, I think they all have an 'entertainer' inside them. That's what allows them to succeed in all areas of the business.

That is what keeps them going during the fifth press interview of the day, and all the other crap that has nothing to do with music and everything to do with the business of music marketing.

When an upcoming artist finally 'makes it', the pressure to keep producing sellable music is huge. So the 'artist' has to be healthy and ready to create on demand. You may be asked to hit the road for nine straight months, then make a world class album immediately following the grueling tour.

What it all boils down to is that stars have to be on top of their game, both artistically and business-wise.

It is essential to create a balance between music and business early on. First, make sure your psyche is in the right place. You know, screw your head on right! Be honest with yourself regarding what things you are and aren't willing to do to be successful with your music.

Then, make a plan. Map out how you will improve your skills in both business and art. Put it on paper. Try living the 50% business - 50% music lifestyle.

Make sure you honor your business commitments and always act professionally. Make sure you keep your artist side healthy and creative. Take days off, take walks in nature, take time to noodle around that new idea for a song that just popped into your head. Those types of habits will keep the artist inside you in good shape and feed the creative juices inside you too.

Being a famous musician is not a 'normal' life. To survive and thrive requires a special set of skills. The good news is those skills can be learned and developed. Every little bit you learn now will benefit your career plan down the road.

Put your hands together. The one hand is the creative side of you, and the other hand is the business side of you.

Now clap your hands.

MUSIC INDUSTRY BIBLE

I Get So Many Clueless Letters! by Christopher Knab

7/31/2016

- June 2004

I have been writing this and other columns for over 10 years now, and I have had my website up since 1995. I post my email address on my website for potential clients to reach me, and I include my email at the end of my columns as well. So, I am not surprised that I get a lot of email messages every day. Most of them are very polite ‘thank-you’ messages letting me know how much they appreciate all the free articles and columns I have written, and how much they have learned from my advice. All those messages are quite gratifying to say the least, but I have a problem with some of the messages I get, and the problem is getting worse every day.

More and more often people don’t have a clue as to how to write a polite and courteous message that doesn’t include major grammar, spelling, and/or punctuation errors. Many other people have no clue how to approach a complete stranger in the music business and introduce themselves properly. Others are blind to the imposition they are making by diving into very complicated issues, without so much as a “Hi, my name is_______” followed by a simple statement like; “If it isn’t too much to ask, I would like to ask you a question.”

It is so rare these days to get a polite message that doesn’t presume that I am sitting at my computer just waiting to write back and answer dozens of questions.

What’s up with all these rude and clueless people??!!

In an effort to educate you about a business etiquette that exists in this world, I have decided to print out a few recent messages that really drive me crazy. As you read these messages please note that I have deleted any reference to whom these clueless people are.

Please read these messages as if you received them, and ask yourself how you feel about dealing with these creatures from some lost lagoon. Ask yourself some of these questions:    

Are you offended by their abrupt and presumptuous messages?

Can you decipher their cryptic writing?

Do the numerous spelling errors, grammar glitches, and punctuation catastrophes bother you?

Would you respond to these messages?, or would you just delete them and try to forget them?

HERE'S A CLUE: If you do indeed want to reach someone you don’t know in the music industry, please approach carefully. Ask if you can ask a question or two before going into an epistle on your situation, and for god’s sake introduce yourself and ask them if they have the time for your questions. Just because you are using email doesn’t give you permission to barge into people’s lives and demand their attention.

A small amount of common courtesy will take you quite far in this business.

Here now are some amazing -but true-messages I have received. I simply ‘cut and pasted’ these messages from my email into Microsoft Word for you to decipher at your leisure. ,,,,,,,,,,,,,,,,,,,,,,, (Was I just sitting here waiting for your message, or what?) “hey whats up im filthy clean 23 year old black male from louisville ky inever thought about rapping until about two months ago one day i was around a group of guys who where rapping so i gave it a try and the loved it and told me to give it a try and i went against guys who been doing it for about two or three years i've always been camera shy but i think i could maybe do something i believe i can becomig an artist if i give it a serious try. so if you can give me some tips on how to get started because i've tried to find major labels over the internet but they just show the artist on there label but im trying to get a labels e-mail

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address” (Sounds like he is gagging in the middle of his first, so called "sentence’) ,,,,,,,,,,,,,,,,,,,,,,, “ew are from philly we have 15 songs we are ready to tour we have a bio pack and we are ready to travel we are called the draft pickz” (Count the questions he asks me in this message) “Crazy questions..I am looking to produce and market a song I wrote and am looking for help...first I need a singer..I plan on using the music from the Beverly Hillbilly's theme song..do I need their permission?

How do I get it? The singer I need is someone that has a very low voice...maybe a littlecountryish...exactly like the guy that sings the Beverly Hillbilly's themesong..where do I find someone? What would they charge to cut four or five versions of the song? Please help...Also..if I was to approach radio stations with the song how does that work? What do I charge them? Do I get a flat up front fee or do I get paid for each time it is played? Or both? Who is the person at the radio station that I would talk to? How do I market the single to the public? Do I need a Record Studio? It's a Funny song kinda like a Weird Al thing...who would help? Please help” ,,,,,,,,,,,,,,,,,,,,,,, (At least this guy gave me his name, (which I have xx’d out) “My name is XXXXXXX, I am currently C.E.O of XXXXX. I produce music that seems to be well liked in the Midwest or North, I am from Milwaukee, WI. Just giving some background. The problem that having is that over 50 artist that want to buy my music for there albums, but the goal for me is to achieve a good distribution and at that time I will be able to produce the artist to create residuales. I have songs that are mastered and ready for radio play. I have not done anything major as of yet, wan't to make sure I do it right the first time. If you know any one who has the means majorly Please Pass it On. 4XX XXX XXXX P.S. I gaurantee You will Like what you here! 50 Beats 10 complete songs” ,,,,,,,,,,,,,,,,,,,,,,, (Has he been having a conversation with me? Check out how the message starts) “It doesn't mean that im doing right. We have been doing tons of shows and or first effort sold 5,000 copies locally be we haven't broke out of the Chicago area yet we also haven't generated enough buzz to get the radio play we need. So I take it as we are doing something wrong.”

MUSIC INDUSTRY BIBLE

7/31/2016

How and Why Major Labels and Independent Labels Work Together

by Christopher Knab and Bart Day - Fourfront Media & Music - Posted Mar. 2004

Back to The Academy

Note: The following article is an edited and updated version of the introduction to a chapter on Major Label and Independent Label relations published in the book ‘The Musicians Business and Legal Guide, 3rd Edition” by Prentice-Hall.)

Major Labels and Independent Labels have a legacy of exposing and discovering all the great music of the last century, but the role these two types of record labels have played over the decades has changed as much as the music itself has changed. Defining the roles these different kind of record labels have in today’s marketplace; as well as understanding the reliance they have on each other is important for anyone who wishes to start their own label, or develop an existing label. The Independent Labels and the Majors realize that to maximize their marketing efforts in an increasingly competitive environment, working together to achieve their mutual goals can be quite beneficial to both parties.

A ‘Major Label’ is the name given to those labels that currently control over 80% of the records sold every year in this country. These labels have achieved such a high profile over the last couple of decades by operating their own Distribution companies (Sony, BMG (Bertlesmann Music Group) UMG (Universal Music Group), WMG (Warner Music Group), and EMM (EMI Music Marketing)) that sell directly to the many music chain stores, sub-distributors, and mass merchandisers across the country.

‘Independent Labels’, in the purest sense of the word, are those record labels that distribute their records through what are called Independent Distributors, and are not usually connected to the Major’s distribution systems. But of course it can’t be as simple as all that now can it?

In today’ popular music environment there are more records being released every year than ever before.

The cost of recording and manufacturing records over the last two decades has decreased dramatically, so there is more music being recorded and competing for the attention of a consumer than ever before.

However, when it comes to exposing any of this music, the ownership of, and the relationships with the media that plays and hypes popular music is now controlled for the most part by the Majors and/or their parent companies.

Without access to the essential media outlets of radio, TV, Internet, magazines and newspapers, an Independent Label might have a difficult time today without the assistance of a Major Label. (There are however more and more Independent labels that have learned how to find a niche, and through unique marketing efforts been able to thrive.)

Recently, the high cost of Major label mergers and buyouts has put pressure for the Major Labels to return a profit on all the investments they’ve made in controlling the lucrative music marketplace. The time when a Major Label could slowly build an act over several releases has come and gone. Any act signing to a Major Label these days must impress the label with significant CD sales on their initial release, or they run the risk of being dropped by the label. What we have now is a scenario in which the Major Labels and the Independent Labels do rely more on each other than ever before.

Independent Labels, who find and champion most new trends in popular music, do the Artist Development work for the Majors in many cases. This is not unlike the situation in baseball, whereby

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some AAA team develops the talents of an outfielder who someday gets promoted to the major leagues.

The Independent Label of today can be a label started by an artist/band, or an entrepreneur businessperson who has the talent, finances, and determination to build projects to a point where they fill a particular music niche or realize that they can only grow so far without the power or clout of a Major Label.

POSSIBLE Reasons for Major Label Affiliation Major label affiliation can provide the independent label with a substantial cash infusion, which eliminates the need to continually focus on day-to-day survival issues and allows more effective operation. The major label may also take on such responsibilities as manufacturing and promotion.

These factors may in turn permit the independent label to expand and/or upgrade its artist roster, or enter a mainstream genre where developmental and promotional costs are much higher than for niche market music.

Independent labels affiliate with majors to increase their artists’ exposure in commercial media and to expand their distribution networks by increasing their access to major retail record chain stores and rack jobbers.

Affiliating with a major label can maximize the likelihood of the independent getting paid for records sold.

Independent labels, using the traditional independent distribution system, have always faced the risk that an independent distributor will go bankrupt and not pay them. This risk is drastically reduced (if not eliminated) when an independent label distributes through a major label distribution system. These distributors have the financial backing of their multinational parent companies and are able to weather the financial storms of the music industry. They also have more clout than independent distributors to collect from retail and wholesale accounts and are better able to implement strict controls over how many records those retail and wholesale accounts are allowed to buy on credit.

Issues to Consider When an independent label is considering an affiliation with a major label, there are many issues to consider. Here are some specific questions that will help to focus research and analysis:      

What are the independent label’s present sales volumes and what are they likely to be in the next few years (i.e., with major label affiliation versus without major label affiliation)?

Will the major label distribute to the mom-and-pop stores, which formerly carried the independent label?

Will the major label be responsive to regional demands and the demands of niche markets?

What kind of reputation and support does the independent label have among its fans?

Will a major label affiliation jeopardize this?

Will the independent label’s core fans be best served by the major label’s distribution system?

There are other issues to consider as well. For example:    

Will an affiliation with a major label create an unhealthy pressure on the independent label to sell more records than it can comfortably or realistically sell?

What is the present financial status of the independent label and what is its access to additional resources without major label affiliation?

Assuming affiliation, what will the cash infusion (if any) be used for?

How can the independent label’s existing staff—promotion, marketing and administrative—be best utilized after affiliation?

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How will the long-term business objectives of the independent label be served by affiliating with a major label?

Do the owners of the independent label really want the responsibilities and financial burdens of operating a fully-staffed record company and overseeing the promotion and marketing of records?

Are they only interested in the creative process of signing artists and producing records?

What is the personal style of the independent label’s owner(s)?

Do they place a high value on being able to operate independently?

Are they willing to take input and direction from a large corporate entity?

What is the major label’s real motivation for entering into the relationship? Is it to use the independent label as an “indie front,” or to take over the label’s strongest artists?

Does it view the relationship as a mutually beneficial long-term strategic alliance?

What is the corporate style of the major label’s management? Is there sound long-term vision?

Is there good personal chemistry between the management of the major label and the independent label?

Types of Deals There are numerous types of deals between independent and major labels, the most common of which are as follows: (1) Pressing and distribution (P&D) deals; (2) distribution only deals; (3) fulfillment deals; (4) production deals; (5) joint ventures; (6) equity deals; (7) the licensing of records to major labels; (8) the licensing of records from major labels; and (9) rights buyouts.

As a practical matter, the type of contract offered by a major label, its specific terms, and the degree of flexibility in the major label’s bargaining position, will all be dictated by the extent to which the independent label has strong artists, a healthy and ever-improving sales record, and the confidence of the major label in the independent’s key personnel.

For a detailed discussion of the types of deals I have listed above get a copy of the book “The Musicians Business and Legal Guide”, published by Prentice-Hall.

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Entertainment Law Attorneys An Introduction to Working with them The Golden Rule The Golden Rule regarding lawyers: ‘Never use anyone but an Entertainment Law attorney.’ Don’t use Uncle Bill, the real estate lawyer. Don’t hire your next door neighbor who is a public defender. Don’t hire an attorney who works in the medical profession.

Entertainment Law is a specialty field. Musicians are part of the entertainment industry and when you need a lawyer in this business, you need someone who knows the recording industry inside out.

Attorneys in the music business need to know about recording contracts and should be able to advise clients about the copyright laws. They are very much involved in structuring the deals that may come your way, and have a lot to say about shaping an artists’ business life.

What To Look For In A Entertainment Law Attorney One major thing to look for is a lawyer’s relationships in the industry. Lawyers have evolved into one of the most powerful groups in the music industry. They end up seeing more deals than anyone else, and have more knowledge of what’s “going down” around town. Record companies, for instance, can’t ignore phone calls from important lawyers, nor can they afford to treat them shabbily since they’re going to be dealing with these lawyers again and again. A knowledgeable lawyer with good relationships will get your deals done quicker, and will get you the best deal that can legitimately be had. Here are some other aspects for you to consider when “shopping” for a lawyer: Experience Does he or she have expertise in the music business? Make sure that the lawyer you are hiring is an entertainment lawyer with at least some experience in the industry.

Fees There are basically three ways attorneys in the music business charge their clients: 1) Hourly Fee. Some lawyers charge on an hourly basis. The rates range from $125 per hour for new lawyers to up to $450 or more for more established, reputable lawyers.

2) Percentage. Others charge a percentage usually between 5% and 10%. If the lawyer takes a percentage, make sure to get a complete explanation of how it is computed; each firm is different!

3) “Value Billing.” Some lawyers do something known as “value billing,” often with an hourly rate or retainer against it.

A retainer is a set monthly fee that is either credited against the ultimate fee or it’s a flat fee covering all services. Value billing means that, when the deal is finished, the lawyer asks for a fee based on the size of the deal and his contribution to it. For instance, if the lawyer had very little to do with shaping the deal, and only wrote the contract, the band should expect a fee that is close to an hourly rate. On the other hand, if the lawyer came up with a clever concept or strategy that made the band substantial sums of money, or if the lawyer shaped or created the deal from scratch, he may ask for a much larger fee. If your lawyer does value bills, you should get some idea up front what it’s going to be, so that there aren’t any rude surprises.

Also, ask your attorney if -- in addition to fees – there will be charges for any other costs such as longdistance phone calls, messengers, photocopies, faxes, etc.?

A Final Tip: Ask the lawyer for references of artists at your level of experience, and check them out.

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Does he return phone calls? Do they get deals done in a reasonable period of time? (Reasonable in the music business is not going to be anywhere near the speed you would like. It’s not uncommon for a record deal to take four or five months to negotiate, especially if you’re a new artist and can’t force the record company to turn out a draft quickly. Four to five months is a realistic time frame, but if it goes beyond that, someone isn’t doing their job.)

