The music industry has changed significantly over the past decade, and the successful artists must now think like brands in order to survive and reap financial success.
In an industry that has seen startups with hype, like Jay Z’s Tidal, get into feud with record labels and apps come to market in an attempt to help artists succeed, there has been a lot of noise that is causing some artists to lose focus and steer their careers off course. There is a new generation of music industry experts that are attempting to help guide successful music careers.
One entrepreneur leading the charge is Fabrizio Moreira, founder of VIP Music Records, a recording company that just recently signed a five-year deal through Sony Music Entertainment’s brand-extension The Orchard.
Moreira got his start in the music industry back in 2014, booking tours and appearances for recording artist Soulja Boy. Today, he runs one of the fastest growing recording companies in Latin America, which now operates via multiple office locations, and is successfully helping artists operate like brands, creating successful careers in the industry. Here are his five best tips for those looking to succeed in the industry.
1. Become social media marketing experts.
According to Moreira, there isn’t a bigger platform than social media these days. “Years ago, an artist had to tour non-stop to promote a new album, but these days they can reach a larger audience by simply sending out a tweet and posting on Instagram. It’s a completely different time we live in now, even from just a few years ago.”
He suggests that artists learn to master social media and focus on building up a large and loyal following. “Leverage all of your social media profiles and cross-promote to help grow all profiles simultaneously. For example, ask your Twitter followers to also follow you on Instagram and make sure your Facebook fans are also subscribed to your YouTube channel.”
2. Explore all streaming and video distribution channels.
While the music industry as a whole is slow to embrace new technology, there isn’t a shortage of distribution channels to help artists get their name out there. “Rather than focusing too much on the payout, think about the reach and exposure opportunity. By distributing your music across all available streaming and video channels and outlets, you are exposing more people to your name and brand,” Moreira says.
“It’s a way of using your music as a bridge to other projects, monetization opportunities and social media growth, which can then be further leveraged to put your brand in front of your audience on-demand.” Moreira is a fan of a blanket distribution strategy–getting as many potential fans introduced to an artist’s music and then leveraging that relationship down the line, monetization-wise.
3. Promote an e-commerce merchandise line.
The music industry is one that is capitalizing on e-commerce sales, and Moreira sees this continuing to be a lucrative financial opportunity. “More artists are seeing the benefit of thinking and executing like a large brand. It’s extremely easy to launch a complete merchandise line, thanks in part to the many different print-on-demand services that will also fulfill orders.”
By eliminating distributors and middlemen, an artist is able to make larger margins on merchandise, which is now one of the largest income sources, now that physical CD sales are all but dead, and many artists now distributing music for free, looking to use it as leverage to capitalize on other opportunities.
4. Seek influencer brand relationships.
An artist’s main source of income is from tours and merchandise, with music sales covering the cost of production and distribution. Moreira explained how influencer relationships are now a viable revenue source, explaining, “Music sales will generally cover the productions costs and the distribution, so naturally we want to seek out more lucrative opportunities. Influencer relationships can become a large income source, and there is literally no cost involved, as it takes mere seconds to post on social media.”
While some influencer marketing opportunities can be lucrative financially, you have to make sure it’s a good fit brand-wise, rather than just looking at the dollar amount. “For every ten brands that approaches an artist with their checkbook out, we might only cut a deal with one or two. We have to be highly selective in order to protect the artist’s brand.”
5. Don’t be afraid of “selling out”.
Moreira laughs when he hears the term “selling out,” explaining that term needs to be retired in the music industry. “Back in the day if an artist associated themselves with a corporate company they would be called ‘sell outs’ and that way of thinking would simply kill a career these days.”
As mentioned in the point above, by selecting the right marketing partnerships, you can not only protect your brand while generating revenue, but you can then be introduced to an entirely new audience via that partnership. A smart artist will sell his or her likeness to marketing opportunities that match their brand, without fearing being labeled as a sell out.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.