It seems to me that for a developing artist there are two development stages and types of relationships that make sense for bringing on management:

1. Once the artist has grown the business to the point that each member can make at least a meager living off of it. At that point they make enough to consider bringing in an outside partner to help grow it even further and that cost will be offset by the continuing growth and extra business the manager brings in.

As a very rough estimate, an artist can figure that they will net 50% of the gross income for a year.  That net will go into their pockets as personal income.  So if you have a five member band and you grossed $100,000 in a year that means the net to the members will be approximately $50,000 or $10,000 per member.  Again, this is a very rough estimate but can be helpful in thinking about things.

To explain further, I think management makes sense at this point because the artist has proven they can make a living and the extra cost of management won’t hurt as much.  It’s also a natural business milestone – moving from part-time artist to full-time – that justifies expansion considerations.  Lastly, it’s a point where the manager can make enough money to work with the artist and devote plenty of attention and resources to the project while feeling fairly compensated (an investment rather than a gamble).  In short, it’s usually a healthy point in the business development.

2. Regardless of size, even if the members are not yet making a living off the business, if you have a friend or family member who would do it for minimal compensation (a percentage of nothing is nothing) then it could make sense as well.  Most likely  this manager wouldn’t be experienced but what they lack in experience they would make up for in enthusiasm for the business (ideally).  If they didn’t have the enthusiasm and interest in the business than it wouldn’t work long term.

~~

Of course, there are plenty of other unique relationships that make sense for the parties involved.  However, these two seem to be the healthiest starts to many of the long term relationships I have witnessed.

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NEWS: Lastly, I need to mention that I am introducing a new level of artist-management relations.  It’s called The Farm Team advisor program which you can read more about here: www.thefarmteam.com.  The idea is to provide advising and coaching for artists that aren’t ready for, interested in, or are in transition between management.  It’s about helping the artist identify the business/artistic vision and then setting goals and projects to achieve that vision.  We’ve already got 6 clients signed up to start in August.  If you’re interested email ben(at)theartistfarm.com to learn more.

One of the clients I work with in The Farm Team advisor program is heading out on Warped Tour for some west coast dates.  Without a booking agent, they had to route themselves out there with club dates in order to keep the tour profitable and the schedule full.  But with a few weeks left before heading out, there were still a few holes in the calendar.  They asked me if I had any ideas of how they could fill the dates.  I responded by asking them if they had reached out to their fan base in those areas?  They hadn’t.  I didn’t know if it would work, but the amount of time and energy required to post something on facebook was minimal so why not give it a shot.

The next day they posted a geo-targeted facebook status update for fans in the mid-western states asking if anyone would like to host a house party with them on the available dates.  The response was fantastic.  Within a week they were able to book 3 more shows.  This not only brought them more money for the tour, but it gives them a chance to connect intimately with fans, and to make new fans in an intimate environment (think of how much easier it is for you to say yes to a free party versus saying yes to pay for a show of a band you haven’t heard of before).

Grass roots development is incredibly important for the early stages of your career.   At this stage, if you can see that there really are no gatekeepers telling you what is possible then the world is your oyster.  In this specific case, why try to cajole a promoter to give you a gig when you can go directly to your fans? Helping fans become promoters is a win-win scenario.

If you’d like to be part of The Farm Team advisor program contact me at ben(at)theartistfarm.com or fill out the application at: http://thefarmteam.com/

If you were starting a small retail business or an internet business, you would focus all of your attention on growing that business to the point you could sell it or to the point that it became a lifestyle business for you – affording you the income that you need to live the life you desire.

Launching a music business is no different in theory. What is different is that most artists assume there are gatekeepers who deem you worthy to progress to a higher elevation in your career. As with all businesses, yes it is true that there are strategic partnerships that can help grow your business, but there are no gatekeepers other than those within your own mind.

At The Artist Farm we have a running theory that the most successful artists are the ones who fully recognize their role as business owners. They run the show, literally – from artistic to business partnership decisions. As these strong personalities grow, so do their businesses. And as a business grows it begins to attract attention. Suddenly those “gatekeepers” that you imagined are all clamoring to be involved with this successful business.

The control and growth of your business rests in your hands. It’s ok to be in a position of growth or to feel the struggle – that is all part of growing a business. If you are committed to establishing a successful business then don’t look for the knight on a white horse to save you (i.e build the business for you). The knight is inside you ready to charge if once you find the right path. Read business books that have nothing to do with music to get some ideas. Here’s a start: http://www.100bestbiz.com/more-on-the-100-best/.

