Digital Is The Way To Go

Hello Everyone!

The music business is forever moving forward and as artist, we need to know the latest trends of this industry. There are some amazing facts about the music business today that has veered the direction onto another playing field.  Everyone knows that music is selling more online than physical CD’s but did you know that singles sell better than albums? 

 

These days with all the technology geared towards the online usage with smartphones and tablets. These mobile devices have allowed the consumers to change the flow of distribution through digital media. This new distribution is geared towards making money with singles over albums via YouTube, Spotify, Subscription, and licensing. This is all from the growth of mobile technology and the apps that allow you to utilize their services for instance, streaming audio.

Streaming audio is where the artist can license their music to these companies and consumers can pay a small monthly fee for unlimited listening of music. This is a great way for artist to earn money and for music lovers to have a broad library of music without keeping up with physical CD’s.

We all know that the Internet has evened out the playing field for independent artist. This new billion-dollar distribution channel is the way independent artist can be paid for our music without a major record deal. Trends are now showing that single digital tracks and music streaming are both leading the way right under radio audience on transaction and performance totals in 2011 according Neilson Soundscan.

Digital tracks music sales have been climbing strong since 2005 from 367 million sold to 1.306 billion in 2011 according to the RIAA.  That’s 85% of the total digital sales that year. These are some things we need to look into when it comes to promoting a new single over putting together an entire album when you really can’t afford it quite yet. 

Something to think about, Real Talk!

Alternative Funding Sources

Hello Everyone!

Today we will talk about alternative funding sources that we can utilize as entrepreneurs to fund our business plans. There are plenty of alternative sources of funding than the traditional bank loans.

Some small business owners and entrepreneurs can get assistance from angel investors and venture capitalist, but today we will take a look at community development financial institutions like cdfi.org or opportunityfinance.net.

Community development financial institutions finance community businesses, including small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing.

Cdvca.org and Opportunityfinance.net offer different types of financial opportunities. Opportunityfinance.net offers financing opportunities by lending directly to Member CDFIs through the OFN Financing Fund, which pools capital from multiple sources to on-lend to its Members. Financial products include: Unsecured Senior Loans, Unsecured Subordinated Loans and Secured Participation Loans.

Cdvca.org is a network for the field of community development venture capital (CDVC) investing. CDVC funds provide equity capital to businesses in underinvested markets, seeking market-rate financial returns, as well as the creation of good jobs, wealth, and entrepreneurial capacity.

Requirements and qualifications to obtain the financing from either of Cdvca.org or Opportunityfinance.net are a little different. All OFN Members in good standing can apply for loans. An OFN Member in good standing is current on Member dues payments, has submitted the most recent FY Member Survey, and is not in default on an OFN Financing Fund agreement.

As for CDVCA, to obtain financing, one must choose out of their list of National and International and even CDVC Central Funds. There are so many to choose from and as long as you are improving the lives of low-income people and distressed communities, you probably qualify for the funding.

There is all type of helpful information on both of these websites. The OFN and the CDVCA sites have research, consulting services, news blogs and even publications on investments information tools to help with the journey of your financial investment needs.

There are some advantages and disadvantages when using alternative financing. Being affiliated with other CDFI members is a huge advantage that can help you in a long way. A disadvantage would be that you may have to compromise locations for your business. It depends on what’s important to you and your business. Thanks for your time again, Real Talk!

Corey

Business Plan Help From an Expert. Part 2

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Last time we talked, we spoke about expert advice on writing a business plan. Well today I want to pick up were we left off. I learned a lot from researching these veterans in their fields of business. Today I will talk about what I personally will do to update my business plan now since I've learned a few more pointers.

Dr. Steven Gedeon’s advice on writing business plans for different audiences was something that I intend to incorporate because he is absolutely correct. We need to understand Angel Investors, our management team, and even judges in a contest like Shark Tank will all want to see a different style of business plan than the others. 

Dr. Steven Gedeon also spoke about avoiding useless big  They don’t want to see these huge useless numbers. They only want to know your addressable market size numbers and how you’re going to advertise to those people. I plan to change that part of my industry overview to a more specific part of my industry. 

numbers. He stated that it’s more important to have a realistic numbers for your market size. Writing your business plan with the numbers of the entire retail industry sales and say your company only needs one percent of it is not what the investors are looking for.

