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	<title>KnowTheMusicBiz.com</title>
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	<link>http://www.knowthemusicbiz.com</link>
	<description>An Online Community and Resource Center for the Business of Independent Music</description>
	<lastBuildDate>Fri, 11 May 2012 13:05:38 +0000</lastBuildDate>
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		<title>13 Ways to Not Build a Fan Base</title>
		<link>http://www.knowthemusicbiz.com/13-ways-to-not-build-a-fan-base/</link>
		<comments>http://www.knowthemusicbiz.com/13-ways-to-not-build-a-fan-base/#comments</comments>
		<pubDate>Fri, 11 May 2012 13:05:38 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[DIY Tips]]></category>
		<category><![CDATA[Email Marketing]]></category>
		<category><![CDATA[marketing]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=675</guid>
		<description><![CDATA[
From the FanBridge Blog:
We see entertainers doing all sorts of crazy things to get more fans. The frustrating part is that there are so many misconceptions about building a fan base – so we’ve put together a list of 13 ways to NOT build a fan base. Need us to simplify? Stop doing these things!
Click here to read the entire post.

]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2012/05/Unhappy-Fan.jpg"><img class="aligncenter size-medium wp-image-674" title="Unhappy Fan" src="http://www.knowthemusicbiz.com/wp-content/uploads/2012/05/Unhappy-Fan-300x232.jpg" alt="" width="300" height="232" /></a></p>
<p>From the <a href="http://www.fanbridge.com/blog/" target="_blank">FanBridge Blog</a>:</p>
<p>We see entertainers doing all sorts of crazy things to get more fans. The frustrating part is that there are so many misconceptions about building a fan base – so we’ve put together a list of 13 ways to NOT <strong>build a fan base</strong>. Need us to simplify? <em>Stop doing these things!</em></p>
<p><em></em><em><a href="http://www.fanbridge.com/blog/13-ways-to-not-build-a-fan-base" target="_blank">Click here </a>to read the entire post.<br />
</em></p>
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		<title>Concert Promoters, Bookers and Agents: What is the Difference?</title>
		<link>http://www.knowthemusicbiz.com/concert-promoters-bookers-and-agents-what-is-the-difference/</link>
		<comments>http://www.knowthemusicbiz.com/concert-promoters-bookers-and-agents-what-is-the-difference/#comments</comments>
		<pubDate>Fri, 04 May 2012 13:36:35 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[DIY Tips]]></category>
		<category><![CDATA[Live Shows]]></category>
		<category><![CDATA[Touring]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=670</guid>
		<description><![CDATA[
By Heather McDonald for About.com Music Careers
Booking and promoting concerts involves a lot of moving parts, so it&#8217;s pretty easy for confusion to enter the picture. If you&#8217;re new to playing live, just starting to cut your teeth on the live music circuit, then that confusion can go through the roof for a lot of reasons. In fact, this can be a tough time for a lot of musicians, not only because the whole process is new and more than a little intimidating, but also because musicians at this stage are the perfect targets for getting hustled. When you get to the stage where you&#8217;re booking your own shows, you can make better decisions if you understand the role of everyone involved. Now, there can be some overlap in these positions, but here is the general idea to keep in mind:
Click here to read the entire post.
]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/03/concert.jpg"><img class="aligncenter size-full wp-image-172" title="concert" src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/03/concert.jpg" alt="" width="274" height="184" /></a></p>
<p>By <a href="http://musicians.about.com/bio/Heather-McDonald-24203.htm" target="_blank">Heather McDonald</a> for <a href="http://musicians.about.com/" target="_blank">About.com Music Careers</a></p>
<p>Booking and promoting concerts involves a lot of moving parts, so it&#8217;s pretty easy for confusion to enter the picture. If you&#8217;re new to playing live, just starting to cut your teeth on the live music circuit, then that confusion can go through the roof for a lot of reasons. In fact, this can be a tough time for a lot of musicians, not only because the whole process is new and more than a little intimidating, but also because musicians at this stage are the perfect targets for getting hustled. When you get to the stage where you&#8217;re booking your own shows, you can make better decisions if you understand the role of everyone involved. Now, there can be some overlap in these positions, but here is the general idea to keep in mind:</p>
<p><a href="http://musicians.about.com/od/gigsandtouring/f/Concert-Promoters-Bookers-And-Agents-What-Is-The-Difference.htm" target="_blank">Click here</a> to read the entire post.</p>
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		<title>Best Practices for CD Manufacturing</title>
		<link>http://www.knowthemusicbiz.com/best-practices-for-cd-manufacturing/</link>
		<comments>http://www.knowthemusicbiz.com/best-practices-for-cd-manufacturing/#comments</comments>
		<pubDate>Tue, 01 May 2012 14:37:17 +0000</pubDate>
		<dc:creator>David Rose</dc:creator>
				<category><![CDATA[Biz Blog]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[Manufacturing]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=664</guid>
		<description><![CDATA[
The manufacturing and replication process requires the coordination of a seemingly overwhelming number of details and can be a challenge for anyone trying to get a finished product by a certain deadline. The manufacturing details are often handled for an artist by their record label or distributor if they are signed to a recording contract. Indie musicians will have to coordinate all the details themselves. Below are some manufacturing best practices indie musicians can follow to help ensure your CD&#8217;s are produced to your specifications and delivered on time.