Thanks for reading.

Ben Coe, The Artist Farm

Join our new Advisor group for hands-on mentorship in growing your business: http://theartistfarm.com/services/

Typically when the term “lifestyle business” is used it means a business that is established to afford the founder a particular level of income so they can enjoy a specific lifestyle.  In this definition we are talking about the lifestyle of the business owner. As a lifestyle business owner you might choose to have a business that allows you to work out of your home, or an internet-based business, or as an artist you could choose to tour the country playing your music.  This is part of the lifestyle you desire to live.

There is another definition for “lifestyle business” that implies the business is making products or services for customers that choose to live a certain lifestyle. There are many businesses that appeal to people based on their lifestyle.  Businesses that fit into this category include music, yoga, natural grocery stores, and skate or surf shops among others.  The actual product made or sold by these businesses appeal to customers who appreciate, embody, and live a certain lifestyle.

This second definition is the most important one to understand as you grow your business.  In this post I’d like to point out how I have seen artists successfully capitalize on this understanding.

First, think of who your audience is – visualize them.  What defines these people?  What do they have in common?  Next, recognize that you are a business… period.  This means you must sell products in order to sustain yourself.  Yes, I realize that’s not as sexy as just being a musician but it’s the truth.  You are making products for your customers/fans.  What do they want?  Almost every band sells t-shirts and caps but what else might your customers/fans want?  What else fits in with their lifestyle and the lifestyle you promote?  Thinking this way and creating these products is not selling out – it’s giving your customers/fans another chance to get closer to your brand.  This is good, healthy business.

Some examples:

Jack Johnson – Jack comes from the surfer culture in Hawaii and California.  His songs evoke this feeling.  He makes films that speak to this.  Though this isn’t a revenue stream, he has greening partnerships that embody his message.  He has a record label that signs bands of a similar vibe.  Each year he produces a festival on Hawaii that benefits schools on the island.  Jack clearly sees that he’s in a lifestyle business.

Zac Brown Band – A southern rock band (part country, part roots rock) pushes the southern message in their songs and through a beautiful cookbook.  Zac owned a restaurant so it fits with his message and branding.  He also holds a BBQ before shows which you can buy passes to.  I even read somewhere that he sells a line of BBQ sauces.  Zac has created a solid lifestyle business and each product reinforces his brand.

Unkle – Jame Lavelle and his team clearly decided that they are also in the visual art business, not just the music business.  Their vinyl releases and limited edition releases include posters and full books with gallery style art.  Even the packaging is top notch with unusual layout and design. The presentation elevates the music, the image, and the brand of the artist.  Though it must be time consuming to craft such an involved product, it also sells for a higher price than the standard product and fans appreciate it.  Unkle gets that they are in a lifestyle business.

Jimmy Buffet - Of course, Jimmy Buffet is the king of lifestyle business.  He has frozen food products, margarita mix, restaurants, apparel, books, albums, beer, and more all of which strengthen his image as the ultimate summer time, good time brand.

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It’s most important to focus on building your business where the momentum is.  If that’s touring or albums then by all means focus on that.  But as you start to get some traction and business starts moving, see that you are in business just like any other business owner.  Find products for your fans/customers that they will want and that will bring them closer to you.  Creating other products that fit the lifestyle of your fans can be just as artful as creating music and your fans will appreciate it just as much.

Several months ago, when I was writing Squeezing The Show, I asked Seth Godin if he had any advice on how to go about finding a publisher for the book. I figured the publishing business was very similar to the record business but when he guided me toward two posts he has written on the topic I realized that they are nearly exactly the same business. Seth’s two posts sound so similar to the advice I would give a young musician that I’m just going to send you directly onto his words. As you read his words replace the word:

• “book(s)” with “album(s)”
• “publisher” with “record label”
• “editor” with “producer”
• “author(s)” with “musician(s)”
• “published” with “released”
• “write(ing)” with “record(ing)”

Article 1: http://sethgodin.typepad.com/seths_blog/2006/08/advice_for_auth.html

Article 2: http://sethgodin.typepad.com/seths_blog/2005/07/advise_for_auth.html

Here’s some more information from Billboard to help put things in context. In 2009:

97, 751 albums were released
Of those only 2050 sold more than 5000 units
Of those 12 sold more than 1 million units

I know these numbers seemed stacked against you… yet every year there are hot new artists that come around and establish enduring, successful careers.  It doesn’t take a massive album or radio play to make a sustainable and successful career.  In fact, as Seth Godin says, if you can establish a solid and successful career then you won’t need them and then you will be exactly the type of artist a label will want to work with.  When in doubt on your career path, go back and read Seth’s advice again.  Own your career.  You can do it.

