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The Importance of Merch Sales in Music Today [VIDEO]

With streaming music replacing physical media sales more and more, artists are increasingly dependant on merch sales to stay afloat.

It is no secret that streaming royalties pay artists far less than traditional album sales. The top-paying music services give artists about $0.006 per song stream. Spotify, which is the most popular subscription service, pays roughly half that amount.

Last week, UK metalcore group While She Sleeps made headlines around the world by releasing merchandise that explicitly aired their frustrations with streaming royalties. The shirt in question reads, “One t-shirt is the equivalent to 5000 streams on Spotify. 76% of all music in 2019 is streamed and not bought physically or digitally. Band merchandise is the most direct way of supporting an artist.”

While She Sleeps is not wrong. In today’s music business, merchandise sales matter more than ever. An artist who is capable of moving huge volumes of merch can turn industry heads faster than an artist with a viral single because executives know merchandise sales are where the most money is being made in 2019.

But how does an artist sell merchandise? There is more competition than ever for listeners’ attention, which means there is increased competition for their financial support. There are also no shortcuts to selling large amounts of merchandise. That said, there are ways artists can position themselves for success, which is what we’re going to discuss today.

In this episode of Music Biz 101, host James Shotwell details the increasing importance of merchandising in artists’ careers. He also offers advice for creating merch your fans will want to buy, complete with examples from artists with immensely dedicated followers.

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Merchandise Tip: Here Comes Halloween

I’m not ashamed to admit that, at 28, there are times I get jealous of today’s young music fans. As someone who lived the majority of their teens and 20s wearing band, record label, and/or music-related shirts almost everywhere I went it’s hard to realize such behavior is frowned upon the older you get. Once you leave college and begin waking most days out of the week with the purpose of working to pay off the enormous debt you accrued becoming an adult the world demands you put a little more effort into your wardrobe than promoting whatever music you’re currently enjoy at that moment in time. It’s a hard realization, but one that must be faced nine times out of ten if you hope to get ahead in life. You don’t see many executives rocking t-shirts these days, and if they are they probably started their company at a young age and used their drive to become so successful no one would dare complain about they dress on any particular day. That is not the case for my life, and I’m willing to bet it’s not the case for  many of you reading this, so please remember everything that follows is intended for those hoping to target younger demographics of music fans.

October is here, and with it comes the celebration of Halloween. Some people claim Christmas to be the best holiday, but they are wrong. Anyone who lives for the unforgettable experiences that make life great knows Halloween, as well as the various traditions associated with it, offer more potential for fun and excitement than practically any other global tradition. Kids love it because they get to dress up and receive candy while pretending to be the people they see on TV or in movies, and older folks love it because they get to escape the realties of adulthood while drinking in a disguise. Everyone wins.

You know who else wins on Halloween? Brands who are smart enough to capitalize on our culture’s obsession with all things kooky and spooky during the month of October. It doesn’t take more than five minutes in your local Target or Wal-Mart to understand what I’m talking about either, as every department store spends six weeks or more leading up to Halloween marketing everything from candy and costumes, to home furnishings with some kind of ghost or spirit themed sale. They may have ‘Terrifyingly low prices,’ or ‘Ghoulish Offers,’ but varying puns aside the idea is always the same. The products being sold are changed for the holiday as well, with everyone from Yankee Candles to the makers of Twix trying to cater to seasonal shoppers. In fact, it’s hard to think of a single product outside cleaning supplies and bathroom necessities that doesn’t have at least one brand with a Halloween themed item on sale this year.

As an artist, you too can cash in on the international obsession with Halloween by creating your own, limited run merchandise based on the holiday. Create a shirt that is only available a limited time, or perhaps a print featuring a seasonal design or image. Sell stickers and buttons with your logo slapped on jack-o-lanterns and ghosts, or perhaps record and release a cover of something from ’The Nightmare Before Christmas.’ These items won’t appeal to everyone, but they will give your core fans an opportunity to buy an exclusive, limited edition item that will serve to further their connection to your brand.

Here are a few examples of Halloween merch being marketed this year:

As with any item being sold, the key to getting a strong response from seasonal merchandise is executing a great idea people will be unable to overlook. As you see in the example above, the possibilities are seemingly endless as far as approaches to Halloween merch as concerned, so take that as a sign that creativity is encouraged. Find something you love about this season, or something about this season you feel reflects your music, and use it to create something unique your fans can cherish forever.

A few key things to remember:

1. Do not steal anyone’s design/copyrighted materials. Doing so could result in legal troubles whose costs far outweigh any benefit associated with seasonal merchandise.

2. Order your product in time to ship it before Halloween. Receiving a Halloween themed shirt in the middle of November or December doesn’t really do anyone any good. Fans won’t wear it, and worse – they probably won’t order seasonal merch from you again. Think and plan ahead.

3. Targeted marketing helps. No one likes paying Facebook to reach their fans, but doing so can help sell new/limited merch items. Even as little as $5 can double, if not triple the reach of your average post. As the saying goes, “You have to spend money to make money.”

4. Don’t be afraid to ask for help. Want to make seasonal merch, but don’t know what to offer? Ask your fans. They’re the ones who will ideally be buying whatever you create, so you might as well ask them what they want and do your best to meet their demands.

5. Turkey merch is not a thing. While you might be able to leverage Halloween, Christmas, and even Valentine’s Day for merch sales, Thanksgiving doesn’t create the same market. You can try, but you will more than likely fail.


James Shotwell is the Marketing Coordinator for Haulix. He is also a professional entertainment critic, covering both film and music, as well as the co-founder of Antique Records. Feel free to tell him you love or hate the article above by connecting with him onTwitter. Bonus points if you introduce yourself by sharing your favorite Simpsons character.

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