MUSIC INDUSTRY BIBLE

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35 Tips for Self-Management as a Musician Most musicians say they want to make a lot of money with their music, but when it comes down to it, few are willing to do what it takes to have their music heard, promoted, and marketed. Self-management can be the cure-all for many dedicated, passionate, and talented musicians who are willing to put their careers on the line by working hard to carve out their own unique musical niche. The following tips are suggested for any musician who wants to manage their careers as a business. You need to develop the skills of being a good business manager. Here are 35 tips to get you started.

1. Know what you value most from making your music, and honor your values 2. Set up your music career as a business, (sole proprietorship, partnership, or corporation?) and keep good records 3. Decide what kind of career success you want, & evaluate your creative/business skills 4. Prepare an overview, or draft of a career plan that address your goals 5. Outline specific strategies to achieve your goals, and pick specific tasks to work on 6. Remember that getting there IS the trip, and once you arrive somewhere...where next?

7. Don’t forget that killing time also kills success 8. Don’t let a day go by without doing something to keep you to your plan 9. Stay focused on what you have planned to do, and don’t run away from it 10. Be sure to get regular feedback on your music from the music business contacts you have made 11. Stay informed: read books and articles on the business of music regularly 12. Organize your office space, and keep it organized 13. Practice your communication skills in person, as well as on the phone 14. Be sure to follow-up on any promises you have made to anyone in the business 15. Create a Webpage, and promote it aggressively.

16. Join and support music/musician associations; participate in membership activities 17. Remember that you are not alone as a musician, find unique networking opportunities 18. Don’t stay frozen in one belief system; be willing to let go and learn 19. When something doesn’t work…stop doing it, and don’t do it again 20. Be sure to give yourself time to stop and do nothing. i.e. Rest!

21. Keep your physical self in good shape, and eat a reasonably healthy diet 22. Identify who your most important friends and supporters are, and don’t forget them

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23. At least once a year, study some topic you would not normally consider studying 24. Go out! Wherever your office is, take regular breaks, and pace yourself accordingly 25. Seek inspiration from unlikely sources 26. Don’t let any kind of success you create get to your head. Be grateful, and move on 27. Don’t blame other people for your struggles 28. Take advice only from those who have earned it 29. If you can’t or don’t want to do some particular task...don’t; hire out intelligently 30. Find out what your personal work rhythms are, and honor them 31. Nurture your relationship with fans, and communicate with them regularly 32. Only use attorneys, booking agents, and publicists with music business backgrounds 33. Realize that the unexpected may show up at any moment, and be able to react to it 34. Don’t follow trends, observe them and learn from them 35. Realize that performing, promoting, and marketing in non-traditional ways are much easier to do than trying to act like a superstar.

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Income and Expenses for Developing your Music Career To start the new year out right, I want you to think about money. Where does it come from, and what will you do with it, if you get any. In case you ever forget that it takes money to make money with your music, here is a summary of some general income and expense categories that may factor into your business/budgeting forecasts. As you can see there are very few sources of income from music, and inevitably the expenses you incur must come from those income sources. So, this is a January 2003 wake-up call to financial planning.

(Note: please don’t ask me what the ‘average’ income will be for the ‘average’ musician or band, or what to budget in each expense category. Whatever you can raise is what you have to work with, and there is never enough money to promote and market music. There are too many variables in those questions to give you accurate answers. In general, to establish yourself as a professional artist…expenses for all the categories listed below will be 5 time higher than whatever you are thinking they may be.)

As you look over the income sources remember that outside of some live performance fees, and sales of your music and merchandise (like T-shirts, etc) most of the income sources take years to develop. I get questions all the time about where will the money come from to start up a label, or your own business?

The answer is this. From wherever you can get it… loans, sugar daddies, lottery winnings…whatever.

Raising the funds to start your own business is your own business. Perhaps now you understand why so many musicians and bands want those record deals. Record labels front the money to develop, market, and promote their artists. Record labels are businesses that understand it costs a lot of money to sell an artist’s recordings, and the successful labels are well funded so that they can go out there and fight the good fight…marketing the records they have released.

Read this and weep, or better yet…read this and PLAN! 1) A Musician or Band’s Source of Income: a) Live Performance Fees b) Sales of your own recording OR c) Record Label Recording Contract Royalties d) Songwriter/Publishing Income Sources * Mechanical Royalties * Performance Royalties * Synchronization Fees * Sheet Music Sales * Commercials/Jingles Income * Internet Streaming Fees (pending) e) Merchandising Royalties ( T-Shirts etc.) f) Misc. Income Sources * Investment Income * Endorsements * Songbook and Video Sales * Multimedia Product Sales 2. Expenses for a Musician or Band (Putting out their own record): a) Recording fees:CD/Tape

MUSIC INDUSTRY BIBLE * Producer/Engineer * Studio Costs ( From Pro Tools to 24 Track) * Tape and other studio supplies * Equipment Rental charges * Guest Musician fees * Mixing and Mastering fees b) Graphic Artist/Cover Art Design costs c) CD/Tape/Vinyl Manufacturing/Duplication charges d) Promotional Expenses (Independent Radio Promo Reps/Independent Sales Reps,) e) Marketing and Sales Plan costs (One sheets, Co-op advertising dollars, Ad money) f) Publicity/Promotional Material Costs * Publicists Fees * Promo/Publicity Kit Design costs * Flyers, Posters, Envelope Design costs * Printing/Copying charges * Photographer fees and duplication charges g) Office Expenses * Rent * Stationary and office supplies/furniture * Postage * Phone and utilities bill * Office equipment ( computers, fax machines, phones et al.) h) Taxes * Local, State, and Federal taxes * Tax preparation costs/Bookkeeper fees i) Band Equipment Costs * Instrument purchases/rentals * Tour Luggage * Misc. equipment repair/maintenance costs (strings, drumsticks etc.) * CDs and Tapes ( for listening and study purposes) * Misc. recording/playback equipment (4 track recorder/mixer etc.) * Sound system * Rehearsal space costs j) Songwriting * Copyright registration filing costs * Performance Rights Organization Fees ( ASCAP-BMI-SESAC) * Talent Lessons ( vocals, instrument instructions, etc) * Conferences/ Seminars budget k) Artist Business Team Costs * Personal Manager/Consultant fees * Business Manager/Accountant fees

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MUSIC INDUSTRY BIBLE * Booking Agent fees * Publicist fees * Music Attorney fees l) Transportation costs * Auto/ Van purchase/rental/Insurance costs * Maintenance costs (gas, service, repair) * Airline, bus, and/or train tickets * Highway/Ferry tolls m) Touring expenses * Per Diem ( for food, lodging etc.) * Road Manager/Roadies salaries * Lighting/Sound equipment purchase/rental costs n) Merchandise (T-Shirts etc.) * Design costs * Manufacturing and shipping costs o) Website and Internet Fees * Website design, maintenance, connection fees etc.) * E-commerce setup and processing fees * Email setup and processing fees p) Miscellaneous Expenses * Costumes/Stage clothing * Insurance (health, equipment, life etc.) * Union dues * Video production and manufacturing costs * Whatever else comes along that you forgot about -----

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Artist Income Sources

by Christopher Knab

Back to The Academy

In case you ever forget that it takes money to make money with your music, here is a summary of some general income and expense categories that may factor into your business/budgeting forecasts.

1. Artist Income Sources: a. Live Performance Fees b. Record Label Recording Contract Royalties c. Publishing Income Sources * Mechanical Royalties * Performance Royalties * Synchronization Fees * Sheet Music Sales * Commercials/Jingles Income d. Merchandising Royalties ( T-Shirts etc.) e. Misc. Income Sources * Investment Income * Endorsements * Book and Video Sales * Multimedia Product Sales 2. Artist Expenses: a. Recording fees: CD/Tape * Producer/Engineer * Studio Costs * Misc.Tape and other studio supplies * Equipment Rental charges * Guest Musician fees * Mastering fees b. Graphic Artist/Cover Art Design costs c. CD/Tape/Vinyl Manufacturing/Duplication charges * Promotional Expenses (Indie Radio Reps/Sales Reps,) * Marketing and Sales Plan costs (One sheets, Coop dollars, Ad money) d. Publicity/Promotional Material Costs * Publicists Fees * Promo/Publicity Kit Design costs

MUSIC INDUSTRY BIBLE * Flyers, Posters, Envelope Design costs * Printing/Copying charges * Photographer fees and duplication charges * Internet Website costs (Design, maintenance, access fees etc.) e. Office Expenses * Rent * Stationary and office supplies/furniture * Postage * Phone and utilities bill * Office equipment (computers, fax machines, phones et al.) f. Taxes * Local, State, and Federal taxes * Tax preparation costs/Bookkeeper fees g. Band Equipment Costs * Instrument purchases/rentals * Tour Luggage * Misc. equipment repair/maintenance costs (strings, drumsticks etc.) * CDs and Tapes ( for listening and study purposes) * Misc. recording/playback equipment (4 track recorder/mixer etc.) * Sound system * Rehearsal space costs h. Songwriting * Copyright filing costs * Performance Rights Organization Fees ( ASCAP-BMI-SESAC) * Lessons/Study/Research expenses * Conferences/ Seminars budget i. Artist Business Team Costs * Personal Manager/Consultant fees * Business Manager/Accountant fees * Booking Agent fees * Publicist fees * Music Attorney fees j. Transportation costs * Auto/ Van purchase/rental/Insurance costs * Maintenance costs (gas, service, repair) * Airline, bus, and/or train tickets * Highway/Ferry tolls k. Touring expenses

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MUSIC INDUSTRY BIBLE * Per Diem ( for food, lodging etc.) * Road Manager/Roadies salaries * Lighting/Sound equipment purchase/rental costs l. Merchandise (T-Shirts etc.) * Design costs * Manufacturing and shipping costs m. Miscellaneous Expenses * Costumes/Stage clothing * Insurance (health, equipment, life etc.) * Union dues * Trade magazine subscriptions * Video production and manufacturing costs * Whatever else comes along that you forgot about

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Music Distributors: How to Attract them and How to Work with Them At a time in music business history when there is more product being manufactured, promoted, and distributed than ever, the role of the distributor, and their relationship with labels is an increasingly important one. The purpose of making a record is to (hopefully) sell it. The following information is intended to introduce the role of, and the relationships between Independent Distributors, and Record Labels.

Background Information To begin with, there are several different kinds of distributors in the US.  



One-Stop Distributors carry a wide selection of major label and select independent label product, and sell to Chain Stores, Independent Stores, and misc. other retail outlets that sell recorded music product.

Rackjobbers are companies that rent or lease space in large department type stores, and other mass marketing retail outlets. They usually carry only the best selling commercial product available, concentrating on major label product, and some independent label product with a strong regional presence.

Independent Distributors are distributors of Independent Label product either on a regional basis, or more likely, as national distributors. The 1990's has seen as "alliance" of many regional distributors (I.N.D.I. & A.D.A.) bonding together to form larger conglomerates, representing many Independent Labels, and offering retailers a wider variety of product.

The primary job of a Distributor is to get CD's, Records, and Tapes into retail outlets. They do this by working closely with the record labels to promote and market their CD's, Records, and Tapes. Most distributors regularly publish catalogs listing the labels they carry, and the titles available. They accept product on a negotiable billing schedule of between 60 to 120 days per invoice. They expect to receive a negotiated number of "free goods" to be used as incentives for retailers to carry the product, and also need "promotional copies" to be used in-house, as well as to give away to contacts in the media, and at retail. they can also arrange for "co-op" advertising, wherein the costs of media ads are split between the record label and a retailer.

The primary job of a record label is to attract the attention of distributors by having achieved a modicum of success on their own, by selling product on consignment, or at live shows, and through various mail order and direct sales methods. Having gotten their product accepted by a distributor, the job of a record label is to work closely with their distributor(s), providing them with information on successful airplay, print media support, and live performance successes. In addition the record labels create "Distributor One Sheets", or fact sheets that include promotion and marketing plans, and list price information.The record labels also provide the distributor with "P.O.P.'s" (Point of Purchase) items, such as posters, flyers, cardboard standups etc., that can be used for in-store display.

Basic Information The National Association of Independent Record Distributors (NAIRD) has an annual Directory available that lists Independent Distributors operating in the United States.

The CD is the preferred format for recorded product in most cases, with vinyl and cassettes appropriate for certain "niche" musical genre. The music should be professionally recorded. A good measuring stick is to match the sound quality of the independent recording with the quality of the material played on the radio.

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A Record Label wishing to have their product carried by a Distributor must have the following:   

Its own trademarked name Catalog numbers on each release ( usually a 3 letter abbreviation followed by the numbers, i.e.

CJK415).

A Universal Product Code: The Barcode on the back of the product. This is required because most retail sales are now tracked through the Soundscan technology that monitors retail sales.

Note: For information on obtaining a UPC code, contact the Uniform Code Council, Inc., 8163 Old Yankee Rd. Suite J, Dayton, OH. 45456 (513-435-3870).

What A Distributor Wants To Know About a Label's Release               

Has the artist had any success with established mainstream labels?

Does the artist have a following, if so, how well known are they?

If the artist is unknown, what specific promotion ideas does the label have?

Are there any well known "guest" musicians on the recording?

Does the recording, and artwork meet the standards of the musical genre?

Is there any current airplay on commercial or non-commercial radio?

Will there be independent promotion on the release to retail and to radio?

Has the artist hired a publicist, and/or what is the publicity campaign?

Will the artist be touring in support of their release, and is there a schedule?

Does the label have the financial resources to provide "co-op" advertising?

Does the label have the financial resources to press additional product?

Does the label have a salable "back catalog" of proven sellers?

How much product from the label is already out in the stores?

Does the label have other distributors selling the same product?

What are the next releases from the label, and when are they coming out?

Other Requirements The shipping charges are usually the burden of the label, but may be negotiated after a label has established itself as a customer. Most national distributors require an "exclusive" arrangement, making them the sole distributor of a label's product.

Many distributors have monthly newsletters, and/or update sheets, as well as catalogs. They may require labels to advertise in them, with the costs of the ad deducted from a particular invoice.

The Distributor One Sheet should be 1 sheet (8 1/2" x 11") and include:        

Label's logo and contact information Artist Name/Logo Catalog # and UPC code (Barcode) List price (i.e. $15.98) of each available format Release Date (to Radio) Street Date (for Retailers, if different from Release Date) A brief Artist background description Selling Points (Discounts, Marketing, and Promotion plans)

All "Promotional" product should have the artwork "punched, clipped, or drilled." This is to make sure that they are not returned to the distributor as "cleans". "Cleans" are the name for regular product sold in stores. Many people who receive "Promos" have friends in retail or at distributors, and can exchange "cleans" for CD's they personally want.

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Labels sell their CD's and Tapes to distributors for approximately 50% of the list price of the release. For example a $15.98 list CD might be purchased by the distributor for $8. An $9.98 cassette would be purchased for $5.

When an invoice becomes due for payment, the distributor may not necessarily pay that invoice in full.

For example, let's say a label has billed a distributor for a total of $5,000 worth of product. Let's assume that $1,500 of this product is still in their warehouse. This means that $3,500 worth of product is out in the stores, some of which is probably still on the store's shelves, unsold. The distributor is responsible for paying the $3,500 worth of product placed (less a reserve of 15% to 20% for the label's product which may be returned to the distributor by the stores.) The distributor would hopefully send a check to the label for about $2,800 to $3,000.

How "Co-op Advertising" works Co-op advertising is a way for record labels to pay for media ad space with product, and is an effective way to use their inventory to promote sales. For example, when a label wants to promote a certain artist's concert, they approach a retailer through their distributor. The label will pay for the cost of the ad, the retailer can deduct their agreed upon "buy-in" of the label's product from their invoice with the distributor, while the distributor then deducts the amount from their account with the label. In return for this, the ad features the artist's release, with a mention of the concert. The retailer, in addition to carrying the product (the buy-in), also agrees to give it good placement in their store(s), and put the product on sale for a limited time. Basically, this arrangement is a win/win situation for all parties involved.

