How to Make $30,000 with Your Music Before Years End

As an independent musician and/or recording artist, if you did *NOT* earn $30,000 (or more) with your music alone last year, let's jump right in and get you started with doing so this year.

Again, bear in mind that the main necessary ingredient is "consistency" of every aspect, and on a weekly basis.

Remember! This is a worst case scenario, in regard to what you should be able to easily earn within each aspect, and you are very likely to earn much more.

The "lead generator(s)" in each aspect reflects the various resources that you will use to obtain results in these areas.

So, here is the financial mathematical layout.

[---GIG EARNINGS---]

Practically any band should be able to market and promote itself well enough to obtain, at least, one gig per week, whether the band is based in a metropolitan or rural setting, and whether it performs on a fulltime or part-time basis.

So, in our worst case scenario, let's look at getting one gig per week:

1 Gig X 1 Week @ $300 X 4 weeks = $1,200 per month

Lead Generators:

* Contacting venue managers and bookers directly
* Signing on with an area booking agent
* Placing low-cost ads in your area weekly newspapers
* Contacting area performance theaters
* Host your own gig at an area hall or theater
* Contacting high schools for performances
* Contacting college student activities offices for performances
* Low-cost college newspaper ads for possible gigs
* Low-cost college radio ads for possible gigs
* Your website calendar gig notices/tours

Note: Provide your media kit and business card to prospective clients.

[---GIG CD SALES---]

As you are already aware, most gig employers will allow you to sell your music during performances.

So, in our worst case scenario, let's look at getting sales during gigs, with a minimum of 100 people at each gig, and with 10% (10 sales) of the crowd who, after witnessing your mind-blowing spectacular performance, suddenly realize that life is not worth living, and they simply cannot go on unless they own a copy of your CD:

10 sales X $10.00 (per CD) X 4 weeks = $400 per month

Our monthly sub-total is now $1,600

Lead Generator:

* Your incredible stage performance that left them mesmerized.
* Your website for additional sales

[---TEACHING---]

Right now, in your own area, there are innumerable people who would like to learn to play your instrument, or be able to sing as half as well as you. So, why not teach them how to do so while earning a bit of income doing it as well?

So, in our worst case scenario, let's say you teach only one day each week, with only two students, at one hour each, while charging $10 per student, per lesson:

1 day X 2 students X $10.00 (per student) X 4 weeks = $80 per month

Our monthly sub-total is now $1,680

Note: If you decide to devote an entire day of the week to teaching, say 8 students/8 hours, your income increases to $80 per day/$320 per month.

You can also consider contacting area community colleges that will likely be receptive to your classes within their "Continuing Education" program, which can even pay a bit more money. And, if time allows, why not get the best of both worlds, so to speak, by teaching both independently, as well as within the college system?

Lead Generators:

* Placing low-cost ads in your area weekly newspapers
* Contacting high schools to post notices/fliers
* Low-cost college newspaper ads
* Low-cost college radio ads
* News releases to area radio and print papers
* Feature interviews on area radio and in newspapers
* Your website with your class notices

Note: Provide your credentials to student prospects in the forms of a resume and/or portfolio.

[---ONLINE SALES---]

Just a few noted sites include:

CD Baby ( http://www.cdbaby.com )
The Orchard ( http://www.theorchard.com )
Amazon.com ( http://www.amazon.com )
New Artist Direct ( http://www.newartistdirect.com )

With fairly decent online promotion, at the least, you ought to be able to realize an average of 3 sales per week from each of these sites. While all may not produce those 3 sales individually each week, some of them are likely to produce more than 3 sales, dependent upon your promotional efforts, of which should still average out to 3 sales each.

However and again, let's review a worst case scenario:

4 sites X 3 sales each X $7.00 = $84 X 4 weeks = $336

Our monthly sub-total is now $2,016

Lead Generators:

* Peripheral online sales from gig audiences
* Low-cost ads in area weekly newspapers
* Low-cost college newspaper ads
* Low-cost college radio ads
* Internet marketing and promotion on music message boards, music forums, and within discussion list signature files
* News releases to area radio and print papers
* Feature interviews on area radio and newspapers
* Your website sales

[---WEDDINGS---]

Though weddings occur within every month of the year, the biggest and most traditional month for weddings is June. And, right now, in your own area, there are quite a few being planned for this summer. Weddings are one of the most lucrative income generators for musicians, because families generally are very liberal in spending on them, and go all out, so to speak, for this special day for their daughters.

