The Presale Ticket Scam

Justin Herring dropped some knowledge over at Hypebot about how required ticket presales can be, and often are, a raw deal for bands. Personally, whenever we hear the words "presale tickets required" it's a good sign to pass on a show.

The simple math breakdown is my favorite part:

We’ve already established that the pre-sale tickets are $14 apiece, but the door price is $17 the night of said show. If you get a walk in that mentions they’re at the venue to see your band, you get $4 out of that $17 door charge. Which is obviously more than the $1 per ticket you sold, but remember, if you don’t sell all 40, you don’t get to play. And, since the venue is so thoughtful of your band, they tell you that you have to include a tally counter and keep track of every person who comes in and mentions your band name. (Wonder if the door guy is even told to ask?)...

...After all of that is said and done I pose these questions, why aren’t venues being told this practice is uncalled for, unfair, ridiculous, and a downright scam? Out of $560 you turn in you keep $40 dollars!? You put on a four band bill all selling 40 tickets that’s $2,240 the venue is collecting, minus the whopping $160 cut to all four bands the venue is collecting a total of $2,080 for every band's hard work. Not to mention the amount they make at the bar.

If four bands tossed in $100 each to rent a venue and each sold the same 40 tickets, each band would make $460.

Once again, the math for DIY look a whole lot better than established channels.

Electronic and Hip Hop Better Suited to The New Music Industry

Electronic Dance Music (EDM), and to a lesser extent Hip Hop, are much better poised to thrive in the new music industry than traditional bands (live guitarists, drummers, vocalists, etc). Lefsetz has been talking about this phenomenon for a while but it's only been recently that the truth of his claims have become apparent.

Traditional bands have, and always will, exist. I'm not arguing that. What I am saying is that the environment for the new music industry is far more favorable towards electronic music than it is traditional bands. If we take equal amounts of each type of band, over time we'll see more electronic groups for all of the reasons listed below.

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-Economics
   True, the cash outlay for a decent studio setup is much larger than buying a crappy guitar and combo amp. Much larger. But electronic music doesn't need to rent out recording studios and engineers to put songs, all of that is part of the studio setup in the first place. Putting out a new single takes much less time and much much less money for electronic music than it does traditional bands.

And as unfortunate as it is to say, the less people in the band the more everyone gets paid. The same $10,000 show fee will feed a DJ and two techs a whole lot better than a five-piece band each with their own roadies. Touring is expensive and isn't always a good idea.

Low variable costs make a big difference. Profit is easier to come by for EDM and Hip Hop.

-Speed of Release
    EDM & Hip Hop artists put out many more singles than they do full-length albums. Less production time and more frequent releases keeps the artist in the fans' mind more easily.

-Cross Promotion
   Within a large majority of traditional bands, cross pollination between members of different acts through split EPs and remixes is rare (except for the Mastdon / Feist split, which was excellent).

The exact opposite is true for EDM and Hip Hop. It's hard to find a new single that doesn't either have guest artists or remixes of the track.

Cross promotion is a fantastic way to get potential fans of your music to discover that they actually like your music as you're essentially being endorsed by their current favorite artist. Hearing a new artist work with your favorite artist is even better than a friend's recommendation since it's coming from the source of your admiration. It wasn't until I heard Nas spit on the track Classic that I even considered getting into him. Cross promotion is one of many reasons groups like Doomtree are able to out-hustle and out-last many unconnected artists.

Fans are to be shared, not hoarded.

-Less Gatekeepers
   Electronic music isn't on mainstream radio yet it can sell out 30,000 person festivals. Electronic music, and to a lesser extent Hip Hop, grew up and thrives through the internet. Friends and bloggers pass music that resonates to one another, there's not radio spots or billboards hawking the newest Deadmau5 album. The movement is fan-led.

-Electronic Music Is Built Around Giving Away Music for Free
   DJs have long since known that getting your track the spins it deserves is more important that making a few extra bucks. Fame comes from people knowing and loving your work. Albums sales, like retweets or "likes", are indicators of fame, not the totality of fame. It's much easier for these acts to survive with the "music as a commodity" reality of today than it is traditional bands simply because the architecture for EDM wasn't built around album sales.