After researching these experts and taking Business Plan Development here at Full Sail University, I feel that the most important elements of a business plan that investors are looking for are the executive summary, the description of the management team and advisory board, and the financial projections.

The executive summary is a very crucial part of the business plan. Rhonda Abrams wrote in Successful Business Plan that “only a clear, concise, and compelling condensation of your business right up front will persuade readers to wade through the rest of your plan” (Abrams, 2010).

The description of the management team and advisory board gives the investors an inside of who will be managing the directions and finances of this proposed plan. The educations and experience backgrounds of your management team speaks volumes to the investors. They know that the management team has a greater impact on the long-term fortunes of the company than the product or service provided.

Abrams wrote that the financial projections are merely the reflections of decisions you make. Numbers are attached to every decision you make for the company. If you decide to take advertisement with a local magazine then there is a number attached to that decision. You want your numbers to show the result of careful planning. The better you have an understanding about your financial statements the better you have control of your company (Abrams, 2010). 

Hope some of this will help you as well on your business adventures, Real Talk!

Reference:

Abrams, Rhonda M., and Eugene Kleiner. The successful business plan: secrets & strategies. 4th ed.; Deluxe binder ed. Palto Alto, Calif.: Planning Shop, 2003. Print.

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Business Plan Help from an Expert?

Hello Everyone!

Today here on Real Talk we will be taking a look at “experts” in the field of writing and or reviewing business plans. This is good information, for those of us thinking about starting a business and want to do a good job at running it. In order to stay organized and to keep good records of your own business, then a good business plan is essential to your success.

The first business plan expert I want to talk about today is Dr. Steven Gedeon. Dr Steven Gedeon has a PHD, MBA and is a professor in Entrepreneur & Strategy at the Ted Rogers School of Management. According to www.ryerson.ca/tedrogersschool/bm/faculty_staff/bios/gedeon.html, Dr. Steven Gedeon has led over a dozen private, public, ventur

e capital and non-profit organizations; published over 100 articles, reports and patents; and delivered over 40 public speaking engagements and has done on-line videos on personal leadership, motivation, entrepreneurship and teaching (Ryerson.ca, 2013).

On his Linkedin.com page it states that Dr. Gedeon is currently the Director of the Ryerson Entrepreneur Institute, Director of the Ryerson Angel Network, Director of the Dobson Micro-Financing Seed Venture Fund, Chairman of CEO Fusion, Chairman of the Research Committee of the National Angel Capital Organization, Faculty Advisor to Students in Free Enterprise Ryerson and the Digital Media Zone, and Advisor to the Ontario Partnership for Innovation and Commercialization (Linkedin, 2013).

The next expert business planner I want to discuss is Chuck Blakeman. Chuck Blakeman has a slight different approach to business that has been adopted by thousands of business owners. He has bootstrapped five wildly different businesses and two non-profits from the ground up, making every mistake possible along the way to some big wins. As an internationally acclaimed business speaker averaging more than 100+ speaking engagements and workshops per year, he has been quoted and featured in Entrepreneur Magazine, CNNMoney.com, NYTimes.com, other online magazines and small business blogs throughout the U.S., Australia, and New Zealand (Blakeman, 2013).

His company, the Crankset Group, based in Colorado, works with business owners to help them make more money in less time and get back to the passion that brought them into business in the first place, so they can build a mature business in support of their lifetime goals (Blakeman, 2013).

Blakeman feels that preparing a business plan wastes time that could be spent actually doing the business. He states that real life gets in the way of plans. A business plan helps an entrepreneur plan for the future. But the flaw with that is the future cannot be foretold. Since the future is unknown, Blakeman says, “Implement now, perfect as you go” (Blakeman, 2011).

The most important components that investors are looking for is what kind of business is it and to whom are we selling to? What is the price of your product, who are your competitors and how is your business different from them? Does the plan have credibility and is there a plan to action? All of these are key components that investors look for and all good business plans should have. Thanks for your time. Real Talk!