P.S.  If that doesn’t work for you, join my Advisor program and I’ll help you figure it out.

Be advised: professional artists are business owners. This is a key message of our company, this blog, and everything that we seek to do through the educational side of our business. If you are an artist and you desire to or already do make a living from your art then you must recognize you are in business… you are a business owner.

I read dozens of new business books each year. Very few of them speak to the music business owner, yet most of the lessons of how to run a business apply directly to running a music business. You have fans (customers) who buy your products (music and merchandise) and in order to be successful you need to grow your fan (customer) base and keep your current base happy. True, this isn’t the sexy approach to the music business and it wasn’t the reason you got involved in being a musician. Yet it is possibly the most powerful lesson I could share with you.

This is why I am launching a new service called The Farm Team and will be open to only 20 bands/artists who do not currently have managers but are very serious about growing their business.

As many of you know I am a life/business coach – a service I provide for anyone even if they aren’t in the music business. The difference with The Farm Team is that I will be serving partly as a coach and partly as a mentor and the service is specifically for musicians. My interest is to help these 20 select artists grow their business to their definition of success through weekly one-on-one calls with me. If you feel that this would be appropriate for you or your band, you can read more about it and apply for the program here: http://thefarmteam.com

Regardless of whether you choose to apply for this group, I’d like to leave you with the simple message again. As soon as you choose to make a living performing your art, you have assumed the role of business owner. Embrace and appreciate this role – it will serve you well.

Of course, I don’t know the future of radio… but when asked today I realized I had a few thoughts to share.

1.  The Internet may rule – I imagine that the internet will eventually find it’s way into all of the places where we currently favor terrestrial radio (namely the car being the last hold out).  Once that happens terrestrial radio will face some significant competition, most likely threatening its survival.

2.  Community advantage – The advantage that terrestrial radio has is that it is community-based.  As you may have picked up from previous blog posts, I’m a big fan of strengthening community simply by reaching out and getting involved with what’s going on around you.  Local radio stations can speak to communities in much the same way that local friends can.  They share your home town, they know the nuances and the secrets for the community, they can talk about news pertinent to your town, and be a real contributor to the local experience by playing music for that place.  Think of local radio like the local farmers.  Think of how much you appreciate the local farmer at the farmer’s market vs. the big factory farm.

I grew up outside of Philadelphia in the 80s/90s and the classic rock stations were my favorite.  Those stations and most specifically, the DJs of those stations, were local heros… and famous to me.  There was John Debella on one station and Pierre Robert on another.  I’m not sure it will be like that again, but in Charlottesville we have several stations that are very active in the community and they matter.

3.  Radio as filter – In the case of a DJ in a local community you trust them to “show” you new music.  By listening to them you are implicitly giving them control to introduce you to new music.  The DJ or station become a filter for you.  This is still an important role.

4.  User control – In some cases though, you will find times when you don’t want someone to show you something new.  You want control over your listening experience.  In that case you’ll choose to plug in your iPod and listen to your music.

5.  Reach or Accessibility – There are some places where terrestrial radio just doesn’t reach, or more importantly if it does reach there the options may be limited.  In small town America this can be the case.  I recall going to a hunting cabin in the back woods of Pennsylvania when I was a kid.  There may have been one radio station.  Last year I was on the big island of Hawaii and radio options were limited.  Guess what?  The house had a WiFi connection.  I pulled up Pandora on my iPod and chose what station I wanted to listen to.  It was a defining moment for me in thinking that radio as we know it may be going away.

~~

Maybe the future of radio is that we’ll have the best of all worlds – community-based internet radio stations, accessible everywhere through WiFi, and free to program any music they wish, thus acting as a true filter for its listeners.

Thoughts?