Returns It is a standard practice that 100% of any defective and overstocked product can be returned by the stores to the distributors. They insist that every label they deal with accept this policy. If a specific title from a label is deleted from their catalog, the label must notify the distributor, and it can take up to one year for the distributor to get deleted product back from the larger chain stores. These larger chains will withhold up to 20% of their payables to distributors as a reserve against returns.

Shipping Instructions A packing slip must be enclosed with each order sent from a label to a distributor. This must include details on what was ordered, what has been shipped, the number of cartons in the shipment, and the Purchase Order number from the distributor. All product must be shrink wrapped. In most cases, for CD's, the jewel box is the standard package.

Invoices are sent separately, through the mail. The invoice should include an Invoice Number, invoice date, a detail of what was shipped, a ship date, unit prices of each title/format sent. The distributors PO number, and the total amount due, should also appear on the invoice. Each shipment must have it's own invoice.

Summary The distributor's job is to make the buyers at retail outlets aware of a label's product. They use their sales tools; promos, one sheets, airplay, press, and live performance reports to try and convince the buyers that they should stock the product they carry. If a specific title sells, it is the job of the distributor, in cooperation with the label to provide the retailers with a continuous flow of the product. It is essential that a label have a consistent, professional, and mutually respectful relationship with their distributors. Selling recorded product is a team effort, and that fact should never be forgotten. In the business of music, no one is an island.

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Check Your Music Sales Knowledge Test your knowledge of music sales in the industry...

Record distributors and retail stores are constantly searching out new product by recruiting the record labels and independent recording artists, trying to convince them to use their outlets to get CD's and Tapes to the public. True or false?

False. Nothing could be farther from the truth. At the mid-point of the 1990's, there has never been a time in music business history when there has been such a glut of CD's and Tapes feeding into the food chain of music distributing and retailing. It is the job of the artist and their record label to convince the distributors and the stores that there is a viable market for their music.

Being an artist or record label that has a track record of sales matters little to distributors and retailers. True or false?

False. The most influential factor that can help convince distributors and stores to carry a particular record is actual sales figures. If the artist has sold 1,000 or 5,000 CD's/Tapes at live shows, and/or through mail order, or on the Internet, that is the kind of information that is music to their ears.

It is the job of the distributor and their sales staff to promote an artist or band to their retail accounts. True or false?

False. The job of promoting a band or artist to distributors and retailers, as well as to radio stations, and the print media, is the job of the record label. There is a term used in music marketing known as "selling the seller". This term refers to the technique of convincing key players in the music business (radio, print publications, stores, distributors, and live music venues) to support a particular record because of the plans, successes, and various other merits of the record that will simultaneously benefit each key player in the food chain. As far as distributors go, once convinced to carry the product, they simply inform their retail clients of it's availability, and leave it to the label to do most of the promotion.

Current radio airplay is a strong negotiating factor in securing the services of a record distributor, and makes their job of working with retailers much easier. True or false?

True. Radio airplay is the most effective, yet most difficult promotion to obtain. If a record label has secured airplay in any particular region of the company, the distributors of product will be more inclined to carry the CD/Tape.

An artist or band that is currently on tour in support of their record helps a distributor sell records to their retail accounts. True or false?

True. Next to airplay, and perhaps even more important over the long haul, is live performance. It is very important and very effective in helping popularize the music of a band or artist. Any and all successes at playing the club and concert circuit should be monitored carefully, and the reports of the successes on the road, passed on to the distributors and stores. Labels make up "Distributor One Sheets" that list any and all information about a record that may help convince the distributors and stores to carry the product. Put tour info, radio airplay, print support, and any promotion or marketing plans on the sheet, along with the list price, the Barcode, the catalog number, and a brief Bio summary describing the genre of music.

Start-up record labels get support from distributors when they need to re-press a CD/Tape because the record is selling well. True or false?

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False. One of the biggest mistakes start-up labels make is being under financed. If a record label secures distribution, and the stores end up selling the product (due to a successful promotion and marketing campaign), the distributor calls the label to re-order the CD/Tape. If the young label has not anticipated the sales, and set aside the funds to re-press, there is a strong likelihood that the record will die a swift death. Distributors are not banks.

The most important selling point a record label has when talking to a distributor is that they have a recording artist that makes really good music. True or false?

False. The most over-used word in the music business is the word "good". Remember, the music industry is a business. "Good" is taken for granted. (Why else would a band or artist even record?). Success facts, plans, and strategies geared toward the benefits of the product for the particular business that a label is dealing with, is the way to go.

Without a back catalog of consistent sellers, a start-up label will have a difficult time convincing distributors and stores to carry their product. True or false?

True. The music business is an insecure business. Artists, musical trends, and fads come and go. A distributor or store takes a chance every time they plunk down their cash to purchase product. Will it sell?

Anything that the label or artist can do to prove that it will sell, enhances the possibility of linking up with distributors.

Getting paid by a distributor is the easiest part of dealing with a distributor. True or false?

False. It is the hardest part of dealing with a distributor. Not because they are dishonest--some are, some aren't--but because they are very cautious. Again, the volume of product they deal with is mind boggling.

If the record sold from the distributor to the store, will the store sell it? Will it be returned? Are there other distributors selling the product? Be consistent, honest, and in constant communication with distributors and stores. Develop relationships and friendships along the way. Plan and execute your marketing strategies. By the way, Distributors purchase product based on the retail list price. Their cost is usually around 50% of the list price. Discounts are offered in various forms to entice the distributors to buy more product.

Distributors help retail accounts get advertising in the print and broadcast media. True or false?

True. The way they can help is through what is known as "co-op " advertising. Arrangements are made between retail accounts and the record labels to share in the cost of media advertising. The labels provide product in exchange for a store purchasing a set amount of product to be available in-store. The ad mentions the label's product, and the store's logo and location, and price. The retailer buys the ad and deducts their share of the ads cost from their invoice.

Scoring 9 or 10: Sales HipMeister 7 or 8: Sassy and Savvy 5 or 6: Mild Mannered Mogul 3 or 4: Neophyte 2 or less: Sucker

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Top 10 Graphics Tips for Designing CDs 1. Reducing is good, enlarging is bad 2. Placement is everything. balance and use of space is critical 3. Choose fonts with your image in mind 4. Don't use more than 6 fonts total in any given design 5. Use easy to read fonts that distinguish clearly your name from any product title 6. Choose colors carefully, make sure lettering on colors is easily readable 7. Work creatively within your budget, and keep things simple 8. Put a barcode on the back cover all recordings intended for retail sales 9. Use a graphic artist with CD/Tape design experience.

10. Put artist/band name on the top 1/3rd of any CDs or records

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Do You Really Need To Invest In Your Own Barcode?

Musicians like to spend money on equipment: new instruments, new amps, or some new digital device they think will make music making easier for them. Musicians do not like to spend money on anything to do with protecting, promoting, or selling their music. So, when I bring up the issue of investing in a barcode for your independent record release, I can already hear the a lot of whining about the huge investment they might have to make in getting a barcode.

It costs $750 to get your own barcode. There I said it‌now, some of you might remember that just a few years ago it cost $300 for the barcode. That is true, (ever heard of inflation?) and believe me, there was just as much whining then as there is now.

But‌you may not need to invest in your own barcode, for awhile anyway.

A few years ago Disc Makers became the first CD manufacturer (to my knowledge) to offer their clients a free barcode when they ordered a specific number of CDs. Today, several other pressing companies offer them as well.

What these companies do is apply to the Uniform Code Council for their own barcode number, and just change some relevant numbers in the codes ascribed to each barcode, so that the novice independent label or entrepreneurial musician putting out a limited number of records can use their barcode, and yet still be perceived as a legitimate label by distributors and stores who stock music CDs, tapes, and vinyl.

Remember, the manufacturing company is the registered owner of the first five digits of the barcode number, and each barcode assigned to one of their customers is a unique 10-digit number (with two additional check digits). Disk Makers, for example keeps a numeric log on their computer system, which automatically assigns a unique barcode number to each customer who wants one. Apparently, it is not possible to duplicate a number, so you can relax about that issue. Each customer is guaranteed a unique number. When a distributor or retailer scans the record's barcode number into their inventory they scan the whole barcode number, which really is a unique number, and can be handled by the store's inventory systems. The recording artist owns that unique barcode sequence for their release. No one else will be using it.

The main purpose of having a barcode is so the Soundscan company, which tracks retail music sales with their trademarked system, can track your particular release properly. If a manufacturing plant offers a barcode to a customer, that customer's product may start tracking on Soundscan but, the default record label that shows up is Disc Makers. ( They bought the original code, remember? ) But again, relax, there is a Soundscan form available that the recording artist can fill out and submit which changes the barcode registration on that specific 10-digit number to the recording artist. The recording artist will be listed as a "sub-label," by Soundscan, but all their contact information will register with SoundScan. In case you are interested, you can download the relevant Soundscan form from http://www.discmakers.com, if you want to.

Now, having said all this, I feel taking advantage of this type of deal is a band-aid. In other words, if you are just releasing a few records, as a vanity project, or as a hobbyist, this may be a great, money saving deal, and you should do it. However, if you are trying to run a real record label, and have the intention of releasing many records over time, then you have to face the music, and invest $750 in getting your own barcode. You can only play at being a real record label for so long.

There now, don't you feel a whole lot better? (Hmmm. any whining that I did hear in the background has subsided. I like it when I can make you feel good.)

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Your CD Cover Is Your Most Important Advertisement Your cover is your calling card to the record industry and to the consumer...how well you design it and the other graphics for your release could well determine your success or failure as a musician.

Now that I have your attention, I have put together the following guidelines to help you realize the importance of the graphic design stage in preparing your music for the marketplace. A well designed and attractive cover, along with other detailed information you have included in the packaging, may well determine if the gatekeepers in the music business ever bother to listen to the music contained on the record, and if a music consumer is turned off or on by your graphics. It is the best advertisement for your music. So, go through the following questions and evaluate the design, graphic images, text (title, credits, etc.) and concept of your release by answering the following questions thoroughly and carefully. Then critique your cover in a professional manner, suggesting any improvements you think would help make the graphic design a more effective introduction of your music to the industry and your fan/customers.

Front Cover Is the name of the artist clearly visible?

Is the name written with a unique logo design?

Is the name of the artist in the top third of the cover?

Is the title of the release distinguishable from the artist’s name?

Is the genre of music hinted at by the cover art?

Back Cover What specific type of information is included on the back cover? ( Label name, catalog number, barcode, song titles/ times, contact info, production credits, more?)

Are the graphic images and text and colors used clear and readable?

Label Is the artist's name (logo) present and clearly visible?

What specific information is on the disc itself?

(Many artists leave the disc blank for 'artistic' reasons, do you wish to make such a statement, or are there more important considerations that should be addressed?)

Booklet/Tray Card Describe the type of booklet used in your packaging.

What specific images, and text information is included? ( More credits, thank you’s, lyrics, pictures, etc.)

Is the artwork and design consistent with the rest of the artwork and design of the front and back covers?

Spine What specific information is on the spine of the CD? ( Label name/logo, catalog number, artist name, release name?)

You have spent a long time writing, rehearsing, performing, and recording your music. Please take some time to consciously consider all the issues listed above, subtle and not so subtle, that go into creating your CD, Tape, or Vinyl release. Once approved and sent to the manufacturer/printer it will be too late to correct any second thoughts you may have had. (Will you still be proud of your cover 10 years from now?) Once released, your record will take its place in a retail store next to the thousands of other artists and bands that made it to the shopping arena where a consumer may or may not be attracted to your music by the artwork you have created. Never forget ... the career you save by learning the craft of cover design ... may be yours!

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A Music Business Revolution The evolution of the music business over the last hundred years or so has been filled with innovation, exploitation, and opportunities for everyone who had an investment in music. Songwriters, musicians, recording studios, producers, record labels, radio broadcasters, distributors, and retailers, as well as live performance venues and music publicists, have all struggled to find a way to get the public’s attention for their products and services. Today however, they are all being challenged by a recording industry in turmoil.

If you are just starting out in this business and or have just recently begun to feel tremors from the music business earthquake, this article was written for you. Keeping up on the changes going on with music today is a daunting task, but an essential one if you are serious about making a living with your music. I hope you take this information for what I intend it to be…an alarm to wake you from any naïve slumber you may be in.

Some Background The first faint rumble hit around 1982 when a digital storage device for music was introduced to the public, the CD. Little did anyone know that a revolution was underway that, within twenty years, would shake the recording industry to its very roots.

Over the next two decades digital information, anything that can be reduced to bits and bytes (1’s and 0’s), was a marvelous new medium. Not just music, but words (text), photographs, film, and video images became part of this revolution. Today we find ourselves in a multimedia world where the manipulation of digital content is taken for granted, but has caused chaos for music creators and business people trying to make a living from their music investments.

In the pre-Internet days, the only way to copy music was to tape a copy of an analog recording. The introduction of the cassette recorder in the early ’70s caused some concern for the recording industry as the sale of blank tapes escalated. When the recording industry finally became aware of a threat to record sales because of the cassette revolution, the record labels successfully lobbied for a tax on blank tapes to appease their fears of being left out of the income stream for blank tapes. (By the way, to this day recording artists get no share of that income.) Fears of lost revenue from record sales proved to be unfounded as home taping and trading of favorite music proliferated, and consumers participated en masse in making tapes of their favorite albums and songs for themselves, their friends, and family. This, of course, was a good thing. The recording industry had an army of unpaid record promoters working for them…spreading the gospel of cool music around the world. This analog style of music trading helped the industry grow substantially throughout the ’80s. The other factor that made music sales increase in the ’80s and into the ’90s was the fact that the labels consciously stopped pressing vinyl versions of most catalog and new record releases. Consumers were forced to buy new releases or replace their old vinyl favorites on CDs (and buy CD players to play them on).

When the popularity of home video recorders continued to grow throughout the late ’70s and into the ’80s another light bulb went off within the entertainment industry. Would the taping of television shows and movies be the end of the movie industry? Or, would the blank video tape and sales/rental fees from video releases be a boon to the industry, and ultimately create a new stream of revenue for the copyright holders of films and other video content?

The famous Betamax lawsuit laid to rest, for awhile, any attempts by the entertainment industry to stop consumers from enjoying the benefits of a rapidly growing technology revolution. Copies of audio or video content encourage the sampling of a broad spectrum of musical and cinematic creations, which in turn whet the appetite of entertainment consumers to own their favorite songs, video programs or movies…whether it happens in an analog form or a digital form. Most consumers of entertainment products prefer to own “the real thing,” the official record or video release, which requires a monetary transaction. The dramatic adaptation of DVDs today again proves this point clearly. People, in droves, are

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re-buying DVDs of their favorite films and other videos.

The changes brought about by cassette and videotape recording and the introduction of the CD were signs that things were changing, but it would take the personal computer and easy access to the Internet and the World Wide Web to really set the ground trembling.

The major jolt arrived in the fall of 1998 when Shawn Fanning introduced his compressed audio file trading software software, Napster, to the world. A new era of digital music trading of MP3 files was born, and all hell broke loose. Within weeks, two camps were set up. The “Napster Bad” crowd was made up of frightened old fart musicians, record label executives, and numerous other clueless industry business folks who saw a digital nightmare future and nothing else. The “Napster Good” crowd was made up of a strange mix of well intentioned free-speech advocates, passionate music fans, and mad music pirates who would give this new generation of music trading an international profile.

