Younger Artist Managers Have a Great Advantage

Welcome back, friends. This week I will be discussing a theory of mine that shows how a younger generation of Artist Managers and a younger generation of business people can find themselves in a position of advantage. As in many business fields, artist management heavily relies on communication, particularly deal making and negotiations. I am very interested in this aspect of the industry which led to this discussion.
Let us be clear. When I talk about a younger generation of managers and business people in general, I am specifically looking at an age range around 23-30. Why do I believe that these people are in an advantageous position in communication? The answer is simple. This is generally the group of people that grew up in between the old school, traditional way of business communications and the new age, digital communication, social networking style of business communications.

This theory goes both ways. If you are able to understand and implement the strategies of both traditional and newer communication styles, you will be in a great position and will be able to transcend other's age and style. Likewise, if people are not able to operate in both of these worlds of communication they will only limit their potential.

Knowing your counterpart in any business communication process is essential. While the wave of digital communication and smart phone technology has sped up and depersonalized much of business communications, there is still plenty people who use and highly regard traditional communication styles. The people who still adopt these practices often respond quite unfavorably to the newer way of doing things.

What does all this mean? Essentially, the goal for any business person and artist managers in particular is to have strong communication skills. In today's world, however, there is a wide variation of practices that people adopt. First and foremost, it is extremely important to know whom you are communicating with and what style best suits the situation.

The important thing for people that are outside of the age range I have outlined is to understand the other side. The older generations have frantically tried to keep up with new technologies while recent college graduates and people younger have shown to seriously lack basic communication skills.

This brings us to the people inside the 23-30 range. It is important for these people to hold on to their skills in formal communications while adopting and honing new skills in the new world of communications. Being able to handle both of these styles is extremely important for artist managers and it is a skill set that cannot be underestimated.

Thanks again for stopping by, I'll see you all soon.

DK

Cheap Marketing for Artist Managers

Welcome back, friends. In some of my recent studies, I have gained an even greater regard to the distribution of content and how to market that content. When starting a company, the major hurdle that impairs most new companies is their lack of attention to detail in financial decisions and lack of initiative for innovation in marketing and promotion.

Luckily, if you are an artist manager or an artist doing self-promotion, there is a major part of your efforts that can be extraordinarily cheap. The most important one of these is your marketing strategy. The amount of resources at our fingertips is greater now than at any other point in history, and tomorrow will be greater than today's. That is the nature of technology, and this artist management industry.

We all know about the "old-school" fail-safes of social marketing through Facebook, Twitter, etc. Today, however, there are literally hundreds of sites than can have an incredible impact on your artist's career. From sites where you build profiles and message boards, to those where you can post your music, or even sites where you can fund projects, the opportunities are almost endless. This has led to a surge in quick and fleeting trends. New ideas for musicians and their managers are constantly developing and evolving. With the amount of outlets to get an artist's message out there, managers need to be innovative and try out a multitude of small projects and ideas they may have.

Videos have also become an integral part of the artist's portfolio. With the overload of promotional efforts through social media sites, videos are becoming ever more important (sometimes just as important than the song). The video allows a whole new way for an artist to express themselves beyond their music. Building a persona with an artist through series of videos allows fans to feel more connected with the artist, thus making them more likely to purchase music, concert tickets, or other offerings. 

The best part about these solutions is that they are either cheap or free. Social media marketing is a very strong and powerful tool, but only accessing the top sites is just putting your concentrated efforts towards a bigger pool of thousands of competitors vying for the exact same attention. Putting the efforts on newer and more creative sites and using video content is just a few ways to make your efforts more meaningful and more cost effective.

Thanks again for reading,

DK.

Some Legal Pitfalls of Doing Business Online

Welcome back, friends. This month I want to take a look at some legal cases and legal circumstances that could affect a business such as the one I am building. Online marketing for musicians, much like any other form of entertainment business, is susceptible to legal battles. I’m going to discuss a few different situations with you here.