The first step in the manufacturing process is to obtain a final copy of the master recording with the sequencing, spacing, EQ and levels exactly as they will be on the replicated copies. Because replication is a complex, high-speed process, the data the master must be organized in very specific ways in order to ensure exact, error-free finished copies; for this reason (and ...]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/04/IMG_0359.jpg"><img class="aligncenter size-medium wp-image-198" title="IMG_0359" src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/04/IMG_0359-225x300.jpg" alt="" width="225" height="300" /></a></p>
<p>The manufacturing and replication process requires the coordination of a seemingly overwhelming number of details and can be a challenge for anyone trying to get a finished product by a certain deadline. The manufacturing details are often handled for an artist by their record label or distributor<strong> </strong>if they are signed to a recording contract. Indie musicians will have to coordinate all the details themselves. Below are some manufacturing best practices indie musicians can follow to help ensure your CD&#8217;s are produced to your specifications and delivered on time.</p>
<p>The first step in the manufacturing process is to obtain a final copy of the master recording with the sequencing, spacing, EQ and levels exactly as they will be on the replicated copies. Because replication is a complex, high-speed process, the data the master must be organized in very specific ways in order to ensure exact, error-free finished copies; for this reason (and many others), securing a professional mastering studio to turn the final mixes into a production master will result in a much higher quality finished product – though there are several professional-grade consumer mastering software packages that will work in a pinch.  The manufacturer will want a sealed, production master CD (”PMCD”) copy of the master (or lacquer masters if they will be pressing vinyl). Typically, other master formats are acceptable, and most manufacturing plants will provide a list as part of their overall specifications. It is crucial to thoroughly test and approve the master before delivery to the manufacturer; the manufacturer’s only liability is to create exact, technically accurate replicas of the master, so they cannot be held responsible for content imperfections that also appear on the delivered master. The extra time and expense required to create a perfect master is far better than the potential cost of producing thousands of imperfect CDs.</p>
<p>Using an experienced graphics professional to create the artist’s artwork including folders, booklets, fonts, graphics, photos and CD label silkscreen can make life much easier. Manufacturers usually make their requested art specifications readily available and prefer to receive the final art files on CD in certain formats such as <strong><a href="http://www.adobe.com/products/illustrator.html" target="_blank">Adobe Illustrator</a></strong> or <a href="http://www.quark.com/" target="_blank">QuarkXPress</a>. It’s best to have a “folding dummy” or exact replica created of how the finished product should look, including the fold pattern of the insert, to help avoid any misunderstandings with the manufacturer about how the finished product should look when they are finished.</p>
<p>A<strong> <a href="http://en.wikipedia.org/wiki/Universal_Product_Code" target="_blank">UPC Code</a>, </strong>commonly referred to as a bar code, uniquely identifies a CD’s manufacturer, label, artist, catalog number and format. A UPC code must be obtained and attached to the CD’s packaging if the release will ever be sold through retailers. UPC codes along with artist name, title, label, distributor, genre and retail price information, should be registered with <a href="http://www.nielsen.com/us/en.html" target="_blank">Nielsen Soundscan</a><strong> </strong>so sales can be tracked and reported. UPC codes can be obtained directly from the <a href="http://www.gs1us.org/" target="_blank">Uniform Code Council</a><strong> </strong>but can also be provided by the manufacturer, distributor or record label.</p>
<p>&nbsp;</p>
<p><a href="http://en.wikipedia.org/wiki/International_Standard_Recording_Code" target="_blank">ISRC Codes</a> are unique identifiers or digital footprints for each track on a release and are used by digital retailers to track and report digital sales. ISRC codes are typically either encoded into the recording during the mastering process or on the physical products during manufacturing.</p>
<p>Artists or record labels will often times want to include music videos or footage of live shows with their CD as an added value for fans or sell at separate DVD of a live show. Manufacturers can bundle video with the CDs as CD-ROM content or produce separate DVDs as requested. The CD-ROM or DVD master should be professionally authored and include the menu and software functionality desired by the artist.  As with the audio content, the artist should thoroughly test this master for functionality before approving and delivering to the manufacturer.</p>
