The value of music diminishes further with each passing year, but merchandising lasts forever. Let’s look at why merch matters more than ever.
The value of recorded music is at an all-time low. Anyone making livable wages from music alone in 2021 is doing so through a combination of luck, talent, and utilizing every distribution method available to them. Artists are no longer looking for one paycheck for their music every month, but several. Musicians may make a little from physical sales, then a little more from streaming. There are also digital sales and revenue generated from music videos and other album components that exist on various platforms around the globe. The number of revenue streams varies from artist to artist, but the low payout rarely does.
It’s no great secret that most musicians making a living in music today do so largely through merchandise sales. You can include ticket sales if you want, but generally speaking, merchandise is where artists make the bulk of their income. A single shirt sold for $20 at a concert can generate more revenue for an artist than 10,000 streams of any single song on any of the leading streaming platforms. The sale of a sweatshirt can do even more.
While most musicians do a fair job of creating and making merchandise available to their fans, many are thinking too small when it comes to the possibilities of their brand. The digital age provides many opportunities for artists at every level of success to have robust merchandise options at little-to-no cost upfront. Some companies even offer print-on-demand merchandise. Those same businesses will also manage your online store, ship the merchandise, and allow you to set the price based on what you believe fans are willing to pay.
In the Music Biz update, host James Shotwell explains the growing importance of merch and identifies areas where many could do more to boost their bottom line. He also explores the growing online marketplace and provides examples of musicians who are already making big sales through various creative merch endeavors. Check it out:
Music Biz is brought to you by Haulix, the music industry’s leading promotional distribution platform. Start your one-month free trial today and gain instant access to the same promotional tools used by BMG, Concord, Rise Records, Pure Noise Records, and hundreds more. Visit http://haulix.com/signup for details.
Investing hundreds of dollars into merch that may or may not sell is a thing of the past!
Every musician dreams of seeing someone wearing their merch in public. For many, spotting their merchandise in the wild is as close to ‘making it’ as they will ever get. But making merch is traditionally a risky investment. Musicians typically spend hundreds, even thousands, to print merch that they hope fans buy. Recouping those production costs can take time, and that potential wait has forced many to shelve their merch dreams until they feel more established in the music community.
But that is a remnant of the old way of music entrepreneurship from the days before everyone was doing business online. Investing money in merch is still part of most artists’ financial plans, but other options exist. Believe it or not, musicians who are still establishing themselves and those more concerned about raising awareness than making money can now make merch without spending a dime.
Allow us to introduce you to print on demand merchandising.
Print on demand is a process where you work with a supplier to customize white-label products (like baseball hats or tote bags) with your designs to sell them on a per-order basis under your brand. Nothing is printed until someone orders a product, so you (the artist) only pay to produce what people buy.
There are several reasons that print on demand services are popular with musicians:
You don’t have to spend any money to get started
You can upload as many designs as you want
You don’t have to handle production
You don’t have to handle shipping
You can offer merch on high-end fabric
You can offer more unique merch items than any artist would otherwise be able to produce
There are drawbacks as well:
Print-on-demand services cost more per unit, which means your total revenue may be lower than if you purchase merch in bulk.
You do not control shipping, so there is no way to include “thank you” notes or bonus merch items.
You do not control production, so the product is made and shipped when the company handling your orders can fulfill the request.
In his latest Music Biz update, host James Shotwell walks through the print-on-demand business model. He argues why using such services may be a better alternative for certain artists than the traditional merch approach. He also recommends one printing company that we at Haulix Daily use regularly. Check it out:
Music Biz is brought to you by Haulix, the music industry’s leading promotional distribution platform. Start your one-month free trial today and gain instant access to the same promotional tools used by BMG, Concord, Rise Records, Pure Noise Records, and hundreds more. Visit http://haulix.com/signup for details.
Special edition and limited-run merchandise can engage fans and bring in extra cash as the end of year holiday shenanigans begin.
October is here, which means spooky season has officially begun. In just over four weeks people everywhere will celebrate Halloween. You can tell me Christmas is the best holiday, but just know that doing so would prove how little you know about Halloween. October 31st is the only day of the year where self-expression and all the creative possibilities it entails are openly celebrated. For one short period, everyone is welcomed (and encouraged) to be themselves. There’s also candy.
In short, everyone wins during Halloween.
