D Leigh Biz

In less than a week, I will complete my Master’s Degree in Entertainment Business at Full Sail University.  My business and my clients will garner significant benefits from what I have learned.  Gratefully, the coursework covered a full range of current trends in the entertainment industry.  For instance, I now have a much better understanding of digital distribution, crowd funding and various types of marketing channels.  Here are a few key takeaways…

1.    In today’s digital environment, musicians can produce, manufacture and distribute their music without assistance from a music label.  But it’s important to understand the pros and cons of these vital functions.  I read a great article by Heather MacDonald on About.com titled Music Industry Myths: You Can Do It All Yourself. She discusses some items you may want to explore as you make this decision.  During my degree coursework, I had an assignment to explore various digital distribution companies and the services they provide to independent artists.  It was extremely interesting and informative.  There are companies that will manufacture as little as 20 CDs if that’s what you need.  Yes, you can make CDs on your laptop, but the quality will be much better if you use a professional service.

2.    There are also more ways to attract investors to your project then just a few years ago.  Crowdfunding has become a viable way to build a fan base and allow them to contribute to your efforts.  Did you know that crowdfunding can be traced all the way back to the Statue of Liberty?  Raising donations is how the pedestal was financed.  I learned this and much more about crowdfunding in my Finance class.  I found that Kickstarter.com is only one of many sites that promote crowdfunding.  Indie artists should also consider sites like Indiegogo.com, Rockethub.com and Feedthemuse.net. And don’t forget about mobile technology such as Square and other credit card readers to accept donations and sell your merchandise at gigs.  Other companies like PayPal are developing this technology also, so you have choices regarding which platform you use.

3.    There are so many new ways to market a band, such as a viral video, Twitter feeds, and even a flash mob.  Newer avenues include affiliate marketing and SEO optimization.  Before my degree program, I was unaware of how to utilize a number of these channels.  Now I feel much more comfortable with this technology.  I also learned that we mustn’t forget about the traditional marketing methods such as print advertising, public relations and even email marketing.  For my business, old-fashioned cold calling will be a key way to market my clients to venue owners.  But I will absolutely make use of numerous digital marketing avenues.  This trend continues to evolve with more options being made available constantly.  For instance, musicians and bands are already on Twitter, Facebook, and have their own blogs.  But soon they may develop their own apps to promote their concert schedules, merchandise and music.

As new trends develop in the music industry, my role as a music manager is to help my clients navigate the best ways to market and distribute their music.  This article on Hypebot.com notes what’s currently trending in 2013. Obtaining my degree provided me with the wherewithal to make sure that I’m leading them in the right direction.

Take Care,

D Leigh

                       

Reference:

http://musicians.about.com/od/musicindustrybasics/qt/musicdiymyth.htm

http://www.kickstarter.com/

http://www.indiegogo.com/

http://www.rockethub.com/

http://www.feedthemuse.net/

http://www.hypebot.com/hypebot/2013/01/emerging-music-tech-trends-for-2013.html

In today’s economic environment, most fledgling entrepreneurs automatically assume that they will not be able to receive approval for traditional financing from lending institutions.  Establishing commercial credit is very difficult to do as a small business owner.  But there are various sources of funds that could be explored, versus depleting your savings and/or retirement accounts.  In this blog post, I’ll review 2 organizations that can provide much needed capital for a new venture.

The Association for Enterprise Opportunity (AEO)

This organization states that they are “the voice of microbusiness” and that it “creates economic opportunity for underserved entrepreneurs”.   The website notes that they help to guide entrepreneurs to financing sources, provide information on potential mentors and host a platform for members to promote their products and services. There is a search tool to assist small business owners in locating a variety of resources in their area.  They also provide fact sheets and statistics related to the microbusiness arena.  One article on the site highlighted an entrepreneur that received a $15,000 award and how those dollars helped to further their efforts.  The Catalyst Initiative is another avenue that provides support to small business owners, including access to growth capital.  Members also gain access to Bankers without Borders™.  In terms of qualifications for micro financing, you need to be a business with no more than 5 employees and require no more than $35,000-$50,000 in capital.

