digital music promotion on the internet: The quick guide

1 THE DIGITAL REVOLUTION

How is digital technology changing the music industry and how soon can we expect these changes to impact the way we can make money from a career in music?

The music industry is fine. The recording industry that has dominated the music industry until now is not.

More opportunites represent more competition.

How Record labels dominated the old music industry:

*Ways music made money: CD’s, Touring, Merchandise, Endorsements/Appearances, Publishing, royalties and licensing.
*Record labels: Controlled recording, manufacture, and promotion (media)

*Music was released in album format to maximise revenue

How the digital revolution is a fundamental shift in the music business

* The physical product of music that was manufactured copies on CD, cassette, and LP now can now be distributed and copied without cost.
* The musical industry was often arbitrated completely by a handful of music corporations known as the “major labels” now artists can connect directly to a mass of fans

* Mass communication and marketing controlled by mass media, now users/fans control online media by choosing what they care about

The digital revolution in the music industry is the first of many digital disruptions to hit major industries.

* dramatically reduced recording and production costs

* need for physical distribution eliminated
* power of traditional media in decline due to growth of online information and networks

The growth of independent music began before the spread of the internet in 1990’s effected by:

e.g. CD Baby, music buyers bemoaning “album filler”, artists bemoaning contractual obligations to labels, Independently successful artists such (e.g. Ani Defranco) and local co operative scenes (Dunedin, Seattle, Jamaica, Detroit) creating niches and the long tail of consumer choice.

Changes and what we can expect in the future:

Important: The digital revolution is inevitably changing the music industry, how quickly the changes are effective is the question.

- Physical purchases still account for 90% of all revenue. But download revenue is expected to surpass that of physical sales in 2012
- All over revenues from recorded music are expected to continue to decline at roughly 10% per annum
- All major labels have cut staff in response to declining revenues. EMI has recently shed 2000 jobs.

So physical music products are still likely to have a market in the future though sales and profit margins will continue to decline.

My personal opinion is that:

- the value of recorded music will continue to decline until it is absorbed as a service
- the traditional label format will decline in favour of independent or loosely affiliated groups of artists and related service providers (like myself)
- the relevance of the album format is tenuous

These concepts are all open to innovation around new ways of creating value for consumers. When someone perfects a better way that works consistently the old model will crumble. What is that better way?

2 HOW TO BECOME A REAL BIG FAMOUS ON THE INTERWEBS

Digital Content Checklist for an online promotion campaign

Mp3’s - Record and encode your songs.

Bio - Words for Google, god of the internet. Who and what and where for fans AND Google to understand.

.Jpg - making a connection as a real person and branding

Video - you don’t have to do video (not “A video” but “video” – ongoing video content!) But it’s just like MTV in the 80’s. Now the digital revolution is underway, they will just like people who have videos more, because videos help fans engage and connect, and fans would rather be engaged and connected.

What is the best way to sell my music online?

- Declining value of music vs. speed of change = selling copies of recordings remains viable.

- www.itunes.com - itunes. Accounts for over 75% of all retail downloads. The future of the download market is currently tied to itunes.

- Online retail is just like physical retail: you can sell your music in as many shops as you like but you can only pick one distributor

Credible choices for online distribution:

www.cdbaby.net CD Baby is great for including physical distribution for unestablished artists

Pro’s: Physical distro, flat fee of $35, reputable company, handles processing

Cons: Have to send 5 physical copies of release to US, take 15% of sale, up to 2 months processing

www.tunecore.com Tunecore provides great online service for artists with established fan bases

Pro’s: 0% commission, single release option
Con’s: Ongoing fees, store by store fee, no physical distribution,

Storefront widgets – E.G. www.nimbit.com 3^rd party applications for retailing across web/social platforms.

Amplifier + Trademe + Local distro: www.amplifier.co.nz , www.trademe.co.nz , www.smokecds.co.nz

- The importance of servicing local niches and local connections

- Building fan relationships on NZ’s most popular local website 1 by 1.

Whats the big deal about social networking and web 2.0?

Social media is content, and content is promotion. “owning more of the internet”

Social networking for google: remember keywords and keyword rich backlinks

OMD + free mp3’s

Old school daddies

www.download.com
www.mp3.com

www.soundclick.com

www.mp3.com.au

New school laddies

www.reverbnation.com

www.garageband.com (ilike)

www.last.fm

THE MYSPACE STORY

Myspace changed online culture and made the internet (social media) mainstream. internet hasn’t quite overtaken television as teenagers main media source but will do so in the next 2-3 years. Myspace despite it’s recent decline as a social destination is still the no. 1 music website in the world.