So, in our worst case scenario, let's say you can get, at least, one wedding gig per month, at $1,000 per gig (more wedding gig opportunities are likely during summer months especially):

$1,000 X 9 months = $9,000

Our monthly sub-total is now $3,016

Lead Generators:

* Caterers & Catering Services
* Placing low-cost ads in your area weekly newspapers
* Your website notices of your availability for weddings
* Providing your business card to area upscale restaurants
that cater wedding receptions and banquets
* Your business card left with flower shops
* Your business card left with jewelry stores
* Your business card left with bridal shops
* Your business card left with tuxedo shops
* Your business card left with bridal services

Note: You should also provide your business card to wedding attendants who inquire about your services for upcoming functions that they may be hosting in the future.

[---WEDDING CD SALES---]

You may also be able to sell your CD at weddings, however, ASK FIRST when coordinating your performance arrangements. Attendants usually interact with the band, as it is a happy occasion.

If you are allowed to sell your recordings at weddings, you should do so passively by having your CDs placed near the performance area in a conspicuous position.

However, I would not "hard sell" (repeatedly mention) the CD from the stage, unless of course, a wedding coordinator decides to do so, or states that you may do so.

So, in our worst case scenario, let's say, at least, 100 people attend each wedding (more are likely to attend many weddings), with 10% of them purchasing your CD:

10 sales X $10.00 (per CD) X 1 month = $100

Our monthly sub-total is now $3,116

Lead Generator:

* Your performance
* Your website notice

[---RETAIL STORE CONSIGNMENT SALES---]

Since stores won't be laying out cash in advance for your music, you should have very little problem consigning your music to retailers.

A word of advice is for you to not consign more than five copies per per store, per 30-day period, at any time. Limiting copies to stores will allow for sufficient time in your product moving off retailer shelves.

Consider getting your product consigned with, at least, five area retailers. However, if there are not enough music stores in your area, consider consigning it with other retailers such as; bookstores, flower shops, jewelry stores, and any other such retailer that gets quite a bit of traffic and might be interested in carrying your music.

You will, generally, be required to present retailers with your own consignment form, and I have created one that you can freely download and customize for your own use at: <a target="_new" href=" http://www.MuBiz.com/CnsnmtFrm.html">http://www.MuBiz.com/CnsnmtFrm.html</a>

Just be sure to duplicate it so that both you and the retailer have copies.

So, in our worst case scenario, let's look at your area retail possibilities:

5 Stores X 5 copies X $8 (your take) = $200 per month

Our monthly sub-total is now $3,316

Lead Generators:

* Low-cost classified or display ads in area newspapers
* Low-cost radio ads
* Low-cost cable television ads
* News releases to all forms of media
* Feature interviews at local television, radio stations and print media
* Music reviews in your area print media
* Your website listing area stores carrying your music

Note: Provide your media kit and business card to retailers in order to further influence their decision in consigning your product.

[---PRODUCTION---]

Did you produce your own CD? If you did, and if people are raving about how great it is, why not consider producing other area bands as well for some extra cash?

Between now and the end of this year, you should be able to produce, at least, two acts for, at least, a $1,000 fee each.

Lead Generators:

* Word of mouth and fellow musicians you know
* Placing low-cost ads in your area weekly newspapers
* Low-cost college newspaper ads
* Low-cost college radio ads
* Your website notice of your production skills
* Fliers in music instrument stores

Note: Provide your media kit and business card to contacts.

As our monthly sub-total is $3,316, providing a grand sub-total of $29,844, when you add on your $2,000 production fees for both bands that you produce, your minimum grand year-end total comes to $31,844.

As I stated at the beginning of this article, each of these aspects contain 'bare bones' minimum figures in respect to what your earning potential is within them.

