Basic Marketing Principles For Artists – Part 3 of 3: Increase the Amount of Money That You Charge

Welcome to the final segment of a 3 part series that was inspired by a mastermind program I participated in with Ali Brown who is my mentor in the world of online marketing.

Here’s the recap of what we’ve gone over thus far…

There are three ways to increase your income:

Part 1. Increase your number of clients (fans).

Part 2. Increase the frequency of purchase, how often your fans buy from you. (and you’d better have more than just music to sell).

Part 3. Increase the amount of money that you charge…

Increasing the amount of money you charge poses a problem if all you have to sell is music because music is now widely available for free, and people have proven that they are not willing to pay a premium for music.

However, fans will pay plenty of money for experiences, like a great concert or a chance to be a contribution to an artist, a special memento, or wonderful merchandise that really resonates with your fans.

An Example…

Jeff Krantz created a BIG payday in one fell swoop.

Jeff Krantz & The $10,000 Song
http://jeffkrantzmusic.com

Recently I was hanging out with past Cyber PR client who had a fabulous tale to tell. Jeff launched his singer-songwriter career in Second Life where he has managed to build a wonderful fan base.

Through networking online, he met a man who fell in love with his songwriting and became a fan. This man called up my artist and told him that he was having a big anniversary coming up and he wanted a special song written just for his wife. He asked if he would be up for writing and recording a custom song for her.

Realizing that this was a huge opportunity told his fan that he would present him with some options he began to THINK BIG. So he created 3 packages that this man could choose from with three separate prices (depending on how much he wanted to spend / how involved it would be silver, gold and platinum)

Here’s what Jeff wrote about how it worked:

As part of the Gold package that the client chose, I agreed to write 3 different songs (first verse and chorus) for the client to chose from. Once the client selected the song, I spent 1 week writing 2 full lyrical options for the client to chose from. Once they had decided on the song, Jeff went into his studio and recorded the song, bringing in musicians to fill out the arrangement. He then sent it to a top studio to be mixed and mastered and 2 weeks later he sent the client the finished song (with the masters). “It took about 60 hours in total but it was so much fun and I made almost 10 grand for the effort!”

The point is because he leveraged just ONE relationship with just one fan he managed to make over $10,000 on ONE song.

Had he not been working on increasing his fanbase by networking online, he never would have had this opportunity present itself to him.

Fan Funding

A newer option that has become a widely available option for indepdent musicians to take advantage of is fan funding. Fan funding sites (often called ‘Crowdfunding’) have become an incredible resource for musicians to employ this very strategy.

Here are a few options available:

  • Pledge Music
  • Rockethub
  • Kickstarter
  • IndieGoGo

  • Be it your album creation process, setting up a tour, creating merchandise, or any other important aspect of being an independent musician, creating a fan funding campaign not only helps you to raise the funds, but it will allow you to give your fans the opportunity to take part in a unique experience.

    Your fans will be paying more because they will be buying into more than just a pre-sale for a project, they are paying for the opportunity to join your journey to get there.

    How Have You Added Value?

    I would love to hear how you have managed to add value and get more profit. Please share!

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    5 Critical Things To Add To Your Monthly Newsletter

    So – as you know I am a newsletter evangelist!

    I believe it is the NUMBER ONE thing that will help you create a career in the music industry; communicating with your fan base regularly and consistently. 

    If you do not already have a schedule mapped out for sending your newsletters – get your calendar out NOW and pencil in 12 dates – 1X per month (I suggest you send your newsletter 2X per month but start with once a month and grow from there). 

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    Indie Max 100: Category 3 – Recording & Releasing Material

    30: Create Amazing Music – Recorded and Live

    Creating amazing songs/music and putting on a killer live show. That is the number one thing an artist needs to do. :)
    - Emily White

    31: Record and Release (LOTS OF) Music

    No excuse exists with today’s technology to wait for a label, manager, sugar daddy, etc. Write Write Write! Record Record Record! Release Release Release! Plan to release 20-30 songs PER YEAR for the first 3-5 years without any lulls. If you cannot write enough material, find co-writers (Plenty of musicians will not do #1 or #2, but still have great creativity to share with the world). Buy the basic recording gear and learn how to use it (take classes or just experiment!!). Use CD Baby, Tunecore, etc. to release your songs digitally. DO NOT even consider physical retail to start. If you manufacture your CDs, keep them simple. Stick with inexpensive packaging (great artwork is a plus). Use the money you save to buy some more gear or do some marketing. Way too many artists tell me that they spent all their money just getting an album recorded and manufactured. Spend no more than 30-40% of your available cash making / manufacturing music. If you cannot afford to manufacture, then wait. It is far more important that you record, release and play shows
    - Rob Gordon