Layout: Keep it modest and don’t over reach. Beware pre-made custom layouts. The function of your Myspace is a showcase, a shop window display, an advertisement. Keep it functional and outcome focused – direct your traffic (ie “check out the new video” “sign up for our mailing list to be notified of our next exclusive mp3 giveaway”)

- use your title and display image creatively (think about your vanguard + first impressions)

- bands ramming their downloads and merchandise down your throat doesn’t feel right – build relationships

But what about promotion? What about the getting an edge in Social media?

Promotion: Is content. Is having something to say. That is, hype is dead. Feed out content. Create access. Destroy friction. Syndicate

Spam and promotion: Don’t try this at home - Its about them not you. Permission marketing. www.sethgodin.com

*spam disclaimer: “spam” is unsolicited electronic contact and is illegal. When I refer to “spam” I refer to bots, scripts and software that automate communication tasks. Bands should refrain from engaging in legally dubious attempts to contact unqualified and unidentified targets unsolicited.

You’re not on social networks to Sell your CD. You’re there to make friends, to have fun. It’s about engaging attention and turning that attention into a connection.

Rule #1 of social media: engage your audience where they are. Manage time SM commitments

- but engage highly qualified local niche sites: www.punkas.co.nz , www.bassdrop.co.nz

Social Networking: Myspace, www.facebook.com , www.bebo.com ,

- interacting, engaging and joining the conversation ( I don’t want to buy your t-shirt . . . yet!)
- sub networks and sub communities – engage niches within broader networks

Video: www.youtube.com, www.revver.com, www.megavideo.com,

- the importance of tags in internal searches, links, bio
- automated distribution and tubemogul
- future video revenue?

Microblogging/Micronetworking: www.twitter.com

Social Music sites: www.last.fm, www.reverbnation.com, www.garageband.com , www.Imeem.com

- Aggregation of user data for recommendations (last.fm)

- Widgetisation and 3^rd party tools (reverbnation and ilike)

- streaming royalties (last.fm, reverbnation and Imeem)

Social Bookmarking: www.stumbleupon.com
- Bookmarks your favourite webpages for public use. Aggregates user data. Google juice tool.

Socially organised information: www.wikipedia.com, www.squidoo.com

RSS, P2P and Podcasts

- RSS, content syndication and www.feedburner.com –
- P2P, peer sharing networks, www.limewire.com etc –
- Podcasts, enclosures, Itunes + podcast networks –

Free Blogs: www.wordpress.com , www.blogger.com

Whats the best thing I can do right now for my music? Write another blog post

Little blogging: Owning more of the web

Big blogging: Creating a channel for content delivery and audience engagement

PART 3: CREATING REVENUE ONLINE

YOUR BLOG AND YOUR WEBSITE – WHAT’S WHAT

- building search presence, building revenue sources, building engagement with audiences

Do we really have to write a blog? No. But promotion is content. You engage online audiences by feeding content through your online channel and accumulating online presence and a blog is in many ways a website that has been optimised for regular, frequent and ongoing delivery of content in order to engage.

How can I use my website to build a career?

Your website, blogs and social networks allows you to build contacts, create revenue and build a career without having to gain “old model” industry acceptance.

Being consistent (consistently improving) + prolific is essential, as will engaging new technology give you the edge in digital promotion.

1 - Setting up your website

Domain name – keywords vs. branding: www.godaddy.com , www.1stdomains.co.nz
Hosting – www.hostgator.com – also www.bluehost.com and www.inmotionhosting.com

WEB DESIGN – contact kurbpromo@gmail.com

- issues of control and “independence”

- The digital revolution and evil technocrats who charge too much based on your ignorance

- web designers vs internet marketers (metatags, flash design)

- CMS (content management system)

2 - Promoting your blog and website

- What matters to google: keyword content, age + updates, and backlinks with anchor text

- Social Media which we’ve discussed
- leveraging content for promotion (www.ezinearticles.com, www.scribd.com )
- leveraging secondary services and products for promotion (ie ebook / widget – is for advanced users!)

- Advertising (Is for advanced users)

- offline crossovers (engage them!)

3 - Developing your website

- your website is a channel

- brand for engagement

- unique propositions create engagement

- foster community and interaction

engaging fan relationships: Email Lists: www.aweber.com, www.fanbridge.com, www.phplist.com
- building a unique value proposition around an emailing list (or; is the future hard?)