Musicians can leverage America’s love of Halloween for personal through smart marketing and limited edition merch. Those needing proof of this need only look to the biggest brands on the planet. Target, Wal-Mart, and Amazon have all dedicated space to Halloween themed merchandise, as have countless other chains. They may have “terrifyingly low prices” or “ghoulish offers,” but varying puns aside, the idea is always the same.
The everyday 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. I recently purchased hand soap that has a seasonal theme!
Halloween is the perfect time to release limited-edition merchandise. Not only does this give your core audience the chance to purchase something special, but it provides you the opportunity to express yourself in new ways. You can try your hand at large prints or scary prints, with beanies or socks. Halloween merch is as merch a treat for your fans as it is a treat for you, the creative people tasked with keeping an audience engaged all year long.
Chicago’s Real Friends understand how to make great Halloween merch.
As with any item 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 are 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:
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.
Order your product in time for it to ship 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.
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.”
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.
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.
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.
Holiday shopping season is upon us, and the biggest day of the year for consumerism is right around the corner. Black Friday happens on November 23. To help improve your sales and ensure your promotions go off without a hitch, we’ve developed a series of tips to ensure your holiday sales occur without issue. Some will seem obvious, but no point should be overlooked. Every step outlined below will help streamline your business, improve shipping speed, and – if you’re lucky – bring in a few additional customers.
Check your inventory. Twice (just like Santa).
Your goal with holiday sales should be to liquidate as much of the merchandise you have in stock as possible while still making a healthy profit on each product sold. Before you can do this to the best of your abilities, you need to know what you have available, and how much of it is in stock. Running out of something during your holiday sale will cause headaches for everyone, and that goes double if you run out of something because you forgot to check your inventory before launching your sale. The back and forth required to straighten out orders that cannot be fulfilled may cause you to lose future sales, as well as those you are forced to cancel. Prevent this mess from ever happening and do inventory first. Do it twice, in fact, and ask someone else to check your work.
Promote your entire sale, as well as individual items.
You want people to use your discounts to buy more than they usually would, but often those attempting to promote a store-wide sale forget the impact that promoting key items one at a time can have on consumers. You should still mention store-wide discounts, of course, but you should also make room to highlight individual items. If you’re offering 25% off everything online, you should promote the sale by showing how the discount changes the cost for specific products. Create images for Instagram and other networks that highlight these changes. That way, people can more easily understand what a great deal you are giving them. Likewise, you can use Twitter to promote various items and their price after discounts throughout the holiday weekend.
Speaking of promotion, think about paying for it.
I’m about to say something most artists hate to hear: Paying for promoted posts on Facebook and Twitter can have a positive impact on your reach, as well as your overall sales. It would be wonderful if this were not the case, and that those who could not afford paid promotion on social networks saw their sales work just as well, but years of research has made it clear that is not the case. Thankfully, the cost of entry into paid promotions is low. For as little as five dollars you can have a guaranteed reach to hundreds, if not thousands of people who have previously enjoyed your music enough to give you a Like/Follow online. Whether or not they take advantage of the message being conveyed will depend on how you choose to present yourself, but at least you know your efforts are reaching those who are most likely to jump on them.
Create specific Twitter search streams for particular items you sell.
This one is a bit more time-consuming than other tips, but it can help you bring in a lot of new consumers who may have otherwise not checked your store. Numerous tools allow you to create and save Twitter search streams. Find one you like and use it to track people tweeting about shopping/looking for things like ‘new vinyl’ or ‘cool band t-shirts.’ It’s likely these people already have an artist or genre in mind when they send these messages, but you can still reply with links to your store and music. If they don’t respond, oh well. If they do, you’ve got a potential new consumer/fan.
Make the most of SEO.
We’ve talked about this before, but keywords are becoming increasingly important when it comes to how people find your content online. Use a tool such as the Google Keyword tool to understand better how your customers are searching, then modify your own store to reflect what you have learned. It is essential to know which keywords are mostly used during the holidays, such as ‘sales,’ ‘top gifts,’ ‘Cyber Monday,’ and ‘Black Friday.’
If you know nothing about SEO, some services can help you improve your efforts, as well as people on Fiverr willing to work for just $5. Get creative if you must, but the smart decision would be to master SEO yourself as soon as possible.
Make sure everything is working before promoting your sale.
This one may seem obvious, but every year there are a handful of musicians who see their site, or at least parts of their website, crash amidst the sudden upswing in view brought on by the holiday shopping season. Before you push your sale live, make sure every item on your store is listed correctly and that every discount is working correctly. If there is a code word needed, make sure you test it out before sharing it online.