"bios - Business Management - Ryerson University." Ryerson University - Toronto, Ontario, Canada. N.p., n.d. Web. 9 June 2013. <http://www.ryerson.ca/tedrogersschool/bm/faculty_staff/bios/gedeon.html>.

Blakeman, C. (2012). How: the worst, most asked planning question. Retrieved from http://chuckblakeman.com/2012/8/texts/how-the-worst-most-asked-planning-question

"Chuck Blakeman / How: the worst, most asked planning question." Chuck Blakeman / Live well by doing good.. N.p., n.d. Web. 9 June 2013. <http://chuckblakeman.com/2012/8/texts/how-the-worst-most-asked-planning-question>.

www.ca.linkedin.com/in/stevegedeon

The Impact Of The Digital Landscape In The Music Business Today

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The Impact Of The Digital Landscape In The Music Business Today

The digital landscape has made a significant impact on the music business over the past 15 years. Technology has made it easier than ever before for an artist to share and sell their works to the masses via online. Let’s take a look at how the digital landscape has changed in the music industry.

CD’s Then Downloads Now

To some, the days of buying CD’s from a record store is a mere memory and to others, they have never bought a CD from a record store in their life. That’s the biggest difference in the music industry in the last 15 years if you ask me. Technology and the rise of the Internet have changed everything that we do today. Instead of going to Blockbusters to rent a movie, now we just download our favorite movie from Netflix. Instead of buying your favorite hip-hop artist’s new album from the local music store, now we download it from iTunes directly to our iPhones.

This rise of technology has been good for us artists to publish our music to the masses for a bigger cut and it has been bad for the record companies of old that has had a strangle hold on the music business for years to adjust to this new age. On Vertygoteam.com, they state that record companies have been in trouble for the past 25 years. They say there have been a lot of mistakes made by the record companies in the music industry and it has only gotten worst over the years.

Social Media

It’s no denying that social media has a very strong presence in the music industry today. Now more than ever, artist can communicate directly to their fan base via Twitter, Facebook, YouTube and a variety of other social media type sites. Artists today are taking control of their careers and are promoting and selling through social media sites. Being able to join conversation with fans for potential sales instead of a sales pitch is key to monetizing the social sphere is what Kyle Fisher wrote in his blog on Famehouse.net called “As It Stands: Digital Marketing In The Music Industry”. Kyle speaks about keys to be successful with digital marketing in the music industry with very helpful advice.

Analytics

Now since everyone has a Twitter account and a Facebook page, artist are taking advantage of the free promotions they offer. In my opinion, it’s being over saturated with too many novice artists trying to get in the music industry door. My notifications are overloaded with everyone’s party and up coming album releases. I feel that maybe if they did their homework they could get more accomplished in their marketing scheme. It’s called analytics and it’s the study of statistics and making good decisions on who’s buying what and where. This vital information can catapult an artist career if done correctly. Kyle Fisher said that aggressive and evaluated analytics is the most effective aspect in digital marketing. 

If you are not familiar with analytics or digital marketing then read more about it or hire you someone that is familiar with it so you can upgrade your Internet presence and build your brand up for success, Real Talk!

Posted by C.D Wright

References:

"Marketing Strategy in the Music Industry || Record Companies || Vertygo Team ||." || Vertygo Team || Strategy Advisors || Marketing & Communications || . N.p., n.d. Web. 13 May 2013. <http://www.vertygoteam.com/music_marketing.php>.

Team, Kyle Fisher for the Fame House. "As It Stands: Digital Marketing in the Music Industry / Fame House / (R)evolutionary Digital for the Music & Entertainment Industries - Digital Strategy | Marketing | Social Media | Web Design & Development | Merchandising." Fame House / (R)evolutionary Digital for the Music & Entertainment Industries - Digital Strategy | Marketing | Social Media | Web Design & Development | Merchandising. N.p., n.d. Web. 13 May 2013. <http://famehouse.net/as-it-stands-digital-marketing-in-the-music-industry/>. 

Image Reference

http://www.dataxu.com/innovation-center/dataxu-marketing-digital-age-whitepaper-2/

Need Distribution? Let's Talk about it. 2

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Hello Everyone!

