Most bands start out with this business model, selling their own CDs and merch at shows, before moving on to selling MP3’s through sites like iTunes, and then eventually even getting signed to a record label who takes over things, flipping the script on the sales model, which no longer becomes direct to fan – which makes things easier for the artist because there’s no hustle involved with sales and constant self-promotion as much, or hassle with dealing with all the financials and the logistics. But with the boon of convenience, comes the loss of personal profit. And with the way things are today in a crumbling industry that isn’t quite sure whether it’s coming or going, is the direct to fan approach the sales model of the future?
Nine Inch Nails have done it with their last two releases – going it alone with no label and selling (and in some cases giving away!) to fans and Radiohead have asked you how much you want to pay for the digital version of their album In Rainbows before putting out the physical version on a label (though albeit on smaller independent labels rather than one of the major players). Is it time to cut out the middle man and save? True the success stories we hear are usually from artists who have already built a platform of success through conventional record labels in the past, but is there room in the future for artists to just skip this whole step and do it all themselves? Even with services available to sell your CDs, merch, online downloads etc such as iTunes, these services all take a cut of your profit, is it worth the investment to do it all yourself and sell your digital or physical content from your own online or offline warehouse?
For Louis CK, this method recently worked out to be a huge success. According to HypeBot, Louis CK made over $200,000 profit in just a few days, by filming and selling a video of his show to fans. Now his success is not typical – but, does it mean that we are moving forward to a time when this is the new normal? The new industry standard? Where to be big, to be a star, a success, to make the big money, you have to think outside the box, put on your own production and do it all yourself, entrepreneurial style where you take all the risk, spend all the money and time and effort but keep all the profits? Or is the old model of getting signed to a record label and having them do it all for you, and paying you a small percentage of what you really make them, going to withstand the tests of time and technology to be the way, the only way to really be BIG in the second decade of the 2000’s and beyond? What does the future hold exactly? We cannot know for sure, but it could go either way or maintain a hybrid of multiple business models that have to be tried out or used in conjunction with each other until the right one is found for your act. Whatever happens, it might just be time to get your thinking caps on, take a leaf out of Louis CK’s book and come up with a DIY idea that’s going to turn your music, your creation, your passion into those all mighty dollar dollar bills.