* Special Note: In each of these areas, it is very likely that you will experience repeat business, as well as word of mouth promotion, which will further add to your annual income this year, thus, creating the potential for doubling or even tripling your income.

Kenny Love is president of <a target="_new" href="http://www.MuBiz.com">http://www.MuBiz.com</a>, a radio promotion and media publicity firm that also provides business and career services to musicians.

Solid-Bodied Gretsch Corvette Guitar

The Solid-bodied Corvette (not to be confused with the Corvette hollow-body arch-top electric, produced from 1955-1959) was Gretsch's answer to the Les Paul Jr. by Gibson. Introduced in 1961, the Corvette Solid-body was a small, light-weight, comfortable electric guitar that was just right for the budding musician.

This killer guitar, with a solid mahogany body, solid mahogany set neck, and a rosewood fret board with pearl dots, originally came with a single HI-Lo 'Tron pickup. The earliest examples had a trapeze tailpiece. By 1963, the Corvette was sporting a Burns' flat-arm vibrato tailpiece. (Yes! That Burns! Good old Jim Burns from England), and came with a choice of either one or two of those Hi-Lo 'Tron pickups. By mid-1963 to 1964, Gretsch changed the standard 3/3 headstock (3 tuners on each side) to a scooby-rific 4/2 headstock design (4 tuning keys on one side, two on the other). Most Corvettes were finished in "cherry" red mahogany and had black pick guards. Some came with red and white striped pick guards and a more opaque red finish to the body. This version is known as the "Twist" model. Early Corvettes were also available in platinum gray finish with black pick guards, but this color was officially discontinued in 1963. Also in 1963, Gretsch started beveling the edges of the guitar's body and sharpened the cutaway points.

Variations of the Gretsch Corvette were the Silver Duke (1964-66) which was sparkle silver, the Gold Duke (1964-66) - you got it - in sparkle gold, and lest we forget, the Princess (1963-64 - made for the ladies) which was available in many color combinations such as white with purple sparkles, blue with white sparkles, pink with white sparkles, and white with gold sparkles - phew! The Princess also differed from the others in that it had a Palm vibrato tailpiece rather than the Burns', gold-plated hardware in lieu of the standard nickel/chrome hardware, and a shiny belly-pad on the back.

By 1968, you could no longer get single pickups on the Corvettes, the Burn's vibrato was replaced with a Bigsby vibrato tailpiece, and the HI-Lo 'Tron pickups were replaced with Super 'Tron pickups. Production of the Gretsch Corvette wound down in the early 70's. (The Corvette did make a brief reappearance from 1976 to 1978 with different specs - humbuckers, etc. It was not the same.)

The Gretsch Corvette (1961-early 70's) can still give you some bang for your buck in today's vintage market. You get the vintage sound and vibe, with great playability for less than you'd pay for a Paul, Jr.

Allen has 25 years of experience working with guitars and is the Vintage Guitar Pro in residence at <a target="_new" href="http://www.VintageGuitarPro.com">http://www.VintageGuitarPro.com</a> - a website for the vintage guitar enthusiast specializing in online vintage guitar appraisal. Find out more about Allen and Vintage Guitars at <a target="_new" href="http://www.VintageGuitarPro.com">http://www.VintageGuitarPro.com</a>

Buying A Guitar

There are many things to consider when buying a new classical guitar. For instance, whether or not you are a beginner or seasoned professional will determine just what you are looking for and how much you are willing to spend.

If you're a beginner to intermediate player there are many excellent online dealers that carry a good range of brands at reasonable prices. I've recently added a Guitar Store page on my website which carries merchandise from Musiciansfriend.com which I'm very happy with.

These online stores "live and die" by their reputation and so can't afford to have mediocre instruments or service. As we all know, news travels very fast on the web and they'd soon be out of business if they tried to "pull a swifty" on anyone.

You can pretty much trust that their instruments will be good and you can view pictures of them online so don't be afraid of buying a guitar online if you're looking for that sort of convenience.

If your heart is set on going to a "bricks & mortar" store to seek out an instrument, actually getting it in your hands to get the feel, then there are a few things you should know before you go.

