Points on Negotiations for Independents: Special guest Jeramie Kling

     I first met Jeramie Kling years ago while putting together the very first music festival I ever attempted. We will say I learned many lessons from that first experience, but I also made what was to become one of my best and dearest friends. Since then we have shared a stage many, many times, toured the east coast together, negotiated terms of many deals, as well as produced a ton of music together between our respective studios, here in/on opposite sides of, Florida.

     Jeramie is a National/International touring musician best known for his drumming work with The Absence on Metal Blade Records, but he also plays on tours for many other large and well-known acts, occasionally handling studio duties for them to fulfill deals with their respective labels as well. Jeramie is a heavily sponsored artist, was for quite a while the face of D-Drum, is known to travel and book/manage tours for well-known acts, and owns his very own media studio where he records others and his own studio projects. Many an agreement comes to my dear friend Jeramie, and often we discuss the terms of these deals together. When the opportunity to ask a few questions about how he tends to handle certain circumstances in an industry as, ahem, murky, as the entertainment industry arose, I grabbed it.

     Here are a few things that any independent artist can understand. I will spare you a rapid Q&A session and rather explain the questions I asked and the general philosophy presented to handling certain situations as given by a professional with years of direct experience juggling insanity in a topsy-turvy industry where not everyone has your best interest at heart. Dig? Let’s go…

     Firstly, given the state of our industry and how stiff negotiations can be over pay I asked Jeramie if he finds that more often than not he finds himself pointing to “standard” rates for other acts that are on the same “level, or “status” within the industry or if he finds he simply bases his stance on the actual costs of doing business, travel, time of performers, etc. I think this to be important information for an independent that wants to know the best way to go about being paid and negotiating their point. Jeramie says that “The latter always… There is no way to put a "standard" stamp on it. There are too many variables that have to do with our current economy.”  So while you may know that there are certain acts that make a certain amount, perhaps you should try basing your negotiations on what it will cost you to perform unless you can equally “guarantee” a certain draw for that promoter or venue.

     When it comes to things like “working toward mutual benefit” during the negotiation and being willing to make certain concessions, Jeramie cautions that it really depends on whom you are dealing with so this is really “on an instance-by-instance basis only.” “Sometimes you can bargain more than others. I always try to negotiate a better deal for my side of course.” Taking this into consideration with a bit of my own advice I would say that he hit the nail on the head regarding your stance sometimes being determined by with whom you are dealing. In other words, always come to the table willing to play ball, but don’t be afraid to make your concerns and interests clear and to bargain hard for what you came for.

     Lastly I thought it may be important to cover how to deal with professionals in the industry who you absolutely know are trying to pull dirty tricks during the negotiation, especially for a deal you really need. Remember folks, they say “it’s a small world” but in the world of entertainment, it gets even smaller. So I asked Jeramie how he handles situations like this and he says he finds the best way to deal with this type of thing is to call them on their crap. Point out that you know what they are up to and that it isn’t going to work. The most important part of the advice comes next, and that is to be amicable about it and work through it as quickly as possible so they know you mean business and are not at all unreasonable. I think this is excellent advice. It is important to continue to work through issues and simply be willing to move past them to ensure a good deal on both sides.

     I’d like to thank my good friend Jeramie Kling for taking the time to offer some insight into daily negotiations for all independents that search out this information eagerly.

How To Market To Your Fans Effectively: Research shows their preference

     Only in a perfect world would every "Like" equal a sale, and every “Share” a guarantee of more fans who sat and read your information with earnest. It is just not happening. You're a manager, a promoter, or an independent label owner, you have all of your analytics setup for various blogs and web-pages and perhaps your mobile landing pages as well trying to figure out what content is making fans respond and ultimately earning a few more. But there is a problem. As all of the likes and shares stack up and the fans are even clicking play on the button for your attached media player, no one is buying or even seems to be talking specifically about you are promoting. We all put so much of our resources and belief into these projects that we even check back frequently thinking this has got to be the one that grabs them, nope.