How and when are we going to get money from the internet?

We know the music industry is moving online – how will musicians profit and when will technology make new income streams viable?

- is the music industry converging into a greater digital content industry (e.g. rock star, guitar hero)

- What and where is the value of music going to be in the future + how can I capture this value

Diverse products, services and price structures
- Nine Inche Nails
- Korean/Asian Music Industry
- ringtones (www.myxer.com )

Really really get open minded about leveraging what you have to create new services and added value

Monetizing Ad supported content: www.adsense.com , www.problogger.com, www.we7.com

Brand expansion
- merchandising
- endorsements
- sponsorship

Leveraging Email lists, affiliate marketing and monetizing relationships
- fan supported models
- affiliate offers and niche storefronts
- high value commissions vs. low value music copies

Building and monetizing online communities
- web 2.0, c2c, facilitating access and community interaction, user generated content
- 1000 true fans
- gated communities and flat fee service access

- Licensing, publishing, royalties and synch fees
www.rumblefish.com , www.pumpaudio.com

- online publicity (not officially endorsed by Matt @ Kurb!)
www.radiodirectx.com , www.musicsubmit.com , www.sonicbids.com

My favourite blogs:

http://www.sethgodin.com – this one is a marketing one but its so good!

http://www.newmusicstrategies.com

http://www.musicthinktank.com

http://www.mediafuturist.com

http://www.bob-baker.com

http://www.sivers.org

Don’t forget to check out the new kurb artist community @

www.newmusicmarketing.com

www.kurb.co.nz for online marketing, budget cd and dvd services, budget postering services

And stay up to date with my blog:
www.kurbpromotion.wordpress.com / www.musicmarketingmanagement.com

marketing and monetizing a music artists website

 Okay so we been doing this series on online promotion, in the last post in the series we talked about the importance of your website and how to set one up.

 

Today we’re going to be revisiting a lot of ideas we’ve discussed about promoting your website - and talking about how you can use your website to create value for fans that leads to income.

Now we're getting into the real nitty gritty and moving beyond the basics. So this time we're going to be going through website promotion and we're going to cap it off in the next part by continuing to discuss building email lists and building deeper engagement with fans by fostering interactions and ongoing relationships.

Lets look over the series:

Part 1 is here: In digital we trust - preparing for digital music marketing and promotion

And part 2 is here: Are you ready? Content you need for your digital online promotion campaign

And part 3: Google and the importance of words on the web: more "who's going to write our blog copy" now then "who's going to direct our video"

Part 4:  Getting your head around using social media and web 2.0 to promote your music

part 5: Setting up a music artists website

 

And don't forget: Our new artist community has launched @ http://www.newmusicmarketing.com - it's still free to join in July and we're starting to add new in depth content.

And of course tomorrow @ The Depot in Devonport I'll be be giving a presentation on all this stuff Check it out if you're in auckland.

 

So when I’ve talked about building your website and how important your “internet property” is, it’s about creating an online channel for you to present your content and develop profitable interactions, and retaining control of that environment and those interactions.

 

Blogs and websites are very similar in the way that they are used as a platform to deliver content, and can be both used to conduct highly valuable propositions such as building an email list of fans from which to monetize continued interactions. Though if you’re innovative and creative your website can be used to create opportunities to drive deeper fan interaction with content that can be managed for monetization.

I tend to explain website promotion in terms of two concepts: Sales and Marketing. First comes marketing, that’s about bringing people to your website. We discussed Social Media, and we also talked about creating digital content, writing and blogging – making a lot of words in particular - to increase your depth of presence, “owning more of the net” and improving search based results. In this way, you can say content IS promotion.

 

But as your building your content and “owning more of the net”, committing yourself to developing your website into a platform that creates income from your music becomes a long and cumulative process.

Once you’ve worked to bring traffic to your site, we have to examine the sales process, because “Please buy our CD” in big letters wont work.

 

 

When I talk about increasing “sales”, or “conversions”, we are optimising the content that visitors to your site experience in order to produce a desired outcome. That is, put in broad terms, when a visit to your website results in the desired action by the visitor, whether that’s downloading a free song, signing up to an email list or even . . . engaging in an interaction which leads to monetization!

How can optimize your website to encourage more “sales”?

Often we can start with basic tweaks - increasing the access, the value and the uniqueness of the proposition.

 

But this is where we start to discuss the power of building relationships with fans. It comes back to engagement, it comes back to branding. The reality is, unless you engage you’re not likely to even get people interested in downloading your music free. So what engages people?

