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Click to email ChrisPlanning You Music Career,
Part One

by Christopher Knab - Fourfront Media & Music - January 2008


Back to Music Business 101

This is the first of 3 articles devoted to what is called a 'Career Plan' for a new band or musician intent on establishing their career in a professional manner. Since most newcomers to the business of music have very little experience dealing with the business side of their music, a Career Plan is a useful tool and discipline for serious musicians to consider. It lays out tasks and strategies for putting a band together by prioritizing those things that are most important in the early stages of a career.

In each installment you will find several issues discussed. It is important to note that this plan is a prototype based on a hypothetical situation surrounding a typical band that had undergone an extensive interview and 'inventory' of their accomplishments and goals. I hope you are inspired by these ideas, and realize that to adapt them to your needs, you would also have to take time to answer questions about your music, your goals, your dreams, your finances, and your commitment to your music as a business.

That being said, I hope you find this information beneficial in building your career as a professional musician.

Christopher Knab

* * *

Organizing Your Band
A Prototype Of A Career Plan 

By Christopher Knab (with the cooperation of Dianne Caron)
(January 2008

Click Here for
Part 2, Part 3


Introduction

Starting a band is more than just finding the right musicians, writing songs, rehearsing them and getting out and playing them. For any serious group of musicians who believe they have great songs ready for the consumer marketplace, they should consider setting business goals for themselves. The following prototype of a career plan is an in-depth look at how much work is involved in launching a career.

As with any prototype plan, the following information is advisory only. It contains information about the business of music as it pertains to the initial start-up of a band.

There are 10 goals to examine, and I hope these ideas get your wheels spinning in the right direction. I also go into some detail on WHY you need to consider doing each goal, as well as providing you with some detailed information on what issues may come up when tackling a goal; as well as some specific advice on how to carry out some of the goals.

Goal #1: BAND AGREEMENT

The time to make an agreement is now, when everybody is friendly and you are just about to start out a possible career. It is sometimes simply impossible to solve the problems of a band that's been together for a fair amount of time, signed record deals and performed live. Nobody likes to talk about anything negative (like breakups) when everything is working well, but when everything is going well is exactly the time to discuss it, because you can do it in a friendly way. It's like insurance, you may never need it, but you'll sure be glad you have it if you need it. There is no lawyer needed to put a band agreement into effect. It is a good idea, though, to have an entertainment lawyer go over the agreement before you further undertake any major obligations such as signing a recording contract. Here are some issues you should resolve in a band agreement:

1) Start Your Own Publishing Company
After you have registered your copyrighted songs with the U.S. Copyright Office at www.copyright.gov set up a publishing company, as soon as you have a commercial market for your music. You do not need a publishing company until there is activity from and with your songs. Please consider the following options: 

  • Setup a publishing company making all band members owners and equal partners (writers) of that company and the songs previously written. 
  • Setup some kind of participation contract in a situation where there is only one main writer, but the writer wishes to share a certain percentage of writer/publisher royalties with band members for good will.

2) Contribution
What kind of vote does it take to make band members contribute to the band (put in money the group needs to buy equipment, cover unexpected expenses, etc.)? Decisions may be based on the concepts of either "majority rules" or "unanimous".

3) Share of Profit and Loss
You will have to define how the money (profit or loss) is divided. Either make all band members equal partners and divide profit or loss equally, or distribute the profit or debit the loss based upon the percentage owned (i.e. in case you founded a corporation with each person owning a certain percentage).

4) Trademark Your Band Name
You should also discuss if you want to give all members ownership of the name. Please consider the following options:  

  • No one can use the name if the group breaks up, regardless of how many of the band are still performing together.  
  • Any majority of the group members performing together can use the name. For example, if there are seven people in a group that breaks up, then four of them together can use the name. 
  • Only the lead singer, (name), can use the name, regardless of who he/she is performing with.  
  • Only (name), the songwriter who founded the group and thought of the name, can use the name, regardless of who he/she is performing with.
  • (Name of songwriter who founded the group and thought of the name) and (name of lead singer) can use the name as long as they perform together, but if they don't no one can use the name. 
  • "Majority rules." If the band doesn't do anything, what most likely will happen is that the band name will be treated the same way as any other business partnership asset meaning any of the partners has the nonexclusive right to use it.

