A Better Way to Go Big
The new (smart) way to go big!
Let's just assume that you have been carefully reading these articles and have started to realize that music is a business. Real business boils down to taking calculated risks – not gambling.
You've gone through a process of development and you are starting to see the sales to prove it.
( Be sure and read the articles called Your Own CD Factory and Performance Testing if you are not sure you know what we are talking about. )
If you are consistently moving enough test-units to sell 1000 within six months, you might want to take a leap and have shrink-wrapped CDs manufactured – complete with retail-bar codes.
If you can actually move all those units within 3-6 months – at full price – mostly from sales WITHIN your geographical region. It might be time to talk to some of the regional buyers at a major record chain.
These guys have the job of "discovering" what is hot in each region and want to be the first to carry up-and-coming musical acts.
Try to get your material placed in major record chains by talking to their buyers and/or distributors. Store managers will know who you need to talk to and may have the authority to stock your product. Be prepared to show your own sales numbers. Some big chains are very closed to indie music and others are very aggressive about working with local music. You could ask around or just casually ask if they like to stock local music. In these cases they typically like to handle your product on a consignment basis.
Soundscan
In addition to the retail bar code that works with the cash-register, major music retailers also affix an extra sticker with a separate bar code. This is scanned at each sale in order to gather statistics.
This data shows up in the form of reports on the desks of music industry decision maker, including Artist and Repertoire (A&R) scouts.
Part of their job is to peruse these reports and "spot" what is hot within a region BEFORE someone else does.
A few hundred units sold by an unknown act within a small geographical region can signify the next sensation. If it fits into one of their target market segments they may be taking you to dinner.
In this situation: with the proper legal representation and possible interest from other labels – it might be possible to score one of those rare record deals that is actually fair to the artist.
Who Pays for Promotion?
In the business: a manager or producer is much more than a business associate or creative support system. It's often someone who is willing to risk part of their fortune to PAY for the massive costs of promotion. ( Click here to read more about this reality. )
Even when music does not fit into one of the predefined radio segments – there are still well established channels for building mass-market presence at this level. You basically have to track down other major names that you have heard of that aren't played on main stream radio – and find out who handles their promotion.
Getting Major Distribution
If you stay focused on building up your own market share sufficiently to the point where you can independently sell upwards of 20,000 units ON-YOUR-OWN: you may be able to bankroll your own release.
When someone is independently willing to take the promotional cost-risks: the big music distributors are typically willing to foot the risk to actually manufacture your CDs and stock the shelves of mainstream retailers.
Under this scenario – you have the greatest likelihood of keeping control of your music and your career.
New Alternative – Music Bonds
How do you raise money to pay for a massive airplay release??
Recently a lot of emerging artists have been monetizing their musical product with bonds. There are private and institutional investors who will pay in advance for a substantial piece of your musical future.
David Bowie monetized his music with a $55 million dollar bond sold to The Prudential Insurance Company. The Bonds were a ten-year issue, after which the royalties of the songs would/did? return to David Bowie. By forfeiting ten years worth of royalties, Bowie was able to receive $55 million up front, which allowed him to buy out the rights to the David Bowie songs owned by a former manager. David Bowie now owns the rights to every one of his songs.
The James Brown catalog went for $30 million. Other names include Iron Maiden, and Rod Stewart.
Recent artists to launch into the big time this way include Maroon Five & Nelly Furtado.
If you are already coming from a position of power, with your own built-up demand, it is fully feasible to secure funding to pay for a full-scale release using these channels.
The Film Route
If your music is featured in a major motion picture – you may be able to by-pass this whole process entirely.