<p>When shopping around to get price quotes it’s important to compare not only the price of the replicated CD’s but also the overall cost of the finished product.  Price variables can include packaging (Jewel Case or DigiPak), printing of the artwork, assembly, shrink-wrap, turnaround time and quantity.  Fees vary and decrease on a per unit basis the larger the order. A basic 1000 piece order would typically run around $1.25 to $1.50 per unit or $1,250 to $1,500 in total. Manufacturing at least an anticipated six-month supply of inventory is a good method for estimating how many units to have produced at a time.</p>
<p>It’s common for the manufacturer to charge half of the cost up-front and collect the other half plus shipping on delivery of the finished product. Turnaround times vary but typically take around 4 weeks from the time all the needed information is submitted in the required specifications.</p>
<p>Creating a checklist of items to complete and turn in to the manufacturer can help organize the process. A manufacturing checklist should include:</p>
<ul>
<li>Approved master in CD format with final sequencing, spacing, EQ and levels.</li>
<li>Master is clearly labeled with artist, title and catalog number</li>
<li>Tracksheet with track titles, lengths, start &amp; stop times and ISRC codes</li>
<li>A CD for the print art, graphics and pictures per the manufacturers specifications</li>
<li>A hard copy print out of each file to be printed</li>
<li>An exact replica “Folding Dummy” of how the booklet should look (including fold pattern)</li>
<li>A CD for the CD label art and graphics per the manufacturers specifications</li>
<li>A hard copy print out of each file to be printed</li>
</ul>
<p>Once a manufacturer has been selected, the price has been negotiated, a delivery date established and the master, print art, cd art (per the requirements) have been turned over for production it is time to request a hard copy proof of how the final product will look. A hard copy proof may cost an extra $20.00 but can help catch mistakes or problems before going to full production. This is also the only reliable method for verifying color – though many manufacturers will offer to provide a PDF or other digital file as a proof, the wide variances in monitor calibration prevent digital files from accurately representing finished color.  The graphics professional who created the original artwork can review the proof and submit any changes if necessary. Reviewing the hard copy proof should not be left up to the plant where the proof was produced. 48 hours is generally expected to be enough time to review and approve a proof, so timely approval is crucial to helping the manufacturer meet the target deadline.</p>
<p>If corrections are necessary, expect the designer to provide them to the manufacturer. Most manufacturers can make small corrections to text and layout, but because the design and approval process is subjective, any color corrections or complex layout and graphics changes are always best left to the original designer. To avoid delays, make sure the designer will be available for at least a week or two after the order is submitted; helping to see the project through to completion is an expected part of the graphic designer’s role. Expect additional charges for any corrections made, whether those corrections are made by the designer or the manufacturer; request approval on all costs before moving forward with any corrections – a small typo or alignment tweak may not be worth the cost in the long run.</p>
<p>It’s a good idea to request approval of a finished sample of the printed parts of the package <em>before</em> they are assembled with the CDs into finished product. That way, if a quality or printing issue arises, it can be caught and reprinted before disc pressing or assembly takes place, which will save both time and expense.</p>
<p>It is important to establish a ship date of the final product with the manufacturer and stay in regular contact with them to make sure the process is on track to meet that target. If possible, build extra time into the schedule so that it can remain flexible if issues do arise. For example, if artwork corrections or technical problems with the master delay the project by five days, most manufacturers will add those five days to the requested delivery date unless other arrangements are made, sometimes involving a rush fee. A four week turn time will typically cover most simple delays, but the more time available, the more likely the target delivery date will be hit.</p>
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		<title>Can You Build a Portable Recording Studio For Less Than £250?</title>
		<link>http://www.knowthemusicbiz.com/can-you-build-a-portable-recording-studio-for-less-than-250/</link>
		<comments>http://www.knowthemusicbiz.com/can-you-build-a-portable-recording-studio-for-less-than-250/#comments</comments>
		<pubDate>Sun, 15 Apr 2012 12:28:48 +0000</pubDate>
		<dc:creator>marcustaylor</dc:creator>
				<category><![CDATA[Biz Blog]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[production]]></category>
		<category><![CDATA[recording]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=655</guid>
		<description><![CDATA[When pro audio gear reached the masses seven or eight years ago, the ‘home studio’ dream was born for tens of thousands of musicians all around the world. A couple of years later many of the leading manufacturers of recording gear such as Mackie and Motu started catering to the nomadic musicians and the touring artist with portable gear.