     A little bit of research can help you find reports such as this one from Exact Target's 2012 Channel preference Survey found on marketingland.com. This report shows quantifiable numbers based on polls taken from fans and consumers after being asked a simple question, how do you like to receive permission-based messages and marketing materials? Email was the chosen channel 7.7 out of 10 times. Direct mail and text messaging came in second and third at nine and five percent respectively. This doesn't seem to be a fad or present anomaly that is expected to change. The report shows that the preference for permission-based email marketing over any other type has actually grown from 72% to 77% since 2008. So as they state in the article, "there is no close second-place channel."

     Here's a shocker, Social Media barely even made a blip on the radar. The report shows that consumers love to "Like" and "Follow" brands but don't respond in a way that will produce sustained sales numbers or even free download numbers as the report shows that Facebook and Twitter come in at four and one percent respectively as the channels that costumers respond to when receiving promotional messages. I can personally speak from experience that since using automated email collection and newsletter services like Fanbridge, and tying them together with promotions on other sites that allow for free mass-mail and messaging like ReverbNation and others, we have seen tremendous growth in numbers for both dedicated followers AND Sales.

    Increasingly our email list has grown as our "tried and true" fan-bases actually do forward the messages to their address books and then they buy. We have web and social pages in every country in most languages for our artists, and we did amazingly well in the beginning, but not until we tied in automated, and consistent messages, and targeted emails did we start to see real sustainable and large growth in numbers across all of our networks. Give it a try, let me know how it works for you, perhaps we can learn from each other.

Move To Where The Food Is: Setting Up Shop In Foreign Territories

     As new artists, managers, and industry professionals emerge in a world full of digital distribution points, kiosks, and mobile retailers I find it myself reminding clients more and more of foreign licensing and sub-publishing by territory instead of by store and platform. Though it is true that not every product, album or song is going to find interest in markets far from home it is still a very important strategy to attempt if for nothing else than to make sure those professionals far-away are familiar with you or have at the very least heard of you and what you have to offer. Depending on the genre and territory, consider that your IP could be worth anywhere from $1.5-6k+ for a limited amount of time and will leave you with not only the rest of the rights not licensed in that territory, but also free to explore and collect on other territories as well. Also consider that even if that one market is the only one landed, you can sill fall back on your chosen distribution method simply bypassing the single territory sold and use the money from that sale to market that endeavor anywhere in the world.

     A funny thing is that this is something every independent who "doesn't want to be signed" and/or independent labels and managers should be learning as much about as possible. The simple sales of songs and/or albums are truly not enough; licensing deals must be sought. Having a team far from home that can look after not only the commercial placement and sales of the existing material in that region but also possibly arrange for other well-known artists to perform a translated version only expands possibilities with the right agreements in place. There are tried and true money-making deals that exist, and if you can do it for yourself, then you are truly in a position to call yourself an independent. Otherwise you are just throwing your money and art into the hallway with everyone else's and hoping on hope.

Maybe Parts of Your Service Should Be “Broken on Purpose”...

     In the “Business Story-Telling and Branding” class I am attending this month I saw an amazing video of a talk given by Seth Godin on Ted.com titled “This is Broken”. In the talk, which was apparently filmed at a Gel Conference in 2006 and posted to Ted.com’s “Best of the Web” page in 2010, Mr. Godin inspired the audience to think about the things they can do to improve customer relationships and explained that sometimes things are broken on purpose, and sometimes things are broken because no one takes the responsibility to make sure things work right. Mr. Godin showed very funny examples of how easily a company or service not paying close attention to their brand story or the basic needs of those on the receiving end of a product or service could damage a customer relationship. While moving through his list,"7 Kinds of Broken", the speaker built trust by using anecdotes that common people can relate to like why long lines at airport terminals and refreshment areas at movie theaters are completely flawed but don't have to be.

     Mr. Godin does an outstanding job of "breaking down" how these mishaps occur and how they can easily be avoided by people taking responsibility when they see something that just doesn't work in the customer experience or delivers the wrong story about your brand, or as Mr. Godin puts it when the service or product is "broken." I encourage everyone to watch this video, which is only about 20 minutes long, and really think about why some things in your product, service, or personal brand are “broken”, and then think about some of the things you may want to “break on purpose”… let me know you’re your thoughts… Mr. Godin’s list of the “7 Kinds of Broken” include…

- Not my job

- Selfish jerks

- The world changed

- I didn't know

- I'm not a fish

- Contradictions

- Broken on purpose

Professional Associations, Are You A Member?

