Should we release an EP BEFORE singing to a label?

I just got off the phone with a manager friend of mine who works for a great firm representing bands most of you would know.  They deal regularly with both indie and major labels.  She’s great…very smart, works incredibly hard, and loves her bands.  One of her acts is in the process of figuring out WHAT to do.  They were dropped from a major-indie label about a year ago and have since continued to write, record, and play as much as possible.

They’ve found themselves, yet again, with a few label A&Rs kicking their tires… The band wants to release an EP…but do you wait for the deal to happen, if it happens, or just throw something out to your fans without any major push in the meantime?

THROW SOMETHING OUT TO YOUR FANS!!  I told her…look…IF a label signs your band again it’s going to take AT LEAST 12 to 18 months before the antiquated sloth of a business could turn around a new product.  You think your fans are going to wait that long?  If you do…best of luck.  Labels are dying.  I keep saying this and you know it.  You need to keep your fans engaged and entertained.  You cannot exist on your myspace page alone and assume people will come to you…you need to reach out to them.  You need to provide something worth keeping their interest…and that’s great songs.  That’s your job.

Get out of the album mentality.  When you have a great song…record it and release it…we have the means to do this now!  Albums exist so that labels can make money… I highly recommended to her, and you, to record what you have and offer it to your core fans.  By doing so, you’ll keep the fans you have entertained while the label drags along.  Further, her band will then OWN that EP…and if you own it you keep the money from it.  I questioned why she wanted to sign her band to a label again, but some still go for the gold…and god bless ‘em…but you have to understand what you’re getting yourself into at the moment..particularly with the majors.

Quality songs over quantity….I’d rather you offer me 3 great songs than wait for 15…from which I’ll most likely only buy 3 from iTunes…so why wait?  Get the songs out there….because if you wait…you’re A&R guy will most likely be fired, the album budget will disappear, and you’ll most likely get dropped and the album shelved.  And I’m not being pessimistic, this is what the current situation is and the reality for most new bands.  Bet on yourself.

Ben

Starting an Indie Record Label….

Joaquin left a comment in the “Managing A Band Post” informing us of her passion to promote and support both local and international bands.  Her thought is, by starting an indie label she can further help these bands, particularly the ones overseas, by increasing their US profile….

Topic – Starting an Indie Label
I want to help promote bands I love by starting an Indie Label…what’s step one?

Advice:
Dime a dozen…seems like everyone falls into one of two categories..either you play in a band, or you own a record label!  Hell, I’m guilty!  You see, the music industry now has zero barriers of entry, meaning…anyone can play.  As I mentioned before, anyone can record an album, anyone can distribute it to the masses, anyone can book a show, anyone can set up a myspace page, and anyone can release other peoples content..i.e. start a label.  So before you jump in, make sure you’re doing it for the right reasons and that you can absolutely articulate your game plan and business model for the artists you’re interested in working with.  What do you have that is of value for them?

The definition of a record label is dramatically changing.  I encourage you to think less about starting a “record label” and more about the services you can provide.  Let’s say you start down the path of typical label..so what?  What can you do that a band can’t already provide for themselves?  If you want the lazy, short answer to your question….it’s this (and bands..pay attention):

1. Find bands you know are better than the rest and that you can market and sell their product
2. Sign the bands to a deal..they provide the music, you provide the marketing, distribution, manufacturing, and upfront financial risk
3. Contact independent distributors like Revelation Distribution, Lumberjack, RedEye and present the artists you have, the albums you’re releasing, the marketing plan for each, the allocated budget per project and try to lock in a distribution deal (they work to get your CDs in stores)
4. Coordinate all the project efforts from recording the album, to creating the artwork, setting up websites, organizing streetteams, soliciting tours, locking in street dates, creating promotional goods like posters and stickers, contact various websites for features, hire an indie publicist for full PR campaign, hire a new media marketing company for online exposure, fulfill distributors manufacturing needs, mail out promos for review, mail out posters to every venue the band performs at, solicit the music for license opportunities, provide tour support if available, and so on…

But this is all changing.  Take this to heart….content is king.   So many people jump in for the sake of jumping in…but are the songs REALLY that good?   Before you dedicate your time, money, and life to supporting an artist you better make sure that artist has the potential to make a significant difference.  Look around you…how much of what you listen to today will stand the test of time?  How much is scene driven rather than song driven?  I’m like you…I love music and only want to help.  And in this dramatically changing and incredibly exciting time there are endless opportunities to make a difference.

So ask yourself…what can you offer?  Answer that and build a business model around it…that’s step one.

