Music Business Music Business Starter KitStarter Kit

Jonathan G. ShawJonathan G. ShawIbilion MusicIbilion Music

Shaw Music StudiosShaw Music Studios

Moshito 2010Moshito 2010

First the downside…First the downside…

www.ducksdeluxe.com/www.ducksdeluxe.com/jokes.htmljokes.html

A guy walks into the doctor's office and says, A guy walks into the doctor's office and says, "Doc, I haven't had a bowel movement in a "Doc, I haven't had a bowel movement in a week!" The doctor gives him a prescription week!" The doctor gives him a prescription for a mild laxative and tells him, "If it for a mild laxative and tells him, "If it doesn't work, let me know." doesn't work, let me know."

A week later the guy is back: "Doc, still no A week later the guy is back: "Doc, still no movement!" The doctor says, "Hmm, movement!" The doctor says, "Hmm, guess you need something stronger," and guess you need something stronger," and prescribes a powerful laxative.prescribes a powerful laxative.

Still another week later the poor guy is Still another week later the poor guy is back: "Doc, STILL nothing!" The back: "Doc, STILL nothing!" The doctor, worried, says, "We'd better doctor, worried, says, "We'd better get some more information about get some more information about you to try to figure out what's going you to try to figure out what's going on. What do you do for a living?“ on. What do you do for a living?“

““I’m a musician.”I’m a musician.”

The doctor looks up and says, "Well, The doctor looks up and says, "Well, that's it! Here's R100.00. Go get that's it! Here's R100.00. Go get something to eat!" something to eat!"

Would you let an unqualified Would you let an unqualified doctor operate on you?doctor operate on you?

Would you let an unqualified Would you let an unqualified artist perform for you?artist perform for you?

Mmm, maybe I’m Mmm, maybe I’m overstretching my analogy overstretching my analogy

here?here?Or am I?Or am I?

Did you ever hear the joke Did you ever hear the joke about the broke doctor?about the broke doctor?

You’re Probably Won’t You’re Probably Won’t SucceedSucceed

95% of new recording artists in the U.S.A. fail to 95% of new recording artists in the U.S.A. fail to go gold (recoup the costs of releasing their first go gold (recoup the costs of releasing their first record)record)– Attributable to Courtney Love’s “Open Letter to Attributable to Courtney Love’s “Open Letter to

Recording Artists”, 2004Recording Artists”, 2004 This stat is 7 years old…This stat is 7 years old… It’s also based on the most successful music It’s also based on the most successful music

country in the world…country in the world… That means, because of the the internet era, this That means, because of the the internet era, this

percentage is probably higherpercentage is probably higher– In fact recording revenue has been shrinking over the In fact recording revenue has been shrinking over the

last decade, down 7% from 2008 to 2009 globally (IFPI, last decade, down 7% from 2008 to 2009 globally (IFPI, 2010)2010)

Now the upside…Now the upside…

There is Money in MusicThere is Money in Music

But wait! Define success?But wait! Define success?– Fame and fortune? Fame OR fortune?Fame and fortune? Fame OR fortune?– What is a career?What is a career?– In what ways can you make money?In what ways can you make money?– Think outside the “record” boxThink outside the “record” box– I’ve spent the better part of a decade I’ve spent the better part of a decade

looking at all the ways to make money looking at all the ways to make money directly, and indirectly, from music: directly, and indirectly, from music: there are lots!there are lots!

MindsetMindset General ignorance and lack of professionalismGeneral ignorance and lack of professionalism

– Heck, but it’s a creative industry!Heck, but it’s a creative industry!– Can you afford it?Can you afford it?– DIY is the new record deal?DIY is the new record deal?– ““Save me” mentalitySave me” mentality

Having a sustainable careerHaving a sustainable career– Jay-Z was the biggest earning rapper of last year, Jay-Z was the biggest earning rapper of last year,

and only a fraction of his income was from recordsand only a fraction of his income was from records– Overnight success takes 10 years of preparationOvernight success takes 10 years of preparation

Maintaining/honing your craftMaintaining/honing your craft

Mindset cont. (2)Mindset cont. (2)

Don’t get lost in your genreDon’t get lost in your genre– But don’t play to someone else’s tuneBut don’t play to someone else’s tune

Wrong expectations from band membersWrong expectations from band members– Are we in it for the same thing?Are we in it for the same thing?– Do we understand each other?Do we understand each other?

Are you prepared to busk your way to Are you prepared to busk your way to the top?the top?

Are you that special?Are you that special?– Rejection is part of the game but so is Rejection is part of the game but so is

passionpassion

Risky BusinessRisky Business

Opportunity costOpportunity cost Trade-offsTrade-offs

PitfallsPitfalls Transferring ownership of your copyrightTransferring ownership of your copyright

– Sacrificing yourself for “the deal”Sacrificing yourself for “the deal”– Recapture of rightsRecapture of rights– Misunderstanding contracts – e.g. term Misunderstanding contracts – e.g. term

songwritersongwriter RoyaltiesRoyalties

– Advances and a decreased cash flowAdvances and a decreased cash flow– EscalationsEscalations

Signing contracts without understanding Signing contracts without understanding them first or knowing what is in your best them first or knowing what is in your best interestinterest– ExclusivityExclusivity– Catch-all clausesCatch-all clauses

Pitfalls cont. (2)Pitfalls cont. (2)

Relying on partners (record Relying on partners (record companies, publishers, agents, companies, publishers, agents, managers) to do it allmanagers) to do it all

Choosing the wrong team membersChoosing the wrong team members Relying on the Net to get noticedRelying on the Net to get noticed Incorrect information supplied to Incorrect information supplied to

collective management organisationscollective management organisations

Don’t Get Left BehindDon’t Get Left Behind

There has never before been a better time There has never before been a better time to learn about the industryto learn about the industry– Almost everything I teach is available from the Almost everything I teach is available from the

Net, if you take the time to look for it (although Net, if you take the time to look for it (although its mostly from the U.S., why is that?)its mostly from the U.S., why is that?)

– Nothing is set in stone, only what has worked Nothing is set in stone, only what has worked in the pastin the past

Artists find competitive advantage through Artists find competitive advantage through better business practicesbetter business practices

Be aware of the Creative Workers’ UnionBe aware of the Creative Workers’ Union

Successful music relies on Successful music relies on passion, trust and positive passion, trust and positive

relationshipsrelationshipsThank you!Thank you!

Contact DetailsContact Details

www.smstudios.co.zawww.smstudios.co.za www.ibilion.comwww.ibilion.com www.mbac.co.zawww.mbac.co.za 083-498-1807083-498-1807 jshaw@ibilion.comjshaw@ibilion.com