As The World Tunes
Ten Ways to Finance Your CD
by Steve Bussey
GeoSynchronous Records
Getting ready to release your own CD? Be sure you have finished your budget first, as we discussed in last month's column. Hopefully, you have planned your new CD in a business-like manner, and now have a good estimate as to what it will cost you, and how much money you can make from it once you sell them all. But how do you pay for them now, until you sell them later? Here are some ideas you may be able to use.
1. Save a percentage of gig money. If you are supporting yourself by working a day gig, you might convince the band to use all of the gig money. If not, then agree on what percentage of gig income can be invested in the band's future.
2. Advance sales. Offer a special price or inducement to get you fans to buy a CD before they are manufactured. You could offer a package deal, say an autographed CD and free admission to the CD release party for $15, or all of that plus a T shirt for $25 dollars, or all of that plus include their name in the CD booklet for $50. The idea is to convince them to buy now for less, rather than later at a higher price. You need to have a definite release date set to make this one work, otherwise, people may think they will never get the product. Give them something at the time you collect the money, plus a receipt or certificate for the CD.
3. Sponsors. You may have noticed that the major concert tours now have sponsors. You may not get Mastercard to sponsor yours, but what about the car dealer in town that is a fan of yours? Ask them to help sponsor the CD. Offer to perform at some of their special sales if they will pay for at least part of the CD. Give them a box or two of CDs for give-aways at the dealership. Offer to include an acknowledgment in the CD booklet. Ask any of the clubs in the area to sponsor a live CD recorded there. Offer to include the name of the club in the CD title or a photo on the front cover. You may have music loving friends that are financially able to help you. Offer to involve them in the recording process, give them passes to all your gigs, list them on the CD as executive producer or whatever they want to be called.
4. Songwriters. You may be surprised to know that there are a lot of songwriters out there that cannot play or sing. They spend hundreds of dollars, even thousands, on paying musicians and studios to record demos of their songs. You may be even more surprised to know that a lot of them write excellent songs! Start attending meetings and workshops of the songwriting organizations in your area. Find a song and songwriter you really like, and negotiate a deal with them. Offer to record their song and include it on the CD, along with a couple of boxes of the CD, if they will pay for part of it. Admittedly, this is backwards from the norm, since you should be paying the songwriter. And this will never work for a published and already successful songwriter. But, it can be a win/win situation for two struggling artists, and it never hurts to ask. Be sure to put in writing whatever you agree to do.
5. Advertising. Hey, this is America, full of capitalists selling anything! Why not sell advertisements in your CD? Wait, don't turn the page just yet, this does not have to be blatant and tacky ads! A label in Australia worked out a deal with a sport utility vehicle manufacturer. The manufacturer agreed to pay fifty cents per CD just for a picture of the vehicle with the singer on the back of the CD. No text, no sales pitch, just a prominent photo. They have sold 10,000 CDs, and have generated $5000! But why fear the blatant? Add an extra panel in your booklet and sell it to an advertiser. And be sure to advertise your own band's other CDs, T shirts, hats, etc., and a mail order address in there somewhere.
6. Bartering and Exchanging. You may be able to trade for something you need. You could offer to trade a gig, guitar lessons, CD credits, boxes of CDs, or other skills you possess (plumbing, carpentry, engineering, etc.). You may need and be able to get studio musicians, printing, most anything. There are plenty of graphic artists, photographers, and graphic designers that might help you with the CD booklet and tray card layout. There are a lot of art shows all across the country at various outdoor festivals. You may find an artist with a really cool painting that you want to use on the front cover. Offer some CDs in exchange for non-exclusive permission to use it on the CD. Offer to include his name and address in the booklet, or give him an advertisement in it. The artist could then sell the CDs for cash in his booth. Be sure to stress how good this cross marketing is for both of you. All of your fans will know who the artist is, and all of his will know your band.
7. Spec Time. Some recording studios will give you spec time, which means you can record now and pay them later when you sell some CDs. This varies with each studio, but usually it involves lousy times (at four AM) or short notices when a paying client cancels a session at the last minute. The studio figures that maybe getting something in the future is better than a guaranteed nothing right now. If you are lucky enough to get spec time, be sure to treat the studio courteously, and do pay them when you get some money. Also offer to help them out in some way, even if it is just emptying the trash.
8. Pressing & Distribution Deal. This is not likely to happen to a new band, but if you are established and have already sold several thousand on your own you may get a label to offer to press the CD and distribute it to retail for you. You would provide a complete audio master and the artwork for the CD, they manufacture it, sell it and pay you when it sells. They may provide some promotion, but mostly it is up to you to give the consumer a reason to buy your CD.
9. Credit Cards. This is a dangerous one, but if you are financially disciplined, and your band is working regularly, you could easily finance the $2000 or so for the manufacture of a thousand CDs on a personal credit card or two. If everyone in the band has a credit card, you could split the costs between you, and then split the CDs between you as well. Each member can then sell his at gigs and keep the money to pay his own credit card. This gives each member a real incentive to sell!
10. Just Do It. Maybe you have a lot of money already, and can simply write a check. Actually, this may be the most dangerous of all. Steps 1 thru 9 above involve a lot of other people who will give you feedback about your band, songs, and CD concept. If there is no positive response, then you know something needs more work. Take the time to plan you CD carefully, both pre-production and what you plan to do after you manufacture it.
There you have it, ten methods to finance your CD. Send your other ideas to me at geosync@pan.com. You will most likely need to use several if not all of them. Frankly, they are all a lot of hard work, but isn't that true in all of the music business?
About the author: Steve Bussey is a singer/songwriter/guitarist and is currently the owner and general manager of GeoSynchronous Records (http://www.pan.com/geosync, Listening Line 800 235 9193, ask for a free catalog), an indie label handling artists such as Les Dudek, Mike Pachelli, Bong Water Taffy, and Big Red & The Bus. Prior to this, Steve earned Bachelor's and Master's degrees in Electrical Engineering and Acoustics from Georgia Tech, designed sound equipment and guitar amps for Fender, and supervised design of communication systems for the Space Shuttle at Kennedy Space Center.
