Many musicians refuse to do anything unless they are paid. This is completely understandable if you are playing covers, doing sessions or TV work etc. However if you are looking to build an audience this approach will slow you down. Ian from Topspin Media (who has worked with David Byrne, Moby etc) recently said:
“Our advice to artists is to not attempt to sell ANYTHING until you have at least a couple of thousand people on your email list.”
Picture by Paul Linus Claassen
You can’t make money from an audience you don’t have (and as we have said before an email list is essential) . You probably also need at least several thousand connections across a few social networks (not Myspace, social networks that work) that you are actively engaged with. This will most likely take years, so it requires a serious investment of time and hard work to build this literally one person at a time.
Now we’re not saying play the local pub to two people for nothing or give away your music for TV. It’s about using strategic steps to build an audience you can effectively monetize later. So giving away a track or EP or album in exchange for an email is a good idea. Doing a gig with another band or festival (listed on Live Unsigned) where you can collect emails has a value. If you were to use magazines or pay per click advertising to get these emails you’d be looking at a considerable spend. Use your social network to direct people at free downloads but don’t do it too often, remember social networks are not there for you to self promote, its about people having a conversation. Perhaps only self promoting with links to product once or twice a week is a good idea.
The more money you charge the more barriers you put up between you and a potential fan. When you see a label charging £10 for a CD they are spending a lot money on advertising and promotion and they often make a loss. They are gambling on potential future revenue available once an audience is built. As an unsigned artist you can’t hope to compete with a promotional spend on that level, so by giving away some of your music/time/energy you can start to build that audience. You need to think like a low cost tech start-up, sites like Google and Twitter didn’t attempt to make money until they had a loyal audience.
Every fan email/social network connection you make has a real cash value if you can create great music and products. So once that audience is there you can start to sell tiered products of a higher value such as T-Shirts, Tickets, Box Sets, House Concerts etc. This is where the real money is, not in a one off sale. Last month the Grateful Dead made 3.5 million dollars on the sale of 7200 units of a 65 CD set. Although this is an extreme example it illustrates how much you can make from a loyal fanbase. They made more cash in that week than anyone in the US charts (source Bob Lefsetz).
Think of your long term strategy. Are you looking for a small amount in the short term or do you want to potentially make a living by having an audience? The answer to this will vary from band to band.
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Tags: loyal fanbase, making money, monetize