Making Sense of all the Chaos If you are confused with all the mud-thrown rhetoric from both sides regarding the ethics, morals, and financial repercussions of all things digital, sit down, take a few deep breaths…and get ready to fight for your right to copy.

As the summer of 2002 warms up, so does the fight for digital copying. The record labels, television networks, and movie studios are not going to change their attitude toward file trading. They will continue to defend their multi-billion dollar vault of music, video, and cinematic fare. They haven’t learned anything from history. They can only repeat their tired old mantra that “Copyrights are being violated.” Not, “Cool, all this file trading will groom another generation of entertainment consumers.” They believe that the population at large will be happy with illegal, inferior quality, digital replications of songs, videos, and movies. They just don’t get it, and I think I know why.

Thanks to computers, advancements in software, and the Internet, surveys come out almost every day showing how many millions of files are being traded daily, and billions monthly. But back in the ’70s, when the analog taping phenomenon was underway, there really was no accurate way to track how prolific this form of “trading” was. Making audio and videotapes was a huge phenomenon. Just how huge, we don’t know because there were no tracking systems for analog dubbing. However, it was going on, and to this day many people are still using this old fashioned file trading system to sample new music, etc.

Some people will say that the inferior analog quality of these audio and video copies was the reason the industry didn’t get so bent out of shape, and that a digital mp3 file is a whole ’nother story. No it isn’t.

Admit it folks, the fidelity coming from an mp3 downloaded song, for example, is far inferior to the high fidelity of a genuine CD recording.

And another thing. When it comes to downloading music and movies from the Internet, the consumer still has to take the time and trouble of storing large files on a hard drive or burning a CDR, and then you go back to the same situation we had with dubbed videos. You don’t get the official release packaging, and I’m telling you….THAT is the critical point to remember. Late adopters, the mass public, could care less about bootlegged, or home copies of any entertainment product…they want the real thing. They always have and they always will!

So, what to do?

Well, it’s going to be a rough ride for quite a while. Look for lots of lawsuits, technological restraints (like encrypted CD and DVD releases), legislative pressures, and a massive public relations campaign aimed at branding file traders and disc burners as spawn of the Devil.

Eventually however, things will calm down. The aging CEO’s and other frightened executives currently in charge at the labels, networks, and movie studios will grow old, and die off, and we can hope…we can

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HOPE that their successors will be men and women who have learned that punishing the consumer in any way, or fighting technology instead of adapting to it, are the wrong way to go.

Let’s salute those to come. Let’s applaud any actions that encourage digital trading and burning, and actions that invite those who enjoy entertainment products to participate in promotional offers, discounts, and interactive solutions that award those whose curiosity can always be turned into an honestly earned buck.

As for the creators of art and entertainment‌ what of them? They must adapt too. They must take more responsibility for managing their careers, align with businesses who are willing to restructure traditional royalty payment systems, and look toward an era when technology companies and consumer electronic devise manufacturers share a percentage of their revenue with the artists.

If a peace cannot be made between all players in the entertainment game, then the future is one that sees international consumer terrorists becoming as common as their political contemporaries, and no one wins in that scenario.

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Changes in the Way Music is Sold Over the Last 30 Years Artists and bands like Bob Dylan and Pink Floyd established their careers in a very different business climate than acts like Ani DeFranco or Jurassic 5 would do throughout the 90's and into the new millennium. In the early 70's the record industry had just awakened from the psychedelic dreams that that pop music renaissance of the mid to late 60's had brought about. In that era the 'rules' we have today about how to market and sell music were still being written. In those days most record labels believed in staying with new artists and supporting them over several albums, developing them slowly over time.

Times have changed.

Over the decades labels, distributors, and music retailers would be adapting to demographic changes in the youth population, advances in recording techniques (allowing for less expensive ways to record records), and adjusting to the profound impact that digital technology would have on old analog business practices.

The following comparison chart graphically summarizes some of the significant changes that have affected how records were sold in the recent past, and how they are being sold today.

Some Background....

Then

Now

Between 7000 and 8000 new releases a year.

Introduction of CD in '82 causes catalog sales to rise.

In '91 - 17,000 new releases In '93 - 26,000 In '97 - 37,000 2002 - 38,000 plus

Records were perceived as a bargain by consumers. Albums had many good songs to enjoy at a good price.

Confusion reigns. CDs are thought to be too expensive for what you get‌one or two songs of value. Prices vary too much from record club prices to store prices.

LPs and Singles ruled, cassettes were just taking hold with the short lived 8 track also competing for awhile.

In addition to CDs, there are DVDs, Vinyl, Cassettes, Video tapes, Video games. As well as MP3 files and other digital storage technology toys.

Cassettes and vinyl less than 5% of the market.. combined!

For non-music entertainment, you had movies, board games, Sporting and recreational activities, am/fm radio, limited TV (no cable channels yet), nightclubs, and books.

Today we have all of these, plus, personal computers, Satellite TV and radio, the Internet, Home Theatres with Surround Sound and Wireless devices galore.

Music was just beginning to become more portable.

The Sony Walkman arrived in the early 80's.

Music is everywhere. MP3 players are the size of a Palm Pilot (or smaller). Storage of music files is measured in dozens of hours. Streaming music available.

Music recognized as art, not 'product'

Emphasis is on 'product'. Art has taken the back seat to marketing.

Music Business Changes...

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Note: The reaction to the above observations has prompted the businessmen and women behind the scenes at labels, distributors, and stores, to constantly re-evaluate their investments in music, their strategies and tactics for marketing, as well as their business operation policies.

Then

Now

Artist Development at Major Labels creates a generation of 'classic' artists/bands.

Development of an artist's career, (except for young Pop acts), is left to the individual artist. Labels seek fast sales results from signed acts, or they are dumped.

Record sales and radio airplay charts were created by 'oral reports' from retailers and radio stations.

Soundscan (for Retail Sales) and Broadcast Data Systems-BDS, (for radio airplay data) are created in early 90's.

Today very accurate data is available for industry to evaluate.

Record sold primarily at department stores, as well as independent record stores. The newer 'chain' stores were established during the 70's/80's.

Music retailing has consolidated. Top 10 retailers account for 70% of sales. Mass merchandisers, Rackjobbers and larger chain stores more important. without them no hit record.

Many regional record distributors. (Over 200 30 years ago.)

National distributors dominate today. Only a handful of One Stop Distributors exist today. Very hard to get any kind of distributor today.

Major Labels had branch offices across the country. Consolidation. Only a few big cities have major Independents worked their records regionally. label branch offices. Independent labels proliferate Major labels affiliate with more and more Indies throughout the U.S. over the decades.

Distributors worked on hand-shake deals.

Written contracts the rule. As long as 5 pages (single-paced) detailing how labels must work with the distributor.

More services, even financial assistance for labels who had a rising hit record and needed funding for pressing more.

Labels expected to be self-financed and be able to take part in store promotions setup by the distributor (Listening stations promotions, Co-op advertising programs, price and positioning deals.)

The costs of getting media (radio, press) were more Radio ownership has consolidated. Plus, high costs affordable. Plus, radio had not consolidated. of radio promotion, and scandals with various payola-ish policies occur. Commercial radio exposure is usually only available to the well funded labels. However, record sales and profits have not kept up with rising costs of media exposure.

Costs for making (pressing) records was relatively high, and only affordable to legitimate labels.

Cheaper to manufacture CDs today, but high costs of marketing have offset advantage this may have.

Also the cheaper pressing costs, coupled with less expensive recording costs has created a deluge of independent releases. Saturation point has been reached. People can absorb only so much 'new'

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product.

Fewer releases allowed retailers to stock and sell more records.

With over 400 releases a week coming out and only a handful of releases accounting for most sales, plus high costs of running a music retailing business, stores are more reluctant to stock product that may not sell.

Most record sales are from brick and mortar record stores, who get their records from One Stop Distributors, Indie Distributors and Rackjobbers.

Artist's sale of their own records at live shows more important than ever. Consignment to local stores also very important now. Records today are soldby many types of retailers.

Major Labels sold their product directly to any and all record stores. This policy stopped in late 70's.

Major labels more selective today. After 20 years of not selling to smaller record stores most labels have re-opened accounts with key Mom and Pop, and Independent stores.

Major labels sold records at same fair price to all brick and mortar music retailers.

Controversial pricing policies by major mass merchandisers caused many store closures in the mid 90's. MAP (Minimum Advertised Price) policy enforced by mass merchandisers sold CDs for less than they paid for them. Causes independent store closings. (They can't compete with prices.)

Store inventory systems not computer generated.

Hand counts and guessing on potential sales is the order of the day.

Point of Sale (POS) scanning systems allows more accurate tracking of store's inventory. Easier to see what music is popular and selling…harder to convince retailers to carry your record unless you can prove it is selling.

Mail order sales, record clubs, and catalog sales compliment the brick and mortar record store sales.

Major labels beginning to get into direct online, Internet-based sales with services like Pressplay and Musicnet. Independent services like MP3.com, CDBaby, and CDStreet up and running for years a viable way for independent artists to get their music to fans.

Summary...

The record industry has grown up. It took until the late 1970's for the sales of records to exceed one billion dollars. Today it is domestically almost a fourteen billion dollar industry. With that rapid a growth it is not surprising to see how necessary it was for the industry…labels, distributors, and stores….to grow up.

Today anyone wishing to sell the 'art' that may be contained on round plastic discs, or contained in compressed audio files, has to rid themselves of any notion that a golden age of popular music (concentrating on the music only)…is an age still with us. Today the successful artist is one who marries the two worlds of art and commerce together, and realizes that with all the issues at hand, it is indeed a business that delivers music to consumers.

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The Business of Music Anyone with a few bucks can go into a recording studio and come out with enough material to release a CD on an unsuspecting world. And that is precisely the point. You've recorded a record...so what?

Everybody and their sister can rent studio time. Isn't there a bigger question? What do you intend to do with it?

Making music and making a living from your music are not the same thing. When it comes to getting your music into the marketplace, you have entered the domain of Music Business Economics 101, and the first lesson is: The Supply of Existing Marketable Music Is Greater Than Any Demand For New and Unknown Music.

You have to make people aware of your music, and You have to create the demand for it, by getting the attention of the various gatekeepers in the record business and in the media who control the access areas for exposing new music (the record labels, distributors, stores, and live venues, as well as radio, TV, and the print media). No one is sitting at home waiting for you to release your music.

By saying all this, I presume that the intention behind recording your music was the intention to get your music in the hands of the record-buying public. Well, do you have the contacts and funds to properly distribute, promote, publicize, and perform that music? So many artists and bands go through the expense of recording and manufacturing their music only to find out they didn't save any money for the marketing end of things.

There are two music worlds. There is the world of pure music, which involves the creative side of things, songwriting. rehearsing, and performing, and there is another world which must come into play IF you truly want people to hear your music...the Music Business.

Even the utterance of these words turns many people off. There is something potentially offensive about music becoming a commodity. It smacks of 'sellout', or a betrayal of sorts. But I feel strongly that there is a way to merge these two worlds, to not sell out, and to honor the way the business of music is conducted.

For starters, keep control of your music for as long as possible. Put out your own CD and dive into the selling and promoting of it. So many people want to rush off and get an A&R Rep from some record label to listen to their CD and make them the next Pearl Jam or whoever.

The point is that so many bands these days talk about "getting signed", and I have even overheard conversations to the effect that bands say they are forming in order to "get signed" by some label.

Musicians that are concerned about money before they even know anything about the business of music are doomed to eternal unhappiness and frustration. Talk about a cart coming before a horse.

Music should always come first, followed close behind by simply asking oneself some simple music business questions, such as:     

What is a copyright?

What do publishers do?

What happens when you do sign with a record label?

Why do labels pay the royalties they do pay?

What is a royalty?

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These are good beginning questions to ask when the urge to record and manufacture a record comes to mind. But let's ask a few more questions that take a quick inventory of some considerations about getting your music to the people. (By the way, I won't answer all these questions for you in this particular article.

My hopes are that by making you aware of some basic issues you will take the initiative to learn as much as you can about the music business.)

If my attitude seems to be one that the odds are against you, and so why even bother trying to make a living from your music, you are getting the wrong idea. Through years of teaching musicians the business of music, my only concern is to be honest about the odds. Once we know what it really takes to compete in the music industry, we can at least look at the realities we must face, and decide if we want to fight the good fight, or simply go back to having our music be an enjoyable hobby. To help you get a feel for what all must be done, let's keep asking a few more questions.

So here we go:          

How should the artwork for the CD be designed?

What information should be on the product?

Should I sell my music at live shows?

Should I consign my CD's to local stores?

What do Distributors want from me in order to carry my music?

What price do I sell my CD's for?

Will radio play my Indy record?

How does commercial radio choose what it plays?

What newspapers, magazines, music trades and fanzines might review my music?

What clubs and other live venues might I play in?

I could go on, but I think you get the point. After 25+ years of supporting independent music and musicians, my closets are full of 'wanna-be' demos, records, and CD's. I know that much of the music on those records etc. is good music, but that's just the point...GOOD has very little to do with anything when it comes to the music marketplace. GOOD is taken for granted. Why else would anyone go into a studio to record, if they didn't believe their music was worthwhile?

Think about the questions I brought up. You cared enough about your music to record it, so don't stop there. Protect it and prepare it for the marketplace in a way that is comfortable to you.

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Test Your Knowledge: How to Shop for a Record Deal OK...so, you think you know a thing or two about a thing or two when it comes to preparing to shop for a record deal? Well, take the following test and e-mail me your answers, and I will let you know just how much you really do know about the world of ‘getting signed’, the job of the A&R reps at a label, writing your promo materials, and developing your career in a positive way.

Good luck!!!

Chris Knab The following questions are True/False and Multiple Choice.

1. The Demo packages you send to A&R Reps should contain exactly the same information that you would send to a club owner.

A&R Reps will listen to a demo tape as long as it keeps their attention.

A&R Reps participate in developing the marketing plans for their acts.

A&R Reps must study the current marketplace for musical trends on a regular basis.

Cover letters are generic, you send the same exact letter with the same content in it to all recipients.

6. The first paragraph of a Bio should contain background information on the artist.

7. An A&R Rep can help arrange the recording for an act they have signed to their label.

8. A&R Reps get paid by the artist from a percentage of their royalty rate.

9. An A&R Rep can assist in finding the right songs for an act to record.

10. When you copyright your material you are giving the licensee the rights to use your material.

11. The 4 key areas or ‘fronts’ used to develop an artist’s career are: Product Development, Promotion, Publicity, and Performance.

12. When designing a J card or Traycard it is important to remember that your cover art can help describe your music with the graphics that are used.

13. After an act has been signed, the A&R department at most many major labels provides the information to be included on Tray Cards, J Cards, and other promotional materials.

14. Thou shalt not play live regularly, is one of the 10 commandments of Rock n’roll.

15. If an artist has recorded a demo, they should include at least 5 or 6 songs on the tape.

16. The best way to get a contract with a major label is to party with the stars of the music scene.

17. Designing stationary with an act’s Logo, address, and phone numbers is an effective tool for insuring contact information is on all parts of the Demo Kit. 18. It is always a positive thing for an act to be involved in a "bidding war".

19. Because of bidding wars, many concessions are now made to recording artists in their contracts with record labels, that were not there before.

20. 8x10 Black and White glossys are standard for press kit photographs.

21. When a photograph is sent with a Demo package, it is important to include contact information either on the front or back of the photo.