     This week I will cover a bit of information I believe can be helpful for not only fellow publishers and consultants but also independent musicians and managers, who often take on multiple roles in support of fledgling careers. Professional associations can be a great way to network or just show a higher level of dedication and involvement within one's chosen industry; each organization has their own respective set of rules, regulations, and fees, and in return offer their own benefits and support for their respective members. Depending on the industry and organization benefits can include anything from reduced rate health benefits, legal counsel, gatherings for networking, advice, seminars, etc.

     For consultants, one such group with low entry fees and requirements that may suit those just starting out is the International Association of Professional Business Consultants. Beyond common practices such as application approvals, to become a "professional member" of the IAPBC one must agree to operate according to a "code of ethical conduct" put in place by the association. This code of ethics is simple enough and essentially spells out that members agree to deliver professional work at a fair price, on schedule, and without any ethical issues or illegality of purpose. The "benefits" of being a member, quoted directly from the website, are credibility with prospective clients, respect as a professional, credential for your resume, competitive advantage when marketing services, and showing your commitment to a professional code of ethics. Oh, and they even give you a fancy seal to post on your sites and social networks.

     For publishers and/or independent musicians and managers, the National Music Publishers Association is an outstanding group to be a member of.  The NMPA offers a wealth of resources, support and advocacy for intellectual property owners and is also the organization that owns the Harry Fox Agency, which handles the vast amount of mechanical licensing in the United States for CDs and digital. According to their website and guidelines, dues for the NMPA are $100 per year and to be qualify as a member one must be involved in the business of publishing music for at least a full calendar year. In addition, the NMPA is also an organization a publisher or songwriter must be a member of before they can officially be certified gold or platinum, though the accounting is still stated to as being performed by the RIAA. While there is other organizations involved in the process of making it all official and receiving your plaque, this is still obviously an important step.

     The main objectives listed on the site for the NMPA are to "promote, protect, and advance the interest of music's creators" and "to represent its members' property rights on the legislative, litigation, and regulatory fronts." Some of the biggest issues publishers and independent musicians face are piracy and the lag in payments from digital distributors and licensing companies. Some of the "current challenges" that the NMPA is fighting for not only include piracy and getting distributors to pay faster, but also things like better rates on controlled compositions, and collecting new types of royalties as distribution systems, and media as an art form, both evolve. 

     With the sheer number of lobbying dollars being thrown around by record labels, media networks, and other involved parties, it is nice to know there are groups out there fighting just as hard for the rights of creators and intellectual property owners. It is also nice to know there are organizations available for several other sectors of the industry, including the association for consultants shared above that hold their members to strict ethical codes and legal purpose.

Planning For Success in a Fragmented Market

     Since this blog is still very new, and I have only sent out the links a couple of times, I am surprised at having received direct messages on Twitter with questions related to the topics I have covered. First of all, thank you for reading, and for your interest! A few of these messages were written asking me to further describe "hyper-fragmentation" and a handful of questions were in reference to proper ways of researching exactly what territories the writers should be putting their media into. I will try my best to address both of these areas and will include plenty of links for those of you who are truly interested in doing a bit of research, planning, and ultimately executing a plan that will work best for your project or product.

     First, let's discuss hyper-fragmentation in the media market, the basics of what this is, and how you can use this information to your benefit when planning promotion. Imagine you and everyone in your town/city has ten dollars budgeted for personal entertainment per week and imagine there are only four things to choose from to spend that money on. Let's say these are a movie theatre, a new album, a game arcade, and a live show. The choices are fairly limited and the companies offering these services or products can bet on a fairly steady, and predictable, income. Now fast-forward many years and you still have the same ten dollars for entertainment but the choices of how to spend that money have increased exponentially over that time.

     Now there are many companies offering even more services and products like personal video game consoles, individual games, separate controllers, movies available PPV/On Demand/online-rental /home delivery/Red Box, etc. This is in addition to the growing number of music services streaming, selling and embedding everything down to the artist bio, the bands individually doing the same and hosting live concerts online (with associated ticketing), plus the growing number of apps and platform games, and the like. You can see now that each of these industries like movies, music, games, and concerts have all fragmented and the incomes of these companies have been reduced as they now fight for your equally-fragmented entertainment dollar(s). Dig? Moving on...