National Federation of Community Development Credit Unions

The mission of this organization is to “help low- and moderate-income people and communities achieve financial independence through credit unions.” They focus on revitalizing low-income communities and job creation.  The Federation invests millions of dollars in CDCUs, who can then loan those dollars to provide economic development. To be a member of the organization, you must be a credit union.  But in order to receive the benefits of this program, you simply need to be a business in a low-income neighborhood.  With this in mind, consider applying at a small, neighborhood credit union as a financing option, versus a large commercial bank.  They will most likely have dollars allocated for start-up businesses. 

There are advantages and disadvantages of alternative funding sources.

Advantages

Disadvantages

These are just two examples of alternative sources of start-up funds for your business.  Don’t be discouraged when more traditional routes do not seem to be receptive to your business plan, keep searching for other ways to bring your dream to reality.  Research your options carefully to determine the best option for your business.

Take Care,

D Leigh

References:

http://www.microenterpriseworks.org/

http://www.cdcu.coop/i4a/pages/index.cfm?pageid=1

As a continuation of my last blog posting, I’d like to provide additional insight as to how I plan to incorporate the guidance from both David McShea and William Hsu. As noted, they both have very distinct views on business planning.  Although they both agree that a sound plan should be devised in order to attract investors, they disagree on how much time to spend on developing the plan, and how to deliver that information.

With regard to business plan development, I agree with McShea.  Putting ideas in writing and researching various options can lead to better solutions.  An example of this was my research on the use of facilities.  I initially believed the business could simply utilize a home office.  But further research revealed that there are various options for office space versus buying, building or being locked into a long-term lease.  For instance, Regus is an international company that accommodates all levels and needs for office and meeting space. 

Where I agree with Hsu is the need to expend effort on researching customer needs and delivering a succinct presentation to investors.  In light of this, I have begun having discussions with musicians in my area to get a better understanding of the services that they need. Taking an “if you build it they will come” attitude would be ill advised in today’s market.  Also, I agree that investors don’t want a 40-page business plan to review.  They just want to hear the merits of your idea and how it will be successful.  For this, I plan to use the Pecha Kucha process as a guide to delivering my business plan to investors.  My presentation will most likely be longer than 6 minutes 40 seconds, but I will strive to keep the discussion focused and concise, and allow time for the investors to ask questions if they need additional information.

Finally, the most important section of my business plan will be the marketing plan.  I am launching a service business that will be highly dependent on marketing in various forms, including SEO, affiliate marketing, print ads, social networking, viral marketing, etc.  The lack of a significant digital marketing presence will impact the ability to attract new clients and promote signed clients.  The other important business plan element will be the financial proposal.  Investors will be anxious to understand the anticipated profit for the business.  My job, as a new business owner, is to clearly articulate the viability of the business and why it is a worthwhile investment.  Therefore, although there may be honorable intentions for the business, i.e. assisting musicians, the ability to turn a profit is very important.

In conclusion, the process of formulating a business plan is still an important Heather McDonald wrote a great article on About.com: Music Careers, and notes,

With this in mind, there is no doubt that having a solid business plan will not only help to impress investors, but will also help to provide clear direction for the business owner.

References:

McDonald, H. About.com.  Before You Apply for Music Business Funding.  http://musicians.about.com/od/musicindustrybasics/bb/beforemusicloan.htm

Moghe, S. (2012). You Tube. A Pecha Kucha about Pecha Kucha. http://youtu.be/jJ2yepIaAtE

Regus.com. http://www.regus.com/

Zetlin, M. (2013). Write a business plan or not? 2 experts debate.  Retrieved on June 23, 2013 from  http://www.inc.com/minda-zetlin/should-you-write-a-business-plan-2-experts-debate.html

As I venture toward finalizing the launch of D Leigh Talent, I am confronted with the notion of a formal business plan.  Over the last few months I have toiled over this process, with many starts and stops.  There is a lot to be said for having a clear plan when starting a business, but there are different views about whether this process should be as structured.  I recently read an article on Inc.com regarding whether a business plan is worth the effort.  Two experts in the field were interviewed, David McShea and William Hsu.