A few days ago I was asked a question that got me thinking, the question was “if you only had £250 to set up a studio that was portable but beyond demo quality, what would you spend it on?” I did some browsing and came up with a possible solution.
First of all, I’m assuming that you already have a laptop, so I won’t include that in the price. I will also clarify that £250 is an incredibly low budget for this kind of operation, but I think it is possibly nowadays to ...]]></description>
			<content:encoded><![CDATA[<p>When pro audio gear reached the masses seven or eight years ago, the ‘home studio’ dream was born for tens of thousands of musicians all around the world. A couple of years later many of the leading manufacturers of recording gear such as Mackie and Motu started catering to the nomadic musicians and the touring artist with portable gear.</p>
<p><img src="http://farm4.staticflickr.com/3008/2648857380_c2eba2b389.jpg?__SQUARESPACE_CACHEVERSION=1333868946164" alt="" /></p>
<p>A few days ago I was asked a question that got me thinking, the question was “if you only had £250 to set up a studio that was portable but beyond demo quality, what would you spend it on?” I did some browsing and came up with a possible solution.</p>
<p>First of all, I’m assuming that you already have a laptop, so I won’t include that in the price. I will also clarify that £250 is an incredibly low budget for this kind of operation, but I think it is possibly nowadays to build a reasonably good quality basic setup on this budget (just about)! Studio gear is also a very personal preference, so you may have had bad experiences with some of the gear i’ve suggested &#8211; if so, share them in the comments as I’d be keen to hear similar good alternatives that I haven’t considered.</p>
<p>&nbsp;</p>
<p><strong>The Software &amp; Interface</strong></p>
<p>A good sequencer and interface is the heart of your setup, so it pays to get this one right. Most sequencers offer a free limited special edition version, which often comes free with recording equipment, such as microphones. While there are several completely free options available like Audacity and Garageband, using a professional solution like Cubase, Logic, or Pro Tools is a wise foundation to build upon.</p>
<p><a href="http://www.amazon.co.uk/gp/product/B002P3KINE/ref=as_li_ss_tl?ie=UTF8&amp;tag=themusgui-21&amp;linkCode=as2&amp;camp=1634&amp;creative=19450&amp;creativeASIN=B002P3KINE">This</a> essential recording studio package from Pro Tools and M Audio is just under £50 and includes Pro Tools software and a sufficiently high quality interface to connect your instrument or microphone to the computer with. If you need to upgrade to a 2-track interface, there is also a 2-track model available for just £15 extra.</p>
<p>&nbsp;</p>
<p><strong>The Microphone</strong></p>
<p>Depending on what you’re recording, you’ll most likely want a good condenser microphone to record vocals, and possibly guitars. Although the M-audio / Pro Tools pre amp does feature an XLR input for microphone, I’d recommend <a href="http://www.themusiciansguide.co.uk/blog/01/what-are-the-best-cheap-usb-microphones-for-home-recording/">a good USB microphone</a> such as the <a href="http://www.amazon.co.uk/gp/product/B002VA464S/ref=as_li_ss_tl?ie=UTF8&amp;tag=themusgui-21&amp;linkCode=as2&amp;camp=1634&amp;creative=19450&amp;creativeASIN=B002VA464S">Blue Yeti</a> or <a href="http://www.amazon.co.uk/gp/product/B000EOPQ7E/ref=as_li_ss_tl?ie=UTF8&amp;tag=themusgui-21&amp;linkCode=as2&amp;camp=1634&amp;creative=19450&amp;creativeASIN=B000EOPQ7E">Snowball</a>, both of which cost less than £75</p>
