creative deconstruction

Why You Should Run Your Band Like a Business

Posted on 27. Mar, 2009 by refe in MUSIC INDUSTRY

I talked previously about the way that declining record sales have hurt the major record labels, and how this presents an incredible opportunity for artists to strike out on their own. It’s a shame that it has taken the deconstruction of an entire industry to make this possible, but I suppose if it didn’t I’d be out of a job.

The fall of the old regime really is a great opportunity for bands. The only catch is that without the major labels raising cash for them, bands will now have to develop their business chops because they will have to be much more self-sustaining. Why can’t bands be run the same way small businesses are run? I’m oversimplifying a bit, but the process is not rocket science. Put together a business plan, develop your product, and go out and sell that product.

The product is of course the music, but it is also much more than that – it’s the experience, the band itself. Book as many performances as you can and put on a great show. Take time to connect with the audience before and after the show. Put the profits toward further gigging and producing a couple of songs that you can release on your band’s blog, MySpace page, Facebook page, Twitter, streaming radio services, etc.

If you have created a good product that people want, your music and reputation will spread over time. Use that momentum to play more shows and promote the socks of them. Develop more products that can come alongside your recorded music and add additional revenue streams such as t-shirts, posters, original artwork, videos, private gigs, ect. These things also add extra value to your brand. Use the profit to record a couple more songs and repeat the cycle.

That’s how a business works. You keep on doing the stuff and following the plan, making adjustments wherever necessary. If you are offering a product that is valuable people will pay for it – whether that means they will pay to download your music, purchase your merchandise or cough up the cover charge to see you perform live – and you will turn a profit. Of course, this post just covers the basics but there are many, many other options available to bands to help them be financially solvent.

The Music Industry is not dead, it is simply changing hands. Record Labels are being forced to turn over control to the artists they formerly profited so lucratively from. This is an incredible opportunity for artists everywhere, but in order to seize it those same artists will have to be smart and learn to operate like a real business.

Tags: bands, business, economics, MUSIC INDUSTRY