David McShea is a partner with Perkins Coie law firm.  He represents technology companies, public companies and venture capital firms.  He provided representation during the IPOs of Amazon.com and Zillow, Inc. He currently represents several venture capital firms.  In 2012, he was honored as Best Lawyers' "Lawyer of the Year - 2012" for Seattle Securities/Capital Markets Law.  

William Hsu is a co-founder and managing partner at MuckerLab.  Previously, he was a Sr. Vice-President at AT&T Interactive with significant achievements in growing that company’s digital presence.  As an entrepreneur, he founded BuildPoint, a bidding management and marketplace services company within the construction industry.   

In the article, these two gentlemen have very different views on whether a business plan is necessary.  For instance, McShea feels that writing things down can help identify gaps and allow you to change course early on if needed. He notes that it’s cheaper to do this during the planning phase, versus starting the business and then realizing the errors in your strategy.  On the other hand, Hsu notes that instead of building a business plan, an entrepreneur should take a more “customer centric” approach.  This is a market demand strategy, where your research is focused on a consumer need. 

In terms of what potential investors may need to understand, McShea’s advice is to do the research and analysis, which will show investors that you are credible and fully capable of executing the plan and spearheading a successful business.  Hsu still believes in a presentation for investors, but one that is more succinct and targeted, with the goal being a quick entry to the market.  He believes that investors today are more like the ones depicted on this YouTube video of the Shark Tank television show, where you have a minimal amount of time to deliver the merits of your idea.   

Both experts note that understanding your customer, knowing the risks and understanding that you may need to be flexible with your plan will be key components to your success.

I recognize merit in both approaches to a business plan.  My decision is to utilize a hybrid approach.  I will do all the research needed for a full blown business plan, but deliver a very succinct presentation of the facts, focusing on the customer need and market opportunity.  In this way, I have a good representation of both qualitative and quantitative methodologies. 

References:

http://www.inc.com/minda-zetlin/should-you-write-a-business-plan-2-experts-debate.html

http://www.perkinscoie.com/dmcshea/

MuckerLab.com http://www.muckerlab.com/about/

OmoeNews. YouTube.com. Shark Tank KISS TIXX lip balm gets two investors KISSING 1 18 2013. YouTube.com.  Retrieved on June 5, 2013 from http://youtu.be/2LrTJZGV0Ng

THIS IS FOR YOU…

This posting is for both artists and music managers.  As a newbie to this industry, the last 10 months have been enlightening in regards to the music business and those who navigate this industry as a career choice. This year, I will complete my Master’s in Entertainment Business.  As such, D Leigh Talent will be born.  As you know per my earlier posts, I plan to become a music manager, responsible for acquiring talent and seeking opportunities for the clients I represent. So I thought it might be helpful to better understand the roles of both parties.

FOR MUSICIANS

I read a recent blog related to this subject titled “Get a Music Manager, Part 1.”  This article had some good insight as to what a band needs to have before approaching a music manager. A music manager looking for artists will want to know that the client is serious and dedicated.  This can be evidenced by some up-front activities such as an established website, social media presence, a good bio and recordings of your music. It is also helpful to have information regarding your fan base and references from venues owners.  This adds to your credibility as a musician.  Finally, it helps to understand how to best work with your manager.  Communication is one of the most important aspects of having a music manager.  It does you no good to keep secrets from them or try to work around them.  Ultimately, they are in your employ to help you get to the next level…your success is their success!

FOR MUSIC MANAGERS

The best advice for those aspiring to be music managers is simple, know what you’re getting into!  At times it can be a thankless job, and some liken it to being a parent.  Plan to spend time scouting venues, developing marketing strategies, attending gigs, managing conflict, booking gigs and overseeing finances…among other things.  You should be instrumental in gaining presence for the artists you sign. Do your research to better understand the differences between music managers, music agents, booking agents and promoters.  There are also differences related to your responsibilities with signed and unsigned artists.  For all scenarios, you should absolutely require a signed contract and determine the commission you will receive, which is typically 15-20%.  Finally, another key area is to build the team of professionals that will support your artists.  This includes lawyers, accountants, distributors, etc.  A good sports analogy would be to consider these business partners as the “front office” employees and the artist or band as the team.  You are in the middle as the coach.  You will be the liaison for these business partners and will speak on behalf of the artists. Therefore, pick your team wisely.  Your credibility is on the line. 

