[linux-audio-user] Internet Music Business Models + Logos

R Parker rtp405 at yahoo.com
Fri Mar 24 07:39:42 EST 2006



--- tim hall <tech at glastonburymusic.org.uk> wrote:

> R Parker wrote:
> > 
> > --- tim hall <tech at glastonburymusic.org.uk> wrote:
> > 
> > 
> >>R Parker wrote:
> >>
> >>>Hi,
> >>>
> >>>I haven't got enough time to properly revue your
> >>
> >>ideas
> >>
> >>>and proposals but will attempt to respond in
> part.
> >>>
> >>>--- Carlo Capocasa <capocasa at gmx.net> wrote:
> >>>
> >>>
> >>>
> >>>>MARKETING TACTICS
> >>>>
> >>>>We all need marketing. In its best sense, it
> >>
> >>simply
> >>
> >>>>means that there are
> >>>>no obstacles people need to get around to get to
> >>>>your music.
> > 
> > 
> > Understanding product, buyers and the means for
> > reaching buyers is my marketing objective. One of
> > every 1000 views of a banner results in a sale. A
> 30
> > day campaign for $100.00 will be seen by 40,000
> people
> > and result in 40 sales. Production cost per unit
> is
> > $5.00 leaving a $300.00 profit.
> > 
> > This community seems determined to associate a
> value
> > with its music that's derived from the tools used
> to
> > produce the music or the philosiphy that governs
> the
> > development of those tools. I share som of that
> > romantic sentiment. However, I am practicle and
> > believe it is the song that sells.
> > 
> > If it's the song that sells and I want to make
> > $2,000.00 a month on my music then I need to
> invest
> > about $700.00 a month into banner adds.
> > 
> >  Clean up
> > 
> >>>>the dog poo in front of your store. Sure it's
> >>>>flattering to see to what
> >>>>lengths people will go to get your product, but
> >>>>maybe that length could
> >>>>be reduced to one: How much will they pay?
> >>>>
> >>>>1. For the first business model I was thinking
> of
> >>>>selling music on an
> >>>>'All Rights Reserved' basis, but with FULL
> RESALE
> >>>>RIGHTS. In other
> >>>>words, people are allowed to distribute your
> work
> >>>>for free if they want
> >>>>to, but there is a little incentive not to,
> >>
> >>because
> >>
> >>>>they can also sell
> >>>>it to their friends.
> >>>
> >>>
> >>>>From the Copyright owner perspective, I issue a
> >>>license that describes how you can legally use,
> >>
> >>sell
> >>
> >>>and distribute my property.
> >>
> >>This is probably the same as what Carlo is
> >>suggesting, except you 
> >>already have a workable version?
> > 
> > 
> > That is the only reasonable model I'm aware of and
> I'd
> > like to know what Carlo believes. Or if you care
> to
> > share it then what you believe.
> > 
> > Is this proposed record label going to invest
> $700.00
> > a month into advertising my music so I can have
> the
> > measly $2,000.00 a month requirement? Is it going
> to
> > do the same for you and how many other people?
> Does
> > this business proposal have an operating budget?
> > 
> > I'm not trying to discredit the idea that there's
> a
> > group of artists whom share a "for the good of all
> > mankind" philosophy and that fans can derive
> vicarious
> > fulfillment and alleviation through listening to
> our
> > music. After they buy it.
> > 
> > I want to know the plan. How does the record label
> pay
> > for its overhead which includes operational and
> wage
> > expenses. Are we gonna put our songs on a website
> and
> > hope people stumble across it, pay $1.00 per
> download
> > and then the artist recieves exactly $1.00 in
> their
> > paypal account?
> > 
> > Alot can be done with very little money. Let's say
> > five of us agree to invest $20.00 a month into
> banner
> > adds or google AdText to promote site Y where a
> list
> > of artist websites exist...
> 
> OK, I understand what you're saying now. This is
> exactly the kind of 
> hard headed reality I have trouble wrapping my head
> around and 
> subsequently why I'm not earning 2 grand a month
> from music.

It doesn't help when we love producing songs more than
we appreciate business.

> Do you honestly think that banner ads are the most
> effective means of 
> advertising or was that just as an example?

I don't know the most effective means for selling
music on the internet. We're putting a toe in the
water and during this phase a bobber in every pond.

> The trouble is, if you run on a donations basis,
> it's easy to believe 
> that you can only afford free advertising. It is
> hard to make any kind 
> of business plan when you have no guaranteed income.

I think you can formulate a useful business plan on no
budget but it will have meager beginnings. Imagine
find ing one new fan every day for a year:
* 365 fans
* $10 profit on every CD sale

Cut two albums a year and keep finding a fan every
day.  One a day is probably unrealistic until we have
an advertising budget. I imagine. One a week?

My partners and I have a business plan and alot of
product:
*five albums
*a half dozen live multiple camera video productions
*a couple dozen pieces of fine art for album covers,
song posters
*a nice studio that we built and own
*an advertising campaign with two mostly completed
advertisements

I figure a year of executing the plan should be
sufficient to demonstrate the potential for building a
 fan base and selling product. If I spend $100.00 a
month that's less than the bands budget for ass wipe.
Well, if the band has a typically poor diet of beer
and chips.

ron

> I don't suppose 
> that's news to anyone here.
> 
> cheers,
> 
> tim hall
> 



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