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Creating an income stream with your original music When we first started out I tried and tested every idea I could find on the web to sell original music. Most of them seemed like good ideas, but took up a lot of my time and got minimal results. So I'm only going to discuss what has actually been profitable for us. Our music sales are a very small part of our income but a huge part of who we are, so it cannot be ignored. If you are an original artist, I believe it is critical to immortalize your music. Besides, when someone likes your music enough to buy it, that is the ultimate compliment to any original artist! |
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| Creating a CD for Solo Artist and Bands CD manufacturing & packaging Physical CD sales Online music sales YouTube income from your songs |
Creating a CD you are proud to sell
I'm not a recording expert, so we pay a studio for this task. Maybe that is why it is so very important that we remain profitable when selling original music. If you plan to record a few songs and give your CD's away, then nothing in this segment will apply to you anyway. I believe only a fool would do this since people simply do not place value on things that are free.
Obviously the first step is recording a full length CD. This means 10-12 of your BEST songs on each CD. We have recorded 6 full length CD's total, with 2 of those being full production. You also need a time frame for yourself. If we do full production, our time frame is 90 days of weekly sessions. If we are doing a solo type CD, then we knock it out in 30 days with 4 weekly sessions.
Back when we did our debut CD, T was still working his day job. He went to the studio every Friday night for 4 months. Now-a-days we are free from a job, and since gigs are slackest during January and February, these are the months we like to record in.
I know bands who remain in the studio over a year trying to get it 'perfect'. The fact is, we can go back to many of our recorded songs and find things we wish we would have done better or added, but we would never be profitable without our strict time frame.
When we are in the studio we have a motto that helps us over this 'perfection' hurdle while maintaining the quality of the music we produce. Our recording motto: "It doesn't have to be perfect, it just has to be right!" We repeat this throughout the entire recording process just to keep ourselves within our time frame and still produce the quality of music that we require of ourselves.
Solo artist CD
If you are making a simplistic CD, then you can probably record everything yourself. However if you desire full production you need other musicians to assist you in your project. As a solo artist, we have needed drummers, bass players and back vocals for full production recording. Some musicians are better at gigging, some are better in the studio. That is why we usually hire top studio musicians instead of using our 'live band' musicians.
A solo artist is the one who writes, arranges and performs their own music. They are also the ones who invest money in recording, promoting and marketing their music. Yet they may have a band mate who feels that since he performs with them, he is entitled to your copyrights or worse...your profits! The funny thing is, they really believe that you will make huge amounts of money with your CD. This tells me they know NOTHING about how an independent music business works.
I personally despise the 'entitlement' mentality. Perhaps because we have worked very hard for everything we have accomplished. We have paid a high and sometimes painful price for our musical success that most musicians are not willing to pay. If you have ever had any success in life, you have run across these folks too. Just remember this statement made by Will Smith...“If you were absent during my struggle, don't expect to be present during my success.”
I have talked to so many original artists that have run into an 'ego' or 'greed' problem with fellow musicians when trying to record a CD. We have run into this also. Let me share 2 stories with you, because you simply do not expect this attitude from your band mates, but it happens.
When recording TMoody's debut CD we had an awesome Bass player. Everything was going along fine when the bassist asked me "When are we doing the photo shoot?" I explained that I already had the artwork for the CD and there was not going to be a photo shoot. The next day I got a call from his mother. This was a surprise since our bass player was 34 years old!
I did not know this woman, but she was furious with me because her son was playing on TMoody's CD yet her son's photo would not even appear on the cover. Well, I'm not a person who gets chewed out easily. I'm a very rough and tough person when it comes to business. If she knew anything about me she would have never made the call.
I don't believe in getting angry, I just get logical in a VERY firm tone. Therefore after she got done with her bullying of me, I fired back with this exact reply: "First of all, I don't even know who you are. Secondly I have 2 very successful businesses so I don't like housewives telling me how to run this (TMoody's music) business. Thirdly, when you or your son have invested the thousands of dollars that we have to produce this CD, then maybe you can have an opinion. And finally, since you are so damn distraught over your son's photo not being on the CD, we will be happy to hire a different bass player all together! Now, don't ever call me again!" (Click)
I was surprised by this ridiculous call during my busy day. I figured we must have been the hot topic at their dinner table. But why would a 34 year old give his 'mommy' my phone number to question our decision in our business? The bass player called me an hour later to apologize for his mom's call and ask me if he could still be a part of it...without his photo. I agreed because heck...he's a great bass player and he knew all TMoody's songs.
The fact is, if you are a solo artist, band mates will come and go over the years. It's a natural part of the music business. We know this and do not want our CD to have photos of ex-band mates. In the end, are business is all about TMoody. As an original artist selling your music, it's all about you, your time, your financial investment, your artistic decisions, your songs, and the music legacy you wish to leave behind.