Ok, I know earlier we were talking about publishing and distributing music through POD’s like Tunecore.com and CDBaby.com. Both companies offer similar options to publish and distribute your music but very different options in fees. Tunecore.com’s ability to claim and collect all of your royalties worldwide without a percentage of your sales is a plus.

I really didn’t see any ways to promote on Tunecore.com.  It’s going to be very difficult to sell anything if you don’t promote it. I like what Reverbnation.com has to offer. They help independent artist in so many ways. Not only do they help you distribute and sell your music, they offer promotional services, show bookings, app building, etc. Reverbnation helps artist keep in contact with their fans and all around digital presence all on one platform.

The whole site is a great tool for independent artist, promoters, labels, and managers. Reverbnation connects the artist’s with their social media sites like Facebook, Twitter, and their Youtube accounts so you can update your digital presence all from one site. Everything is kept track of with statistic and demographic reports, a manager’s dream. They have so much to offer, you have to go and visit their site to get all the valuable information.

Reverbnation’s prices are reasonable for independent artist on a small budget. They have plans that for emerging artist starting at $19.95 per month and even for rock star level artist at $41.67 per month.  They even got basic free accounts for artist just getting started. Check them out when you get a chance.

Oh yea, for all of you film producers, I have a classmate named Kevin Petterson who did a great research on a POD site called Distribber.com. Distribber is a site that works similar to Reverbnation but for films only. When you get time check them out also. Thanks for your time again,

C.D.Wright

Need Distribution? Let's talk about it.

 

Hello Everyone! 

Thanks for checking out my blog today. It’s been a busy month since spring break and I’m happy to be back with you striving towards our careers to be successful in the entertainment business.  

In my Entertainment Media Publishing and Distribution class in the Entertainment Business Master's program at Full Sail University, we are discussing a great topic on how to publish and distribute our own media, like music, books, films, and even video games. I love talking about self-distribution and publishing because I started out as an artist in this business as well. Back in those old prehistoric days were awful for independent artist, you would have to record a demo and try to get someone at a record company to sign you. Living in Oklahoma made that somewhat impossible for us in the early 90's. Then some of us were able to raise enough money to promote and sell our own music but most of us just fell to the wayside due to the lack of knowledge on what to do next or the funds to do it.

 Thank God for technology because now days with the Internet and social media, you can promote, distribute and publish your own music, books and films with POD (print on demand) sites. Companies like CDBaby.com, Tunecore.com, and Reverbnation.com are publishing and distribution companies that can help independent artist us take our careers to the next level of the game.

Since I came from the music side business of entertainment, I want to start out talking about the sites that can help us promote and sell our music to our fans. First let’s look at CDBaby.com. CDBaby.com is a great site to sell albums or singles. There are no any annual fees and they only charge $49 per album for worldwide digital and physical distribution. If you want global royalty collections then it’s $99 per album. You can sell singles for $12.95 for a sign up fee or $39 per singles if you want global royalty collections. CDBaby.com also offers disc manufacturing and you can also sell mp3’s, vinyl and physical CD’s.

            You can get a UPC code for only $20 an album or $5 per single and you can get web hosting for only $199 per year. You pay only $4 per album and artists keeps the rest of their own set price. That means we receive 91% of all digital downloads! That’s cheaper than iTunes and Amazon. You can also license your music for films, T.V., movies and even for YouTube. You can even set the amount you want to be paid out and once that amount is reached, you will be paid. Payouts are every Monday.

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Now you have other sites like Tunecore.com that offer similar ways to distribute  your music as well. TuneCore.com charges a set up fee of $29.99 and an annual fee of $49.99, but

you get to keep 100% of your sales and rights. There are no physical CD’s or vinyl to distribute, but Tunecore claims and collects all of your publishing royalties across the world. There is a $75 fee for the publishing administration.

Both of these sites are great for independent artist to sell our music to our fans and keep a good track record of it as well. Even though these sites make things easier for the artist to sell their music to their fans, you still need to promote, promote, promote. You have to build up your fan base so they will even want to pull out their credit cards and purchase your music. Let’s talk about that in my next blog.

PS: We will also talk about publishing and distributing films and books in my next post. Thanks for your time, 

C.D. Wright.

References: 

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https://members.cdbaby.com/what-we-do.aspx

http://www.tunecore.com/index/how_it_works