| As of this writing, there are over eight million bands on | | | | having an attorney preview it.) Now, with that said, the |
| MySpace. There are countless articles, books and | | | | following examples provide a few potentially viable |
| companies that tell you, in various overenthusiastic | | | | options for a band to consider in funding their future: |
| ways, how to launch your band to the top social | | | | 1) Personal Finances |
| networking sites of the moment. But the unasked | | | | Though this suggestion might make you blanch, if |
| question remains: "What good does all this online hype | | | | you're not willing to bank on yourself, why should |
| really do a band in the real world?" And it's a good, if | | | | anyone else? It does not look good to any outside |
| dreadfully unpopular, question. Millions of profile views, | | | | party if you lack so much confidence in your success |
| 90,000 friends and 200,000 plays alone aren't enough | | | | that you're not willing to put your own money where |
| for a career. | | | | your mouth is. |
| "But there are tons of bands discovered on MySpace | | | | 2) Friends and Family |
| every day!" you protest. "Bands that went from | | | | Just like any early-stage business, experts suggest |
| nothing to being famous in, like, a month!" | | | | that your first source of outside financing should be to |
| Well, sort of. Many of the most popular MySpace | | | | approach the people that know you best-your loved |
| "discoveries" -- Lily Allen, Arctic Monkeys, Colbie Caillat, | | | | ones. After all, they want you to succeed and there's |
| Sean Kingston -- are misleading ones. For while there | | | | nothing better than someone that truly believes in you |
| are notable exceptions (Clap Your Hands Say Yeah, | | | | supporting you. There are also reasons to be wary of |
| Red Jumpsuit Apparatus), most of these sensations | | | | this situation, however; experts also recommend never |
| had backing prior to their miraculous MySpace | | | | mixing family and friends with money. |
| launches. For instance, Lily Allen already had a contract | | | | 3) Fans |
| with Parlophone, an EMI subsidiary label, before she | | | | Why not approach the people that appreciate the |
| became a MySpace phenom. Arctic Monkeys had | | | | very essence of your musical genius? They might be |
| retained the services of the same PR company and | | | | very willing to help since they are already financially |
| radio promoter as the famous UK bands Ash and the | | | | supporting your career. And it always pays to ask |
| Kaiser Chiefs long before they got signed and weren't | | | | around: you never know whose fan's cousin's brother |
| even on MySpace until just before their first single's | | | | might be interested in this unique type of opportunity. |
| release. "Bubbly" singer Colbie Caillat, while genuinely | | | | 3) Traditional Lenders |
| unsigned, had inside help from her father, Ken Caillat, a | | | | Business bank loans are very tricky to get. One of the |
| veteran producer who worked on Fleetwood Mac's | | | | first questions a lender will ask about, aside from your |
| "Rumors," and executive produced her album. Sean | | | | credit score and what type of collateral you have, is |
| Kingston had some industry guidance as well, from no | | | | what the loan is for. When you mention "band," "music |
| less than his uncle, iconic reggae artist Buju Banton and | | | | industry," or some combination thereof, all a lender |
| his grandfather, Jack "L Lindo" Ruby, producer for | | | | hears is "high-risk." So why are loans in the "realistic |
| reggae legends Burning Spear. So with few | | | | financial options" category? Because your lender may |
| exceptions, this new music biz looks startlingly familiar | | | | be able to help you come up with some creative |
| to the old one. There are certainly more faces and | | | | solutions that would satisfy your financial objectives. |
| new names, but it's still all about PR -- but hype has | | | | The following are financial options that bands might |
| always been only one part of the big music industry | | | | want to reconsider: |
| picture. | | | | 1) Government Grants |
| "So, what?" you might well be thinking. "Who wants to | | | | Unless you are planning on somehow becoming a |
| be signed to a label anyway? I'd rather do everything | | | | charitable organization (and no, being broke doesn't |
| myself and keep all the money. If I sell 10,000 CDs, I'm | | | | qualify) then don't even bother applying for |
| raking in a lot of money!" | | | | government grants. They accept 501c3 non-profits |
| True. However, selling 10,000 units is a heady task for | | | | only and applying will just waste your time. |
| an artist with no backing; most unsigned acts are lucky | | | | 2) In my opinion, any band able to raise $50,000 ought |
| to clear 1,000 albums. And this is where a band begins | | | | to be spending it on more than just recording. Of the |
| to see who its true fans are. Let's do a bit of math: of | | | | required $50,000 budget Sellaband requires to be |
| your band's greatly amassed MySpace friends, how | | | | raised through a band's "believers" (their fans) before |
| many bought your albums? How many of your | | | | any money is distributed, $30,000 is spent on recording |
| 90,000+ fans purchased your songs online and paid for | | | | an album with a Sellaband "Expert" producer and |
| what you're giving away? Are you making enough | | | | $20,000 goes to manufacturing and distributing 5,000 |
| money through your MySpace exposure to quit your | | | | CDs. Artists get a store front with ad revenue split |
| day job? If you didn't care for the answers to those | | | | between the band and their "believers." In exchange, |
| questions, then your band may need to think creatively | | | | Sellaband claims 40% of the album's publishing. All this |
| about how you can afford, literally, to take that next | | | | begs the question: how many more copies of a |
| step. | | | | $30,000 album will you sell when there's no money |
| This brings us to the next point: nearly all artists reach | | | | spent on radio, distribution, publicity, marketing or |
| a point of regional saturation where they need to get | | | | anything else that stimulates sales? |
| to the next level -- and that takes money. Careers | | | | 3) Selling Your Organs and/or Soul |
| take a financial investment of some sort, whether it's a | | | | Call me prude, but selling anything your body cannot |
| degree for college, a certification from a tech school or | | | | reproduce on its own does not sound like a safe idea. |
| some type of specialized training. In this way, the music | | | | And selling your soul just comes across as trying too |
| business is no different: it takes an investment of not | | | | hard. |
| only a band's time, talents and sweat equity, but also | | | | Regardless of the path chosen, money remains a |
| capital to get bands to that oft-spoken about "next | | | | necessary need for most bands, despite the plethora |
| level." A financial infusion will allow you access to the | | | | of free, new media methods available. By treating your |
| marketing muscle and promotional opportunities | | | | band as a business, others will begin to do the same. |
| necessary to boost your sales to the point where | | | | Surround yourself with people who value your band as |
| music is your full-time gig. So what are your financial | | | | much as you do and find those with both the ways |
| options for pursuing your band like a serious career? | | | | and means to help you succeed. |
| (Disclaimer: Any financial consideration ought to be | | | | © 2008 Refugee Entertainment, LLC. All Rights |
| looked over by your accountant or other financial | | | | Reserved. |
| advisor and you should never sign a contract without | | | | |