Original Band CD
If you are in a band, then you have to decide who is responsible for the financial end of recording, publishing and marketing. This means you will have to determine which band members are indispensable, and who is replaceable. Do not fool yourself by assuming everyone is an equal member. You have to look at what each individual member brings to the table.
Which band-mate(s) write and arrange all the songs? Which ones actually book paying gigs? Which ones provide the big equipment? Which one owns the name of the band? Which one does all the marketing for the band. In a perfect world ALL the band members would equally bring something to the table, but usually there are 1-2 members who are truly indispensable. Usually the songwriter and the promoter. In our case, TMoody is both.
It is best to 'know your players' before you record a CD. Here is a real life example of why...
Our friend has a popular original band in Austin. Years ago, when they decided to record their debut CD, each band member agreed to divide the studio costs equally. There are 5 of them. Naturally, there cam a point when one could not pay their share that week. Our friend covered him expecting to get repaid. I told him it would never happen and I was right.
A few weeks later, another band member got frustrated. He didn't realize how much work the studio can be. Little by little he was a no-show, then a no-pay, and eventually a non-band member. My friend was shocked by this but we weren't. A year later, he finally asked me "How did you know all this was going to happen before I did?" So I explained his own 'band' situation to him.
I told him the same thing that every band should know but doesn't want to hear. I went through each band member, what they brought to the table and if they could be replaced. In the end he realized that it was his brother who wrote and arranged the songs, while he (our friend) was the guy who did all the investing, marketing and promoting.
After this exercise in reality, I said, "Therefor you and your brother are "the band", and all others are your hired guns." He finally understood this concept and acted on it. He made the necessary mental adjustments and his band is still flourishing today despite normal band member changes. But I must say, he is one of the few who 'gets' it. The record labels understand this better than anyone. Indie bands who don't understand this basic business reality, will fail eventually.
CD manufacturing & packaging
I have seen indie musicians sell everything from burnt, hand written CD's to premium packaging. If you more interested in profitability, then total pro packaging may not be the way to go. Hand-written CD's are much more profitable, but a little insulting to those of us who purchase them. I cannot see anyone selling one like that for more than $5. I think that is why I see these types as 'give-aways'. But it's nothing anyone will keep.
Also...never use CD labels that stick on to a CD. This will ruin a CD Rom drive in any computer, car or DVD player because of the speed of spinning, and the crappy glue from the adhesive sticker. They should really be outlawed. I absolutely won't buy one of these. And when a musician gives me one of these sticker deals, I won't risk my equipment by playing it. Therefor I never get to hear it.
We package our CD's 4-per pack'. We do not use jewel cases, but a DVD case that holds 4 discs. You can see what I'm talking about by clicking here. We just do basic artwork on the CD itself, nothing fancy because neither of us know anything about graphic design. Most people have CD binders or visors. Jewel cases are often lost or thrown out. So as long as TMoody's CD stands out amidst a group of a music fan's other CD's, that's good enough for us.
I suggest you find some middle ground in order to offer a good looking, quality CD and still remain profitable. There are companies who offer short runs of 100 CD's and minimal packaging. You should investigate these possibilities first. I should warn you though, that if you go off and order 1000 CD's, make sure you have some space in you closet to keep the other 800 for a few years. Many have made this mistake on their first CD and we did too. 6 years after releasing TMoody's debut CD, we still have over 200 left! Luckily we made our money back a long time ago, but we don't even sell that debut CD anymore.
As an original artist, you will have your own ideas on how you want your CD to look. TMoody always wishes for high end, high art digi-packs. Unfortunately it is just not a practical way to go. My job at TMoody.com is to keep us profitable. So with every CD I have to run through the costs with him until he realizes that we will have to wait years to get a decent return on our investment because I have to include the cost of recording the CD as well.
How we produce & package our CD's
Because TMoody sells so many full length CD's, we make them ourselves. However, we like to make them as we need them, so we do not find our closet full of inventory. We invested in an awesome (3 at a time) CD duplicator and an HD Printer with a CD printing feature.
Together the cost for these were $500, but after shopping around, I was able to get them both for $300. I buy pro disc CD's that are 'white and printable to hub'. Those cost about $35 per 100 on Ebay. My ink costs average about $25 per 100 CD's. So I'm paying about $0.60 per CD. The total time it takes me to make them averages out to 5 minutes per CD.
The 4 disc DVD/CD cases cost me about $0.50 each as do my color inserts. This means we have almost $3.50 and 25 minutes in each TMoody Collection we sell. We sell them for $45 on the website but include free worldwide shipping that could run as high as $8. Each Web CD purchase usually nets us $35+ after shipping while moving 4 CD's.
When TMoody does his live shows, he offers a discount because the live shows are where 99% of his CD music occur! He will offer the TMoody Collection for $25 and net $22.50 per collection because of the sales volume we can achieve from live shows. TMoody averages 1 collection (4 CD's) per show and averages 4-6 shows per week on a year round basis. This ads a net of about $450 per month to our income without T exerting much additional effort.
