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MUSIC BIZ INSIGHT #8 Power Reading for Busy Music Professionals Hope you're hungry! MUSIC BIZ INSIGHT is published for musicians, songwriters, managers, label reps, booking agents, entertainment attorneys, studio owners, music publishers, and all others involved in the music business. Its purpose is to help boost your business, find new markets, make the right connections, develop professionally, work smarter and improve your bottom line. "As a general rule, the most successful people in life are those who have the best information." Benjamin Disraeli Published bi-monthly by Peter Spellman, Director MUSIC BUSINESS SOLUTIONS: Turning Music Business Data into Useful Knowledge. Career and Business-building books, articles, consulting and more. P.O. Box 230266, Astor Station, Boston, MA 02123-0266, USA Phone: 978-887-8041 Email: success@mbsolutions.com Website: www.mbsolutions.com © 1997 - 2003, Peter Spellman, Music Business Solutions
The Net has become a fantastic source for news. Two sites in particular get my attention everyday as a way to stay informed about music and music industry happenings. The first is Webnoize from Digital Music Network. An online publication, Webnoize sees itself as "a vehicle of exploration, analysis and celebration of music, technology and media. (It) simultaneously delivers news, information and commentary on the state of music on the Web and on the music industry's own evolution as it is impacted by emerging technologies. It's also a great place to learn about and revel in a ton of music sites and music-related Web happenings." Indeed, as a labor of love this publication really delivers. I'm continually amazed at its up-to-the-minute currency and its knack for sniffing out interesting happenings along the interface of music and the Internet. Though a bit difficult to navigate ( I recommend using its "Site Map") Webnoize is definitely worth a bookmark. The other source is sort of a Grand Central Station of music and entertainment news and stories. The iMusic News Agent is an on-line robot that maintains fresh links to the best and latest music news & reviews, posted by the top Music News sites on the Internet. iMusic News Agent is the one place you can go to link to all the Music News and Reviews (including Webnoize, see above). How current is it? The Agent automatically updates the links several times an hour. If the time at the top of the page is more than an hour old, reload the page for the latest Music News links. Now that's cool. Also has links to CD reviews, movie news, current music charts and more.
SHOULD YOU START YOUR OWN MUSIC PUBLISHING COMPANY? As mentioned in last issue's feature on finding the right music publisher, a publisher's job is to be the "agent and manager" for a writer's songs and compositions. In this month's feature, we'll explore the option of starting your own publishing company. You may be a writer wanting to retain as much control of your songs as possible, or you may be an industry careerist looking for a way to break into the biz. Either way you'll need to understand what's involved in running and developing your own publishing company from those who have gone before you. THE ESSENTIALS Essentially, a music publisher's worth is weighed in direct proportion to the quanitity and quality of his or her music-needing contacts. As your own publisher, you will need to have or make these connections. In other words, you'll need to network to a degree you've never done before. Most music publishers are "independent" in that they are not owned by large conglomerates, motion picture companies, television producers, or record companies. Their primary or sole source of income is from the commercial use of the songs in their catalogs, and their main thrust is the protection and promotion of the music they control without having to deal with any of the company policies that may be dicated by a firm's non-music publishing divisions. Because publishers' product is intangible--copyrights--overhead is low and profits can be high. Publishers don't need to stock inventory, own manufacturing plants and equipment, or employ an army of personnel. In the course of a day, publishers may deal with songwriters, recording artists, record producers, recording engineers, arrangers, musicians, record salesmen, marketing executives, promotion people, disc jockeys, booking agents, the press, p.r. consultants, artists' managers, record company management, lawyers, accountants, video producers and directors, overseas licensees, etc. Paperwork becomes a big part of being a music publisher. Heed hit songwriter, Fred Koller's advice: "If you are not used to planning and organizing and doing paperwortk on an almost daily basis you had better think twice about self-publishing." ("How to Pitch and Promote Your Songs", Allworth Press, 1996) And in the course of the day, publishers will wear many hats: talent scout, top sargeant, den mother, father confessor, cheerleader, supersalesperson, broker, wheeler-dealer--whatever it takes--to discover and nurture songwriting talent, and launch songs successfully into the marketplace. The elements for success in music publishing include:
