Music Business/Law Tips - "Fans"

Its elementary that an artist cannot sell his/her music, tickets or merchandise if there is no audience to sell them to. To find out if an artist really has a dedicated fanbase (i.e., a career), the following 3 key factors have to exist: 1. The fan(s) buy an artist's products. 2. The fan(s) make repeat purchases of an artist's products. 3. The fan(s) recommend the artist's product(s) to their friends online and offline (i.e., viral). Ben McLane Esq benmclane.com

Music Business/Law Tips - "Record Company Profit"

Record companies have a choice when they release a record as to what configurations they will create for the market. Those decisions are generally based on cost, profit and demand. The 3 main configurations are (1) CD, (2) digital download, and (3) vinyl. CD album: Wholesales for approximately $8.29. Manufacturing cost is approximately $1.15. Label gross profit is approximately $7.14. Vinyl album: Wholesales for approximately $10.50. Manufacturing cost is approximately $3.50. Unsold stock cannot be returned so have to be careful on units produced. Label gross profit is approximately $7. Digital album: Wholesales for approximately $6.99. Manufacturing cost is $0. No shipping costs. Label gross profit is approximately $6.99. Although vinyl has had a resurgence, since it costs the most to make and sells the least, it is a limited market, with digital sales becoming the dominant trend since there are no costs to produce and there are now fewer stores to sell CDs. Ben McLane Esq Benmclane.com