The first legal case I researched was between the Grand Resort Hotel and Convention Center and Tripadvisor. As you may or may not know, Tripadvisor is a trip planning and recommendation website tat covers all aspects of taking a trip from hotels, flights, and even restaurants. This case discusses a post that was found on Tripadvisor’s website that discussed the “Dirtiest Hotels”. Unfortunately for the Grand Resort, they made the list and had pictures of their business displaying horribly dirty and unsanitary conditions. The two parties then ensued in a time consuming and costly legal battle. The Grand Resort claimed slander, but the lawsuit never stuck due to the plaintiff’s failure to state a claim, a costly mistake. Although Tripadvisor escaped this legal battle due to somewhat of a default, they never posted this yearly story again. This is just one instance where online marketing and a web-based business must be aware of their circumstances and must be very careful what the post on the internet. 

Another aspect of my music marketing company involves allowing for customer and fan feedback. An interesting case I found, Hadley vs.GateHouse Media Freeport Holdings, Inc., discusses what happens when outsiders have the ability to publish comments on a website. In this case, Hadley and been linked with crimes on the GateHouse website via a third party post. In the end, the media company was not held liable for the outsider’s post. This is a very important element to consider when operating any kind of online business with a customer response section. 

Another interesting case of online publishing is Phaedra C.Parks vs. Vibe Holdings, LLC. This case involves a former reality TV star suing for defamatory accusations posted online by Vibe Holdings. In this case, the plaintiff was awarded damages. It makes the point that when hosting a business online, especially any kind of media or marketing business, the content generated on the site must be watched excessively and constantly. There are a number of things that can happen to end up in a courtroom when publishing information online. 

Thanks again for stopping buy. Once again, in any kind of entertainment business hosted online, it is imperative to be ever careful of legal issues that may be involved with your company. In today's world, people are ready to jump at the chance to sue just about anybody, especially entertainment companies. So, beware of the legal pitfalls involved. 

Thanks again for stopping by, 

DK

Social Media Can Make History, and Your Artist

Welcome back friends. Some of my recent interests have led me on a search for great speakers that discuss social media and how it can impact certain businesses in the online world today. One of the most impressive and interesting speeches I have come across comes from TED.com and a great speaker by the name of Clay Shirky. The speech is titled "How Social Media Can Change History" and discusses the new and developing role of social media and I believe it offers an innovative insight into world of marketing for companies, and for self-promotion of artists.


The first portion of Clay's speech discusses major changes in the way the internet and online groups have changed media as a whole. The major changes, as highlighted by Shirky, can be summed up in 3 key points:

1. Native support for groups and conversation at the same time. The telephone developed a connection of one person to another. Print media and television developed a pattern of one-to-many. The new social media age has opened a new channel of many-to-many.  
2. The internet has become "media carriages" for all other form of media. As the internet becomes more and more powerful, the more that news, television, film, and all media outlets are shifting to online platforms. The internet has become more than a source of info, it has developed into a form of coordination for all of that info. 
3. The consumers have an incredibly easy transformation into producers. Shirky compares the ability of a consumer to become a producer so easily in this internet media world to getting a free printing press when you buy a book or a newspaper. It is increasingly easy for the consumers to become the producers through social media, voicing to the people what they feel most passionate about. 

After Clay pointed out these 3 key attributes, he went on to discuss a couple key historical points to back his claim. The main event discussed was the major earthquake in the Suchuan Province in China. The initial resorts on this event was communicated through cell phones, internet uploaded pictures, and social media sites like Twitter. In fact, Shirky notes that the BBC channel first heard of the terrible events through Twitter. The government heard about the events through it's citizens. 

China has long been recognized as one of the major government controllers of what their citizens may view via the internet. The Great Wall of Fire, as its commonly called, really had it's hands full during the tragic events of this quake. The amount of traffic on Twitter and other social media sites was so overwhelming that even the government could not continue it's usual dominance on blocking "bad" content. 

Shifting back to the artist management realm, I believe our industry can take key notes to how powerful this media is. It's not only a way to share photos or what you are doing on a Saturday night, it is a key marketing tool that MUST be used to ensure an artist's success. There is no shortage of stories these days of artists who get known through a viral video, youtube clip, or Facebook and Twitter presence. 

Along with history, social media has the ability to change the way we look at artist marketing, a term that seems to be replacing artist management for unsigned artists. It is increasingly more and more important to  focus on branding and marketing your artist as if they were a business you were marketing, and their music, image, and style is the product. Use ALL of the tools available, and use the power of social media for good, not for fun. 