5) Firing
What kind of vote does it take to fire somebody? 

  • You basically have the choice between "majority rules" or "unanimous."

6) Hiring 
What kind of vote does it take to take in a new musician or to hire a lawyer, agent, or manager.

  •  Again, the two basic options are "majority" or "unanimous."

7) Quitting 
Is everyone free to quit at will? There is no way to force someone to continue working with a group. Please consider the following options:  

  • Let people go if they're unhappy, as long as they don't walk out in the middle of a tour. 
  • Stop a band member from working as a musical artist after quitting or require the member to pay his or her solo earnings to the partnership (meaning the other group members get a piece).

8) Incurring Expenses 
What kind of vote does it take to approve the group's spending money? 

  • The two basic choices are, once more, "majority rules" or "unanimous."

9) Amendment of the Band Agreement 
What kind of vote does it take to change the terms of the band agreement? 

  • I'd suggest the band require an "unanimous" decision. Any other type of vote could cause dis-harmony within the group.

10) Ex-Members 
What happens after one person is terminated or after somebody quits? 

  • One option is that the person who leaves the band keeps his/her percentage level for past activities, 
  • or another option is that the person who leaves the band does not keep his/her percentage for future activities.

11) Sole Proprietorship, Partnership, or Corporation? 
In a later stage of your career you will have to think about and define the "relationship" among yourselves. Especially once you start generating income you will have to decide what form of business ownership you want to set up. Here are some basic types of businesses you might want to consider:

Sole Proprietorship 

A sole proprietorship is a "business" that is owned (and usually operated) by one person. Sole proprietorship is the simplest form of business ownership and the easiest to start. My recommendation to you is that each one of you opens up his own business - a sole proprietorship.

What's good about it: 

Ease and Law Cost of formation: 
No contracts, agreements, or other legal documents are required to start a sole proprietorship. A state and city license is required, but beyond that, a sole proprietor pays no special start-up fees or taxes.

Retention of All Profits:
Any profits earned by a sole proprietorship become the personal earnings of the sole proprietor.

Possible Tax Advantages: 
The sole proprietorship's profits are taxed as personal income of the owner. Thus a sole proprietorship does not pay the special state and federal income taxes that corporations pay.
 

What's bad about it: 

Unlimited Liability: 
Unlimited liability is a legal concept that holds a sole proprietor personally responsible for all the debts of his or her business. This means that if the business fails, the owner's personal property can be seized (and sold if necessary) to pay creditors.

 

Partnership 

Often a partnership represents a "pooling of special skills and talents-" at other times it results when a sole proprietor takes on a partner for the purpose of "obtaining more capital."
 

What's good about it: 

Ease and Low Cost of formation: 
Like sole proprietorships, partnerships are relatively easy to form The legal requirements are often limited to registering the name of the business and purchasing any necessary licenses or permits.

Retention of Profits:
As in a sole proprietorship, all profits belong to the owners of the partnership.

Combined Skills and Knowledge: 
Partners often have complementary skills. The weakness of one partner may be the strength of another partner. And, the ability to discuss important decisions with another concerned person often takes some of the pressure off everyone and leads to more effective decision making.

Possible Tax Advantages: 
Like sole proprietors, partners are taxed only on their individual incomes from the business. The special taxes that corporations must pay are not imposed on partnerships. Also, at certain levels of income, the new federal tax rates are lower for individuals than for corporations.

What's bad about it:  

Unlimited Liability: 
Each (general) partner is personally responsible for an debts of the business, even if that particular partner did not incur those debts. They thus run the risk of having to use their personal assets to pay creditors. It is essential that each partner understand that he or she is responsible for the other partners' actions.

 

Corporation 

The corporation is an artificial person created by law, with most of the legal rights of a real person. These include the rights to start and operate a business, to own or dispose of property, to borrow money, to sue or be sued, and to enter into binding contracts. Unlike a real person, however, a corporation exists only on paper.

The shares of ownership of a corporation are called its stock. And the people who own a corporation's stock are called its stockholder, or sometimes its shareholders. Once a corporation has been formed, it may sell its stock to individuals.
 