I am very close to putting the final touches on my business plan for D Leigh Talent.  I hope you find this information and the references helpful as either a musician or a music manager.  I’ll continue to provide updates, so check back often.

Take Care,

D Leigh

References:

Goetz, R. (April 18, 2013) Musician Coaching.com. Get a music manager: Part 1.  Retrieved May 28, 2013 from http://musiciancoaching.com/music-business/get-a-music-manager-1/#.UaUcYJW3bdk

McDonald, H. (2013). MusiciansAbout.com.  How to work with your manager.  Retrieved on May 26, 2013 from http://musicians.about.com/od/beingamusician/ht/workwithmanager.htm

McDonald, H. (2013). MusiciansAbout.com.  Artist manager – What is it?  Retrieved on May 28, 2013 from http://musicians.about.com/od/otherindustrycareers/p/artistmanager.htm

Every new musician or band must stay vigilant in understanding new and different ways to market their music.  But that doesn’t mean you have to open accounts on every new social media site or mobile application.  Instead, you should make good use of the digital mediums that have proven to be successful.  The most obvious one is YouTube.  But it’s not enough to simply post a video; you need to employ strategic methods to stand out amongst millions of videos. I’ve gathered some tips and tricks that may help.

An article posted on Music Think Tank.com titled 9 Things YouTube Recommends Musicians Do, That You're Probably Missing provides great direction on how to capitalize on YouTube’s functionality.  For instance, the article notes that musicians should use “tagging” as much as possible when you post a video.  When you add tags to your video, it helps people to find your content.  Don’t remember where to input tags?  Here is a screen shot from a video I uploaded for a class project.  It shows where you can input key words (tags) when you post your videos.

Another great point in the article is to have both a lyric and a music video for each song.  Fans love to have the lyrics of songs.  This is reminiscent of the days when CDs included the lyrics.  Some artists include the lyrics in the description section of the video posting.  Now that music is downloaded, fans need a way to see the lyrics, and a separate video will draw them to other postings on your site.  Hopefully, as they browse your YouTube site, you will have other offerings for them, including “behind the scenes” videos and interviews or testimonials. Also, make sure you provide them with an option to subscribe to your site so that you can provide them with special content.

One final piece of advice from the article is to encourage your fans to be creative with your music.  Ask them to create their own videos using your songs and get their contacts to view them.  Whether they sing it themselves or use it as music in a different video production, these types of additional hits can create more buzz around your music.  Just make sure they appropriately credit you for the music.  You can even create a contest around the most creative video using one of your songs. 

These are just a few suggestions I noted from the article.  The source of this great information is a document published by the YouTube Next Lab called the YouTube Creator Playbook Guide for Music. Here you will find a wealth of information to optimize your presence on YouTube.

Another great resource for new YouTube music marketers is a site compiled by CD Baby’s DIY Musician Blog.  YouTube For Musicians: The Complete Guide has links to numerous articles that have been posted on their blog, including their “favorite tips, tricks, tech-recommendations, and interviews”.  

Finally, if you just don’t have time to do the reading, here is a YouTube video that summarizes a lot of these tips in just six minutes!  

 Source: http://youtu.be/9sV0PLIbYy8

I hope you found this posting helpful.  I look forward to your comments.

Take Care,

D Leigh

References:

Cannon, J. (2013). 9 things YouTube recommends musicians do that you’re probably missing. Musicthinktank.com.  Retrieved on May 10, 2013 from http://www.musicthinktank.com/blog/9-things-youtube-recommends-musicians-do-that-youre-probably.html

Crawford,C. (2012) YouTube SEO- How to do SEO for YouTube videos and rank #1.  Retrieved on May 11, 2013 from http://youtu.be/9sV0PLIbYy8

YouTube Creator Playbook Guide for Music. Retrieved on May 10, 2013 from  http://static.googleusercontent.com/external_content/untrusted_dlcp/www.youtube.com/en/us/yt/playbook/media/pdfs/playbook-music-guide.pdf

