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Peter Medeiros
`Olu`olu
546 Posts |
 Posted - 09/30/2004 : 6:56:16 PM
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Fran,
I think this one needs a thread of its own. You’re right there are few cons in copyright, however, in distribution of product in Hawaii and elsewhere, it is the middlemen who control the flow of product to vendors. Because the odds are stacked against a manufacturer that a product will fail (approx. 84% failure), it becomes crucial that a cd project has a comprehensive marketing plan in order to increase any opportunities for sales. In order for a distributor to be successful they have to ally themselves with proven companies and artists and maintain that relationship. New artists and companies are viewed with skepticism.
In sales of new cds, getting airplay is critical for any chance of real success. According to Jon DeMello (the producer and emperor of Mountain Apple) who was a guest lecturer in a music business class I used to teach some years ago, “from the first day of airplay, there is about a twelve day window of opportunity in which to achieve success”.
There are several factors you should be aware of:
<sum> Is the distributor reputable? Having the product in the sales bins of vendors is a no brainer, however, who the distributor is who gets it to the vendor and having less than two weeks in which to make an impact on a given population with discretionary income and the freedom of choice is whole different can of worms. Some distributors are unable to perform.
<sum> How come I’m not getting paid? Because product is sold on consignment to vendors there is no assurances that there will be sales, or that if there are sales that the vendor will readily meet the accounts payable date, or that the vendor will be returning product to be discounted from their current account.
<sum> I thought we sold more than that? Limit the amount of free product. Distributors will often ask for free product to be given out with promotional material. In a conspicuous place mark every item to be given out as free product as promotional or demo product.
<sum> I thought we’d receive a check every quarter? For distributors in Hawaii, unless they are carrying the product of a major company (BMI; Sony; Capitol; Arista; etc.) their cash flow will always be low until about Christmas and the quarter after. What this means for the small recording company / artist, is that they will see perhaps no more than one check per year on sales, that is, unless they have a hit, than there will be greater frequency in the receipt of checks
<sum> Yikes! What are you going to do? Retain rights to Internet sales of downloads or hard copies. Make an assignment only if it is to your advantage. Peer to peer copying and downloading has had a significant impact on the sales of hard copy (CDs) throughout the world, so the traditional distributors initial orders for a product are much less than what they were ten years ago.
<sum> Don’t give a way the whole damn boat! A marketing plan for the artist/small recording company should take into account a broader picture of sales opportunities. Don’t give away the whole worldwide distribution rights unless the company you are signing with has the ability to actually distribute and make sales globally.
<sum> Watch out for exclusivity in point of purchase sales at a concert. For artists these types of sales provide the highest profit margin, plus they are usually cash sales.
<sum> Talk to my attorney. Get a lawyer versed in entertainment law and contracts. They will save you from getting into trouble down the road.
<sum> I got a contract! Always examine any distribution contract to make sure that it is indeed an arms length agreement and equitable for both parties. Any contract that is offered is negotiable, and the first contract should always be viewed as just a starting point, sic, see above get an attorney.
Gotto go,
Peter Medeiros
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Bruddah Chrispy
Lokahi
USA
164 Posts |
Posted - 09/30/2004 : 7:10:01 PM
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Aloha kakou,
Could someone please post a link to the thread that this article follows? Mahalo!! |
Aloha a hui hou,
Chris P.
There's no regrets; only good times. |
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marzullo
`Olu`olu
USA
923 Posts |
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Auntie Maria
Ha`aha`a
USA
1918 Posts |
Posted - 09/30/2004 : 10:48:57 PM
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Great reply, Peter! Those of you on this forum who are musicians, are truly blessed to have him sharing his business expertise with you.
My 2 cents on some of the info:
<sum> I thought we’d receive a check every quarter? IN YOUR CONTRACT WITH THE DISTRIBUTOR, REQUIRE A _MONTHLY_ WRITTEN ACCOUNTING -- AND THAT THEY ALLOW A HANDS ON INVENTORY (BY YOU, OR YOUR REPRESENTATIVE) EVERY 3 MONTHS
<sum> Watch out for exclusivity in point of purchase sales at a concert. OUTSTANDING ADVICE -- DON'T LET THE LOCAL RETAILER TAKE THE PROFIT; HAVE A TRUSTED FRIEND OR FAMILY MEMBER HANDLE THE SALES AT EACH VENUE (ALL CASH ONLY; NO CHECKS!).
<sum> Talk to my attorney. Get a lawyer versed in entertainment law and contracts. DO NOT USE THE ATTORNEY RECOMMENDED BY THE DISTRIBUTOR (TOO OFTEN A RELATIVE/EMPLOYEE OF THE DISTRIBUTORSHIP).
<sum>...the first contract should always be viewed as just a starting point AMEN TO THIS. YOU DO HAVE DISTRIBUTORS FROM WHICH TO CHOOSE -- DON'T JUMP AT THE FIRST OFFER, UNTIL IT'S BEEN REVIEWED BY A COMPETENT ATTORNEY.
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Auntie Maria
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Fran Guidry
Ha`aha`a
USA
1574 Posts |
Posted - 10/01/2004 : 01:44:06 AM
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Thanks, Peter and Auntie Maria. Gee, I thought that if I ever finished recording my CD, did some cover art, and ran off a thousand copies, then the money would just start rooollllling in <grin>. Seriously, it's really wonderfully generous of both of you to share you knowledge and experience.
Mahalo,
Fran
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E ho`okani pila kakou ma Kaleponi
Slack Key Guitar in California - www.kaleponi.com
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