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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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How to keep shirt costs low without risking the quality of your merch

There are many ways to get attention for your band, but regardless of what tips and tricks you may have picked up throughout your experience in music, there is nothing that can impact your careers like a great hook or brilliant melody. This is not a theory or a thought, but instead proven fact that has worked for artists trying to make it in every corner of the music business. Everything else that follows, from touring to merchandise, must take a back seat to songwriting.

All that aside, artists still need to make money. Music sales have dipped across the board over the last decade, and with streaming services like Spotify and Apple Music on the rise, it seems like the amount of money most artists see from their new releases will continue to dwindle for the foreseeable future. Great music still sells, yes, but only a fool would rely solely on the strength of their music sales to support themselves in the entertainment business. Merchandising beyond albums and singles is an absolute must in today’s music business, and the one item every artist can use to generate income while trying to craft that perfect song is a t-shirt. There are a billion ways to customize shirts, some far more expensive than others, but by considering the following tips, you can keep costs low while furthering your marketing:

BASIC TIPS

  • Two-sided designs cost more than those with a design appearing on either the back or front.
  • Shirts requiring the use of many inks (colors) will cost more than those created using a single ink.
  • Dark fabric often costs more than light fabric because more layers of ink must be applied for the design to stick

THINGS TO CONSIDER

Large designs can make a significant impact.


Why incur the cost of creating a two-sided shirt design when you can make a more meaningful, more cost-effective impression with a large, single side design. The vast majority of printers charge the same rate for a design measuring 3”x5” as they do for those measuring 12”x12”. That said, not everyone is a fan of big designs so it would be wise to check with your fan base before moving forward with any plan.

Stop printing on both sides.

The occasional two-sided shirt design can be cool, but trying to cover both sides of every shirt you create will only raise the overall cost of merchandise. Using the knowledge you gained from the tip above regarding design sizes, artists should think twice before incurring a potentially unnecessary extra expense.

Use fewer ink colors.

Fans of alternative and punk music have been one of the leading forces behind a recent trend toward more color-heavy shirts. Bands like A Day To Remember and Asking Alexandria have found great success with shirts featuring cartoonish designs and many bright colors. Similar branding efforts may work for smaller artists as well, but those musicians should first consider the additional costs incurred from use of multiple inks. The number rises with each color, and unless artists plan on ordering a large number of shirts up front (500+) the upfront cost may be more than some are willing to pay for a few extra colors. Our advice is this: Keep it simple. Try and use one color whenever possible unless you know the idea you have is going to be a hit with listeners.

Order more shirts.

We touched on this a bit in the tip above, but one way musicians can lower the cost of their merchandise is to increase the number of shirts they order at one time. The price due up front will rise, but the cost per unit will drop, which in turn raises the revenue potential for your order. 100 shirts are better than 50, but 500 shirts at a time would be an ideal place to start. Of course, if you don’t have an engaged audience large enough to support such an order, then you should keep things small.

Consider offering shirts for a limited time only.

One way to cut out virtually all costs from merchandise orders is to create the exact number of items needed. Most print shops will tell you the per unit cost on whatever design you wish to print, as well as the number of units you must purchase to lower that cost. With this information in hand, artists can launch shirt designs that are available for a limited time as pre-sale only items. Once the purchasing period ends, artists can order the exact amount of shirts needed without having to make any investments out of pocket.

Think twice about upgrading your shirt choice to a fashion brand.

One determining factor in how well your merchandise will sell is how comfortable that item is perceived to be. There was a time not that long ago when artists with shirts printed on any type of fabric would sell, but in an age where brands like American Apparel exist this is no longer the case. There is a demand for high-quality material, and if you meet that demand you will give listeners another reason to consider purchasing your

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