Music publishing is a very complex business. A music publisher today should have a thorough knowledge of the performing rights societies (performance royalty collection), the Harry Fox Agency (mechanical royalty collection), the varieties of music licensing agreements & copyright clearance forms, and a finger on the pulse of the particular markets they will be pitching to. WHO SHOULD THINK ABOUT STARTING THEIR OWN PUBLISHING COMPANY? Besides the obvious profit potential, which is attractive to anyone seeking a good business to start, there are several situations that make setting up a publishing company a natural move:
THE NUTS & BOLTS OF SETTING UP YOUR OWN PUBLISHING COMPANY 1. You are eligible to have BMI, ASCAP, or SESAC process your application as a publisher if : (a) a record is being released containing a performance of the song; (b) a motion picture is being released that includes the song; (c) a television program will be or has been broadcast using the song; or (d) a radio program has been broadcast that played the song. 2. Come up with a name for your company (with three alternates) and clear the name with BMI, ASCAP or SESAC. You may use your own name but you should try to come up with something catchy that will make people want to open your envelopes with your demos inside. Unless you intend to publish the songs of other writers who may belong to other performing rights organizations, you need only set up a company with the one you're affiliated with as a writer. There is a $50 annual fee for being a publisher-member of ASCAP. There is a one-time $100 application fee to be a BMI publisher, and no annual fee. There is no fee for SESAC publishers. 3. Once the name(s) have been cleared, go to your local city or town hall and obtain the forms to register a ficticious name certificate, also known as a d/b/a (doing business as...). Then go to your bank and open an account under your new business name. If you have any questions about the required business forms call the Secretary of State's office in your state. 4. Copyright all the songs you wish to have in your company on a PA form assigned to your company. If you have already obtained copyright registrations on your unpublished songs, you will now register them again as published works. For a rather full discussion of copyright see >gopher://marvel.loc.gov/11/copyright<. See also Brad Templeton's "10 Big Myths About Copyright Explained". 5. For songs being released on records, or for songs that will be or have been performed in a motion picture, television program or radio program (regardless of whether the song is included on any record), fill out both the writer's and publisher's clearance forms from the performing rights organization involved (BMI, ASCAP or SESAC). These forms notify the organization that a specific song is being released on a specific album so that, when it's performed on the radio, TV, or elsewhere, the organization will know who to pay, what percentage to pay the writer and the publisher, and where to send the checks. Directions are included on the forms and in the publisher's manuals provided by the organizations. Keep a copy of everything you send out for your files. 6. Organize yourself to be able to keep track of your "song shopping." Check out the software from Working Solutionz, "SongTracker" and "SongTracker Pro 3.0", an award-winning set of integrated templates that turns FileMaker Pro 3.0 into a full-featured publishing/song shopping system for professional songwriters and active music publishers. 7. Learn as much as you can about music publishing. See review of Tim Whitsett's, "Music Publishing: The Real Road to Music Business Success" under "READS & RESOURCES" in this issue. Other good resources to help you understand music publishing are "Music, Money & Success" by Jeffrey & Todd Brabec (Schirmer Books) and "The Musician's Business & Legal Guide", ed. by Mark Halloran (Jerome Hedlands Press), especially pages 105-180. If you need consulting on starting your own publishing empire, please consider giving me a call (978-887-8041). "An once of prevention is worth a ton of cure."
))) ILLUMINATING TRIVIA ((( Former Occupations of Famous Musicians Take heart! 1. Chuck Berry, hairdreser 2. David Bowie, commercial artist for ad agency 3. Joe Cocker, gas fitter (plumber) 4. Phil Collins, child actor (Oliver!) 5. Bo Diddley, construction worker 6. Elvis Costello, computer technician 7. John Entswistle (The Who), tax clerk 8. Deborah Harry, Playboy Club Bunny 9. Ice-T, jewel thief 10. Scott La Rock (Boogie Down Productions), homeless shelter counselor 11. Van Morrison, window cleaner 12. Elvis Presley, truck driver 13. Grace Slick, model 14. Sting, teacher
GENRE SPOTLIGHT : EXPERIMEnTaL MUSIC Experimental music runs the gamut from improvisational to avant-garde, found-object sounds to post-modern classical, and plenty in between. Strangley enough this fringe area of the music world is quite organized and well-populated. Some of this group are almost household names: Philip Glass, Laurie Anderson, John Cage, Henry Cow, Meredith Monk; others may someday be: Annea Lockwood, Robert Ashley, Pauline Oliveros, Nego Gato, Raphael Mostel, etc.
SOME EXPERIMENTAL MUSIC LABELS/CATALOGS (A number of these retailers and labels grew out of organizations or associations of experimental musicians which still exist. These are often "grand central stations" of info on experimental music happenings, resources, etc. Be sure to inquire!)
For compact discs, look into CDeMUSIC and the Inner Circle . For books, videotapes, historical software, and other items, look into the EMF (Electronic Music Foundation) Store.