The most important thing is of course the sound of the instrument. Is it a sound that you are happy with and feel comfortable about.

The different types of wood that classical guitars are made from will give each instrument its own peculiar sound but in general, guitars with cedar tops produce a more "warm' tone whereas spruce tops are likely to be more "focused" or 'concentrated".

I've been asked in the past to accompany parents of some of my students to help in the purchase of a guitar. If the instrument is new then these things aren't so important but I still check them anyway.

So, one of the first things I always do is check along the neck of the instrument by looking down from the nut to the end of the instrument. That is, I physically pick up the guitar and hold it out from my body so that the headstock is pointing towards me. Then I look along the length of the neck to see if it is straight. There should be NO bowing of the neck at all.

I also look behind the bridge of the instrument to see if any area of the top is buckled or bowed. I would strongly advise anyone NOT to buy an instrument that was showing any signs of these defects. It's just not worth it in the end.

The third thing I do is to hold down the strings from the second fret to the twelfth fret and see if the string length touches all the intervening frets. There will be a problem with craftsmanship if you have any significant variation here.

I then check the sound of the instrument to see if it has the qualities that I'm after. They are: projection; quality of tone and; comfort i.e. is it the right size for me or whoever we're buying the instrument for.

Children, especially younger ones, will obviously need a smaller guitar than adults and it depends on the size of the student. Classical guitars usually come in half, three-quarter, five-eighth and full size.

If you've covered all these areas you'll usually come away with a decent guitar that will last you many years of happy playing.

If you're a more advanced player or have the money and inclination to buy something a little better, you know, that DREAM guitar, then you'll have to invest a little more time, money and testing to achieve it.

Sharon Isbin, writing in the Classical Guitar Answer Book , suggests these areas when purchasing that "dream guitar": Beauty of Tone; Dynamic & Timbral Contrasts; Clarity & Speed of Response; Sustain; Balance; Resonance; Intonation; Projection; Condition.

Phew! Talk about attention to detail! But if you're after an instrument of quality and it's worth the money then it's worth the time and effort to research.

I hope this has been of help in purchasing an instrument.

Trevor Maurice is an Australian, living in beautiful seaside Maroubra, in the eastern suburbs of Sydney.

He's been involved in playing guitar (mainly classical) for longer than he cares to remember and has also taught the instrument for many years. He is teacher trained, having a Diploma of Education (Majoring in music)

He has also taught Primary (Elementary) school for many years and had a long-held dream to build a quality website for the classical guitar that is of use to anyone even slightly interested in this beautiful instrument. He has now made that dream a reality with the highly rated...

<a target="_new" href="http://www.learnclassicalguitar.com/index.html">http://www.learnclassicalguitar.com/index.html</a>

Alternative Sales Sources for Your Music

Following, is a list of alternative sources that may be interested in carrying your music for sale for their particular clients and customers, if only they were aware of your music.

Most of the clients and customers are already "captive" audiences who are waiting on a product or service, so why not promote (and sell) to them as they wait?

Additionally, if these sources have their own in-house music system (which many do), you should also speak with them regarding adding your music to their own in-house "playlist."

I have also suggested genres that I feel will lend themselves best to the particular businesses below, however, it will also depend on the businesses' own personal tastes as well.