What's good about it:  

Limited Liability: 
One of the most attractive features of corporate ownership is limited liability. With few exceptions, each owner's financial liability is limited to the amount of money she or he has paid for the corporation's stock.
 

What's bad about it:  

Difficulty and Expense of Formation: 
Forming a corporation can be a relatively complex and costly process. The costs of incorporating, in both time and money, discourage many owners of smaller businesses from forming corporations.

Government Regulation: 
Most government regulation of business is directed at corporations. A corporation must meet various government standards before it can sell its stock to the public. Then it must file many reports on its business operations and finances with local, state, and federal governments. In addition, the corporation must make periodic reports to its stockholders about various aspects of the business. Also, its activities are restricted by law to those spelled out in its charter.

Double Taxation: 
Unlike sole proprietorships and partnerships, corporations must pay a tax on their profits. Then stockholders must pay a personal income tax on profits received as dividends.
 

GOAL #2: PHOTO

In order to be fully prepared for publicity, it is essential to have a current and complete press kit. The photo is an extremely important and basic item of the promo kit that you need to get done as soon as possible.

The photo is probably the most striking, and often the most effective, part of the press kit. Photos have a significant psychological impact on the music. Initially, photos will be sent to publicity contacts in the print media. These contacts will judge you by your visual image, as will fans and prospective fans when they see the photo in magazines and newspapers. In a business that hinges on image, photography represents "image" in its most immediate form. Take great care in selecting a professional photographer, and selecting the "right" photo from the shoot. Remember to choose a photo that will look good reduced down to the size of photos you see in the print media, and also look good on your website and MySpace.com page.+

Finding a Photographer: 
The best way to find a photographer is the local grapevine or word-of-mouth. Ask around and contact other bands or their management, entertainment editors, radio station promotion directors, people at labels or PR firms, and club managers. When looking around for a photographer, make sure the one you pick has
experience in the music business. Most professional photographers tend to specialize, so hold out for a person accustomed to music.

Once you've found possible photographers, look at their portfolios. Most portfolios will include widely differing subjects, compositions, and styles, so concentrate on the entertainment work - concert shots, album covers, studio portraits (needed for professional 8x10 black and white publcity needs), and shots of parties and other functions. Also, talk to the photographer about his or her experience. 

  • And does he or she seem to have a feel for your music? 
  • Does the person appear enthusiastic about the project? 
  • Don't be timid about references and previous clients. Contact a few of them and ask how the sessions went.

Location vs. Studio Shots 

Location Shots 
For outdoor or"location" shots, the possibilities are virtually endless. Regardless of your musical style make sure you have at least a rough idea of an effective shot before going in. Often, you can use locations to help portray your (the band's) identity (i.e. an abandoned prison, a funky old billboard or storefront, bizarre architecture, a sunny beach setting, etc.). The more dramatic and eye-catching your shot, the more it'll be used. Do not, however, go for something so arty or weird that you as individuals aren't recognizable; this will just defeat your purpose. Also, think about getting written permission from property owners for location shots (normally this is quite easy, but if you run into trouble, go elsewhere). With abandoned buildings, this may not even be necessary.

When you shoot your photo at a venue/show, think about the following: -

  • Make certain there's no alcohol or tobacco evident in your publicity photos. Many newspapers and magazines won't touch them otherwise. 
  • Showing banners, placards, and other promotional items are okay, but have the photographer watch out for empty beer cans, overflowing ashtrays, and the like.

Studio Shots 
The advantage of a studio shot is that the photographer has total control over the environment. So he or she will have virtually unlimited lighting resources along with control over backdrops, props, special effects, etc. Shooting time in a studio, however, is expensive, so
calculate your budget carefully.

If you hire a studio, there are some basic tenets you should follow: 

  • Make sure that everyone arrives a little early or at least on time. 
  • If you have to cancel a session, call the studio as soon as possible; if you simply blow off the appointment, you'll be billed for all the time that was booked. 
  • Think about bringing different outfits to the session; this will not only save you time, but also money. 
  • See that all cans, bottles, and other garbage are put in trash cans. If you leave the studio in a mess, you can bet you'll be billed for cleanup.