Well music obviously. But the problem is we’re moving beyond the era in which they used to just play music at you on the radio until you liked it. The struggle is getting them to listen. Getting them to get that far.

What will make them give your music a chance?

Branding. Branding through content that carries powerful messages fans identify with.

The house music videos of Benny Benassi and Eric Prydz carry strong visual messages about sexuality. The Hip Hop music videos of P Diddy et al carry strong visual messages about the rewards of financial success, while Coldplay alludes heavily to personal struggles intepreted through monogamy. These examples abound. Bob Marleys music is depicted as spiritual and political, Radiohead's music is depicted as having intellectual and political undertones. 

Successful artists connect with their audience through strong brand associated messages.

Here again the importance of continuing to create content that enhances the brand value to the fans of what it is you represent. If you don’t carry strong messages in this way then you don’t really represent anything powerful or meaningful to people and so they fail to engage.

It’s not just about branding but also about being unique.

But it’s also about the proposition you’re presenting. It must carry value for your potential fan as well as being unique.

When I talk about the proposition that you are using your social networks and blogs and content to draw people to your site and draw people into, it’s not only a unique and valuable brand proposition such as:

 

“we UNIQUELY represent a brand powerfully associated with your identity”

 

but also a uniquely valuable proposition in order to capture the value in your brand as a relationship that can lead to profitable interactions such as:

”So sign up for mailing list so we can continue to have interactions based around uniquely valuable propositions that benefit you!”

So let me cut the marketing speak for one moment:  It means unless people think you’re cool, they don’t care about your free mp3’s. they don’t.

 

It’s up to you to give them something to care about.

You gotta create the greatest opportunity and encouragement to sell the interaction that will escalate the relationship with the casual visitor.

That’s why you’ve got to go back to Rapino’s statement and recognise the role your website plays in building your email list.

“ . . . and it’s all about the website. Collecting email addresses and maximizing revenue . . . ”

 
So here we see the value of the email list. We can grasp the simple email list as a way to foster deeper relationships with fans and then and only then arriving at a point at which you can actually start making some money.

So coming right up is our last post in the series before we accept we've well and truly moved beyond the basics into the business of building relationships and innovating to create new value from those interactions.

 

Online Music Promotion Management: When Experiencing Technical Difficulties

Setting up the new artist community at http://newmusicmarketing.com and my new blog at http://musicmarketingblog.info has been slow going as - I’m sure you’re aware, my expertise is in marketing and promotion, I have passable web and graphic design skills, but not so much when it comes to administration and the back end.

The technicalities of building a solid platform for digital promotion and revenue is something I’ve spoken about before, because the harder it is for me, the harder it must certainly be for artists to do stuff like create and host a site, install and administer a blog platform, create a podcast and all the rest.

And it shouldn’t be that way, because artists need this stuff, and they need it to be easy! It’s hard enough worrying about the creative side and the marketing stuff on top of technical details!

In fact it really gets me hopping mad because this technical stuff must be air tight or very very bad things happen, and it happens to the best.

When radiohead released “In Rainbows” online. Media frenzy, 3 million hits on their website in one day. Went down like the Hindenburg because they weren't ready for the traffic.

What about poor old Dubber from New Music Strategies. Didn’t pay his hosting bill on time so they shut him down and took his domain name hostage for about a week or so. http://newmusicstrategies.com. 2000+ subscribed readers and just given short shift, never mind the please and thank you's!

SO - you’ve got to make sure the technicalities of running your website and blog and the platforms artists are using to carry out effective online communication and revenue generation are rock solid. That’s what I’m doing right now with a whole bunch of blogs, websites I’m responsible for and of course the new artist community as well and boy it hasn’t been easy!

Do you know what a host is? A server, A domain? That’s good. Bandwidth allocation, server speeds, security and backup . . . what about frickin DNS, MySQL databases and PHP code. Huh? Any takers? That’s what I thought.

It’s scary business. Now picture yourself in 2010.

You sell digital and physical products from your website

You sell advertising and lucrative relevant niche related affiliate offers from your website

Your fans interact with you and one another through the website

Music industry people with opportunities will be accessing your content and communicating with you through your website

You may even be doing futuristic stuff – automated gig booking, and smart data systems for gathering and distributing information for and about gigs and fans.

Fans may be interacting with your digital products to create their own customisable cd tracklists, cover art, merchandise, etc.