MAGAZINES THAT FEATURE REVIEWS AND ARTICLES ON EXPERIMENTAL MUSICS Option 1522-B Cloverfield Blvd. Santa Monica, CA 90404 310/449-0120 The Wire 45-46 Poland Street London W1V 3DF, UK Tel: 0171 439 6422 Fax: 0171 287-4767
EXPERIMENTAL MUSIC IN CONCERT Keep an eye on the various presenting organizations. In New York, there's The Kitchen Roulette , and The Knitting Factory . Look into Mobius in Boston, RAW (Real Art Ways) in Hartford (Connecticut), and Hallwalls in Buffalo (New York). In France, GRM and IRCAM present concerts in Paris, and there's Manca in Nice and GMEB in Bourges. De Isbreker is a major presenter in Amsterdam (Holland). Ars Electronica in Linz (Austria) not only presents new works, it awards prizes. And Fylkingen , in Stockholm, has a long history of presenting and inspiring cutting-edge music and multimedia work.
BIZ SMARTZ TIPS FOR BUILDING STRONG PARTNERSHIPS If you're considering going into business with a friend, or several friends, you're joining in a basic human dream--running your own show, being your own boss and hopefully gaining some control over your economic destiny. There can be many benefits of shared ownership of a business. The chemistry and spirit of two, three or more minds and souls working together can often produce exciting results. There's more energy and enthusiasm, and--at least as important--more cash, skills and resources. And it's a lot easier to arrange time off if you have partners than if you're trying to run a business all by yourself. Those who chose to run their own company will almost inevitably go through periods of stress, and their survival will depend on their mastering quickly and competently all sorts of unfamiliar skills and tasks. In a partnership business, there are also the stresses and risks that can come with shared ownership. Money can be incendiary stuff, and when you share making money, you're inevitably involved in an intimate relationship with your fellow partners. Here are some bullet point guidelines for developing strong partnerships:
A partnership can take a variety of legal forms: General Partnership, Limited Partnership, Limited Liability Corporation (an interesting hybrid of a partnership and corporation), and a Limited Liability Partnership. It is beyond the scope of this article to address these. I would refer you to an excellent primer on business alliances called, Teaming Up: The Small Business Guide to Collaborating with Others to Boost Your Earnings and Expand Your Horizons by Paul and Sarah Edwards (1997, Jeremy Tarcher/Putnam). BIZ SMARTZ : IRRITATED BY VOICE MAIL? ...YOU'RE NOT ALONE "We have to come up with ways to make voice mail work better," Jessica Billings, an Illinois educational communications director, says. Its impersonal nature can grate on people's nerves. It's a game of electronic hide-and-seek that most people don't like to play, she says. To improve your voice-mail message, Billings recommends avoiding these practices:
Billings also suggests you test your voice-mail message by calling it yourself. Every time you call, listen for ways to make it shorter and more to the point. When dealing with other people's voice mail, follow these tips:
READS & RESOURCES (Book) Music Publishing: The Real Road to Music Business Success, rev. 4th ed. by Tim Whitsett (MixBooks). The definitive guide for people starting or operating their own music publishing company. Learn how music publishers work, what it takes to set up your buisness, how to build your ctalog, and how to market your songs. Features chapters on songwriting contracts, co-publishing, performing rights societies, and administrating a publishing company (Website) Guitar Nine Records-Label Resources Guitarist Dan McAvinchey shares a wealth of knowledge on starting & running your own record label, including an online "Record Label Profit Worksheet" designed to help you claculate how much you'll spend and earn when you release your own CD or tape. Check out Dan's other "columns" too on everything from building confidence to time management. A terrific labor of love. If you're interested in books to help build your music career or business, check out these three from Music Business Solutions: "HOW TO START & GROW YOUR OWN RECORD LABEL OR MUSIC PRODUCTION COMPANY", "PROMOTING & MARKETING MUSIC TOWARD THE YEAR 2000", and ,"MUSIC BIZ KNOW-HOW: DO-IT-YOURSELF STRATEGIES FOR INDEPENDENT MUSIC SUCCESS"... ...all based on our popular seminars by the same names and all packed with hard-to-find info to help you grow your business and career. If you like what you see in MUSIC BIZ INSIGHT, you'll love what's in these books. Further information can be found here. (www.mbsolutions.com/bookshome.htm) or call (617) 639-1971 for a complete list of our publications.
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About the Publisher PETER SPELLMAN is Director of MUSIC BUSINESS SOLUTIONS, a business and marketing consultancy to the music industry, and Director of Career Development at Berklee College of Music, Boston. He is the author of several books for music entrepreneurs and teaches music industry courses at Northeastern University (Boston) and the University of Massachusetts (Lowell). A musician since he was ten, Peter continues to spin riddims in the improvisational collective, Friend Planet and sing Cat Stevens' songs to his kids every night before bed. BLOOM WHERE YOU'RE PLANTED! Quote of the Month-- "Find a job you love to do, and you'll never have to work a day in your life." --Confucius E-mail: success@mbsolutions.com © 1997 - 2003, Peter Spellman, Music Business Solutions P.O. Box 230266, Boston MA 02123-0266 978-887-8041 Rise up!
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