1. Music retail stores (Any)
2. Bookstores (Mostly soft, Jazz, New Age, but depends on store)
3. Flower shops (soft Folk, New Age, Jazz)
4. Boot stores (Country, Americana)
5. Western wear (Country, Americana)
6. Restaurants (Any, but depends on restaurant)
7. Church stores (Gospel, Christian)
8. Christian bookstores (Gospel, Christian)
9. Doctors' offices (Soft Rock, Pop Rock, New Age, Jazz)
10. Convenience stores (Any)
11. Airport gift shops (Any)
12. Bus station gift shops (Any)
13. Train station gift shops (Any)
14. Electronics stores (Any)
15. Office supplies (Any)
16. Corporate/company cafeterias (Jazz, New Age, Soft Rock)
17. Jewelry stores (Soft Rock, Jazz, New Age)
18. Barber shops (Any)
19. Beauty shops (Any)
20. Nail salons (Any)
21. Sports shops (Any)
22. Health clubs (Rock, Dance, Electronica)
23. Apartment management offices (Any)
24. Variety stores (Any)
25. Game arcades (Rock, Dance, Electronica)
26. Bed & Breakfast Inns (Jazz, New Age, Soft Rock)
27. Bridal consultants (Jazz, New Age, Soft Rock)
28. Bridal stores (Jazz, New Age, Soft Rock)
29. Tuxedo shops (Jazz, New Age, Soft Rock)
30. Bridal services (Jazz, New Age, Soft Rock)
31. Clothes cleaners (Any)
32. Mainstream clothing stores (Any)
33. Shoe stores (Any)
34. Coffee houses (Jazz, New Age, Soft Rock)
35. Computer stores (Any)
36. Eyeglass stores (Any)
37. Consignment shops (Any)
38. Farm supply stores (Country)
39. Flea markets (Any)
40. Swap shops (Any)
41. Formal wear stores (Any)
42. College bookstores (Any)
43. College music stores (Any)
44. Gift shops (Any)
45. Hardware stores (Any)
46. Hospital gift shops (Any)
47. Hotel gift shops (Any)
48. Insurance companies (Any)
49. Massage therapists (Jazz, New Age, Soft Rock)
50. Cellular telephone services (Any)
51. Motorcycle shops (Any)
52. Night clubs (Depends on the genre)
53. Party supply stores (Any)
54. Pawn shops (Any)
55. Cosmetic stores (Any)
56. Satellite dish stores (Any)
57. Thrift shops (Any)

Kenny Love is president of <a target="_new" href="http://www.MuBiz.com">http://www.MuBiz.com</a>, a radio promotion and media publicity firm that also provides business and career services to musicians.

Dance Musics Most Popular and Enduring Theme: The Declaration of Independence

It all started with Gloria Gaynor's "I Will Survive" in 1979, perhaps the biggest fluke in popular music history. To follow up her hit "Never Can Say Goodbye", Gloria's label issued a song called "Substitute". The track bombed. Everyone hated it, including the radio DJs and the public. Then DJs started to play the B-Side track "I Will Survive" and the rest is history.

In retrospect, it is no surprise that "I Will Survive" should have become as popular and enduring as it did. The theme of the song is universal. Who hasn't loved and lost? But the song went further and became an Anthem for reclaiming one's power. One could say Gloria is the Godmother of Girl Power. With "I Will Survive", Dance Music's fascination with a Diva declaring her independence was born! The song and theme have proven so popular that even Diana Ross, Diva Supreme herself, did her own version of "I Will Survive" in the late nineties.

Later in 1979, Donna Summer jumped on the bandwagon when she released her duet with Barbra Streisand titled "Enough is Enough (No More Tears)". That song has followed "I Will Survive" into Music History as a Dance Floor Classic inspiring several remakes, including one by KD Lang and Andy Bell (Erasure) and at least two by Donna Herself: one with Tina Arena for her Live and More Encore CD and another with British boy band Westlife for DiscoMania.

In the years since the genesis of the theme's popularity, it seems that no Dance/Pop Music Diva's career is complete without at least one "Declaration of Independence" (DOI) themed track in her catalogue. From Cher's "Strong Enough" to Deborah Cox's "Mr. Lonely", Anastacia's "I'm Outta Love" and "Left Outside Alone", Sheena Easton's "Strut", Amber's "Taste the Tears" (Sex & the City), Britney Spears' "Stronger", Christina Aguilera's "Fighter", Madonna's "You'll See", Destiny's Child's "Survivor", Tina Tuner's "When the Heartache is Over", Toni Braxton's "He Wasn't Man Enough" and "Hit the Highway", Pink's "There You Go", the list goes on and on.

Perhaps the most popular DOI track since "I Will Survive" is Whitney Houston's "It's Not Right, But It's OK". The Thunderpuss Remix of the track became so popular a few years back that it was credited with revivng Houston's career, such is the power of a Diva declaring her independence in song.