Generally, when you have some photos taken, what you want are two rolls of black & white and one roll of color photos. (Don't concern yourselves with color photos when all you want and need are a couple of photos for the press kit.)

Proofsheets 
Unless our photgrapher is using a digital camera, ( some still don't) you'll first see the black & white photo results in the form of "proof sheets." Proof sheets are 8" x 10" sheets that hold all the frames/shots in their actual film size, whether 35 nun, 2 1/4", 4" x 5", and so on. These are quick-prints that allow you to choose the final shots for careful printing. Each frame is numbered to help in the selection process. Generally you'll pick 3 to 5 photos and blow'em up to 8" x 10".

Ownership

The Film Roll 
The question of who owns and keeps the film has been a big bone of contention. 

Here's the rule: Under normal circumstances, the photographer keeps the black & white film, unless otherwise negotiated. The photographer will deliver one master print per ordered frame, unless more prints are specified per frame.
 

The Work (Photos)
Any photographer's work is covered by the same copyright laws that protect musical works. In practice, this means that the photographer retains an rights to his or her photographs except for the rights that you specifically purchase.

When you pay normal photo rates, you are actually leasing the photographic work for specific uses, and you are not free to do anything with the photo that you wish. Publicity shots are a good example: If you pay a publicity-photo rate, then that's all they can be used for. If you later decide to use the same print for a billboard, album cover, or as part of an advertising campaign, additional fees are due the photographer.

It's quite possible to purchase all rights to a given piece of film, but then the applied rates are going to be much more expensive (because the photographer is giving up all rights to his artistic work). In the world of music PR, it's usually inadvisable to buy all rights to a black & white film; it's too expensive and the odds are slim that you'll re-use any of the prints.

Duplication 
For black & white photos, send the master print to a mass-duplication house. A mass-photo house can also work up logos on the prints, along with the contact info and the credits.

The number of prints you order will vary widely depending on your goals.
 

GOAL 3: LOCAL SHOWS

Local shows will most likely be your first "major" source of income. Expenses involved in local/regional shows will be limited to gas and maybe per diems. - In order to get booked at a local or regional club you will not need the services of a booking agent, instead you will be able to do it yourselves. All you need is a complete and updated press kit, lots of persistence, and the ability and confidence to play a 45 - 60 min. set.

Once you've selected local and regional clubs you want to perform at, send out the complete traditional press kits (or PDK's) and follow up with a phone call within 5 to 7 working days.. The club will then tell you whether they're interested in booking you for a show or not. If they are, it will be your turn to tell the venue how much money you want for your performance. Once you've negotiated a deal you will have to gather all the pertinent information and set up a contract. (Note that after you've played a club for a couple of times and established a working relationship, the venue might not insist on a written contract anymore.) Nevertheless, getting things is writing is a very good habit to get into.

Here's a list of issues you will have to address and particularize in a contract: 

  • "Purchaser" or "Buyer" (Name of the Club Promoter) 
  • "Artist" 
  • "Deal" - The deal you accepted and the amount of money you will get paid. 
  • Here are the four most common deals you will encounter: 

Flat or Guarantee Ex.: $ 300
Versus Ex.: $ 300 versus 30% door, whatever's higher.
Plus Ex.: $ 300 plus 30% door
Points/Split Ex.: 50/30/20 of Net

  • Date of Event 
  • Set Length 
  • Deposit (if any) 
  • Who will pay to whom how much and when 
  • Admission Fee (Ticket Price) 
  • Capacity 
  • Act of Nature (Force Majeure) - The force majeure (literally "superior force") clause is applied when there is an unexpected event that causes performance of the contract to become impossible; it releases one or both parties from their rights and obligations.
  • Cancellation Fees 
  • Recording by Permission Only 
  • Promotional Commitment - This, for instance, specifies the minimum amount of money you, the band, expect the club to invest in advertising the show.
  • Merchandise: - How much the club will take from the gross of merchandise sold (usually 10%)

    Click Here for Part 2, Part 3

-----

Christopher Knab is an independent music business consultant based in Seattle, Washington. He is available for private consultations on promoting and marketing independent music, and can be reached by email at: chris@chrisknab.net

Visit the
FourFront Media and Music website for more information on the business of music from Christopher Knab.


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