The music industry is confusing because people assume all its businesses operate the same way. This misconception actually makes it complex and tricky! That's why so many feel intimidated when getting started in this business. I felt the same way, but I jumped right in! Tune in to discover what I've learned about this business—insights that will make it much easier for you to understand! Right here on the Music Money Makeover Show
Artists don’t sell music! WHAT?!
I was completely floored when I discovered this! Artists don't actually sell recorded music in the traditional sense because they've sold their exclusive recording services (i.e. recording labor) to the record label. This means the only thing they truly sell musically is the live show experience. It all comes down to creating a brand experience—with merchandise naturally flowing from that brand. Since this is their position, artists must deliver an incredible show and create such a compelling brand experience that other brands actively want to partner with them.
Labels don’t sell music either! Hold on WHAT?!
What if I told you that labels don't sell music—they license it? Even in the physical era, when you went to the store, you purchased a "copy," not the "rights." The labels actually purchased the "right to copy" (copyright) from the producer, and the artist sold their exclusive recording services (labor) to the record label via contract. This is how you can scale a business, as these assets keep reproducing money hand over fist depending on how many artist labor contracts and producer rights contracts you can acquire. Which means if you're a label doing licensing deals, you're betting that the artist doesn't recoup the money so you can get more money form the masters anyway!
Fans love music but prefer the experience
Any true fan of an artist would prefer a live or digital experience over just listening to the music alone. The music is just an appetizer to the full meal. So if you never give them access to the experience of you they just end up falling away from you. Though music must be made so people can know about you and your talent, it's ultimately who you are as a person that allows you to gain all the fruits of your labor. If you never become the best version of yourself, you'll never be able to deliver the best experience of yourself for the fans. It’s all about becoming.
Spotify isn’t the final frontier it’s the first
Spotify isn't the end-all-be-all—it's only the first stop in the fan journey. Potential fans use it as a starting point to find their way into your world. Though you may want privacy, it's best to keep your fans together as a herd and guide them through to the second and third frontiers. If you can accomplish this, your career will reach heights you've never imagined. However, if you fail to grasp this concept, the music industry and streaming 2.0 will remain confusing and difficult to navigate.
Everybody is in business for themselves unless they are employees
The most confusing aspect of the music business is that many people don't realize they're independent contractors in the industry—1099 workers, if you will. You might think you're signing up for a traditional job, but how you get paid reveals your true position and lack of job security. Once I understood this, it opened my eyes to how this business really works, which led to creating this show you're watching and my 60 Day record label course. Once you grasp this concept, the game becomes easier. But if you don't understand the power of being a 1099 contractor, you'll forever struggle in this business.
If Artists and labels don’t sell music who does?
Songwriters. They sell music publishing, which is the song itself. As owners of the musical composition, songwriters hold the key to selling music—when they decide to sell, it happens.
But I’m a label how do I get rich if I'm not doing it the standard way?
Flip the coin and sell the operational services. I’ll leave you to figure out the rest.
If Spotify is the first frontier what’s the Second?
The second frontier is Direct-to-Consumer—this is the level where you can bypass the labels if you know what you're doing.
Here’s what you can do!
Grab a copy of the 60 Day Record Label course and check out the 360 agreement section—it will validate everything I'm saying. Once you understand this concept, you'll have the key pieces needed to build a successful music career.
If you internalize what i’ve said
The inner workings of the music industry will be exposed to you so you understand what’s happening in your deals and offers
If you understand your deals and your offers, then you can offer better deals and better offers.
And you can receive better Deals for more money on better terms than you ever thought possible.
If you fail to believe this
you’ll keep thinking that artists actually sell music
It doesn’t take long before you’re broke or stuck because not understanding the operations leaves you in the same spot.
This mental shock will cause you to make some drastic choices that may terminate your career or keep the wool off of your eyes.
At the End of The Day
If you've been struggling to understand how the industry works and what fans really want, you now have the means to become an aware participant in the music business.
If you're a music creative or executive looking to build your label or publishing company in 60 days or less, with a step-by-step foolproof process, Grab the 60 Day record label course and get it done today! You gain the ability to get real funding, prevent yourself from getting screwed contractually, and keep the middleman out of your pockets. Click the link below to get started right now! If you’re skeptical grab the free guide, "10 Ways to Increase Your Record Labels Profits," a free split sheet comes with the download!
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