And the popularity of the theme continues on current hits. Alicia Keys' "Karmastition" is a current worldwide Radio Hit. And it's still in the pipeline, but Dance Music fans online are buzzing over the track "Sacrificial Lamb" from Amber's New CD "My Kind of World". This wholely original take on the DOI theme has the Pop/Rock Vocalist belting "Now I leave you with your arrogance, now you're crying, now you're dying, like a sacrificial lamb" on the song's powerful chorus.

Dance Music's fascination with a Diva throwing her man to the sidewalk shows no sign of slowing down! Classic hits, current hits, future hits..."Declaration of Independence" tracks are as popular as ever!

Kevin Snook is the Editor of <a target="_new" href="http://www.MostMusic.BlogSpot.com">http://www.MostMusic.BlogSpot.com</a>, a site the features Dance Music News, Reviews and Articles. Visit <a target="_new" href="http://www.MostMusic.BlogSpot.com">http://www.MostMusic.BlogSpot.com</a> to contribute to our list of "Declaration of Independence" Songs and to add your comments.

Pop/Rock Singer/Songwriter AMBER is a featured Artist. To find out more about Amber, her New CD "My Kind of World" and her new Maxi Single release "Voodoo", visit <a target="_new" href="http://www.Amber-MCC.com">http://www.Amber-MCC.com</a>

Performance and Gigs

"For optimum amp tone onstage, plug your amp into your own AC outlet.." - Eric Johnson

DOING GIGS

In my opinion, there are two kinds of performers:

1 - Concert performers -- who do well in front of a sit-down audience

2 - Club performers -- who do well in a noisy atmosphere

Knowing which kind of performer you tend to be can help you a lot in deciding where to play. For a lot of people, it's easy to be both types of performers but some people truly prefer playing in one atmosphere over another. If you want to be at your best, it's smart to be comfortable. So if this is an issue for you, take the time to think about it.

Next you have to consider if you are going to be performing your own material or covers or both. If you decide to do covers, here are some good tips:

1) The song should really move you.

2) Make the song your own, otherwise after awhile you'll just feel like "parrot" for someone else's material (and to me there's far less creativity in that - just my opinion mind you).

3) Cover Songs are great ice-breakers and shouldn't be overlooked as great tools for any songwriter to use. Do covers, from artists who lend to your style in one way or another. Opening with a recognizable cover song really helps an audience relate to you and get an idea of where you're coming from as an artist ... and also helps them relate more to your originals, too.

Of course, to play at most venues, you've got to be prepared to sell yourself. Here are some tips on this subject:

Get your Bio / Demo ready for the Concert Promoters & Club Owners.

I've read a bunch of stuff about preparing demo submissions for venues, with bio's and clippings and stuff like that - but I'm sure there's more to it than that?

You don't need much. No club owner or manager is going to want a twenty-page book on you, nor will he/she be impressed with elaborate artwork and/or printing. Just a single sheet of paper that briefly and concisely states what type of artist you are, what kind of songs you play, how you interact with an audience and where you've played or are playing ... and a CD with either three or four whole songs, or six to eight songs that each fade after a minute. That, along with a congenial introduction and follow-up calls will be enough.

Performance anxiety can be an issue. Fortunately, most musicians overcome this in a short period of time - I've found that going to open mics, just getting up there and doing it has helped immensely. Find a supportive group of people in your genres' scene.

Here are some more tips to help you...

1 - Know your material and your performances upside down and backwards. You have to be able to play your songs and not mess up under any situation, and the way to do that is to KNOW them well ... memorization ... playing a song and working out each and every measure of it until you know it blind-folded. Then, if something bizarre happens while you're in the middle of a performance, muscle-memory and instinct will take over and you won't be thrown.

2 - Know your strengths ... know which songs are "yours" and which songs aren't. In effect, build a really strong set list. When someone like Bruce Springsteen cuts a new album, he'll record 50 songs ... 12 of those wind up on the album we hear and the other 38 go to other artists to do.