<p><strong> </strong></p>
<p><strong>The Headphones</strong></p>
<p>You probably won’t have the luxury of being able to carry a good set of studio monitors around with you as a part of your portable studio, so it’s important to invest in a <a href="http://www.themusiciansguide.co.uk/blog/27/what-are-the-best-dj-headphones/">good set of headphones</a>. To compensate for the lack of a pair of accurate sounding speakers, you may want to go for the industry standard Beyerdynamic DT-100s, which retail for around £100. However, AKG and Sennheiser both offer reasonable quality studio headphones for under £30 (the AKG K44s, and the Sennheiser HD 201s).</p>
<p>&nbsp;</p>
<p><strong>The Midi Controller</strong></p>
<p>If you’re doing any kind of electronic music programming, you’re going to want a midi controler. Although there are a range of ‘roll up midi keyboards’ designed for portability, I’d recommend going for an inexpensive small 25-key midi keyboard with a sufficient velocity control. The M-audio Oxygen 25 or the Alesis Q25 are both good options around £50. If you are using midi, remember to set aside an extra £20 or so for a USB midi interface.</p>
<p>&nbsp;</p>
<p><strong>Conclusion</strong></p>
<p>Although this setup is incredibly basic, it’ll fit in a backpack and sufficiently be able to record and program your music while you’re on the go all for less than £250. Here’s the breakdown:</p>
<ul>
<li>Pro Tools / M-audio Software &amp; Interface = £49</li>
<li>Blue Snowball USB Condensor Microphone = £57</li>
<li>AKG K44 Closed Headphones = £21</li>
<li>M-audio Oxygen 25 Midi Controller = £56</li>
</ul>
<p>The total cost is £183, leaving a good £80 left over to invest in your favourite plugins or samples, both of which can be picked up for cheap second-hand on eBay. So there you have it, a fully functional and reasonably good quality portable recording studio for under £250. What would you buy if you had that budget to spend on creating a portable studio?</p>
<p><a href="http://www.flickr.com/photos/a75/2648857380/sizes/m/in/photostream/">img</a></p>
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		<title>Top Pinterest Tools &amp; Tips For Music Marketing</title>
		<link>http://www.knowthemusicbiz.com/top-pinterest-tools-tips-for-music-marketing/</link>
		<comments>http://www.knowthemusicbiz.com/top-pinterest-tools-tips-for-music-marketing/#comments</comments>
		<pubDate>Fri, 13 Apr 2012 14:08:10 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[DIY Tips]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[pintrest]]></category>
		<category><![CDATA[Tech]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=651</guid>
		<description><![CDATA[
by Clyde Smith for Hypebot:
Since my early call that music marketers should be paying attention to Pinterest, it&#8217;s become an increasing focus for a variety of folks in the music industry. Now one of the most popular social networks after only Twitter and Facebook, Pinterest seems likely to establish itself as a must-have for music marketers far beyond my expectatons for Google+.
Pinterest provides some basic tips in their Getting Started section including how to add Pinterest to your Facebook Timeline. They also offer a small selection of Goodies including a free iOS app and both a Follow and a Pin It button for your blog or website. Now third parties are emerging to fill in some of the gaps.
Click here to read the entire post.
