In Part 1 I described how I think that the combination of digital piracy and the younger generations knack for “acquiring” music for nothing is going to lead to the advent of musicians giving their music away. You of course do not have to agree with me, but at least read how I would combat it.
One of the main questions of course begs an answer…”If I GIVE my music away, how the heck do I make any money?”. My answer is simple…Create more content that you CAN charge for.
Now this simple statement is really not all that simple in its execution, but it is simple in principle. What is content that you can charge for? For me the answer is anything that cannot be easily digitally downloaded. What I propose is to create a user experience that people are willing to pay for. To create products that people want to physically see or have.
Touring would not change. Even after everything is said and done, there is money in touring, even if it is a smaller amount. What touring DOES do is allow one to sell merchandise, and this is where a chunk of money comes from. OF course with each show, more and more people become exposed to the music, which in turn snowballs and can translate into more merch sales. Performing in front of people is an experience that cannot be duplicated. It makes a connection.
However, to take advantage of the above, you have to have a site designed to handle the sales, and of course product to sell it. There are still die hard CD people, so for now I would certainly still pump out a few of them, but I wouldn’t go nuts ordering large volumes. Even consider using on-demand services…it may cost a bit more per unit, but there isn’t any upfront capital invested.
So we know we can still tour and get exposure. But that doesn’t replace the cash lost from selling music. We know that merchandise will continue to sell and produce a hefty profit, but you do that now. So we still need to replace the lost income from song/Cd sales. So how do we replace it?
I am going to toss out just a few of many ideas, ALL of which are revenue generating and easy to do. Remember, by giving away your music you are a pioneer, and will create a buzz. This buzz will resonate with fans and help spread the word about you and your music. What we want to do is monetize that buzz!!
Idea 1: Video. Video everything and anything. With a strong marketing program and consistent communication with your fans via social media and/or your 
website, people will feel a part of what you are doing. Capitalize that by communicating with them via video. For example, you are in the studio recording new songs. You plan on releasing them slowly, one at a time (since we are giving them away anyway) but still want to make money for your efforts. Video the sessions. Offer up one of the songs as an MP3(do not release this song anywhere else) along with a “Behind the scenes” DVD. Make it a physical product that has to be mailed, not digital. You create another video of the same footage and break it into 3- 2 minute sections like a movie trailer. THOSE you put up for free. This footage is designed to be a teaser to let people know what you have done and if done right, will in the end encourage people to purchase the actual product. Video is great because like music was, its created once and sold over and over again. This works for any type of behind the scenes footage and even live concert footage. Keep the costs reasonable.
Idea 2: Bundling products. As you grow and increase your brand, people will want what you have. If you do have Cd’s or DVD’s, why not bundle them with apparel? Limited edition shirts along with a signed copy of a CD/DVD is something an avid fan MUST have. (Posters work well here as well)
Idea 3: How about a membership based site? For a one-time fee of $xx, fans get access to any and all songs. Maybe members get special discounts on other merch, or other added benefits as they arise. The possibilities here are endless, and with the technology readily available, membership based sites are a snap to produce.
The goal here is to create and spread your brand. If you have a good product(brand) and people enjoy your music, by putting in place the means for people to spread the word about you, a musician can really capitalize on being a pioneer in an overcrowded market.
Let’s face it…digital music is stolen more often than not. For those of us who grew up in a physical world, we will continue to pay for it, but the generations behind us are getting it all for free and will continue to do so. So unless the Government has some really super special magic tricks up its sleeve, we all need to start thinking of how ELSE to monetize music. The songs themselves are just one of many communication devices, what people are really buying into is YOU. So let’s start exploring the possibilities and think outside the box. Whether you accept it or not, right now there is someone downloading YOUR song for free. Let’s take that freebie seeker and get them into a sales funnel. Let’s take your fans and give them more of what they want…YOU(but let’s make some $$ on the back end!!)