I read a book called The Talent Code this weekend and I now recommend it to you.  Many of the ideas are directly applicable to the being a musician or a business owner.  Below I will paraphrase some ideas from the book as they apply to our industry:

1.  Talent is nurtured – it takes time and consistent effort.  According to some of the greatest coaches in sports, it is rare that a genius with innate skills and abilities comes along.  Most stars are people who practice consistently and wisely to get where they are.  The book discusses the science of myelin, which is a tissue that wraps around your neurons each time you practice a skill.  It is this insulation that helps you improve a skill and it takes both time and repetition to grow the myelin.  Additionally, myelin is always breaking down and growing anew so if you don’t practice a skill for a while you “get rusty” because your myelin has broken down a bit.  A mantra often repeated in the book is:  Skill is insulation that wraps neural circuits and grows according to certain signals.

2.  Surround yourself with other driven people who you admire.  Though the book didn’t say this outright, I’m combining with an idea I talk about in coaching and one I’ve read from other successful people: The people you hang out with are a reflection of you.  In many talent hotbeds (like the Seattle grunge era or the rock scene in 1960s San Francisco) the author found that the athletes or musicians were surrounded by other artists honing and producing their craft.  This served as a positive feedback loop in the person’s mind.  One artist sees another doing great work and thus it makes it much more real for that person.

3.  Playing an instrument requires skill, so does running your business. As you know, it wasn’t easy to start playing an instrument.  It took lots of hard work to get to the point where you are now.  Business is a whole new set of skills.  You’ve got to experience what it means to run a business much like when you first picked up an instrument.  This is a reality.  If you want to succeed as an artist business, you must not shy away from the practice required to build your business myelin.  It may be hard when you first start out but it gets easier with time, just like learning your instrument.

4.  Imagine your future. This isn’t just some empty self-help advice, it’s real advice that has been studied.  The book points out a study of new music students that were asked how long they planned to play their instrument.  The students that imagined playing the instrument forever were the most successful group by far… and the ones who imagined this and practiced the most each day were the best of those students.

For every new coaching client I take on I ask them what their big vision is – where they imagine their career going.  Most artists tell me they can’t see that far into the future, but I think most people have just been trained not to shoot for the stars.  Take a moment to list 30 things you’d like to be or do in your life.  What does the future look like?  If you don’t define it, no one else will.  If you do define it and believe it, you’ll step up to the challenge of making it real.

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There were many other great topics discussed in the book like what makes a great coach, the concept of deep practice, how to ignite someone’s drive to learn, and the different types of neural circuits.  Too much to go into unfortunately, but if you’ve got the time, check it out and let me know what you think: ben@theartistfarm.com

Here is a beautiful 4-minute clip of Bobby McFerrin talking about Yo-Yo Ma going to an African village to experience and learn about their music.  I would have trouble describing these ideas any better so please watch the video.  It will be worth it.

Imagine the world where we always feel the music inside – that feeling that we have at festivals or on stage, that feeling of pure beauty coursing through our veins.  Imagine being able to feel the music in the world, everywhere you look – the hum, playfulness and at times darkness of the natural world.  Imagine everyone intertwining these inspirations into their own song and feeling ok with the changing nature of that song – realizing that stability and consistency isn’t the goal.  Imagine finding the song even under what seems ugly at first – the oil spills, war and violence.  Imagine being able to see the lightness beneath it all.  Imagine that world.

Friends, I am making an important change today in my writing career. As this blog has grown, it has become clear to me that there are two different sides of my writing that I need to split into distinct blogs: one for music business and one for personal/world philosophy.

As of today, I will be writing all of my philosophical thoughts (world 2.0, human-centric business, personal development, Seth Godin-esque ideas) – the topics that I write about mostly – on a new website and blog found here: www.bencoe.com. If you have been enjoying this aspect of my writing, please join me on my new site (sign up for the RSS email feed here. I will be developing this aspect of my career further through writing, speaking, and interviewing. I would enjoy your company for the journey.

The Artist Farm Ideas blog will return to its original content and intention of being a beacon for a grounded, music business perspective. If you are an artist, manager, or anyone involved in the music industry you will want to stay signed up on this blog for more business thoughts. The rest of the Farmers will be writing on this blog as well so that it will truly become a company blog.

Thank you all for reading and for being a part of the conversation thus far. I believe that this clarity will help both blogs grow a stronger and more focused message and thus deliver a better experience. I look forward to continuing the conversation with you!

~Ben