The album is marketing material for live performances now, not the primary product.

Which leads me to my next point.

-Cooler Shows
   Now I adore traditional music groups; they account for at least 80% of my listening. But Messhugah's five piece crushing metal blast couldn't compete with the spectacle of Skrillex riding a giant, smoke-spewing transformer in front of a throng of ten thousand fans dancing and drenched in the soft light of LED hula hoops.

Maybe I'm jaded from seeing so much live music, but if all a band does is stand on stage and play their album I feel ripped off. If I go to see a performance, I want to see a performer. It wasn't really until I saw an electronic music show that I began to actually appreciate the genre.

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Negotiation Without Being a Jerk Vol. III

(Previously vol I, vol II)

A photographer friend got an unsolicited call from a major client, a hair care company. After a back and forth went into the info for the shoot, both parties agreed it sounded like a good fit. The photographer sent off the quote and waiting a few days.

The reply came back "We could only do it for 1/8th of what you quoted. Period."

Owch.

After recovering from the shock, the friend weighed options.The friend knew that this would be an awesome, high-visibility client that would further their business. At the same time, the counter-offer was so low that death by discounting was a very real fear. Not only that, but if they accepted this offer to such a huge client, word would get out about their low photography rates among other large clients and this would permanently stunt the friend's business.

Is this deal already at an impasse?

Where would you go in this situation?

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Having been reading me for a while, I'm sure you've already guessed no.

My photographer friend came back with their counter offer. "I'll do the gig for the low price plus five years of hair care products."

The company jumped on it.

They had a deal.

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Negotiation is about total value, not just price. It's easy to get caught up on dollar figures since dollars are easy for anyone to understand, but money is only one of many sources of value. In this case, the hair care client didn't have the budget to pay the full amount but they did have endless amounts of shampoo and conditioner. Adding the hair care products didn't cost the company much since they produced them at cost, but for the photographer who would otherwise have to pay retail, it was a huge gain in value.

This is why we should be explicit about what we want; value is defined on a personal basis. Even with concrete items such as money, value is personal. A billionaire will value a hundred dollars much less than the musician would value a hundred dollars in the same way the billionaire would value a private concert more than the musician.

One of your goals when negotiating should be to figure out if the other side has anything that costs the other party nothing but has a huge value to you, and vice versa. Big wins like this are not only excellent bargaining chips but they allow you much more flexibility in your bargaining process.

Value is personal.

Music Industry News- June 2012

-Guitars are on the verge of getting much, much cooler.
3D printers are getting cheaper and more ubiquitous. No longer will you need a C&C or full workshop to make custom guitars, anyone with a few grand will be able to become a quality custom guitar maker. Check out this New Zealand professor who makes hollow, mesh guitars full of scarab beetles and butterfly designs. (Extra cool note, his guitars are using a material that is much stronger than traditional woods os they're durable too!)

The Pirate Bay already has downloads for object files to be printed. Once someone specs out a fender or a gibson, if they haven't already, the artists / makers are going to create some wild and crazy designs. I for one welcome our coming super-wild guitar overlords.

This is gonna create some copyright headaches though. Count on it.

-Songza is fantastic. Pandora continues to lose its edge.
New-ish internet radio service Songza got 1.15 million new downloads since releasing it's iOS app for iPhone and iPad. Pandora stock is down to $11 from $17 from its IPO a little over a year ago.

For me, Songza blows Pandora out of the water. Instead of Pandora's auto-generated playlists, Songza offers up human-curated playlists served up through an intuitive "concierge" menu that helps select playlists based on mood, genre, and time of day.

The difference between the two services is night and day.

Songza has better song choices with better playlists. Songza has a significantly higher hit-to-miss ratio than Pandora in terms of the percentage of artists I favorite over the total number of artists I hear on the station total. The human touch to Songza playlists makes all the difference. (Spotify just announced a free radio app for iOs, but the song selection algorithm is much weaker than Pandora or Songza)

My current "music discovery stack" on my phone is Songza for guided discovery and Spotify for targeted discovery. Pandora I only use to listen to stand up comedy radio. iTunes I'll use sparingly for releases that are essential to purchase, such as bands like Intronaut whose label Century Media left Spotify. This leads to my next point.