 Thanks again for stopping by, I'll see you again soon. 

DK

The Art of Negotiation: Interview with LG of Industreet

What's going on everyone? My recent endeavors have led me to dissecting the art of negotiation and deal making strategies. I am pleased to say I am extremely excited about this post and this topic because this week I got to interview a true entertainment professional who has opened up a few of his notes on negotiations.

Gregory E McLendon, better known as 'LG' in the entertainment industry, was kind enough to do a phone interview with me while I probed his deal making and negotiations past. LG is a true entrepreneur and a great entertainment business mind. His company, Industreet Management, and it's subsidiary Industreet TV Films have been extremely successful in areas such as musical arrangements, artist/producer management, music videos, and many other endeavors. Below you can see a few of the questions I got to ask LG
concerning the art of negotiating and what he had to say about it.

How do you separate people from the problem when you are negotiating?


In this question LG talks about the need to figure out "what their problem is" and where they stand, especially financially. He also discusses the importance of doing hard research (of the person and their problem) before entering the meeting. LG says knowing these things before entering the meeting "creates leverage" for a negotiator.

How do you handle positional bargaining tactics?


Right away after asking this question LG notes how there are many different ways to handle positional bargaining tactics and he highlighted a few. He notes that with any deal people are usually looking to accomplish "one BIG thing." He says that knowing the big thing they are looking to accomplish is imperative. He also talks about "getting to know the person even before negotiations start" and also the "psychology behind it." He talks about the amount of finesse and sometimes "ego-stroking" that must be present to handle positional bargaining.

Can you give me an example of how you have worked towards mutual benefit when you were conducting a deal?


After this question LG spoke of a past deal he had with an artist. He noted that the original deal that was laid out was not ideal and how he had a previous personal relationship with the artist. Of coarse with the personal relationship involved, he was "faced with a tough decision." In the end, LG decided to go ahead and sign the contract with the artist, but he noted an extremely important factor which was a clause that allowed them to renegotiate if the artist began to become more successful. In this case, the artist got what they wanted, and LG had assurance that he could alter the deal down the road if need be which was mutually beneficial for both parties.

How have you used BATNA (The Best Alternative To a Negotiated Agreement) if the current negotiations fail?

LG really stressed the importance of having a back-up plan or multiple plans when entering negotiations. He talked about "always needing some type of other deals on the table so you are not forced into your decisions." This is important because it allows one to "reevaluate" the situation and take alternate paths to achieving the overall intended outcome. 

I again want to thank LG of Industreet for helping out with this interview. You can check out his work at the link above. Thanks again to all of my readers and I will talk you soon! Peace.

DK

Business Managers in the Music Industry

Welcome, friends, to another post from the Kraus Artist Management blog. This week's post will continue to look at trending issues in this industry, as well as discuss some of the tasks artist managers have to deal with on a day-to-day basis as it pertains to the music industry. The artist management role tends to paint a cloudy picture to those not submerged directly in it's waters. Hopefully this post will help clear the air on exactly WHAT these professionals actually do.


A lot of work is needed to succeed as an artist manager. If you're looking for a position that receives constant praise and adoration, this field may not be for you. You will not have fans and you will not win awards. You may, however, win the respect of colleagues and clients, which will eventually lead to a whole new kind of self-realization.

What does a musician's business manager actually do? According to the Billboard article by Glenn Peoples, today's managers are tasked with a multitude of responsibilities that are constantly evolving. They may track receipts and expenses, perform audits, set tour budgets, and deal with many other financial matters.

The key role of the manager is is dealing with things on the business side. It is extremely important that managers run the business side of creative artists, and let the artists focus on what they do best; create music. Artists tend to not be the best at business, and business minds usually do not have the skills necessary to create music, or any other type of medium for that matter. It is important that artists and managers find their counterpart to be competent, hard working, and they should all share the same passions and goals.

Last April, some of the greatest artists and managers involved in the reshaping of the music business came together in a relatively new international conference called Rethink Music. This annual convention attracts  thousands of artists, industry professionals, and all types of artist management. It is an innovative gathering that produces an abundance of idea's pertaining to the music industry, and where it is heading in the future. For more information on exactly what types of issues are discussed at this conference, check out the video below from John Vanhala from Island Def Jam Records.