    32: Experiment In Public

    Speaking of being on my toes, I try to push my comfort level in plain sight. Sometimes I’ll produce a song in a style I’ve never really attempted before and release it to my subscribers at http://matthewebel.net -sometimes it flies, sometimes it doesn’t. My first attempt at Trance, a song called “Night Train”, has become one of the most requested songs I play at live shows now. It’s the first one people have openly talked about pirating. For something I originally downplayed as “just an experiment”, it’s now one of my biggest hits. I experiment onstage as well, trying new arrangements or even lyrics. My fans love knowing that they’re part of something spontaneous, that they’ve got a hand in shaping the very future of my music. Happy fans are vocal fans.
    - Matthew Ebel

    33: Don’t Be Afraid of Cover Songs And Legally Record Them

    Tap into the popularity of better-known artists. Are you known for an awesome rendition of a popular song in your live shows? Great. Record a video of you doing it and post it on YouTube. Better yet, buy a license to record your own version and sell it on iTunes. Then use the video to send people to iTunes to buy the download.
    - Bob Baker

    Singer/songwriter Steve Acho realized that fans who love a particular song will often collect other versions of the favorites. After getting the proper publishing licenses, he would record new arrangements of songs popular by various artists, and release them on iTunes via TuneCore. When a song-collecting fan enjoyed one of his tunes, they would often also buy his originals.
    - Carla Lynne Hall

    34: Record Purposeful Specific Music: Appeal to Niches

    Record an album to be used by a particular type of person for a very specific purpose. Like Steven Halpern’s “Music for Healing” or Richard Lawrence’s “Music for Concentration” of Bradley Joseph’s “Music Cats Love While You Are Gone.”
    - Bob Baker

    35: Create Solidly Crafted, Well-Produced, Mastered Broadcast-Quality Songs

    Well-produced music will attract more listeners and media makers. People want to be associated with quality. So even if you are ridiculously talented, if you didn’t spend the time or money have your album properly produced, mixed and mastered it will be stopped at the door. You have to be willing to go into debt or come up with a creative way to raise funds to have your music fine-tuned in post production. It’s a step that should not be overlooked.
    - Derek Nicoletto

    36: Make Instrumental Mixes

    Make mixes of your album without the lead and background vocals and throw your instrumental tracks into the licensing ring. It doubles your available catalog and opens up opps for shows that do not use vocal music. If your w/vocal mixes are already copy written (if they’re not, seriously, I will beat you senseless when I see you on the street), you don’t need to register these instrumental mixes separately because the music on them has already been registered. An instrumental placement won’t get your voice out there in TV land, but it could pay for your next EP.
    - Phil Putnam

    37: Think About Fan Financed Recordings / Projects

    As the fan base grows, so does their desire to see an artist succeed. Last year, Shane wanted to record and went out to the fans for support. See www.teamtrance.com. This effort raised just over $34,000 in just 60 days.
    - Michele Samuel

    Telling on Trixie also leveraged Social Media and their fan base to raise $50,000 and record an entire album that was 100% fan funded www.tellingontrixie.com/news
    - Ariel Hyatt

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    THE 2008 BILLBOARD MAXIMUM EXPOSURE LIST

    September 27, 2008

    Billboard Staff

    It wasn’t so long ago that a comprehensive promo plan meant working a record to radio and maybe buying ads in the local alternative paper when a band went on tour. This may sound quaint, or maybe, if your job depends on successfully promoting a band, it sounds blissfully simple.

    Today the ways artists can promote their music have proliferated so rapidly that it can be hard to keep up with what’s new — what’s actually cutting through the clutter. It’s in this context that Billboard decided to geek out with 20 promotions and publicity experts across genres and mediums to create the ultimate multimedia metric: Our first Maximum Exposure list.

    Ever wonder about eh relative value of a cover of Rolling Stone, a gig on “Oprah” or a song on “Gossip Girl”? Read on.

    1: SYNCH PLACEMENT IN A TV AD FOR APPLE

    Promo spots provide coveted showcase for music

    Patrick Wimberly can’t stop giggling.

    The reason for his uncontrollable mirth? The drummer for Brooklyn-based indie rock act Chairlift can’t quite process what he saw on a TV screen the day before. It was a 30-second commercial advertising Apple’s newly launched fourth-generation iPod Nano-with the Chairlift song “Bruises” playing in the background.

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