Physical CD sales
When we get a new CD finished, we give a free copy to the people involved in the project. Everyone else buys one. Our friends and family gladly support TMoody's music and merchandise. I have heard of musicians who give away CD's to their friends and family. That's like owning a restaurant and giving free meals to your best customers. Duh! The only people we give CD's too, are other musicians. Just like if I owned a restaurant and met another chef, I'd pay for his meal.
After you have sold your new CD to your best fans, it's time to get new fans and sell CD's to them. Original music sales work best when you are a gigging musician. This is why record labels want each new album supported by a tour. Tours sell new and old CD's for any major artist. Even when they regurgitate a new CD by a popular artist from decades ago, the artist is required to tour.
Years before I met TMoody, I worked part time as a merchandiser for many bands, music festivals and major sports teams. I have sold merchandise at live shows for bands like Metallica, Korn, Kid Rock, Disturbed, Willie Nelson, Kenny Rogers, Garth Brooks, and many more country artists that everyone knows well (except me...I don't really know much about Country music).
The #1 requested item was always the Artist's CD! Everyone wanted one, but the record labels had their legal reasons for not making them available at the show. The fans didn't care about the record labels legal reasons. The point is, fans heard music, they wanted it, and they came to my counter to buy a CD. I used to add up the potential money I would have made selling CD's that night...it was always significant!
As an independent, we have no complex contracts that forbid us to sell CD's at the show, which is where they sell best. We also don't have the luxury of having a person hear our song 20-50 times on the radio, before buying our CD at the store later. If we were unable to sell CD's at shows, there would be no profitability on recording original music for us. It would just be a pure expense...like a hobby is.
If you are an original artist only and you want to play some free gigs to promote your CD, the video below has some advice from TMoody that will help you sell your CD's at the show.
Online music sales
There is extensive information on this topic on the web, but I'm still searching for an artist who actually makes good money in the area of online sales. When we get down to their actual earnings, they have nothing significant to share. Let me just be real here. Despite all the online hype, our online music sale revenue is very slim too.
We do not have 8 hours a day to market our music music online. Even if we did, it would never earn us a 40 hour a week living! That's why I spend the minimal time getting a new CD set up to sell in as many places as possible. Then we just collect online payments from that point forward with no further time spent.
The easiest way I have found to accomplish this is through CD Baby. I can set up a new album for about $50 and get a bar-code for about $20. From there they distribute it to dozens and dozens of top online music outlets including iTunes. (Many of these outlet's I have never heard of until we get paid from them.) If you recorded a cover song, they can also handle the licensing aspects including the sales accounting process.
CD Baby will provide you a detailed, ongoing statement of which CD or singles sold, from what online outlet, and when the sale took place. You can log in anytime to see your total earnings for that month. Then, CD Baby just deposits the monthly income into our Paypal account.
Be sure to use the CD Baby 'store widget' on your website. It makes it very simple to sell music on our website without additional effort. They also have a store widget for your FaceBook, but do not rely on social networks like FaceBook, Reverb Nation, etc. to sell ANY music. We rely on the TMoody.com website to sell the music...and it works better than all social networking sites COMBINED! Therefor we use our social networks to drive traffic to our official website.
YouTube Income from your original songs
Google is the worlds largest search engine. YouTube is the worlds second largest. However, YouTube is the largest search engine for music. As you probably know, Google owns YouTube. This allows you to monetize original content with Google advertising. (AdSense) But you must only monetize videos with ALL ORIGINAL content. Otherwise they will shut your account down, so be careful.
You only earn pennies per click, but it takes less than 5 clicks to set it up. I'm convinced this method can easily surpass your actual online music sales income, but I need 3 more years to prove it. I even have a bet with T about it. So I'm watching this income stream closely and will update our Newsletter musicians in the future with the facts.
We upload videos anyway so I don't mind taking a few more seconds to set up monetization. I make a video for each song and arrange it in a playlist for each CD. This gives us 10 or more videos to place ads on. Then I embed the playlist on our website. When TMoody is pitching his CD's at the show, he will tell them if they don't have money to buy CD's, they can visit TMoody.com and listen to everything for free.
If we're lucky, and they actually go to the website to listen for free, they may click an ad while they listen to the video. Or better yet, follow the advice on our video and purchase the song at iTunes. ;) We also get clicks from random YouTube plays that we didn't have to make any effort to get. When YouTube can show an ad on your video, then your video will rank higher in random searches.
In your YouTube account, just click 'Monetize' and follow the instructions. Google AdSense has a lot of rules, but the biggest is that you do not click your own ads, nor can you ask friends to click your ads. If you cheat, they WILL catch it and shut down this income stream for you. Once Google black-balls you, your online presence will suffer. It's not worth it. Just follow their rules so you can enjoy small, but easy, profits for years and years.
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