]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2012/04/pintrest.jpg"><img class="aligncenter size-full wp-image-650" title="pintrest" src="http://www.knowthemusicbiz.com/wp-content/uploads/2012/04/pintrest.jpg" alt="" width="275" height="183" /></a></p>
<p>by <a href="http://profile.typepad.com/clydesmith" target="_blank">Clyde Smith</a> for <a href="http://www.hypebot.com/" target="_blank">Hypebot</a>:</p>
<p>Since <a href="http://www.hypebot.com/hypebot/2011/12/pinterests-growth-represents-marketing-opportunity.html" target="_blank">my early call</a> that <strong>music marketers</strong> should be paying attention to <strong>Pinterest</strong>, it&#8217;s become an increasing focus for a variety of folks in the music industry. Now one of the most popular social networks after only <strong>Twitter</strong> and <strong>Facebook</strong>, Pinterest seems likely to establish itself as a must-have for music marketers far beyond my <a href="http://www.hypebot.com/hypebot/2011/07/music-marketing-on-google-resistance-is-futile.html" target="_blank">expectatons for Google+</a>.</p>
<p>Pinterest provides some basic tips in their <strong><a href="http://pinterest.com/about/help/" target="_blank">Getting Started</a></strong> section including how to add Pinterest to your Facebook Timeline. They also offer a small selection of <strong><a href="http://pinterest.com/about/goodies/" target="_blank">Goodies</a></strong> including a free iOS app and both a Follow and a Pin It button for your blog or website. Now third parties are emerging to fill in some of the gaps.</p>
<p><a href="http://www.hypebot.com/hypebot/2012/04/top-pinterest-tools-tips-for-music-marketing.html" target="_blank">Click here</a> to read the entire post.</p>
]]></content:encoded>
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		<title>Music Biz MBA: A Physical Distribution Breakeven Analysis</title>
		<link>http://www.knowthemusicbiz.com/physical-distribution-breakeven-analysis/</link>
		<comments>http://www.knowthemusicbiz.com/physical-distribution-breakeven-analysis/#comments</comments>
		<pubDate>Tue, 10 Apr 2012 10:00:26 +0000</pubDate>
		<dc:creator>David Rose</dc:creator>
				<category><![CDATA[Biz Blog]]></category>
		<category><![CDATA[Featured]]></category>
		<category><![CDATA[MusicBiz MBA]]></category>
		<category><![CDATA[Distribution]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=250</guid>
		<description><![CDATA[
I’m my previous blog post titled What Indie Artists Need to Know About Physical Distribution I covered at a basic level how physical distribution in the music business works and some of the key elements of a distribution agreement including co-marketing budgets, return reserves, etc.
Indie musicians will inevitably get all kinds of conflicting advice when it comes to potentially pursuing a physical distribution deal. It would be, for example, very common to hear an independent radio promoter tell an artist “WUTK and WDVX probably won’t add your song into rotation if your CD isn’t available for sale at retailers in Knoxville like the Disc Exchange”.  “You’ll need a national distribution deal before a lot of radio stations will consider adding your songs”. This type of argument may have some merit but don&#8217;t be fooled into believing that if you have a physical distribution deal that touring, radio, press, etc. will ...]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Excel-Nerd-Alert.png"><img class="aligncenter size-full wp-image-249" title="Excel Nerd Alert" src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Excel-Nerd-Alert.png" alt="" width="150" height="153" /></a></p>
<p>I’m my previous blog post titled <a href="http://www.knowthemusicbiz.com/what-indie-musicians-should-know-about-physical-distribution/">What Indie Artists Need to Know About Physical Distribution</a> I covered at a basic level how physical distribution in the music business works and some of the key elements of a distribution agreement including co-marketing budgets, return reserves, etc.</p>
<p>Indie musicians will inevitably get all kinds of conflicting advice when it comes to potentially pursuing a physical distribution deal. It would be, for example, very common to hear an independent radio promoter tell an artist “<a href="http://www.wutkradio.com/" target="_blank">WUTK</a> and <a href="http://www.wdvx.com/" target="_blank">WDVX</a> probably won’t add your song into rotation if your CD isn’t available for sale at retailers in Knoxville like the <a href="http://www.discexchange.com/Home" target="_blank">Disc Exchange</a>”.  “You’ll need a national distribution deal before a lot of radio stations will consider adding your songs”. This type of argument may have some merit but don&#8217;t be fooled into believing that if you have a physical distribution deal that touring, radio, press, etc. will all magically fall into place.</p>
<p>In my mind the most important factor when considering a physical distribution deal is whether or not the artist will make money at it. Considering the upfront costs of pursuing physical distribution like manufacturing costs, shipping costs, co-marketing costs, etc. an artist should only enter into a physical distro deal is when it will be profitable.</p>
<p>So, how exactly will an artist know if they can turn a net profit through physical distribution before entering into a distro deal? By using an Excel based breakeven analysis worksheet of course!</p>