-Spotify pullouts
This is my primary method of listening to and developing fandom for new bands. For bands fans are crazy about, this leads fans to buy the digital album instead of stream it. But Spotify pullouts disincentivize new artist discovery on the label. While they get the increased revenue for one band, the label loses

-Where's my swear words Spotify?
When I search for Killer Mike on my phone it defaults to to the clean version of his album R.A.P. Music! Getting every other word removed is no way to experience an album.

I can't blame the label for making this the default version of the album though. This strikes me as a method of price discrimination similar to the delayed Spotify release as an incentive to buy the actual download. It's a smart business move actually, especially for rap where abrasive lyrics as an intergal part of the art.

But come oooooon man!

(Edit: If I search for the album itself and not the artist I can still find the dirty version. Phew. My point on it being a useful method of getting true fans to buy the digital download still holds. Censored albums won't fly with this musician.)

Link: Is Stealing Music Really the Problem?

Jay Frank lays down some serious knowledge:

Despite the economic number that David Lowery quoted of the number of professional musicians falling by 25%, if you took “album releases” as an indicator, it seems like the number of pros has increased. In a decade, we’ve gone from about 30,000 albums being released to over 77,000 last year. And that’s just albums going thru legit channels. The problem, as noted by Chris Muratore of Nielsen on the previously noted New Music Seminar panel, is that 94% of those releases sold less than 1,000 units. Indicators that I have examined showed those low sales aren’t because of people stealing them. They come from too many releases causing most people to not even realize they are out.

For example, 80s rocker Lita Ford has a new album that came out yesterday. As of this writing, it’s the 91st most popular new release on Rdio. How many of you have the patience or time to sift thru the other 90 releases to get to #91? Let alone decide to even put in the effort to steal it? Whether you were going to listen to it or not, I’d be willing to bet that almost everyone reading this found out that Lita Ford had new music from this paragraph. Stealing it is even further down their priority list.

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So while all these independent artists argue thievery, do you know who’s winning? Major labels. This week, of the top 100 tracks on Spotify, only 6% are on independent labels. Major labels have figured out that the game is about exposure and awareness, two things that they are actually quite good at. It’s not about royalty rates, thievery, or even quality of music. It’s all about how I get people to know I exist. Major labels aren’t ignoring file traders, but they have moved past how much of their day they concern themselves with it. Instead, they focus on putting energy behind making music that the public wants and marketing the shit out of it so it rises above everyone else. While you’ve spent the last few years claiming the major labels are “dinosaurs” who are going to be “out of business”, they’ve actually become stronger behemoths who are more progressive than you realize.

Definitely worth the read.

Piracy Still Isn't Going Anywhere

Emily White, an intern at NPR, wrote the article "I Never Owned Any Music to Begin With", explaining she has 11,000+ songs in her iTunes library by has only paid for 15 CDs in her life. While she states that seh supports bands through concert tickets and t-shirts, she admits that her generation probably won't be buying

This triggered a thoughtful, well-written post from David Lowery at The Trichordist. In it, he talks about the heavy burden that artist friends of his had to bear due to financial hardship, eventually leading to their suicides. Wow, heavy stuff.

He then goes on to clearly explain the immorality of piracy quite well, although the extended metaphor for the internet as a neighborhood that is built around theft fell a little flat with me.

While I agree that piracy is immoral. I don't think the morality angle will make much of a dent in people's behavior. It's preaching to the choir. Saying something is immoral doesn't make people any less likely to do it, especially if the systematic structures in place make it easier to be immoral than moral. 

For many people, piracy doesn't feel like a crime and so their moral intuition doesn't interpret the behavior that way. The band doesn't have "less MP3s" to parcel out to fans, so it's simple for someone to rationalize "It's only a couple cents the band isn't getting."  Even when we know with certainty that driving above the speed limit increases traffic deaths, virtually everyone speeds at least a little. "Because come on!", people rationalize, "I'm just going a few over and I'm already late for the concert!"

