Indie music-- profitable? Riddle?

[God]

Give kids/rappers/rockers 150,000 advance.

Use 20K from advance to record their album.

Use rest for cheap indie video, pay/influence music bloggers with gifts/cash (actually, I don't condone that-- don't do it). Hire high-powered PR firm. Waste rest of advance with exception of incidentals on PR. Create buzz. If their worth a lot to you, pay for their month-month rent until they break even.

PR will hype them, hope they break you even and then give you a profit by selling a paltry 30,000-50,000 copies (details a bit more complicated).

That's a good ROI. Damn, I just felt like sharing that with you.

Repeat scheme. Make sure you compensate your PR person well.

 

[H&R]

Sounds good to me ... I wouldn't waste more than half a budget recording. As lnog as the quality
is up to par and the records don't lack from short cut costs then i'm all for using less of the budget
on recording as possible and using the rest to promo smart/effectively and the rest to help the artists
out accordingly.

 

[Relic]

It boggles the mind to think it would cost 20k to record an album when I do it at home for free all the time and it would seem to me it wouldnt take much more to beef it up a little.
Thanks for sharing God, it always helps!

 

[NobleWordz]

150,000 sounds a lot for an Indie advance.

 

[God]

150,000 sounds a lot for an Indie advance.

it's an indie band/rapper. didn't say it had to be on an indie label, or a 2-in "front label" that fakes as "independent" but really is controlled by a major.

Great ROI in this scheme.

 

[classic]

Interesting riddle , my question is this... what happens is things dont work out.. who is heald accountable, the P.R person, the fake lable, or the band??

--Jason

 

[Sincock]

Always the band, of course.

 

[thedreampolice]

ROI=Return on investment

 

[Relic]

Thanks

 

[God]

Interesting riddle , my question is this... what happens is things dont work out.. who is heald accountable, the P.R person, the fake lable, or the band??

--Jason

Band.

If it's a loss, it's a tax write off. Win-win situation for the investor. It's a crap situation for the band/rapper.

This happens often, usually on indie labels that have major label distribution or national distribution with a large number of prior consumers.

Be aware!

 

[StressWon]

marketing and promotion is everything! Good plan.

 

[shadeed]

Hiring good PR is the one of the first steps that lets me know that an unsigned artist is serious about their music. Good (proven track record) PR does cost money and depending on their relationships, they can get you and your music into a lot of different doors.

Having someone who will write a bio that will make you as a musician appear interesting and worth interviewing - as well as teaching you the artist how to speak complete sentences to the media and come up with phrases such as "This is my best album ever" or "I had to take it back to the essence for this joint" is worth its weight in gold in itself.

 

[afriquedeluxe]

Band.

If it's a loss, it's a tax write off. Win-win situation for the investor. It's a crap situation for the band/rapper.

This happens often, usually on indie labels that have major label distribution or national distribution with a large number of prior consumers.

Be aware!

am going to be dumb here and ask a silly question, how does a tax write off of a loss become a win situation for the investor? he has put money in and lost it right...?

 

[God]

am going to be dumb here and ask a silly question, how does a tax write off of a loss become a win situation for the investor? he has put money in and lost it right...?

He loses his investment, but the amount of money he puts in his losses offsets any taxes to be paid on other investments (i.e. record contracts) that are actually making money.

I lose 150K on "Vampire Weekend."

"Celine Dion" nets me 1 million of which I have to pay 200K in taxes on.

The loss on "Vampire Weekend" gives me the ability to reduce my tax of 200K from Celine Dion's profits to 50K.

 

[skidflow]

I'd Invest The First $100,000 Oil , Pepsi, Or Some Shit, That I Know Will Generate Some Cash Profit(if Possible). I Dont Know With The Economy In Such Shambles I Might Just Sit On It And Just Re-invest In My Next Album. (promotions And Whatnot)

 

[eldiablo]

Give kids/rappers/rockers 150,000 advance.

Use 20K from advance to record their album.

Use rest for cheap indie video, pay/influence music bloggers with gifts/cash (actually, I don't condone that-- don't do it). Hire high-powered PR firm. Waste rest of advance with exception of incidentals on PR. Create buzz. If their worth a lot to you, pay for their month-month rent until they break even.

PR will hype them, hope they break you even and then give you a profit by selling a paltry 30,000-50,000 copies (details a bit more complicated).

That's a good ROI. Damn, I just felt like sharing that with you.

Repeat scheme. Make sure you compensate your PR person well.

I know the answer to this riddle. DO YOU OWN WORK. no advances for studio time (not needed). Build your own fanbase. Tour your ass off. Make yourself a self supported goldmine and the labels will be begging for you, and youll have more on the table to bargain with. And or your advance can be put to good use rather than it being jacked off. I dont like the word recoupable.

p.s. Go vote for the Cyclopean Super Hero to get on this years Vans Warped Tour.
just click on the hero's myspace page down below. Instructions on how to do so are on the fist page !
Thanks

ELdiablo

 

[Formant024]

get the whole advance....trade it for euros