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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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ADVICE: 6 Tips For Lowering The Cost Of T-Shirts

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 career like a great hook or brilliant melody. This is not a theory or a thought, but rather 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 efforts:

——————  SUPER BASIC TIPS ——————

  • Two-sided designs costs 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 in order for the design to stick

—————— THINGS TO CONSIDER ——————

Large designs can make a big impact

Why incur the cost of creating a two-sided shirt design when you can make a bigger, more cost effective impact 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 prior to moving forward with any design.

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 merchandising. 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 quantity of shirts up front (500+) the up front cost may be more than some are willing to pay for a few extra color. 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 larger quantities of 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 increase, 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 essentially 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 in order 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 choose 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 demand for high quality fabric, and if you meet that demand you will give listeners another reason to consider purchasing your

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9 Secrets To Selling More Merch

Our friends at the Sonicbids Blog wrote this little piece last month to help artists sell more merch. Click here to visit the original article.

You packed the house. You had a fantastic performance. The entire crowd loved every minute of your set. Now you have to turn that enthusiasm into album and T-shirt sales. How do you go about doing that? That’s a question I asked a few indie hip-hop artists who are masterful at the merch table in hopes of finding out some of their secrets to success. What I ended up learning from Jake Palumbo, Tah Phrum Duh Bush, Toussaint Morrison, Joey Batts, and N.M.E. The Illest is a little something I like to call The Nine Merch Commandments.

Like Biggie said, “There’s rules to the shit,” so grab your CDs, your T-shirts, and your smartphone credit card reader (if you don’t already have one of those, consider it your 10th commandment), because here’s your manual.

1. Have someone at your merch table at all times

This seems obvious, but you’d be surprised how many artists just set up a table and go on about their night. Toussaint Morrison notes that not having a person behind your merch table will likely result in stolen goods. He adds that in addition to security, “If you have someone holding down the table, people always [have] a human being they can ask about the merch.”

2. Invite fans to hang out with you at your merch table

When you hold the microphone, you have a lot of control. N.M.E. The Illest suggests using that control to get your fans to join you post-show at your merch table. “Tell them to meet you after the set over at your merch table just to talk and hang out. They don’t have to be pressured into buying anything. They’ll do it on their own.”

Palumbo seconds this, saying, “By walking straight from the stage over to the merch table instead of backstage, you are leading well-wishers to a central location that just so happens to feature your items for sale staring back at them.” He adds, “Support can be contagious. People see others in front of them pulling out money, getting their CD signed, snapping pictures, etc., and they don’t want to be left out and will often buy on impulse.”

3. Set up your merch correctly

No one wants to pick out a shirt from what looks like a pile of dirty laundry. Set everything up professionally. You’re essentially running a store, so it should look like a place where you’d want to shop.

Tah suggests integrating some lighting into your merch display. He also notes that it’s essential to have a price list that everyone can easily see. “You don’t want people to have to work,” he explains. “If there is a line, they can hand off a $10 really quickly and keep moving if they know the price. If they have to wait, chances are they’ll say, ‘I’ll come back,’ and they never do.”

If you’re in a space where it’s possible, “try to find a hook or something to hang the T-shirts from,” Morrison says. “People can see shit hanging in the background up higher better than they can see something laying flat on the table.”

4. Show up to the venue early

Arriving just in time for your set is something only douchey artists do. Tah notes that professionals who actually want to make new fans and move some merch arrive at the venue a full hour before things get started. “Work the whole room, and make sure everyone knows your name,” he explains. “Thank them for coming to your show even if they came to see someone else or are just hanging out at the bar randomly. Tell them how much you appreciate them coming out, and ask them how they heard about you. It starts a convo 75 percent of the time. It piques interest and gets curiosity happening. The more of a connection you have, the more of a chance they will watch your set with care, and the more likely they are to buy your shit!”

Joey Batts agrees: “Talk. To. Everyone. Not one artist reading this is bigger than any single fan. A simple convo builds a relationship.”

5. Leave the venue late

Show up early and leave late? Yes, you’re going to be burning the candle at both ends, but N.M.E. The Illest points out that even after the last act, “people are still meandering around looking for that last out-of-the-door impulse buy. Don’t miss out on that opportunity. I’ve had my biggest sales at the tail end of the night.”

6. Have fans who already own your T-shirts come to the show wearing them

If you have an email list, or any sort of following on social media, influence your fans who already own your merch to come to your shows wearing it. “The more people, especially women, wearing your merch at shows, the more people will buy your merch,” Tah explains. “They will feel a need to belong.”

And if a little motivation is needed? “Have the venue take a dollar off the cover if someone is wearing your merch,” he recommends.

7. Hook up the venue’s employees

Since the venue is going to be your home for the evening, hook up the employees. N.M.E. The Illest explains why artists should do this: “Who are some people you are guaranteed to run into at a show? Door guy. DJ. Bartender. Sound man. Headliner. Give them a shirt! Ask them to rock it! They will essentially be promoting you all night.”

8. Make sure you have high-quality products

As Joey Batts eloquently puts it, “Loyalty is real, but garishness is realer.” This is why he notes that a very important aspect of any merch sale is to “create a shirt that people will want to wear.”

Quality, N.M.E. The Illest adds, is a huge factor when it comes to this. “You must invest some money into yourself, and try to maintain the highest standard possible when it comes to products you want people to take home,” he explains. “The days of iron-on logos and Memorex, handwritten CDs are gone. The internet has made so many great merch options available, or if you’re like me, you hunt down the best local print shop, and work face to face with the people creating your goods.”

N.M.E. also warns, “Don’t overdo it with the corny merch – aprons, clocks, novelty weird stuff. Keep it simple at first – music, shirts, stickers, then think about expanding your brand. If people see 10 different things available, they might get overwhelmed and not buy anything.”

9. Play “let’s make a deal”

“Fans love a deal,” N.M.E. The Illest explains, which is why he bundles his merch. “Give them everything all-in-one for a discount.”

Joey Batts adds that this is also a way to connect with fans who might not have as much money on them. “Understand the struggle,” he says. “If people paid to see you, cut ‘em a deal. No one is truly Mr. Moneybags, despite what they say.”

Learn more about selling merch at your shows:

Adam Bernard is a music industry veteran who has been working in media since 2000. If you live in the NYC area, you’ve probably seen him at a show. He prefers his venues intimate, his whiskey on the rocks, and his baseball played without the DH. Follow him @adamsworldblog.

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