Thursday, March 19, 2009

The "What You Need To Know About The Music Industry" Series 2

Okay where did we leave off? I think it was telling the consumers your story right? Well that's the most important thing you can do at this point. That goes for artist as well as labels who manage the direction of their artist. The consumers of music no longer purchase the music for its quailty, but for the interest of the artist. What is it that you knew about 50 cent before he became mainstream? You knew the exact amount of times he was shot. What was it that you knew about Eminem before he became mainstream? You knew how much he hated his mom. What was it that you knew about DMX before he became mainstream? He did and still does have serious problems with the law and a dramatic past. Soljah Boy? His internet success was his story. The point that I'm making is that the story sold them. You must have a story. It may not be interesting to you but the public may love it. Nas once said, and I quote "they love to hear the story how the thugs live and worry..." and he was oh so true.
This is where the infamous 360 deals take place. The topic had been brought up during the Chapter meeting of the Recording Academy. I for one felt as if this was the worse deal that an artist could possibly take, till it was broken down for me. Again, I have stressed how important it is to build, expose, and sell your story. This has now become the priority of the label, management, and even the producer in some cases.
Now lets go off course for a moment. This is what a 360 deal does. This recording contract basically allows the lable to take a portion of all your commisions. Your tour money, merchandise profits, masters, copyrights, all play a part in paying back the lable. For an artist this deal can be a bad or good thing. For example, if a producer works with an artist on spect ( which means no up front money) they have agreed to manage the course of the artist. The sound, the image, and etc. Being that the artist has not given the producer money up front in all fairness they should be allowed a larger percentage of the masters and copyrights to compensate for their work. This is what the label's obligation is if you have been signed to a 360 deal. The reason for it is because labels have mainly depended on album sales to compensate their expenses. If they have invested thousands or millions into a project then the profit of album sales will not cover the expense made. Album sales are horrible right now. As I stated in the previous blog, albums have become nothing more than a marketing tool instead of revenue. So in all fairness a 360 deal makes perfect sense....if its done by the book.
Now this is where that same deal gets bad. Since the birth of successful indie lables, the majors have somewhat grown lazy. Its been great for them. All they have to do is provide additional promotion to a regional artist or lable. This allows them to take that same level of sucess from regional to worldwide. The problem comes in when the majors choose to not hold up their end of the deal but want to enjoy the sucess of the situation. Meaning "you do all the work and I will sit back. When the profit comes back, I want a percentage of everything you work for." That my friend is when it make no sense to sign a 360 deal. Everyone must play their part in order for the machine to work properly.
Now that's one reason a 360 deal can be bad. If done right, then it makes sense for an upcoming artist to sign a 360 deal. Now when it comes to an establish artist, it make no sense. The purpose is to sell your story. To make the public so interested in you that your name becomes a brand. For example, I can buy a shirt from Target for 12 bucks right? Now if put on the tag of that same shirt Sean John, the retail value tripples. Why? Because of the branded name attached to it. Now if a name is already that powerful, what brand is the lable attempting to build? How much more of a story does 50 Cent, Snoop, Jay-Z, U2, Aerosmith, or The Rolling Stones need? My point exactly. It doesn't make sense for them to sign a 360 deal. They would be better off going independent and supplying their fanbase through the internet. The majors didn't deserve a portion of their outside profits then so they don't deserve it now.
Sometimes this may not be the best choice for indie labels either. If you have the ablility to slowly build your fanbase one person at a time then do that. This process may take much longer, but it can be done. You may sell less and your venues may be smaller than that of an established artist, but you keep all your profits. Your advance may be smaller, but so what. Now if you don't have the means or income to maintain shows or promotions then a 360 deal may be best. Just look at like this. Lets say we work together as door to door salesmen. Now you had nothing but the ablility to talk a good game and get our product sold. So I tell you "look I'm going to buy you some suits to make you look more professional. I'm also going to allow you to sell in the neighborhoods I normally sell in since I can't go there as much as I would like to. I'm going to pick you up everyday for work. And last I'm going to put your name on my business cards as an alternate contact to get you more clientel. Now because I'm doing this I want 20% of every sale you make and 20% of every sale made by anyone you bring in." Good old fair deal. Now lets say it the same secnario. Only this time I say "the only thing I'm going to do is explain the product to you and how it works, that's it nothing more. I also want you to sell in the neighborhoods I normally sell at, as well as new neighborhoods you may find. Along with that I want 20% of everything you sell and 20% of every sell made by those you bring in." Fucked up deal right.
Aight man, I'll school you on somethings next week from my daily ASCAP email. Feel free to comment the blog. Meet me here next week for the "What You Need To Know About The Music Industry" Series. And oh yeah, I'm sure its a thousand and one mispelled words but my spell check is doing something stupid. It is what it is. Get at me.

-Cash-
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