The DIY Musician. YouTube for musicians: The complete guide. Retrieved on May 11, 2013 from   http://diymusician.cdbaby.com/musician-guides/the-diy-musicians-complete-guide-to-youtube/

Walker, D. (2013). WalkerDanielleLiveEventProject. YouTube.com. Retrieved on May 11, 2013 from http://www.youtube.com/edit?video_id=us7NuHdufRw&ns=1

Image:

Source: http://www.digitaltrends.com/wp-content/uploads/2011/10/YouTube-Music.png

Hello Everyone,

For new bands attempting to get their music into the hands of fans, the issue is how to do this at a low cost but with high impact.  Creativity is key as you try to entice listeners to add your music to their library.  CDs seem “old fashioned”, and if you don’t have an investor, you may not have the financial wherewithal to submit an order for a distributor to manufacture 1,000 CDs.  You also run the risk of having excess inventory if the sales are lower than expected.  Nowadays, artists have become very savvy at alternative ways to distribute their music.  There are various methods for showcasing your music, yourself, and your band.  This includes sites like ReverbNation, SonicBids, PumpAudio and SoundCloud. If you feel the need to have a more defined way to distribute your music that includes analytics, try sites like The Orchard.  This site provides a full suite of marketing and distribution tools.  One word of caution, be sure to check the agreement carefully to fully understand any fees and licensing verbiage.

So you have your music ready, but what about artwork? Even if you’re not a graphic artist or professional photographer, there are various sites that can help you to create a phenomenal “cover”.  Try Flickr, or Webdesigner Depot. Or, if you have the funds to have someone create an album cover for you, consider Design For Music.  Here is a really good article on album artwork designs. It shows that this form of art is still important and appreciated. 

 

I want to also let you know about a great article I read on Music Think Tank.com.  It’s titled How the Digital Music Revolution is re-shaping Album Artwork. The author, Mark Roberts, provides some very creative ways to keep the idea of album artwork alive in the age of digital downloads.  Forget about traditional CD covers; let your imagination go wild! He speaks to the use of memorabilia in place of album artwork, which is a revolutionary idea.  Be sure to stay true to the image your band wants to portray versus going with what seems to be popular.  Your brand is still should always be your guiding principle.

Take Care,

D Leigh

Chapman, C. (2011) Common design styles used in album artwork. Webdesigner depot.com.  Retrieved April 26, 2013 from http://www.webdesignerdepot.com/2011/02/common-design-styles-used-in-album-artwork/

Roberts, M. (2013) How the digital revolution is re-shaping album artwork. Music think tank.com. Retrieved April 26, 2013 from http://www.musicthinktank.com/blog/how-the-digital-music-revolution-is-re-shaping-album-artwork.html

Ok, so it’s time to create my first band press kit.  There are a wealth of resources available for the “do it yourselfer” including books, articles, blogs, and websites.  Although electronic press kits are becoming more popular, it’s also advised that you create a hard copy version.  Never forget the “power of presence”, meaning, in person meetings with venue owners can make a difference. Even if they aren’t able to provide a booking right away, they may keep you or your artist in mind for future gigs, or could direct you to another venue that is currently seeking your style of music.

I’ve also found some great articles online related to band press kits.  Music Think Tank.com has a great article by Jonathan Ostrow that provided excellent instruction on the important elements to include in a press kit. Another good online article is titled “What Goes Into a Successful Electronic Press Kit (Digital Music Promo)?”.  It talks about EPKs and hardcopies, and the advantages of both. And Mike King speaks from experience, having worked at a record label and being the recipient of many press kits.  His article on artistshousemusic.org provides cautions as to what you should avoid. Sites such as Reverbnation.com and Sonicbids.com allow you to create an online electronic press kit (EPK). 

Beware of resources that may not deliver on expectations.  For example, I recently purchased a book for my Nook device by Ebony Pierce entitled Press Kits: The Complete Guide To Press Kits That’s Stuffed With Techniques for Getting Professional Results With Band Press Kits, Movie Press Kits, Online Press Kits, Media Kits and Electronic Press Kits. This book was a complete waste of my $3.50!  There was no true guidance, techniques or helpful direction.  Be sure to review the various free resources that are available before making purchases or signing up for paid services.  

Take Care,

D Leigh