Developing New Revenue Streams

In the music industry, it has become a bit difficult to sell full albums due to advancements in technology that allow streaming or purchasing of individual songs. Many fans prefer to purchase only the songs they like instead of a full album for $9.99 or more. The dilemma now is how to make up these lost profits and generate more revenue in a time where some physical formats of music are not being sold.

Fearless Records

Record labels have been fully aware of this and have a solution in the form of 360 deals. These deals take a portion of all of the revenue artists generate including that from merchandise and ticket sales. About.com has more information regarding these types of deals.

There are several ways in which an artist can find new revenue streams to profit off of. One possible way is to offer a wider variety of merchandise, unique band products, and limited edition items. These types of products will get your fans excited and talking about your band as well as your music. Merchandise is a way to connect with your fans in order to give them incentives to make purchases and develop relationships with them. Consider taking advice from your fans, listen to them to see what kind of product they would like to see. Recently, Mayday Parade has asked fans via Twitter what color t-shirt they would buy. Observing who your fans are will give you a better idea of what they would buy or want to see.

Another way to open new revenue streams is to release on vinyl. The physical music format has been increasing in popularity over the years and seems to be making a comeback. What HiFi reports that vinyl sales have increased over the past year, which means there is certainly a market for it. Artists such as Mayday Parade, A Day to Remember, and Bayside have all released vinyls recently.

Releasing a limited edition bundle or acoustic album can certainly increase the buzz around your band, music, and merchandise. Sleeping with Sirens has just announced that they have reached the finishing processes of recording their acoustic album. Developing a new listening experience will not only reward your fans for being loyal but also benefit you as well.

While the encouragement of seeking out new revenue streams is certainly present be cautious when making your decisions. Offering the wrong product could set you back financially. Try releasing a limited number of items first to see how well they will sell. If popularity demands the product, offer it again at the opportune time. If your fans don’t take to it so well, learn from the experience and try again.