<p>During my <a href="http://www.kenan-flagler.unc.edu/programs/emba/index.cfm">MBA</a> Cost Accounting course I created an Excel based breakeven analysis model for determining how many units of physical product an indie artist would have to sell via retail in order to cover all the costs associated entering into a physical distribution deal.</p>
<p><a href="http://dl.dropbox.com/u/26874934/Physical%20Distribution%20Breakeven%20Analysis.xlsx">Here is a link</a> to download the distribution breakeven analysis Excel worksheet at DropBox.com. Please download your own copy (via File – “Save As”) before making any changes to the worksheet!</p>
<p><strong>Instructions:</strong></p>
<p>&nbsp;</p>
<p>Step 1. Enter the fixed and variable cost dollar amounts in the yellow shaded area.</p>
<p><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.40.44-PM.png"><img class="aligncenter size-full wp-image-252" title="Costs Screen Shot" src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.40.44-PM.png" alt="" width="235" height="142" /></a></p>
<p>Step 2. Enter the various deduction percentages in the yellow shaded area.</p>
<p><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.42.13-PM.png"><img class="aligncenter size-full wp-image-253" title="Deductions Screen Shot " src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.42.13-PM.png" alt="" width="230" height="114" /></a></p>
<p>Step 3. Enter the net dollar amount you will be paid on a per unit basis.</p>
<p><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.43.48-PM.png"><img class="aligncenter size-full wp-image-254" title="Revenue Screen shot " src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.43.48-PM.png" alt="" width="230" height="40" /></a></p>
<p>Step 4. Find Gross Margin section in “column I” of the worksheet and look for a positive dollar amount. Once you’ve located a positive dollar amount (cell I30 in our example) move over the corresponding row in column A to see how many units it will take to turn a net profit.</p>
<p><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.53.40-PM.png"><img class="aligncenter size-full wp-image-255" title="Gross Margins Screen shot " src="http://www.knowthemusicbiz.com/wp-content/uploads/2011/05/Screen-shot-2011-05-17-at-9.53.40-PM.png" alt="" width="96" height="246" /></a></p>
<p>Once you know the number of unit sales it will take to breakeven you&#8217;ll have to make a judgement call as to whether it is reasonably possible to sell that number of units at retail. Excel can&#8217;t help make that call.</p>
<p>I do have another version of this worksheet that contains a macro that automatically calculates the number of units needed for breakeven once all the inputs are entered. Just contact me at the email address listed in the <a href="http://www.knowthemusicbiz.com/about/">About Us</a> section of the website if you want me to email you a copy of the macro enable worksheet.</p>
<p>If anyone have questions about the breakeven analysis worksheet please feel free to post them in the comments section of this blog and I’ll do my best to get back to you soon.</p>
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		<title>4 Key Considerations To Forming A Band</title>
		<link>http://www.knowthemusicbiz.com/4-key-considerations-to-forming-a-band/</link>
		<comments>http://www.knowthemusicbiz.com/4-key-considerations-to-forming-a-band/#comments</comments>
		<pubDate>Fri, 06 Apr 2012 13:53:47 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[DIY Tips]]></category>
		<category><![CDATA[Band Agreements]]></category>

		<guid isPermaLink="false">http://www.knowthemusicbiz.com/?p=643</guid>
		<description><![CDATA[
From the Songtrust Blog:
So you’ve been writing songs, or maybe you want to start writing songs, and you’ve been hoping for a band to be the vehicle for those songs to thrive.
Working in a group dynamic brings its own set of challenges that needs to be discussed thoroughly with the full band before kicking off, so that they don’t become a nuisance (or worse) later on. Before you dive right in and start writing with your newfound band, there are a few important things to consider:
Click here to read the entire post.
]]></description>
			<content:encoded><![CDATA[<p style="text-align: center;"><a href="http://www.knowthemusicbiz.com/wp-content/uploads/2012/04/Songtrust.jpg"><img class="aligncenter size-full wp-image-642" title="Songtrust" src="http://www.knowthemusicbiz.com/wp-content/uploads/2012/04/Songtrust.jpg" alt="" width="177" height="69" /></a></p>
<p>From the <a href="http://blog.songtrust.com/" target="_blank">Songtrust Blog</a>:</p>
<p>So you’ve been writing songs, or maybe you want to start writing songs, and you’ve been hoping for a band to be the vehicle for those songs to thrive.</p>
<p>Working in a group dynamic brings its own set of challenges that needs to be discussed thoroughly with the full band before kicking off, so that they don’t become a nuisance (or worse) later on. Before you dive right in and start writing with your newfound band, there are a few important things to consider:</p>
<p><a href="http://blog.songtrust.com/songwriting-tips/4-key-considerations-to-forming-a-band/?utm_campaign=Argyle%2BSocial-2012-03&amp;utm_content=http%253A%252F%252Fblog.songtrust.com%252Fsongwriting-tips%252F4-key-considerations-to-forming-a-band%252F&amp;utm_medium=Argyle%2BSocial&amp;utm_source=twitter" target="_blank">Click here</a> to read the entire post.</p>
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