For the better part of the last half decade I have been running a small record label out of my one bedroom apartment with the help of a few good friends. We haven’t made it big, and to be honest we never really thought we would, but we have had a few successful releases put out on cassette and vinyl. We recently got into CD production as well, but that’s a story for another time.
Whenever someone approaches us with questions regarding record labels and how to start them, we usually list off a series of lessons we learned during our initial releases. We talk about timelines, estimated costs, merchandise, contracts, and – perhaps most frequently – the need to properly understand how shipping works, including the cost of sending packages outside the United States. We like to think we have developed an easy and reliable workflow, but every so often we learn a new trick or path that causes us to regret all the hours wasted following the previous method. I don’t know that our specific setup will work for anyone reading this, but I do have a few basic tips to help improve your standard shipping operation. There are some costs associated, but as your label is a business you should know by now that improvements often require the investment of additional resources.
If you buy your shipping materials at Target, Staples, or even the post office you are spending way more than you should. Packs of six 4” x 6" bubble mailers can run $10 or more in stores, but if you buy in bulk from online retailers you can receive several hundred mailers for less than $100 total (shipping included). Everything you need to ship tapes, CDs, and vinyl can be purchased for a reasonable price in bulk from ULine. The company has a long history of customer satisfaction, and they have an incredibly quick turnaround. They also allow you to pay after receiving your order, so if you need mailers in order to generate the money needed to buy mailers they can help you with that as well.
Stocking up on mailers also prepares you for any situation. You may have slow sales from times to time, but you could also have a sudden boom in business when one of your artists hit it big. Buying in bulk allows you to cut down on order turnarounds while saving money. What’s not to love?
You can now buy stamps online
If there is one activity that makes me rethink launching a business it’s the many hours I have spent waiting in line at my local post office. I have to imagine other people feel the same, which is probably why the fantastic site ‘Stamps.com’ now exists. For the first time in the history of humans you no longer have to interact with another human when working to send out packages. You simply signup at home, input your shipping information, upload your credit card, and boom! You can now print postage labels from the comfort of your couch. You may use a lot more tape when handling shipping with this process, but I have solution for that as well…
Two words: DYMO Printer
All printers used to require ink, and anyone who has had to print a lot over their lifetime has learned by not that ink is not cheap. DYMO found a solution, and while I could get into the inner workings of their technology it’s suffice to say science can do really cool things. A DYMO printer does not use ink cartridges, but it does require a special kind of paper made specifically for postage labels. You buy a printer, which includes a free roll of labels, and then you only need to buy additional rolls of labels as need. Each roll can produce 200 shipping labels, and I believe you can order 3-packs of label rolls for under $40. Compare that to more than $60 for a single ink cartridge, not to mention the countless hours saved not having to visit the post office when shipping orders, and I think it’s clear why DYMO printers are worth the $200-ish investment they require.
Oh, did I mention DYMO labels are also self-adhesive? That alone will cut your tape-related shipping costs in half, if not more, moving forward.
Thank You notes are never overrated
There is something to be said for adding a personal touch to your shipments. While the consumer is excited to receive the package because it contains something they already paid for, you can further develop the connection they feel to your label with the inclusion of thank you notes and other extras. In the past we have added stickers, baseballs cards, candy, plastic spider rings, posters, and – most frequently – handwritten notes, to all our shipments. Sometimes we personalize the notes with each customer’s name, but other times we write thirty or forty notes in advance and stuff them in packages as needed. Whatever the case, the note is always written by a member of our staff and we always strive to make each note unique in some way. Maybe we add a phrase that is specific to that note, or maybe we draw the customer a picture. Anything that helps them better understand who we are and what we’re about works for us. The same will work for you, but you must figure out what items will best convey your personality to your consumers. Feel free to steal our ideas, of course, because they weren’t really ours in the first place. We were inspired by the labels we felt close to growing up, and it’s a tradition we hope to pass on to future generations.
Prep is everything
Whenever we know a large number of orders will need to be shipped in a small amount of time in we do our best to prepare by checking our mailer stock, writing thank you notes in advance, and generally doing anything in our power to streamline our workflow before the shipping process begins. That way, once we do need to act, everything is ready to go. Our goal is to make the window of time between when an order is placed and when it is shipped as small as possible. Some stuff is out of our control (record production, for example), but we do as much as we can with the power we do have and it makes a noticeable difference.