So if your website starts to become directly or indirectly your main source of contact that leads to revenue generating activities – like mine or radioheads is - it’s more than an eeny weeny problem if well . . . there’s any kind of problem that cuts off the cash – like if the website goes kaput, gets hacked, or you just haven't got the service in place to meet the technical needs of doing a decent amount of business on the net – the site doesn’t load quickly, audio and video content is choppy and worst of all, there’s problems using the retail interface when consumers purchase digital products.

Any website that asks you for your credit card or your paypal or whatever and then starts doing weird stuff and not loading up properly is not going to put your average fan at ease.

Remember, marketing is about solving other people’s problems, so I accept that’s what I have to do with the new artist community coming soon to

http://newmusicmarketing.com



create a easy hassle free service for artists who shouldn’t need to worry about having a website and a blog and whatever else they should need –so I’m looking forward to a time very soon when we’re going to have a person on board who’s just going to have it taken care of so our artists never have any problems no matter how many people are coming through their sites and blogs, or whatever they want to try.

That would be a great relief as I wait for progress on these current projects!!!



Understanding the role of technology is part of the uncertainty of the digital environment – knowing what has to be done, getting a fair deal – the difference between getting expert help when you need it and being overcharged.

But realistically, a professional artist just cant concern themselves with these details unless they have the appropriate contacts, they need a resource such as the http://www.newmusicmarketing.com/ artist community so they have an easily affordable service that is staged to cover all the support required online at each level of their professional career – Administration, Presentation as well as Marketing and promotion.

Kurb is an online promotion company specializing in digital music marketing and artist management.

Follow our blog at http://musicmarketingblog.info for cutting edge web promotion as we launch http://newmusicmarketing.com - the exclusive artist community putting artists in control of their online promotion and revenue management.

Within New Zealand we also provide low cost and hassle free CD DVD duplication and printing as well as poster design print and placement in Auckland.

kurbpromo@gmail.com

The geeks shall inherit the music industry

Did you get the message from 2009?

Leave your labels now. The geeks are coming and they will eat everyone who works at your label except maybe the young guy who updates the myspace street team pages who will live among them and learn of their ways in the new music industry.



As we speak, geeks are monetizing content in the night. Soon their geek armies will be ready to monetize you, monetize your face, monetize your music, monetize your website, your blog, your dog and your mother.



It’s going full on now.



I still call myself a musician yknow. But deep inside me, something has changed. Web 2.0 has changed me. In my heart I have turned geek.



And while I’ve been yipping on my blog about musicians using social media, and search optimisation and websites and software that will automate and tricks that are sneakier than your pants . . . the lord of all geeks, their god if you will, he who is known as Steve Jobs, boss of Apple has decided that things are going to change.

He is going to be the boss of music from now.

Steve says to the majors - that y’know, seeing as I’m making all the money with my little ipod thingee’s how about you like, give me all the music to put on my ipods and I’ll give you like . . . $20?



Of course the majors are fucked so they’ll take anything to eat. But then whats $20 split between 4 labels and most of the acts in the history of pop music and what does it leave for you if you’re signed? Not much even when you times it by the amount of ipods sold.

This way, if you’re not with a major, your music isn’t given away free with an ipod, so you’re at a major disadvantage because people can already listen to bands they know for free, and find way more bands for free, but your band wont be one of them.



But even when you do get on the ipods you’ll only be getting your percentage of fuck all. It will be so little its not funny.

Because I’m sure they’ll make it so anyone can get on the ipod if they want to. I mean then . . . why do you even need a label if everyone just buys an ipod and gets all the music free? If this happens, I believe the big major labels will just wither.

And then the musicians will be alone. Just the music and big Steve.

But you don’t have to be scared of big Steve, even when there’s so many bands to feed and so much music and only $20 to share.




Because I told you.

As we speak, geeks are monetizing content in the night.



. Soon their geek armies will be ready to monetize you, monetize your face, monetize your music, monetize your website, your blog, your dog and your mother.

I am among their ranks. By night I train, I learn of the black hat and the white.

We don’t make money out of selling things! Don’t be silly.



Artists create attention. We turn attention into money.



We are geeks. We do things differently. The way of the geek is not to work!

It is to design and run a computer program to do it.

It is to pay some guy in India or China to do it.

Or even pay some guy in India or China to design and run a computer program to do it.



Sing your song. Play your tune. Leave the rest to the geeks.

READY YOURSELVES OH YE PLAYERS AND SINGERS OF SONGS!

THE GEEK MAN COMETH

FLEE YOUR LABEL OR PERRRISHHHHH!!!!!