22. A J card is a card sent to an A&R rep from a major label as a thank you for listening to a tape.

23. One of the best ways to promote a demo tape is to find out whether or not ‘follow-up’ phone calls are in order.

24. The first sentence of a cover letter should introduce yourself, and the reason for the cover letter.

25. Poorly recorded demos can have a negative influence on music business professionals, who listen to these tapes on a regular basis.

26. A controlled composition clause is a clause in a recording contract that deals with the fact that only 75% of mechanical royalties due to a songwriter and publisher of the songs contained on a recording, will be paid by a record label.

2.

3.

4.

5.

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27. A bio differs from a fact sheet in that the bio can elaborate on a certain fact or anecdote about the artist, but a fact sheet must simply list those facts or anecdotes.

28. In writing a fact sheet, all the key information from the Bio should be in it.

29. To have 'ears' in the music business means you are the type of person who hears and spreads a lot of rumors..

30. When hiring a music business professional to shop for a deal, the issue of whether or not a payment up-front is due, is a negotiable point.

31. It doesn't matter if a person can spell or write a coherent sentence, because in the music business all that matters is the music.

32. In a bidding war, it often happens that the labels bidding for the services of a certain act want the act solely because other labels are interested in them .

33. Sending unsolicited demo tapes to the major labels is a potentially ineffective method of shopping for a record deal.

34. Using quotes in a bio can be less powerful, than describing the music on your own.

35. A good Bio, like a good song, should always have a hook, or a specific angle to it.

36. "Frontloading" a demo tape means only, putting the best song first on the tape.

37. The design and look of a demo kit matters not at all in the 1990’s.

38. ‘Deal Memos’ are not legally binding documents.

39. The advances given to an artist in a recording contract are exactly like the loans given by a bank, and must be paid back, with interest, by the artist.

40. Researching the artist's background is mandatory when creating any publicity or promotional material.

41. Neatness, package design, and creativity are three helpful attention getters to keep in mind when putting together a demo kit.

42. The subject matter of each paragraph in a bio is written in the following order: 1. History and formation info 2. Introductory statement 3. Current summary of activity 4. Additional Data and Elaboration, and 5. Summary/Closing.

43. How long a tape shopper has to shop a demo tape for an artist matters very little.

44. An A&R reps responsibilities at an indie label is exactly the same as an A&R job at a major label.

45. Everything that was said in class in the lectures and everything that was written in the handouts is absolutely true in every way, and if followed precisely, will result in guaranteed success and untold wealth for each and every aspirant in the music business.

46. The artist’s business team consists of a Manager, Booking Agent, and Attorney.

47. If an artist has not filed for copyrights of their songs, it is the job of the A&R Rep to take care of that job.

48. Most Major Labels know what they are looking for when they audition new talent.

49. No contact information on Jcards and labels is a leading reason why many demo tapes get trashed.

50. When a contract is being negotiated, the only people directly involved with the legal negotiations are the label’s attorney and the act’s attorney.

51. Sending video demo tapes in place of audio demo tapes is standard business practice ever since the emergence of MTV as a major force in the music marketplace.

52. Which of the following is not the duty of an A&R Rep at a major label? a. discover talent b. book tours for the act c. participate in marketing d. be a liaison at the label for the act e. none of the above.

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53. Which of the following is not a reason why tapes get rejected? a. the music sucks b. lack of musicianship c. poorly recorded songs d. lack of originality e. none of the above 54. 54. Which of the following are not ‘gatekeepers’ in the music business? a. A&R reps b. PDs and MDs at radio stations c. Buyers at Distributors d. Writers at magazines and newspapers e. none of the above 55. In a bio, concentrating on how good the music is, is the most effective thing to say.

56. When designing a fact sheet, one of the most important sections to include is ‘Musical Genre or Style’.

57. What type of information should not be included in a bio? a. too much hype b. marketing plan info c. background info d. music description e. city/area if origin 58. The 3rd and 4th paragraph of a bio should concentrate on the current activities of the artist.

59. Where is the ‘purpose’ of a cover letter most effectively stated? a. 1st sentence b. In the salutation c. the body d. the closing 60. 60. Which of the following is not a good tip for writing a cover letter? a. Tell the reader what you want b.addressing an unknown contact by first name c. keep the writing style natural, positive, and personal d. reminding person of previous contact or reference 61. In a quote sheet, which of the following sources for quotes should be kept to a minimum? a. writers b. radio station contacts c. producers d. fans e. none of the above 62. Small reviews should never be included in press clippings.

63. It is more effective to select ________ of the best press clippings: a. 2 or 3 b. 4 or 5 c. 6 or 7 d. it doesn’t matter how many 64. The best way to assemble demo kit materials is: a. in a 3 ring binder b. stapled together c. loose in a folder d. bound 65. When in doubt what to send in a demo kit: a. put everything in b. presume what their profession needs c. ask the intended recipient d. none of the above

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66. Depending on the genre of music, a "too slick’ demo kit can hurt the artist.

67. A Major label will have a lot of people working on a lot of releases at any given time.

68. In the 90’s, when giving contact info, providing the media with fax or email info is important.

69. A quote sheet is the same thing as a press clipping.

70. A song is considered published when copies of the song have been distributed to the public by sale or by other transfer of ownership, and/or by rental, lease, or lending.

71. Legal proof of copyright ownership is accomplished by registering songs with the copyright office in Washington DC. 72. Mechanical rights and Performance rights are different names for the same source of income for songwriters and publishers.

73. A song that is used on a soundtrack for a film or TV show is called a synchronization.

74. Artist and bands who establish their own careers, and demonstrate a strong fan following are more likely to be attractive to record labels in this day and age.

75. It is not possible to send the ‘right’ music to the wrong label.

76. A ‘hook’ is that part of a song that is most memorable.

77. Examining musicians union bills and overseeing their payments is a job for the A&R administration department at a major record label.

78. The administration department at a major record label monitors the funds allocated for the recording budget of an artist or band.

79. A&R departments at major labels do not contact any other departments at the label because doing so could cause a lot of problems for the rep and the artist.

80. The label of a demo tape should always have a copyright notice, but contact info does not have to be on the label, because it is usually on the JCard.

81. Which of the following is not important to remember when taking band photographs? a. background objects b. clarity and brightness issues c. number of people d. band’s image e. none of the above 82. Photographers do not have the rights to the photos they take.

83. The best way to find a competent photographer is to look in the yellow pages.

84. Which of the following is not one of the many ‘myths’ that new artists believe? a. people in position of power are never wrong b. putting out your own record and building your own career is a good idea c. a record deal means success d. the best way to make contacts is to party with the stars e. record labels know what they are looking for 85. The world of the A&R rep is very structured, and every rep is trained and disciplined to evaluate, search, and discover talent in the same exact way.

86. Booking agents are as easy for new artists to get as Managers.

87. If an artist develops their career successfully, a Manager is usually the first ‘team’ person to get on board.

88. Most attorneys charge their fees on an hourly basis.

89. As an artist career develops, a business manager is brought on board to handle the money.

90. In a recording contract (outside of bidding war deals) which of the following are rarely negotiated? a. ownership of the masters b. recoupment issues c. term of contract d. exclusivity issue e. recording budgets

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How to Write a Cover Letter Prototype and Instructions Your Name Your Address Current Date Name of Contact (Mr. or Ms.) Name of Company Address Dear Mr./Ms., It was a pleasure meeting you at ____. In the brief time we had to talk, I mentioned the group _______, an __________ ___ band from Seattle that I have been working with for the past year. You were kind enough to suggest that I send you a copy of their CD. Enclosed you will find their demo, and the _______ you requested. ____________ will be playing several gigs around Seattle in the next couple of months. If you enjoy the CD, and would like to see the bands live show, let me know and I will put you on the guest list for one of their upcoming shows.

The band recently got a great review in _________. ______ _____ reviewed a recent show by saying; Not since _______ have I heard such ________ and _______ ________ . When you get a chance to hear their CD, I think you will agree with that comment.

If you have any questions about the band, please feel free to call me anytime. I can be reached at ___ ___-____.

I will be contacting you next week to follow up on this letter.

Thank you for your time.

Sincerely, Your Name (be sure to sign the letter) Instructions for writing a music business letter.

1.

2.

3.

4.

Justify left the whole letter.

At least 2 inches down, put your name and address.

Put the date next, after your name and address.

The Salutation: Address the letter to the person using their last name, (unless you are certain that you are on a first name basis with the person.) i.e.

Dear Mr. Mann, or Dear Ms. Gunderson, (Use a comma after their name.)

5. The Body: This is where the purpose of the letter is stated. The first sentence should introduce yourself, and the reason for the letter. It is always a good idea to include in this

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introduction, the circumstances of having previously met or talked with the person to whom you are writing your letter. Keep the paragraphs short. One paragraph, one thought.

Be sure to have a short descriptive sentence that addresses the genre of music that the artist makes. Mention any attachments you have included along with the letter. Mention, with quotes if possible, something positive that has been said about the artist’s music by other music business professionals. Mention any live shows that are up-coming, and invite the person to attend a show.

6. The Closing: End the letter with a thank you for their time. Mention that you will be looking forward to hearing from them. Mention that you will be contacting them as well.

7. Be sure to close the letter with the term "Sincerely", then drop down several spaces, type your name, and sign it above your typed name.

A Few Other Tips

1.

2.

3.

4.

Tell the reader what you want from them.

Make the letter easy to read.

Keep your writing style natural, personal, and positive.

Be polite and considerate in your tone.

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What A&R Reps Do What exactly is an 'A&R' rep anyway? We hear the term all the time, and most of us have a certain picture in our mind. But it is correct? Here's a short job description.

An A&R Reps Primary Job: Seek talent by:     

Auditioning demo tapes (solicited, as well as unsolicited, depending on record label policy.) If interested, ask to see artist perform live.

Attending live shows at clubs, showcases, concerts, and other venues.

Following leads from any ‘buzz’ created by artists.

Checking industry insiders (managers, agents, attorneys, concert promoters, label promo reps, retail contacts, trade and consumer press tips, regional ‘scenes’, or other sources.)

Watching for talent on other labels, who’s contracts are expiring.

Other Responsibilities       

Evaluate talent and match with potential audience tastes.

Sign talent to label with executives approval.

Search for new songs for existing talent on the label.

Coordinate label relationships for an artist, once they are signed to the label.

Provide creative input and direction on artist’s material.

Find suitable producers and recording studios.

Plan the recording budget with the business affairs department.

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Music Industry Quotes To Live By

by Christopher Knab - Fourfront Media & Music - May 2001

Back to Music Business 101

A Collection of Music Business Quotes (with thanks and/or apologies to all contributors) Assembled by Christopher Knab Over the years I have collected various quotes I found in magazines, books, email messages, and the internet. For anyone wanting to learn about the business of music, reading these quotes will be a college education.

"We live in an age of music for people who don't like music. The record industry discovered some time ago that there aren't that many people who actually like music. For a lot of people, music's annoying, or at the very least they don't need it. They discovered if they could sell music to a lot of those people, they could sell a lot more records." T Bone Burnett "The whole music business in the United States is based on numbers, based on unit sales and not on quality. It's not based on beauty, it's based on hype and it's based on cocaine. It's based on giving presents of large packages of dollars to play records on the air." Frank Zappa "Modern music is people who can't think signing artists who can't write songs to make records for people who can't hear." Frank Zappa "Just because it happened to you, doesn't mean it's interesting" Dennis Hopper (Search and Destroy) "Just because you can record, doesn't mean you should." Christopher Knab, FourFront Media and Music "Independent labels take nothing and make something out of it. Major labels buy that something, and try to make more out of it." Tom Silverman, Tommy Boy Records CEO "When you hear my records today...you hear a vanilla sounding artist with no black inflection, although I was trying to imitate what I heard." Pat Boone "You go through stages where you wonder whether you are Christ, or just looking for him." David Bowie "You've gotta be business savvy really, or elso you get the piss taken out of you." Melanie B, Spice Girls "Actually I don't know if honesty is a strength or some kind of weakness." Ani DeFranco "That's not easy to find in a corporate world, somebody who cares about music." Michael Penn, musician "It's magazines like HITS that have to label things." Nina Gordon, Veruca Salt "I'm a snake oil salesman as much as anyone else, but I try to keep something for myself." Freedy Johnston "Anybody that forms a group, writes songs and releases records and says they don't care if people like them are complete liars." James Dean Bradfield, Manic St. Preachers

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"Music is a big machine that would go on with or without me." Rob Thomas, Matchbox 20 "Rap fans are quick to forget what they appreciated just last year." Trugoy, De La Soul "In this business, the first rule is, never act out of desperation, because there is always someone out there looking to sucker you." Kevin Czinger, Volcano Entertainment Founder "In the music business bigger is not necessarily better. In fact, I believe smaller is actually better." Chuck Kaye, Dreamworks, SBK Publishing "When we had a record blow up, we really knew how to put it through its paces. it wasn't groping through a voyage of discovery." Steve Vining, Windham Hill President "To sustain hatred is a very difficult thing to do, year after year. It's exhausting." Nick Cave, alternative rock musician "The problem with alternative radio is that it has no fiber at all, and is giving itself it's own enema." Mike Halloran, former KUPR PD "The hardest thing in the world to do in this business is start a band nobody's heard of." Tom Whalley, Interscope Records "If we do our job...Music's not black or white, it's green." Jim Caparro, PGD "Going to radio with a rap record prior to going to the consumer is like having no foreplay with your girlfriend."" Lyor Cohen, Def Jam/RAL "There would be no new school without the old school."" Vivian Scott, Epic Records "Money had never been the main thing for me. It's the legacy that was important." Barry Gordy, Motown Records "Our whole preconception will be what's going to make the kid push our button and not someone else's."

Bruce Kirland, Capitol Records "We'll take advantage of the changes going on in the music business because we're lean and mean."

Miles Copeland, IRS Records "That's the shame about Miles Copeland; he's evil, but he's got a heart of gold." Dave Wakeling, General Public "If this company is about anything, it's about discipline and staying focused." Jimmy Iovine, Interscope Records "We are the Beavis and Butt-head generation, whether we want to recognize it or not." Billy Corgan, Smashing Pumpkins "People don't buy plastic and paper, they buy emotions." Scott Young, Wherehouse Entertainment "American music is something the rest of the world wants to listen to. Our job is to make sure they pay for it." Jason Berman, RIAA "I've probably put together more deals backstage at concerts than by telephone." Michael Lippman, Lippman Entertainment

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"I'm a survivor in a business that constantly rejects you." Dick Clark "I never had the feeling I ever had to make a dime doing anything." Rick Rubin, Def American "I hate to say this, but at the time, (late 70's) it was like the smart people liked punk and the dumb people liked Journey." Howie Klein, President Reprise Records "I've made hundreds of legendary records that people talk about that didn't sell." Jerry Wexler "Without freedom of expression, good taste means nothing." Neil Young "I think anyone with less than 10 years experience in this business starting his own label is looking to create a disaster." Russ Regan, Quality Records "Who could have dreamed in 1965 that the alternative society would eventually multiply to such extraordinary proportions that it becomes our mainstream." Bill Graham "I want to hear the word 'cherish' about 5 times." Clive Davis, Arista Record ( listening back to an Air Supply song during a mixdown in the studio) "If the milk industry can make their product seem sexy and increase consumer demand, there must be hope for music." Gary Arnold, Merchandising Manager, Best Buy "So many record companies turned me down, they said I sounded like a Chipmunk." Brandy "Being a manager or agent is similar to renting an apartment. Having a record company is like owning a home." Rob Kahane, Trauma Records "I think the second you feel you've gotten somewhere, you're nowhere." Michael Goldstone, VP A&R, Epic Records "You're a local band until you get a record contract, then all of a suddent Bruce Springsteen is your competition. Sammy Llana, The Bodeans "I don't listen to music, I hate all music." Johnny Rotten "I don't think anybody steals anything; all of us borrow." BB King "He took my music, but he gave me my name." Muddy Waters on Mick Jagger "We're the McDonalds of rock. Were always there to satisfy, and a billion served." Paul Stanley, KISS "Don't try to explain it, just sell it." Colonel Tom Parker "The way I see it, rock n' roll is folk music." Robert Plant "I wish there had been a music business 101 course I could have taken." Kurt Cobain "Rock n' roll does for music what a motorcyle club at full throttle does for a quiet afternoon. The results bear passing resemblance to Hitler mass meetings." Time Magazine, 1956 "Rock n' roll is poison put to sound." Pablo Casals "In Los Angeles, they don't want you to fail, they want you to die." David Geffen "I sent a demo of the band Confederate Fagg to an A&R friend at Sony. I asked him what he thought. He

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said, "Don't know yet. Let me see what my boss thinks." Dave: Kathoyd Ray "There are more letters in the word 'business' than there are in the word 'music'." Anonymous "Consumers have musical choice? What musical choice? In or society we choose only from what we are given to choose from, and that choice is determined by 5 major media corporations who control the exposure outlets that consumers depend on for their entertainment." Christopher Knab, FourFront Media and Music "Music executives need to start thinking less like men and more like women. As men, we tend to believe more in selling someone something for $15 and transferring it to their possession without ever learning their names. Women understand the value of starting a relationship that never ends. There's too many men in our business.'' Anonymous "If you are still at the same point you were after six albums, and all of them came out on a major label, I don't want to hear about how 'the label didn't understand us,' or 'our management didn't make us a priority.' If after that time you are still at the same level, either you suck, or people do not like you."

