Newsletter for Independent Musicians

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April 24, 2006

Insider Secrets To The Music Business

Insider Secrets to the Music Business

By: Carla Lynne Hall, The DIY Diva (Associate Writer)


Many people outside of the music industry (and surprisingly many inside too) do not understand the way the music business really works. The truth, for the most part, is cloaked in mystery and closed door meetings. It makes the industry that much more glamorous and enticing. The Internet and lowered costs of CD manufacturing have made it possible for musicians to be self-reliant, but if you're interested in getting signed to a major record label, read on…

* Record labels are in the business of making money. If an A&R person doesn't believe that your act will sell, you will not get signed. If your shows do not have a crowd, you will not get signed. If your songs are just okay, you will not get signed. If your band does not have the elusive "it," you will not get signed.

* Record labels need superstars. Artists like Whitney, Celine, and Mariah make serious profits that are used to pay enormous overhead and line their coffers. Those profits also fund the "baby acts" which are released each year. Superstars are their bread and butter, and they are always looking for the next one.

* Artists on a record label belong to a pecking order. Getting signed does not guarantee that you will receive an advance. Getting signed does not guarantee that your record will be released. Getting signed does not guarantee radio play. Getting signed does not guarantee posters or listening stations at record stores. Getting signed does not guarantee that your boxes of CDs will even leave the storeroom of Tower Records before being returned to the distributor. If you are not a "priority" act on a label, there are no guarantees at all.

* "Payola" is alive and well. Don't let anyone tell you different. Labels may not give outright bribes for radio stations to play music anymore, but they have other ways to get their point across. There are now legal ways for stations to receive compensation: sponsorships/advertisements, free trips, gifts, etc. If you are a priority act, they will spend it on your behalf. If you had that kind of money, wouldn't you?

* Recording artists are products. Artists are commodities to be packaged and sold like peanut butter. Their music, personal appearances, and celebrity are used to move even more product.

* The shelf life of a recording artist is short. Older acts get dropped on a regular basis to make room for newer, fresher acts. Because the turnover rate is so high, even bands with hit songs may not last five years.

* Get Hot or Go Home. New records from unknown artists are given an average of eight weeks to show progress. If the CD sales do not move substantially within that period, the artist can get dropped or moved lower in the pecking order.

* 1% of all CDs released each year over 1000 units. There are over 30,000 CDs released each year. Many are major label releases from bands that sell to packed houses in their hometown. Most are from bands you'll never hear about.

* Record label executives are lazy. They want bands that have proven themselves by packing clubs and selling out of their self-released CDs.

* The record label is like a bank. After a record is released, an artist will not see dollar one until the label recoups its expenses. This includes the artist's advance, tour support and promotional expenses, and whatever extras are deemed necessary. This sometimes includes "gifts" given to the artist from the label.

Reasons to DIY (Do-It Yourself)

* No one else will care like you do about your career. Not now. Not ever.

* You are your best representative. Nothing beats buying a CD from the artist.You build your fan base, one person at a time.

* You know where your friends are, and how to reach them Labels aren't known for innovative marketing tactics. Instead of a cookie cutter marketing plan, you have the know-how to create strategies that will reach your fans

* If you do it yourself, you'll know what to expect when you hand the reins to a manager. If you hadn't done some of the work on your own first, how do you know if someone else is doing it right?

* You're separated from the corporate mentality. You are a musician, and your mind works in creative ways.

Think hard. Think long. The choice is up to you.