Let me know what you come up with!
Ben

Master Derived Income

I received an e-mail over the weekend from Jason asking what the “Master Derived Income” is that I made reference to in my “Getting Label Attention” post.  I’m really excited about this question as it’s getting into a bit more of the business detail which every band needs to understand.  You have to look at your band as a business if your goal is to become a career musician.  If you aspire for anything more than a band that plays for fun at the local club (which there’s absolutely nothing wrong with) you need to figure out how to pay the bills…the only way to do that is by generating income.  One possible source for this income is your Masters.

Topic – Master Derived Income
What is it and how do I get it?

Advice:
First, let’s make sure we know what a Master is.  For every song there are 2 copyrights, the publishing copyright and the master copyright.  Publishing copyrights are what make the song itself…the lyrics,  melodies, notes, progression of chords…it’s the writing of a song.  Master copyrights are the recordings of those songs..it’s the captured audio.  So every song that’s ever been recorded is a Master… What’s a copyright?  Just think of it as acknowledged protection that informs everyone that you own something and if they want to use it they have to receive permission from you and pay you for using it.

Still with me?!

So now that you know Masters are the recording of songs we can discuss how to make money off of that!  Most commonly it’s putting about 10-12 of those masters onto one album, making CDs, and selling them at shows for about $10.  But now, there are more and more opportunities to make money off the “exploitation” of masters such as selling digital downloads, ringtones, ringbacks, and licensing (allowing the use) of masters in film, tv, and or video games.  Each of these avenues create income for the owner of those masters.

Typically, when you sign to a label they own your masters.  They give you an advance (maybe), pay for the recordings (budgets are getting smaller), and they own the masters.  In return, they give you a royalty, or %, of the income generated by those masters…but count on never seeing it as it’s only paid to you if your account with the label is recouped.  So now, every time an album is sold, a track is legally downloaded, a ringtone is purchased…it goes back to the label.  If you’re an independent artist and you retain ownership of your masters, you will receive the full benefit and income generated from any and all sales and uses of your songs.  “But if we’re on a label and we’re selling our CDs at shows..don’t we get to keep that money”?  Sure, after the label sends you an invoice for anywhere between $6-$7.50 per CD that you sell.  You have to buy your CDs from the label.  They own it.

Advice?  Depends on what your short and long term goals are.  I’m an advocate of holding onto everything you can….especially now.  No one knows exactly what’s going to happen over the next 1, 2, 5 years in the music industry…every label is struggling…why hand your control and ownership over now?  You can’t wait 2 years, write better songs, develop a regional fan base, and then see if there’s a better opportunity?

Just a thought….
Ben

Getting Label Attention

This didn’t take long!  I was wondering when I would get the, “how do we get signed to a label” question.  It’s taken me a minute to figure out how to respond as my gut instinctively goes to, “why do you want to sign your career, control, copyrights, and master derived income to a label”?  But that’s a whole other conversation and topic which I’ll save for when I’m asked.  So I’ve decided it’s your question, that’s what you’re looking for, here are some things to think about…

Topic – Getting Label Attention
Chris hit me up and said his band has contacted labels, sent press kits,  but hasn’t received a response.  He knows staying persistent and keeping on them is an option…but what else?

Advice:
Chris…the best way is to make them come to you.  Rather than throwing yourself against their door begging for a bone, you need to figure out how to attract them…and that takes time.  Very, very, very, very rarely does a label react to a press kit.  If there’s anything truly noteworthy in your kit, the label will already know about you.  And “keeping on them” is only going to irritate them.  Let me provide a perspective you most likely haven’t considered.  When I was at BMG in the A&R department I sat on a couple panels focused on artist development.  This question always came up and what I shared with the audience is this…What you got?  Seriously, what is so amazing in your demo and songs that I’m going to stop everything and hunt you down?!!  What?  See, when I sit there in an office with stacks of CDs, I get your disc, throw it in, I’ve never heard of you before, know nothing about you, I’m judging you solely on your songs…you’re going against EVERY song I’ve ever listened to in my life..so what are you offering that I haven’t hear from The Beatles, Nirvana, Rage, Deftones, Led Zeppelin, U2, Jay-Z, Beach Boys…whatever…you get it.  Do you have something that’s going to push me over the edge?   You need to build your own story to compliment your music..especially now.  You need to provide a story on your self-produced successes proving that you can sell records and there is an audience out there interested in you.   You need to do the leg work for the labels…and you’ll be better for it.  Get to a place where you sell out 300 cap rooms in your backyard, get in local press, sell content online, buddy up with bands in your scene, help each other out, constantly write new material, make sure you’re utilizing every tool online, you need to develop your own fan base.  Once you create your own momentum, word of mouth will start to spread.  Make sure the right people are talking and if they are, that’s when a label takes notice.  You cannot wait on a label to react and do it for you.  It’s hard, man…it’s a lot of work…but in the sea of bands…you HAVE to step to the plate…you cannot wait for anyone to do anything for you.

So focus locally, build regionally, and let the story speak for itself.  I know, easier said than done…but you gotta do it.

Ben