Anonymous "Record companies like to make money, and that is their only goal. They do not care about the content that they sell - they care about maximizing their profits. It is because of this that I hate record companies with the same passion that I hate venture capitalists. The record companies do not try to foster a creative environment which rewards musicians who serve their respective niche, but create an environment which attempts to market a small amount of music to the largest audience possible. It is more profitable for the record company to sell a few decent records in bulk than to have a vast array of cult hits that sell decently. " Numair Faraz

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Deals That Await Successful Independent Music Labels

by Christopher Knab and Bart Day - Fourfront Media & Music - January 2001

Back to Music Business 101

Over the last few years this column has concentrated on issues related to promoting and marketing your career as an independent musician. The most important thing an artist can do to get the attention of the recording industry is to start your own label, and build a reputation for your music by showing the industry how popular your music is, i.e. how many people bought your record.

As the new year begins I wanted to give you some information about what can happen IF you do get the industry's attention. Starting an indie label is really quite similar to starting your career as a musician.

Your label needs to impress the music industry with its stories of success, just like you as a musician need to do the same with your creative talents. The reward for building a successful label is the possibility of doing business with a major label someday‌on your terms. Major labels need to work with successful indie labels to maintain their viability in a ever-changing popular music environment, so they keep their eyes open for indie labels and artist who have had success with a certain musical genre or musical styles There are several deals that may come your way as you get more successful. The following short summaries of the most common kinds of indie/major deals are given to you as an introduction to them.

They are discussed with far more detail in the book The Musicians Business and Legal Guide published

by Prentice Hall. There will be a new 3rd edition of this book available in the spring of 2001 by the way.

I would like to thank Bart Day, my co-author of the chapter dealing with this topic, for his cooperation and help in preparing this information.

Pressing and Distribution ("P&D") Deals: The name of this deal describes its basic premise. The indie label finances the recording process and delivers the final master recording to a major label distribution company, which then presses (i.e., manufactures) the records and distributes those records to subdistributors, retailers, etc. In the case of P&D deals, as in the case of the next three distribution-oriented deals discussed below, the independent label will retain all ownership rights in the master recordings.

"Distribution Only" Deals: Basically the same as the "P&D" deal described above, except that here it is the indie label, not the major label that presses the records. The major label's role is "distribution only."

Fulfillment Deals: Again, basically the same as the "P&D" deal described above, except that here the records are not distributed through the major label's traditional distribution system, but instead through an ostensibly "independent distributor" that is owned by the major label. This "independent distributor," acting on behalf of the indie label, then ships such records as are ordered by indie sub-distributors and indie record stores, and it also handles all billing responsibilities. In short, the "independent distributor's" role here is to fulfill orders from third parties for the independent label's records.

"Piggyback" Deals: Used when an indie label doesn't have the clout to get its own distribution deal.

Instead, in order to find distribution, the indie label must instead "piggyback" onto another indie label's already-existing distribution deal with a record distributor.

Production Deals: The "independent label" here is really just a production company financed by the major label, and is created solely for the purpose of producing records. The production company uses the major label's financing to sign artists and produce records, and then delivers the masters to the major label. The major label will manufacture and distribute the records and handle the marketing and

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promotion activities. The major label will own the masters.

Joint Venture Deals: The word 'joint' implies a joining of forces by a major label and an indie label, whereby they agree to share responsibility for the making of records and for the marketing and promotion of those records. These responsibilities are divided in whatever way the two labels agree upon in their formal joint venture agreement. The major label finances the joint venture. Then, from records sales income, the major label will reimburse itself for the expenses that it has occurred, and the net profits are then divided between the two labels.

Equity Deals: Think of 'equity' as having an investment in something. With this type of deal, the major label invests money in the independent label, and in exchange the major label acquires a part ownership or total ownership of the independent label and the independent label's assets and its contracts with artists.

Licensing by Major Labels: Here the major label owns the masters, but "licenses" (i.e., leases) the masters to the independent label for a limited amount of time (usually a few years), during which time the independent label will have the rights to sell records made from those masters. In return, the independent label will pay a royalty to the major label for each record sold. All manufacturing, marketing and promotion costs are paid by the independent label. The major label continues to own the masters at all times.

Licensing To Major Labels: The exact reverse of the above deal. Here it is the independent label which owns the masters, and which is licensing (leasing) the masters to the major label for a limited period of time. In exchange, the major label will pay royalties to the independent label.

"Rights Buyouts": In a "rights buyout" situation, the independent label will have previously signed a recording contract with an artist. Then at some later time, a major label buys all of the rights of the independent label in the artist-in other words, all rights that the independent label has in the artist under the terms of its recording contract with the artist. In short, the major label steps into the shoes of the independent label. In return, the major label normally agrees to pay a cash advance to the independent label and a royalty on future sales by the major label of records featuring that artist.

Happy New Year one and all!

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10 'Reality Sandwiches' For The Independent Musician.

by Christopher Knab - Fourfront Media & Music - February 2002

Back to Music Business 101

The term ‘Reality Sandwiches’ appeared in a poem by the late Beat poet Allen Ginsberg. I adopted it years ago to explain that there are certain realities about the music business that must be chewed and digested in order to rid ourselves of any naïve concepts and beliefs about breaking into the industry. With this in mind, the following observations should be taken as wake-up-calls about establishing your career.

#1: Make Music That Doesn't SUCK! We live in a time when everybody and their sister can and does make their own music. That doesn’t mean however that your music has what it takes for record labels to invest their money and time developing, promoting, and marketing that music. A&R Reps are always saying, when asked what they are looking for, “We don’t know what we are looking for, but we’ll recognize it when we hear it.” What we can read into this comment is that your music must truly stand out in some significant, original, dynamic, and creative way.

95% of the independent music out there contains regurgitated ideas that were ripped off from some other more gifted musicians. Don’t copy! Borrow yes, but copy no. Challenge yourself. What is it about your music that makes it stand out from all the rest? From songwriting to musicianship, music intended for the marketplace must be performed and recorded capably. Music that sucks is music that does not grab your listener. Music that sucks is music that takes only 10 seconds to dismiss because the production quality, or the vocals, or the lyrics are pedestrian at best, or mediocre for the most part. Music that sucks is music that sounds like you’ve heard it all before.

If you don’t think a lot of the music coming out today sucks, drop by your local college radio station and ask them to let you listen to some of the hundreds of new CDs they get in the mail every week. You won’t even be able to listen for more than 20 minutes to most of the independent releases that flood the market today.

Make music that doesn’t suck and you will be making music that makes the listener’s hair stand on end, or gets their feet moving uncontrollably, or singing your songs in the shower because they can’t get it out of their heads. Music that doesn’t suck is music that packs people into clubs, and gets people so excited that they are willing to spend their hard earned money to buy it. So, what does non-sucking music sound like? It sounds like all the varied records that are selling at live shows around the country, and it sounds like what the people are talking about to their friends. It sounds like all the great music you bought for your collection.

#2: Play Live Often and Don’t Worry About Getting Paid For Every Gig. You can always tell the difference between a musician who is in it for the money, and a musician who is in it for the music. The dedicated musician can’t not play music every chance they get. Money-focused musicians whine about the fact that they can’t get club gigs that pay anything. If you really think that you can make your living solely as a musician in the first three to four years of your career, you are headed for a breakdown and disappointment. Think about it...almost every legendary, gifted musician who has made a mark on our culture has been a musician who struggled long and hard at their craft, and never gave up.

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Eat determination for breakfast! Go out there and play on the streets if you have to, play at schools, fairs, festivals, do benefits to help other people and organizations. Offer your services to non- profits, charities, church groups, and any other companies or organizations you can think of. Hang out at clubs, look for jamming possibilities, or start your own jam sessions. Look around your city or town, and you will see many places and venues where musicians can play. As you establish yourself and more and more people show up at your shows, the paid gigs will increase. Remember... play live, and then after you play live, play live again, that’s what musicians are supposed to do.

#3: Be A Master Musician on Your Instrument.

One of the curious developments of the late 70’s was the huge increase in garage bands, punk bands, and ‘do-it yourselfers’, who just picked up an instrument, or started to sing with some friends, and 6 months later recorded a record and began to play live. Some great music, and new directions in music, came out of that situation. But now, 20 odd years later, the novelty of hearing amateurish thrashings has gotten a bit dull. Prior to the late 70’s, more often than not, the music that is our heritage was made by musicians who, from the time they took up their instrument, worshipped at the feet of some master rock n’ roller, bluesman, jazz player, folk legend, songwriter, or whatever. The habit of these inspired musicians was an appetite for perfection. A need to be not just good enough but GREAT. Why settle for less. Whatever developing stage you are at, go beyond it, re-commit yourself to your instrument or voice. Take lessons, or better yet, sit yourself down at your CD player and choose a favorite guitar player’s record, and listen closely to what they are playing. then re-play it, and re-play it again.

Challenge yourself to go beyond your limitations. Who knows, maybe you will fall into some new territory, wherein you will find yourself, your ‘sound’, and increase your chance to stand out from all the mediocrity that is your competition.

Believe it or not, record labels love to hear innovative, accessible new sounds. Actually in their heart of hearts, that is what they are really hoping to hear on every new demo tape, and from every new act they go see at a live venue. You see...in the business of music when we hear something new, original, and accessible, we can invest in you with some sense of security. We believe that if we put our ‘label brand’ on you, and add our talents of promotion and marketing to the mix, then we ‘have something’, and your music becomes our music, and we can work together to broaden you audience appeal. It’s like a partnership ...something about ‘Art and Commerce’...they can work together, you know. Be a professional, because a professional only lets the best come out of themselves.

#4: Protect Your Investment...Copyright Your Songs.

I never cease to be amazed how few artists are willing to spend $30 to copyright their songs. By the way, these folks are often the same folks who complain about not getting paid to perform their unknown music.

All I know is that when an inventor comes up with some new product that they think will appeal to a certain type of customer, the first thing they do is file for a patent on their invention. The same reaction to protecting songs should be there for any serious songwriter.

If you really intend to work hard and develop your career as a musician who writes your own songs, don’t wait too long to take care of this simple, but essential task. If you really believe in your unique and original music then take the time to learn the basics of copyright protection. From the Internet to the library, there a number of easy ways to learn what it takes to file for copyright protection. Do it now!

#5: Design Simple, But Effective Promo Materials.

The topic of designing and writing effective promotional materials; bios, fact sheets, cover letters, quote

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sheets etc. is a lengthy one to say the least. Here are 3 tips to help you promote your careers, and enhance your chances of getting some deal offers. Do the following:   

Take the time to inventory any accomplishments, positive reviews, training and awards, past sales, and live appearances, and organize them into bios and fact sheets.

Make your promo materials as compelling, and informative as possible. If you can’t write, hire a professional publicist.

Having done that, take more time to research who to send the materials to, and to ask each potential recipient what type of information they would like to have sent to them. No ‘generic’ kits should ever be sent out to any gatekeepers in the music business.

#6: Know The Labels and Publishers You Hope To Be Signed To. If you were applying for a job with a certain company of corporation, wouldn’t you take some time to ask questions about their stability as a business, their reputation in the industry, and the executive’s background and experience? The same is true when shopping for a record or publishing deal. Some musicians get so excited when a certain label or publisher approaches them with a contract offer. Being approached for a deal is a compliment and is a recognition that a musician’s music is attractive to them.

But, to rush ahead without taking the time to learn a few things about those companies is foolish indeed.

Ask some questions:      

How have they done with your particular genre of music?

What specific kinds of deals are available?

Who runs the label or publishing company?

What is their reputation in the music business?

What are their ideas for promoting your music?

How do you like them as people?

These and other questions can be crucial in making an unemotional decision about an arrangement that could make or break your career.

#7: Have Your Own ‘Entertainment Law Attorney’ To Represent You. The business of getting signed to any deal in the music business has always had, has now, and will always have, the involvement of entertainment law attorneys. No jokes will be inserted here, because any relationship between a musician, a record label, a publisher, a merchandiser etc. will come down to two attorneys hashing out the contract for the musician and the respective companies.

When all is said in done with the ‘courting’ process, the musician is never present during the actual negotiations. The musicians attorney and the music company’s attorney meet, talk over the phone, and fax their offers and counter-offers amongst themselves. This fact serves to remind you that choosing a reputable, ethical, well respected attorney with lots of deal-making experience within the music industry is an absolute necessity for any serious musician who wishes to fight the good fight in the legal arena. You may not need an attorney right now, but you should find out what lawyers are available to you in your area. The Yellow Pages of Rock, or the Recording Industry Sourcebook are a good place to start your research.

#8: Choose A Well Connected and Respected Personal Manager.

Self management is always a valid option in the developing stages of establishing your career as a musician. Much can be learned by taking on the jobs of securing gigs, getting some publicity, planning

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tours, dealing with personal issues that arise within the band, and schmoozing with A&R Reps and various other label and publishing personnel. However there comes a time, usually when the daily tasks of doing the business of being a band takes up too much time, and it is then that the services of a good manager can be very useful. I have always felt that if any musician or band has worked hard to establish their career, and achieved a modicum of success, they will have a better chance to ‘attract’ the services of a professional, well-connected and respected manager.

Managers who do this job for a living can only take on clients that generate income. Making money as a personal manager is no easy task, and many upcoming artists forget that if any moneys are to be generated from their music, it can takes years for the flow of that income to be reliably there. So, as a band develops self-management, or gets help from intern/student manager-wannabees, can help pave the road for professional management.

Over the years I have heard several horror stories about ‘managers’ that approach upcoming acts and say that for X amount of dollars, they can do such and such for the artist. No! This is not the way legit personal managers work. Personal managers get paid a negotiated fee (20%-25%) for their services (get it in writing) for any and all business transactions they are responsible for over a particular contract period. No musicians should ever pay a fee to a so-called ‘manager’ who will not do any work UNLESS they are paid upfront. Flim-Flam men and women still abound in this business... be forewarned.