3 - LOOK unique . Dress yourself in a way that makes a statement. You know from my previous posts that I believe in dressing the way you always dress; to not be pretentious or something you're not ... but that doesn't mean that you want to look like the guy next door. You want to create an "image" ... just make it an honest one. So you usually wear jeans and a t-shirt? Fine. Just add some accents that make it all yours. A unique pair of glasses (if you wear them), a very special vest, a wardrobe of scarves, purple boots or hand painted sneakers ... whatever separates you from the average guy walking down the street and doesn't make you look like you're trying to be someone who lacks sincerity or who has lost all sense of reality.

"With the above going on, you're going to FEEL confident, because you ARE ... and THAT sells."

Performance and Gigs <a target="_new" href="http://www.guitarz-for-ever.com">by Scott Thomas</a>

Scott Thomas

Managing Editor

Guitarz Forever.com

<a target="_new" href="http://www.guitarz-for-ever.com">Guitarz Forever.com</a>

Warner Music Executive Payments

&quot;In human life, art may arise from almost any activity, and once it does so, it is launched on a long road of exploration, invention, freedom to the limits of extravagance, interference to the point of frustration, finally discipline, controlling constant change and growth.&quot; Susanne Langer (1895-1985)

Commentary

In these times of major record label mergers, downsizing, the slashing of label rosters, and thousands of record company jobs being lost over the last three years--not to mention the enormous sea change and seismic shifts that technology has wrought--comes one of the most disturbing reports we have come across. It further reveals just how profoundly out-of-touch certain companies TRULY are when addressing the problems within their own record divisions. The Financial Times reported 'Warner Music, paid its top five executives more than $21m in salary and bonuses following last year's $2.6bn acquisition of the US music group by a private equity consortium.' The article continues that of the top management, Edgar Bronfman Jr, the Chairman who led last year's buy-out, received a $1M salary and $5.25M bonus. Lyor Cohen, head of the US recorded music business, received $1M and $5.24M in salary and bonus, respectively. Paul Rene Albertini, head of Warner's international operations, was paid $1.25M in salary and a $3.15M bonus. Departing Warner/Chappell CEO, Les Bider, received a $2.44M total payment. These payouts include further guaranteed bonuses or change of control payments. According to documents filed with the U.S. Securities and Exchange Commission, last year's total executive remuneration was more than three times higher than Warner Music's $7M operating income for the 10 months to September 30th. The management payments reflect Warner's success in cutting costs following last year's sale of the Music Group by Time Warner. The company expects to deliver $250M of annualized savings by May this year, achieved mainly through 1,600 job losses.

What is so truly disturbing here is that it speaks volumes about the value system of an owner of a company that would pay its top-five Record Executives more than three times the amount of operating income for a ten-month period while dismissing 1,600 employees.

What the article failed to mention was that in addition to the employee layoffs, Warner Music Group also dropped 93 of the 193 artists signed to Warner Labels in the US, approximately 47% of the artist roster during this same period. If the financial health of a company is truly so dire that it calls for these kind of dramatic and severe cuts for the financial well being of the company, how does one justify the kind of staggering bonus payouts to the top five executives in the company? Don't get us wrong, we have no problem with executive compensation when it's tied to actually rewarding performance, but in this case, one is truly hard pressed to grasp or to understand what is actually being rewarded. The claim that the Warner Music Group will save $250M of annualized savings mainly through the decimation of 1,600 jobs is not something that we think should be financially rewarded.

On Feb 11th at the Grammy Foundation Entertainment Law Initiative luncheon in Los Angeles, WMG Chairman Edgar Bronfman spoke to the 460 attendees of the luncheon, &quot;We must employ our creative imagination ? and we must resist the temptation to conduct business as we always have ? by experimenting with new approaches, new structures and new relationships, so that we can move more quickly and appropriately respond to the ever-changing marketplace.&quot; He went on to request that music attorneys bring a new level of creativity to the deals they forge. &quot;Your willingness to join with us is critical to the success of our industry.&quot;

If only he had &quot;resisted the temptation to conduct business like we always have&quot; and not given so much to so few while so many went without. In business, as in life, you lead through example. Mr. Bronfman, with all due respect, you need to have to have your own house in order before you have the credibility to make a request like that to the creative and legal communities.

