I want to talk about the money that musicians spend on their careers...from a sampling of what I have heard, seen and experienced in the industry. Your spending speaks volumes about what you think is important. And I'm hoping to challenge the "status quo" thinking when it comes to your money and your music!
Let's breakdown a fairly typical example: A singer/songwriter, has been playing in clubs for a while and fans are looking for some music to buy. The Artist decides to do a recording and make a presence online (iTunes, a website, YouTube, social media etc). Now, the artist needs to create actual "in your hand" product to sell at their shows. The artist duplicates 5oo units, pays for artwork and design as well as any royalties (if recording covers)
Investment (the "status quo" approach)
Recording/Duplication - $22,000
Social Media, Website (ie.Bandzoogle)Artwork/Design - $500
Live Show - $0
Cost: $22,500
Now, let's look at a DIFFERENT approach:
Recording/Duplication - $17,000
Social Media, Website, artwork/design - $500
Live Show - $5,000
Cost: $22,500
The cost/output is the same...so what's the difference?
Revenue from the live show typically accounts for over 90% of a band or artist's revenue!! When you talk to managers, artists and record companies - they consistently indicate that every band they work with will generate well over 90% of their revenue from their live show. (Now, this does not include the "lottery winners" - The bands and artists that hit the jackpot and get a #1 record or a #1 single etc.)A great Live Show will not only create higher paying gigs but when you connect with an audience and create moments...you create FANS and FANS BUY MERCH! Your overall revenue from the show will increase exponentially! This will translate into more sales at the gig, more promoters re-booking you, higher fees for playing - ITS ALL GOOD!
My experience with 25 years in the industry would back up these numbers. Artists/bands typically spend 100% of their resources trying to make great recordings. They then do not have the resources to market their product effectively. If you do not win the "lottery" you are stuck playing crappy gigs to hopefully earn a living. This model of a "career" does not allow artists to thrive - it allows you to MAYBE survive at best!! In other words, your investment is not earning ANY interest!
SO, now we are left with a decision. Here are the facts:
We make more revenue from playing music than we do selling it.
What do we do with that information? How do we plan a career based on this kind of data?
Here is my suggestion:
Invest in the recording for sure - you need to have that music available. BUT - if you have a limited budget be creative - don't blow 100% of your budget on the music side and ignore the LIVE SHOW!!!
Look at your money...where have you invested it? Do you have more guitar pedals than Van Halen? Do you have boxes of hundreds of CD's? Do you have more sound gear than your local studio??
Invest in your LIVE SHOW!!! Than, you will generate more revenue and create fans that will follow your entire career!!!
Kevin Pauls
LIVE MUSIC PRODUCER