One of the most important jobs of a manager is to secure recording and publishing contracts for their clients, this is why it is so essential to choose well connected and well respected managers. The music business is a ‘relationship’ business. Who know who, and who can get to know who, and who did what successfully for who, is what this management game is all about. Choose carefully those people who will be representing you in any business dealings.

#9: Choose A Well Connected and Respected Personal Manager.

The best advice I have gotten in the music business came from people who talked the talk, and walked the walk. The second best advice I received was from the experiences I gained from building my own career; learning from my interactions with the gatekeepers at labels, the media, management, and booking companies as to what was right or wrong for me.

You can tell when you are talking with someone in the music industry whether or not they are full of shit.

Look them in the eye. Listen to how they talk. Just buy yourself a high quality bullshit detector and make sure you keep the batteries charged. Trust your intuition. If it ‘goes off’, listen to the inner voice that is detecting deceit or deception. Most of the time your instincts will be right about the advice you seek.

If you feel that the source you have contacted knows what they are talking about, and has had first hand experience doing what you want to learn about, that is the only advice that might stand up over time.

#10: Musician...Educate Thyself! If You Want a Record Deal, Learn What a Record Deal is, and Learn Something About the Business of Music.

The ignorant, mis-informed musician is a menace to themselves. Enough already! Over the decades there have been countless stories of musicians who were ripped off by their record labels and music publishing companies. Why? Exploitation was the name of the game for a long time. Keeping musicians in the dark was standard business practice. However, the past has passed, and today, any musician who signs a record contract, and learns later what he or she signed, has only themselves to blame.

There are dozens of outstanding books available on every conceivable topic related to the business of music. They can be found in bookstores, libraries, and through the Internet. In addition, there are many schools that now offer 2- 4 year programs on the business of music. Seminars, and workshops are

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available on a year round basis in most major American cities. Consultants, Attorneys, and Business Organizations are all around and so it is only myth, superstition, stubbornness, and immaturity that stand in the way of any musician making a commitment to educating themselves about the business that exists to exploit their music.

When people said to you “ Spend money on quality instruments and equipment”... you did that. When they said “Spend time and money on practicing and rehearsing”, you did that, for the most part . (see comment #1). When they told you “Spend time and money finding the best recording studio, producer and engineer you can”...you also did that. Well, nobody until now has told you “Spend time and money learning all you can about the business of music”. But I just did! So…do it!

It has been said (about education) that we don’t know anything until someone tells us. If that is true, the fault in ‘not telling’ musicians that they MUST spend some time and money on educating themselves on music business issues is the fault of the businessmen and women who kept their clients uninformed. ( Ignorance IS bliss as far as the old guard of music executives are concerned). But, KNOWLEDGE IS BLISS should be the byword for the musician of the new millennium. Please...spend some time and money educating yourselves about the music business. A few dollars and hours spent now can protect your future forever.

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How Your Record Label Keeps You Busy Marketing Your Music While on Tour

by Christopher Knab - Fourfront Media & Music - March 2003

Back to The Academy

This is what a professional major label Marketing Itinerary looks like for an Urban act who is doing a two week tour of the U.S. As you can see they have the act doing a lot more than just performing at clubs.

They keep the act busy while on the road visiting radio stations, doing press interviews, and in-store visits. Hey, who ever said it was going to be easy?

DJ Prototype - Tour Marketing Itinerary Overview Date 02/13/03 02/14/03 02/15/03 02/16/03 02/17/03 02/18/03 02/19/03 02/20/03 02/22/03 02/23/03 02/24/03 02/25/03 02/26/03 02/27/03 02/28/03 03/01/03 03/02/03

Location Chicago, IL Minneapolis, MN Atlanta, GA Boulder, CO Salt Lake City, UT Boise, ID Portland, OR Seattle-Tacoma, WA Memphis, TN New York, NY Los Angeles, CA Phoenix, AZ Albuquerque, NM Austin, TX Houston, TX Dallas, TX Atlanta, GA

Event / Venue Double Door Promotion only 'Stand Alone'Video Shoot Fox Theater Club Axis The Big Easy Fez's Ballroom Chop Suey Showtime taping (Jay-Z) Grammy's House of Blues Cajun House Sunshine Theature Mercury The Engine Room Promotion Cotton Club

Details Thurs. Feb. 13: Chicago, IL, Double Door LPM's: Carl M. cell: 888-888-8888 Mary S., cell: 888-888-8888 7:30am: Bill W, 888-888-8888 will meet at hotel lobby to take to radio 8:00am: Morning radio interview with B96 with Eddie and JoBo / 630 N. McClurg Ct., Studio line 8:30am: Liners and then breakfast with Eric Bradley from B96 9:30am: Visit to WKSC for ID's and drops for morning show / 875 N. Michigan Ave. 11:00am: Visit to Jeff McClusky's & Assoc.(independent radio promoters) / 1644 N. Honore. contact: Dan L. 888-888-8888 11:30am: Mike R, 888-888-8888 will meet at McClusky's 12:00pm: Retail walk thru at K's Music / 7040 S. Stony Island contact: Ken W, 12:45pm: Retail walk-thru at AttractWear / contact: Manuel H, 888-888-8888 1:30pm: Retail walk thru at Coop's Records / 1613 W. 87th St.

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contact: Stan M, 888-888-8888 btwn 3/4:00pm: Soundcheck (act's DJ can do this w/o him if needed) 7:00pm: Mixers dinner at ESPN Zone / 43 E. Ohio St., Chicago, IL contact #: 888-888-8888 7:30pm: Phoner into the Chocolate Jocks from WPWX ph: 773. 375-0339 contact: Chris L, 888-888-8888 8:00pm: Doors 8:30pm: Video interview with VIP - interview will take place backstage (10 min.) / Al Thrash will be the shows contact. contact: Arthur P, 888-888-8888 10/10:30pm: Performance time after performance: Depart for Minneapolis Hotel: Allegro Hotel (day rooms) 171 W Randolph St. Chicago, IL / 888-888-8888 ----Fri. Feb. 14: Minneapolis, MN, Promotion (show has been canceled) LPM's: Nina N, cell: 888-888-8888 11:30am: Nina N, 888-888-8888 will meet at hotel to take to radio 12:00pm: On-air interview with KDWB 2:30-3:30: Meeting at Musicland / 10400 Yellow Circle Dr., Minnetonka, MN contact: Cyndy G, 888-8888888 4:00pm: On-air interview with KTTB 6:44pm: Depart Minneapolis / Northwest Airlines flight #1272 (paid for by Arista) 5:00pm: Doors 6:00pm: Lyricist Lounge showtime 7/7:30pm: Performance time after performance: Club walk-thru with Angali the Queen Bee (KTTB) Hotel: Fairfield Inn Airport (for driver) 1330 Northland Dr. Mendota Heights, MN / ph: 888-888-8888 ----Sat. Feb. 15: Atlanta, GA, "Stand Alone" Video Shoot-all day.

----Sun. Feb. 16: Boulder, CO, Fox Theater LPM's: Fred M, cell: 888-888-8888 7:00am: Depart Atlanta / United Airlines flight #759 8:14am: Arrive in Denver 8:14am: Take airport shuttle bus to hotel by airport La Quinta Inn 6801 Tower Rd. Denver, CO / ph: 888-888-8888 11:15am: Sammi B, 888-888-8888 will meet at airport to radio / (note: radio has been moved to 1:00pm) 1-2:00pm: On-air radio interview with KQKS / 1095 S. Monaco Pkwy., Denver 2:30pm: Depart for Boulder 5:45pm: Meet-n-greet and drops with KFMD (station is closed so it will take place in Boulder on the tour bus or hotel) 6:00-7:00pm: Meet-n-greet with various mixers at Players Club (20 people) 8:00pm: Doors 9:00pm: Lyricist Lounge showtime after performance: overnight drive to Salt Lake City, UT

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----Mon. Feb. 17: Salt Lake City, UT Promotion LPM's: Bradley Y, cell: 888-888-8888 2:15pm: Fisher Z, 888-888-8888 will meet at hotel to take to radio 3:00-4:00pm: On-air radio interview with KZHT / 2801 S. Decker Lake Dr. Salt Lake City, UT, station contact #: 888-888-8888 4:30-5:30pm: On-air interview with KUUU / 2835 East 3300 South, Salt Lake City, UT station contact #: 888-888-8888 6:00pm: Depart for Idaho (overnight in Idaho) ----Tues. Feb. 18: Boise, ID, The Big Easy LPM's: Jim M, cell: 888-888-8888, Marc B , cell: 888-888-8888 12-3:00pm: Photo Shoot for "Yellow Rat Bastard" / will be held at the hotel 3:30pm: Howie K, 888-888-8888 will meet in hotel lobby to take to radio 4:00pm: Radio visit and interview with KZMG (Top 40) 7:00pm: Doors 8:00pm: Show begins before performance: Meet-n-greet with grand prize winners from KZMG (2 people) 9:30pm: Prototype performance time Press: Idaho Statesman - running advance photo preview ----Wed. Feb. 19: Portland, OR, Fez's Ballroom LPM's: Walt O, cell: 888-888-8888 Time TBD: On-air interview with KXJM 1:00pm: Lunch with mixers and winners from KXJM (20 people) Time TBD: Radio interview and drops for KKRZ & meet-n-greet with staff (10 people) 1-3:00pm: Visit to colleges and lifestyle accounts for various activities. Retail walk thru- tied in with Adidas 8:30pm: Doors 9:30pm: Show begins 10:30pm: Prototype performance time after party: tied in Adidas and Lyricist Lounge Tour overnight in Portland ----Thurs. Feb. 20: Seattle, WA, Chop Suey LPM's: Steve Z, cell: 888-888-8888 Time TBD: Radio interview and drops with KUBE Time TBD: Mixers and winners lunch (20 people) 1-3:00pm: Visits to colleges and indie retail stores, Retail walk thru tied in with Adidas 8:00pm: Doors 9:00pm: Show begins 10:30pm: Prototype performance time before performance: Meet-n-greet with grand prize winners from KUBE (2 people) -----

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Fri. Feb. 21: Travel to Memphis 9:50am: Depart Seattle / Northwest Airlines flight #960 (reserved not yet ticketed - - this is just in case, paid for by Def Jam) 3:51pm: Arrive in Memphis ----Sat. Feb. 22: Memphis LPM's: Carl M, cell: 888-888-8888 Vivian B, cell: 888-888-8888 Time TBD: Showtime taping for Jay-Z performance ----Sun. Feb. 23: New York, NY, Grammy's LPM's: Vivian B, cell: 888-888-8888 Ashley E, cell: 888-888-8888 8:50am: Depart Memphis / Northwest Airlines flight #800 (reserved not yet ticketed) 12:19pm: Arrive in Newark all day and evening: blocked for the Grammy's Time TBD: Big Dog radio with Hot 97 ----Mon. Feb. 24: Los Angeles, CA, House Of Blues LPM's: Jill W, cell: 888-888-8888 Willie R, cell: 888-888-8888 9:00am: Depart Newark / Continental Airlines flight #1402 (reserved not yet ticketed) 12:24pm: Arrive in LA 1-2:30pm: Retail walk thru 2:30-3:30pm: Trade visits Time TBD: Radio interview with KKBT Time TBD: Radio interview with KPWR 6:30pm: Two limos p/u at KCAQ 7:00pm: Dinner at the House of Blues with KCAQ ----Tues. Feb. 25: Phoenix, AZ, Cajun House LPM's: Gail H, cell: 303. 748-8587 3:30pm: Radio interview with KZZP 4:30pm: Radio interview with KKFR ----Wed. Feb. 26: Albuquerque, NM, Sunshine Theater LPM's: Jim T, cell: 888-888-8888 3-3:40pm: Radio interview with KYLZ 4:15pm: Radio interview with KKSS ----Thurs. Feb. 27: Austin, TX, Mercury LPM's: Walt Y, cell: 888-888-8888 Nancy T, cell: 888-888-8888 Time TBD: Retail walk thru at Music Mania / 3815 N. Hwy 35 Austin, TX, contact: Bill B, 888-888-8888

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5:00pm: Radio interview with KQBT (after will conduct 2nd interview that will be taped and aired over the weekend) after performance: meet-n-greet with station winners.

----Fri. Feb. 28: Houston, TX, The Engine Room LPM's: Les M, cell: 888-888-8888 Miles D, cell: 888-888-8888 Time TBD: Radio interview with KBXX Time TBD: Visit to local High School for "Safe Sex" visit Time TBD: Mixer lunch w/ KBXX DJ's 1-3:00pm: Retail walk thru at Turntable II / 12333 Fondren Houston, TX, contact: Jimi H Time TBD: Radio interview with KPTY after performace: Club night at club TBA ----Sat. Mar. 1: Dallas, TX, Promotion LPM's: Brian F, cell: 888-888-8888 Terry F, cell: 888-888-8888 Sun. Mar. 2: Atlanta, GA, Cotton Club LPM's: Chris F, cell: 888-888-8888 3:00pm: Radio interview with WHTA 3:45pm: Radio interview with WVEE after performance: Meet-n-greet with various people for radio and retail.

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Online E-Music Retailing

by Christopher Knab - Fourfront Media & Music - August 2000

Back to Music Business 101

For bands and artists who are releasing their own records, the Internet offers many new and exciting opportunities. But getting online retailers to pick up your CDs (and other music related product) is as much a business as getting offline distributors or brick-and-mortar stores to carry your records.

Online Retail Shakeout CDs, tapes, vinyl, videotapes and DVDs are now available at over one hundred locations on the Internet, and new online stores pop up all the time. Many of these online retailers, however, are still developing their presence on the Internet. Not all of the stores listed below will be around a year from now. For example, CDNow.com, once a leader in the field, has been struggling. As of mid-year 2000, they cut expenses by turning over fulfillment of orders placed on their website to Buy.com. Also, CDNnow has recently been bought by Bertlesmann, one of the leading media corporations in the world. It is yet to be determined how this will affect the selling of independent product through this online retailer, since Bertlesman owns the BMG roster of major labels and may want to concentrate on selling their affiliated label releases through CDNow‌stay tuned.

A wise independent label, or independent recording artist with their own release, will carefully research each and every online retailer they're interested in.

Here's a list of the major e-music retailers as of Summer 2000 Amazon.com CDUniverse.com CDWorld.com Getmusic.com Massmusic.com Cdquest.com CDconnection.com Twec.com Shopping.com Video.com CD Explosion.com Barnes&Noble.com Insound.com Mediax.com Cdwarehouse.com Atomicpop.com Valueamerica.com Wherehouse.com Ticketmaster.com Borders.com

CDNow.com CDPoint.com EveryCD.com Ktel.com Buy.com Bestbuy.com CDusa.com Netradio.com West Coast.com Harmonyhouse.com CDBaby.com Rock.com Cdhut.com Towerrecords.com Tunes.com Checkout.com Moviegallery.com Internetlab.com Blockbuster.com Theorchard.com (dist)

Like any good record store, e-music stores look at all the new releases that have come out each week.

Every store uses different methods to decide what to carry, but basically they will decide to buy your record if they feel it's a potential seller. When they're re-ordering your record, they check their stock on hand to decide if they should re-order, and how many they should buy. Their goals are to monitor what

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their online customers are buying, and to get them the music they demand.

Each CD, record, or tape is called a "unit". The more copies a title sells, the more units an online store may keep in its inventory. The more a record label "works" its records, (actively promoting and marketing their releases by securing airplay, putting the act out on tour, and getting publicity for them), the more likely e-music retailers-like their brick-and mortar-cousins-will find it necessary to carry the record.