Think about how much easier to click "download all" than it is to:
   -Decide how much you actually want to hear the band.
   -Look at your music budget and determine if you've got the $9.99 for the album.
   -Weigh the moral implications of how much the download hurts the band / label.

Most people won't spend too much time on a band. There's an infinite number of songs to listen to on the internet and a casual fan won't spend too long with one before moving on to find a band that better connects with them. Only medium to strong fans will go through the purchase process.
Yes, it's a bummer.

But piracy isn't going anywhere.

The icecaps have already melted on planet music.

Adapt to the new planet or fail.

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I DO NOT CONDONE PIRACY. I AM ONLY EXPLAINING WHY THINGS ARE THE WAY THEY ARE.
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Will "The Hunger" Consume You?

I've yet to meet an artist who was immune to The Hunger. It strikes artists young and old, established and amatuer.

This is about The Hunger for success and recognition we feel when we're at the end of our ropes.

It will consume you if you don't manage it.

The Hunger manifests itself in different ways among different artists. Some turn the urge inward, others lash outward. I've seen it through:

-Burnout
Watching a talented artist give into despairation and repress their innate artistic nature is a sad march. Some give up art altogether, others

-Bitterness
Some artists will go out of their way to denigrate others and put down new musicians. Everyone began out crappy and it's only through sustained effort that we become good. But bitter artists can serve up steaming bowls of negativity chili nonstop until new artists are full of negativity themselves.

-Drugs
We all know someone who deals with chemicals instead of their stress. What a waste.

-Starting a Predatory Business
This one I find especially irritating. Washed out musicians starting "pay to play" promotional companies or bogus "managers" who skim small bands without doing any work are all too common. They tend to like the phrase "exposure". Yes, it is clearly a sustainable business model to take advantage of inexperienced artists since that is one market that will never disappear. But that doesn't make taking advantage of others right.

The Hunger is a scary beast to confront.

Thankfully, there are ways to help:

-Side Projects
   Creativity comes from assembling disparate sources of inspiration. Take a break from anything that remotely resembles your current project to work on an entirely new skill set. If you're a singer songwriter, start working on a standup comedy routine. If you're a painter, start learning how to breakdance. Everything is connected to the creative mind. Sometimes all you need is the right spark to jump start your main project.

-Structured Hiatus
   You're pushing too hard to allow your mind to wander and make the connections needed to make great music. Choose an exact period of time, say a month, where you don't even so much as look at your instrument. Having to wait for your deadline to get back to your instrument will make you value it more.
If you're as addicted to music as I suspect, you'll soon begin longing to play again and with that renewed passion comes ideas.

-Change Teams
   Some people are toxic to the creative process.

Is someone saying "no" to every new idea? Too much negativity and stonewalling could be choking creativity.

Saying "yes" to everything is just as fatal. Hearing "no" shows us what people value and without this feedback, we can't refine our art. Sometime we need negativity.

You can't run without balance.
Sometimes it sucks kicking someone off the team, but being stuck unproductive and unhappy is even worse.

-Change Strategies
  If you're not getting the results you want, it's counter productive to keep doing the same thing.

-Stop Working For Free / Cheap
   If you've got lots of work but are still struggling, maybe you'er not charging enough. Of course you'll have less customers, but you'll also have more money and time to focus on doing more fulfilling work. The one fatal pricing error is pricing yourself too low to keep making art.

-Day Job
   As romantic as becoming a full time artist right away is, being able to pay rent will severly impact your art whether you like it or not. Having at least one steady source of income gives you much more freedom to explore your art without having to worry about profitability before creativity.

I'll be posting more on this topic soon.

-Find a Positive Mentor / Peer Group
   We become those around us.

If you're surrounded by naysayers, sloths, or haters you're probably one as well.

Scour craigslist, forums, blogs, and friends for meetup groups for artists like you. If there isn't one, start one. Plan on once-a-month coffee / bar meetups, promote a little to attract initial attendees, and trim out negative individuals from the group. Having positive support from peers will keep the negative energy from metastasizing into The Hunger.

This is only a start for such a huge topic.

What are some ways you've seen The Hunger manifest itself, either in yourself or others?