     How can we use this information to develop a product that will compete in today's marketplace and have a chance of bringing in a return? For one, realize that regardless of the industry you are directly involved in you too will also have to "fragment" and dive into other sectors like mobile/social applications, embeddable stores, social media, games, videos, SEO, etc. To put it plainly, regardless of the "sector" of the industry you find yourself in you must adapt to other sectors to offer your customer or fan a total package. This package should be as interactive as possible and create a "feedback loop" so that those customers or fans can always find new information, as well as hidden and/or exclusive products, as they bounce between your website, your mobile application, social media, Qrickit landing pages, games, etc. You now have a media experience and not just a video, game, a single, or a mixtape for sale.

     Now, for the next question… Which territories (countries, areas) are best for you to release and promote your product in so that you too can have your very own "Rex Manning Day" you ask? This is the fun part, now you get to use some of the information found above, along with the links I'm going to provide below, to do some research! Think globally, there is no excuse for an entertainment product that is not found absolutely everywhere and in every form imaginable. Japan has been completely reinventing the way mobile interactivity and commerce is done, China is an important market, and you can't use Facebook to promote and sell music there so do your homework. The UK, Germany, Ireland, Russia, these are all important markets that should not be ignored.

     Find your niche, use tools like Claritas and Quantcast to find out who you are looking to sell to, and then find out where they hang out. Avoid paying for advertisements that put your product in unfriendly brand positions or using ad services that position your ad near totally dissimilar products from the one you are offering. Be competitive and make sure that if you are selling, say… beats or instrumentals that your advertisement is on a page where beats and instrumentals are sold and the other ads around yours are related, not a washing machine or a stereo.

Effectively Managing Your Online Distribution Plan

     One in five questions I receive working as an entertainment business consultant revolves around distribution of media and more specifically regarding timetables for releases and their promotion. This is completely understandable when you take everything into consideration and this is often a long conversation but we will sum up quickly.

     With so many different types of "stores" available to license holders online and the equal or greater number of  "digital distributors" who are happy to take a fee per single, album, ringtone, and the like, it can be a confusing time for an independent artist or manager who is also working to finalize the product, marketing materials and distribution channels. Each of these "stores" has their own ways and costs of doing business. Most frustrating, each of them also have their own schedules for uploading an artists media once received and often it is up to the artist to "keep an eye out" for its availability once loaded to the platform. Add to this the number of "apps" that are now expected to be integrated into social and mobile experiences that carry their own contracts, fees, and self-serving upload schedule and the time management for releases can be head spinning if not managed very carefully with an emphasis on relevant information.

     Indeed many, many advertising dollars have been completely wasted due to promoting a product as available when fans cannot find it in their favorite stores due to a hasty decision to rely on a quick service that promises quick turnaround for itunes (and the rest of the world in 5-6 weeks). This could be a real bummer if your largest fan bases are outside the United States, and due to the many micro-niche artists out there and the multitude of above-mentioned services this is the case more often than not. Some of the "worst-case scenarios” I have seen involve artists on tour promoting inactive links and unavailable product due to a "set-it-and-forget-it" mentality with their fancy new blanket distribution site online.

     So here are a few quick things to keep in mind to keep both your spending and value-chain effective. First, have a solid pre-release promotion strategy. The project must be managed in a way that sets everything out by time and territory. Which territories are the most important, i.e. where are your fans located? Do your homework and figure out the services you will need to utilize for those territories and contact the rights societies, publishers, and distributors. Try and license your material piece by piece, place by place and then think about blanketing the rest of the world with a quick and easy service. Once this is done choose an online distributor that will allow you to choose a pre-release date and plan spending accordingly (have things in order first). This way you can be extremely specific about when the release will be available and all other efforts like press releases, appearances, touring, etc. can run concurrently towards the same goal, efficiency. This also allows for better measurement of your efforts and makes it easier to attain greater goals with new material rather than contacting press about a song that came out 2 months ago.