Brick-and-mortar stores use "POPs"-"point of purchase" advertising items like posters, cardboard standups, and counter display materials. Online music retailers have their own version of POPs. If "action" occurs (increased sales of a record, usually a result of a label or independent artist's marketing activities), the label or artist will have to supply extra album cover artwork and track listings to the online music retailers who are carrying the CD. You can contact the company listed below to learn about their services to labels. You will need your UPC code to work with them.

Muze Inc. Label Liaison 304 Hudson St., 8th Floor New York, NY 10013 (212) 824-0321 You may also need to supply online music retailers with RealAudio soundclips. You can contact Discovermusic.com to check on their policies regarding soundclips. Please remember that you must have a barcode to consider this option.:

Discovermusic.com 1000 Denny Way, Suite 700 Seattle, WA 98109 (206) 336-3103 fax: (206) 336-3167 http://www.DiscoverMusic.com

A Tip My recommendation for the most effective online music retailer is Amazon.com. Go to www.Amazon.com/Advantage, and read how to get your CDs sold through their system. It's a simple, yet powerful way for an independent label or artist to sell their music over the Internet. You will get your own "page" which you create. You will detail everything you want a customer to know about your release: include a thumbnail of your CD cover and the song listings, as well as audio samples of selected songs.

Over the last year I've spoken to dozens of acts that have used Amazon, and I have yet to hear a negative word about them. Remember though, Amazon is not a record label - YOU are your own record label and YOU have to steer people toward them with your on and offline marketing ideas. They will help you get started, but you are on your own, like any other label, to get the word out about your release.

Online Distribution On my above list of online e-music retailers, the last listing was for an online company called Theorchard.com. They're not a store, but an online distributor of sorts. For a small fee they can get an indie label's releases into all the major online retailers. They function much like a brick-and-mortar "onestop distributor", meaning they can make it possible for an independent label to get their music to many online stores at once. Please be advised that since it takes time for them to ship product to all the different online stores, and each store has a different buying and inventory policy, it will take them longer to send you or your label the checks you are owed. (By the way, if you use them without setting up your own Amazon.com Advantage program, you will NOT have that "page" on Amazon created by

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theorchard.com. You have to do that on your own.) At theorchard.com, artists and independent labels are paid 70% of the wholesale price of each unit. Online e-music retail list prices always fluctuate, just like offline retail list prices, whereas wholesale prices are fixed. A store may want to compete by slashing their retail prices, but the wholesale price never changes. If the wholesale price is $7.18, the artist would receive $5.03. In addition, they withhold a 25% reserve, again, just like in the brick-and-mortar retail business, because some product may/will be returned. After two quarters, they will settle up on what you are owed‌ hopefully.

Theorchard charges a 30% distribution fee. As a distributor, they sell things wholesale so that retailers can mark them up. You should also know that theorchard.com charges a fee of $40 to join. They pay quarterly for records sold and accumulate monies paid to them each quarter and then pay 30 days after the end of each quarter. As a distributor, they do not get paid the moment someone buys your product at an online store, so they can't pay you until they receive the money from the accounts they deal with. They accept your product as consignment merchandise. They do not buy product outright.

Your Own Website Sales I feel that all serious cybermusic marketers should consider selling their product on their own websites.

Many fans of independent music still like the idea of as much money as possible going directly to the artist. Let's face it, direct sales have the best royalty rate going, don't they? For the novice cyber-seller, a primitive but still valid alternative is to simply post a P.O. Box where your fans can send their checks or money orders, then you send them back a CD. When you get too busy to handle all the orders coming in from your own site, there are many secure-server e-commerce companies around who are eager to take you on as a client. One such company is www.ccnow.com. However, the options discussed earlier are a more professional way to go.

Since you are in control of your own 'music store' at your site, give serious thought to putting more than just Real Audio samples of the songs from your CD. Try putting 1 or 2 mp3 versions of your song up at a time, then take them down after a few weeks and replace them with a couple more. This can increase return visits to your site, and research is showing now that giving away songs (even through Napster,) does not hurt sales. In fact, as I suspected from the start, it actually is increasing sales of CDs.

A Final Note At this time the business of cyber-selling manufactured CDs, tapes, etc. over the Internet is still a business of shipping physical objects to the customer. Remember - just as it takes time to get a record from the manufacturer to a brick-and -mortar distributor, and for the distributor to get those records into a store, and for the store to sell them, (possibly returning product to you later)-it takes time for the online version of that process too. You'll need patience as you wait to collect money from online retailers. We're not talking about downloading music files here, folks. Online e-music retailers at this time in history are still selling good ol' plastic storage devices wrapped in paper and plastic. They face many of the same challenges as brick-and-mortar stores: dealing with payments on records sold, return policies and lots of rules and regulations.

But stay tuned, who knows‌before you finish reading this there may be a downloadable e-music retailer opening up shop at a URL near you.

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How Record Labels and Radio Stations Work Together

by Christopher Knab - Fourfront Media & Music - April 2001

Back to Music Business 101

Radio stations and record labels need each other. Record labels need exposure for the records they release, and music-formatted radio stations need programming to attract listeners. If you thought that a commercial radio station's priority was just to play music, you were wrong. They need to deliver an audience of listeners to their advertisers. The money they charge for on air advertising is their sole source of income.

College and non-commercial public radio stations have more of a commitment to new or esoteric music, but most of them continue to lose government grants and find themselves under pressure to focus more on pleasing the listener. They, like commercial stations, choose music they hope their listeners will enjoy.

The Label Side of Things: Promo reps secure airplay for records released by a label. They work in conjunction with the label's sales division, coordinating any radio adds. with distribution and sales connections in various markets. They create weekly reports for label personnel on progress of getting airplay. They communicate regularly with A&R, Publicity, and Artist Development departments. to coordinate marketing plans and touring commitments of label artists.

What Makes an Artist's Record a Priority at a Label?

Wanting to pick up on a hot new trend (sound) that is coming up from the streets. Significant $$$$ investment by the label in signing an act. In-house political reasons (inflated egos, bidding wars, impressing industry peers). Star status of the artist. Being genuinely excited and supportive of the act they signed.

What a Good Promo Rep Should Know What's going on in the constantly changing radio broadcast industry (buyouts, format changes) What radio personnel have been hired, fired, promoted, or moved on to other industry gigs. What music trends are the trade magazines reporting, talking about, and/or hyping. Any possible station/artist promotion ideas being coordinated nationally/regionally. Awareness of the volume of competing new product.

Label Reps and the Sales Pitch-Prep Issues Strong, reliable work habits: on time, research data updated and accurate, positive attitude. Is the station exclusively contracted with any independent promoters. What the Arbitron trends are saying about the specific stations they work. What are the personal tastes and business style of the Music Director and Program Director. What are the Music Director and Program Director's hours for taking label rep calls.

What type of songs/artists were their stations adding to their playlist in the last few weeks. How many songs do their stations have room for on their playlist. Know all the "up to the minute" facts about the artist being promoted. (Chart action, etc.) Aware of the station's competition, if any, regarding playing the songs being promoted. Check any notes taken from the last conversation with Music Director or Program Director. Set objectives for the call. Get a commitment of some kind. (Get song on station's playlist.)

Check on any special promotional items available to give away. Check on any special station promotion tie-ins available. Check weekly music trade magazines to make sure that stations reported the song to them.

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Follow-Up Issues Reporting to relevant label departments (Sales, Publicity, A&R, Label/Dept. Executives). Working out any promised issues that came about during the call. Constantly monitoring and tracking, as well as analyzing any breaks that come their way, and being able to respond quickly and efficiently to developing situations.

What a Program Director and a Music Director Do PD: Supervises and approves all MD music choices o checks with station consultants for music selection o hires, supervises, and fires on air staff o meets with station dept. heads regularly o approves all on air activity (news, commercials, announcements etc.) o meets regularly with station management and/ownership MD: Auditions and selects appropriate music for their station in cooperation with PD or consultants o prepares music playlist o reports playlist to music industry trades o maintains library o deals with label promo reps and other music issues as delegated by PD Now you know a bit about who does what, and as they say when you enter the ballpark, "You can't tell the players, without your program."

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Music, Business and Technolgy: Adapt or Die

by Christopher Knab - Fourfront Media & Music - June 2000

Back to Music Business 101

When FM radio began taking away listeners from the inferior sounding AM band in the late 60's the recording industry viewed that as a threat to their sales. "Why" they said "People will begin taping off the radio onto reel-to-reel tapes and they will have a near perfect analog master…people will never buy records again".

People still bought vinyl LPs and 45s by the truckload.

When the cassette tape arrived in the 70's the recording industry was so concerned they lobbied for and got a blank tape tax to cover any possible losses of income they might have incurred from people dubbing off vinyl recordings for private listening. "Why", they said, "People will never buy records again".

People still bought vinyl LPs and 45's by the truckload.

When CDs came out in the early 80's the recording industry was concerned that a digital recording in the hands of a consumer would severely hurt their sales, so they raised the price of the new CDs and left their recording contracts with artists with a clause stating that because CDs were a new technology the artist should be paid less per unit sold. That clause can still be found in some recording contracts today.

They also encouraged the rapid demise of vinyl records from retail store shelves in order to force the consumer to adapt to the new technology.

People bought their new and favorite old music over again on CD and the recording industry went from a multi-million dollar annual business to a multi-billion dollar business in less than a decade.

People bought CDs by the truckload.

When downloadable digital music arrived in the late 90's the recording industry saw another threat to their income. Instead of embracing the new technology immediately and seeing MP3 as the greatest promotional opportunity of the century, they huddled in hotel meeting rooms devising ways to encrypt and watermark music, and while they were spinning around and around like an old 78, computer nerd music lovers were busy downloading and sharing the label's music, becoming an army of unheralded promo reps.

Napster was born….and people began downloading music by the gigabyte truckload.

All hell broke loose, and computer illiterate label executives lost their load. "Off with their heads", "Put those SOB fans and greedy young computer genius turks in jail. We are the only ones who can be greedy!!" they screamed. And the recording industry became a police force armed with leaden lawsuits to punish their customers for spreading the music around for free. (What is radio all about anyway…hmmm) and lies were spread and press releases were written and many outraged millionaire artists piped up, threatening too to sue their fans, (those dirty bastards who dared support them when they were nothing).

Why the next thing you know, some of those mighty celebrities might even threaten to stop recording altogether…. ah come on, say it isn't so!

It is an outrage...can you imagine….people are taking music for free off the internet and not bothering to

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pay the artist properly the way a record company always has paid an artist. (?!)

"We can't have people taking for free a digitally perfect master recording of the music we own. Why, its not fair" said the labels. (MP3 the same as a digitally mastered studio recording?????)

Well, let's pause for a moment to reflect on some facts. In 1999, the sales of music product went up again. Almost $14 billion truckloads of dollars were spent in the U.S. on music. We are a long way from music fans completely detaching themselves from the emotional attachment they have to a plastic storage device that contains a plastic disc surrounded by paper product with pictures and lyrics of musicians on them. Yes, the future of the music business will mean an eventual shift in the general order of things. More and more music lovers will continue to take legally, or illegally the music of creative people. Yes, both artists and labels will have to adapt to this inevitability. Artists and labels will always need each other. Not every artist will want to start and run their own businesses devoted to promoting and selling their music.

All parties need to get a bit of a grip right now.

The number of people downloading legal and illegal music files will be growing rapidly. As of the spring of 2000, over 3,000,000 blank CDrs are being sold every month, and as CD burners get cheaper and included in more and more computer packages, the number of people burning their own CDs of favorite music will escalate dramatically.

What this means is that there will be an ever-increasing need to investigate other sources of income from music. For example, the live performance and touring phenomenon will never go away. You cannot download the live experience of being at a club or concert, and you can't autograph a bit or a byte, so there will always be a demand for popular acts to play live and musicians should prepare to live on the road more weeks out of every year.

Also more creative thinking will have to come about regarding finding alternative sources of income from music. Songwriters and Publishers will have to devote more time to securing film and television sychronization deals for their songs, as well as advertising opportunities. Merchandising of artist-related products must be produced and sold more aggressively by aspiring artists, as well as the time-tested classic acts. The internet itself will also continue to open up new ways for musicians, labels and music fans to benefit from working together.

But it is time to stay on your toes, and looking for alternative ways to expose and sell music should be an around the clock activity for the new millennium musician.

Things are changing. Adapt or die.

10 Things to Do Before You Release Your Album Copyright March 2007 by Jeremy Rwakaara, Sanctuary Lane Sound Studios. All rights reserved.

Back to The Academy

Following are, in no particular order, 10 important things you should do before you release your album:

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1. If you are hiring musicians (background singers, instrumentalists, etc.) to play on your album, you will need to make sure they fill out a musicians release agreement or talent release form. This agreement is not necessary for musicians that own their own record label, are performing on their own albums, and will pay for and release the albums themselves. It is used more for the “hired guns” than group members.

2. All writers and publishers involved should fill out a songwriter publisher share letter of agreement that spells out their writer and publisher shares. This agreement is a document that all writers and publishers should sign and keep for their records. Any money made from the songs (except for money paid to the writers and publishers by their respective Performing Rights Organizations) should be split up according to what is spelled out in this agreement.

3. All involved songwriters should fill out a form PA and register their work (the songs) with the U.S. Copyright Office .

4. The artists / performers or the record producer (or both), unless Musician Release Agreements have been signed, should fill out a form SR and register the album (sound recording) with the U.S. Copyright Office. If you are the writer and performer / producer on the album, you can fill out just one Form SR instead of both forms.

5. Register for an Internatinal Standard Recording Code (ISRC) for your songs. If you are not based in the United States, visit here to find the ISRC Agency in your territory. The ISRC is a unique international identifier for the songs (tracks) on your album and functions as a digital “fingerprint” for each track. Unlike a Universal Product Code (UPC), the ISRC is tied to the track and not the carrier of the track (CD, cassette, etc). The ISRC is usually inserted onto the CD master during the CD mastering session.

6. If you include songs on your album that you have not written yourself (i.e. covers), you will need to obtain a Mechanical License from the Harry Fox Agency (via Songfile ) that will allow you to manufacture and distribute up to 2,500 copies to the public. If you happen to know the songwriter(s) yourself, you can negotiate a fee directly with them or just write up a Notice of Intention to Obtain a Compulsory License and issue it to them.

7. If you wish to have your own UPC Bar Code, you can get one from GS1 US . Several companies, for example CD manufacturers, will offer you a UPC Bar Code free with their services. Keep in mind that in these cases the UPC Bar Code will belong to the CD manufacturer. If you produce another album, it will not have a UPC Bar Code unless you get another one from them or someone else. Having your own Uniform Code Council account will allow you to assign all your music-related products a unique UPC Bar Code in your company’s name.

8. As a songwriter and/or publisher, in order to get paid for the performances of your songs on radio, TV, in nightclubs, airlines, elevators, jukeboxes, etc., you should join a Performing Rights Organization (PRO). In the United States, you can join ASCAP or BMI . Another U.S. PRO is SESAC , but affiliation with SESAC is by invitation only (subject to review by their writer / publisher relations staff).

9. As a Sound Recording Copyright Owner (SRCO – e.g. artist, producer, record label), in order to get paid for non-interactive digital transmissions on cable, satellite and web cast services, you should join SoundExchange .

10. Add your songs to the Gracenote Media Database . When correctly added, song titles and artist names will be displayed on media players (e.g. home stereos, computer media players, satellite and terrestrial radio, mp3 players, cell phones and other wireless devices, etc.) that take advantage of the Gracenote Media Database data. Alternatively, you can use a freedb-aware program to upload your songs into the database.

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