Thanks for stopping by,

DK

The Talent Managers Association and It's Impact

Welcome back, friends. My recent studies and interests have led me to the realization of the power and impact that can be held by some professional associations or organizations within the entertainment industry. Once coming to this realization, I still found an abundance of questions as to what these groups actually do.

What are the best associations for my industry?

What kind of impact do these groups actually have?

How do I go about joining a group?

What specific benefits will arise from joining?

These are all valid questions when looking into professional associations and it is pivotal to do proper research on a few different groups.

An interesting group that I have been following is TMA, or the Talent Managers Association, Inc. Founded in 1954, TMA has become a well respected group of professional talents managers. The association prides itself on having members who are known to be ethical, knowledgable, and skilled in their trade and have been recognized as so by their industry peers. 

So.....so what? Does it actually mean something to be involved in one of these professional groups? Yes. Does it guarantee any level of success within the industry? No. As far as I can tell, the most important aspect with TMA and any number of other professional organizations is the key partnerships and connections that can be made through membership. TMA has a long list of members, partners, and sponsors that can prove to be quite fruitful to a talent manager. They say this is an industry where connections are everything. Joining a professional network like this will most likely condense about a decade worth of networking and meetings into a quick approval process.

Industry associations can have tremendous impact on the industry itself. The more professional a high-powered it's members, the more associations will influence how work is done in that industry. This is yet another benefit to becoming a member to these groups. Not only will you gain inside information from peers and other professionals, but you will have the opportunity to voice opinions and concerns and possibly even impact the industry yourself.

For more information on how to join the TMA, please click here.

Thanks for stopping by again,

DK

The Evolution of Music Business Degrees and Some Management Myths

The idea of music business and entertainment business as a full-scale college degree program is still something that is relatively novel in today's culture. When these programs first started, it was assumed by most that the end result was a bunch of musicians ready to take on the world through touring and record sales. However, the scope of this industry is immensely larger than most can fathom.

Another way to look at this issue is to consider all of the musicians you can possibly think of in your head. Now consider the fact that behind every professional musician, there are teams of business professionals and lawyers that helped that musician get where they are and help them stay in the limelight. Viewing the music industry in this way proves the point that there is an extensive business culture intertwined in art of music.

In an article by Rey Sanchez, there is an extensive overview into the limitless possibilities of careers within the music industry. This article contained a quote that I personally take to heart stating; " You don't have to leave music, if that is your love, just because you don't become that star on stage". I have been describing my chosen career path to outsiders for many months now using similar words. I have a deep love and passion for music and just because I may not be an artist myself, I did not want to let that discourage me from being in the music industry.

To wrap up these ideas, I want to dive back into the main subject of this blog, which is the job of being an artist manager. As I've stated before, I feel it is of upmost importance that musicians spend the majority of their time developing and perfecting their creative sound while leaving business matters up to professional music business gurus. The more time musicians spend dealing with issues such as booking, contracts, and promotions, the more their music suffers.

When dealing with the business of artist management, there are many myths and misconceptions that must be abolished. Heather McDonald is a well-established writer who speaks on entertainment business and has many insights into the music business industry specifically. In a recent post on her blog, she looks at some of the myths that are out there.

One of these myths that peaked my interest was the thought that only a high profile, experienced manager can make a positive impact on a band or musician. This is simply not the case. Artists should be more focused on the level of commitment and interest of a manager as opposed to simply their credentials. As I continue to build my own personal management firm, I always keep this in mind. A lesser known or start-up manager can have just as much positive impact on an artist's career as a high-profile one. The important thing to keep in mind is that the amount of belief a manager has about an artist's or band's music is really what is most important. Artists simply need to find a manager that wholeheartedly believes the artist will be successful based on their musical talents.

Another myth in this industry is that artists or bands do not need to run everything by their managers. A manager is only as good as the information he or she is provided with. The communication process between artist and representation may be the most important key to success in many scenarios. Even if something seems unimportant or trivial to an artist, it is of upmost importance to fill in the manager on EVERYTHING. As I said before, let the artists produce their creativity, and let the business people do their business thing.

Thanks again for stopping by and stay tuned for future posts.

DK