In an open letter to Warner Music Chairman Edgar Bronfman, Carlos Anaia, a five-year Warner Music Group employee in London who was leaving the company wrote, &quot;We understand that you took on a huge task to turn around the ailing, forgotten division of AOL Time Warner, but informing the already morale-drained staff (via a third party ? The Financial Times) that the salary and bonuses that the top five executives took individually equal more than 20 times my total lifetime salaried income (assuming I started at 18 and retired at 60), is somewhat more than insensitive. If you want to make us feel like maggots, you succeeded. Paul-Rene Albertini gets paid $4 MILLION in total ? Hello!!? The only deals we are all aware of have all LOST money. Walt Disney Records? It's still more than $15 million unrecouped. Milan Records? A French turkey. Need I go on? What deals has this guy done that actually MADE money?&quot;

Throughout my own career in the music business, and especially in the last ten years, I've always been fascinated by the extremely disproportionate amount of money paid to CEOs in the Entertainment Business. Being in the music business for twenty-five years, we've seen Major Label CEO salaries/benefit packages go from $200,000.00 - $500,000.00 in salary and bonus payments in the mid 1980's to literally ten-times that amount, and more, just eight to nine years later for the same job. Throughout the 1990's, the amount of money and compensation paid to CEOs and other top executives at film studios and major labels continued to reach new levels of financial absurdity, especially in the area of severance packages (the part of their contract that kicks in if they are fired or &quot;leave the company for any other reason&quot;). You want to know how absurd it's gotten? It's to the point now where if you really stop and think about it, there's no real incentive for CEO's to try and succeed anymore, other than ego (which we do not underestimate as an extremely powerful and driving force in this business). Why? Because today, we live in an era where more often than not, the consequences of failure for a CEO have become far too financially lucrative! If you don't believe me, look back over the last ten years and think about all of the labels that have had regimen changes such as when EMI made Charles Koppelman CEO of its music division only to have the entire EMI label close down a few years later with over 135 employees losing their jobs (many with just a two week notice) while Koppelman exited with well over $30M along with other contractual compensation. Consider also the revolving door of CEOs appointed by Gerald Levin (then CEO of AOL Time Warner) to run Warner's music division in the mid 90's. Between 1994 and 1998, Warner hired, promoted and fired Doug Morris, Bob Morgado and Michael Fuchs to run the Music Division. Each outgoing executive cost them between $15M ? $25M. Danny Goldberg also clashed with Warner's brass when he was President of Warner Bros. Records during this time and exited the label after only few years on the job. Goldberg went on to form Artemis, which he then just exited three weeks ago.

Of course, let's not forget the very well-documented hiring (and very public exiting) of Michael Ovitz, who after eighteen months as President of The Walt Disney Co. (on a multi-year contract) left with over $96M in compensation and stock options - a matter that became a very public battle last year when the stock holders took Disney to court over this enormous payout to Ovitz). Think about it ? this works out to about $533,000 a month, or maybe only $213,000 a month after taxes. Not bad for eighteen months' work, if you can get it.

Finally, who among us could ever forget the all-time greatest, most stunning expensive CEO hirings in the history of Hollywood? How stunning, you ask? So stunning that a three-hundred page book has been written about it called Hit & Run: How Jon Peters &Peter Guber Took Sony for a Ride in Hollywood. This non-fairy tale involves the powers that be at Sony Corporation, who were convinced by then-CEO of Sony Music Walter Yetnikoff that Peters and Guber were the only executives in the world who could run Sony Pictures, despite the inconvenience of Warner Bros. having both men under contract. Sony HAD to have them and ONLY THEM! The initial cost was somewhere in excess of over $100,000,000.00; because in addition to the over-the-top executive compensation packages that both Peters & Guber received, Warner Bros. was able to get a substantial ownership percentage of Sony's Record Club (Columbia House) as part of the deal to release Guber & Peters from their contracts. By the time both Peters and Guber left Sony Pictures only a few years later, after a long series of failed movies and expensive studio cost overruns, Sony would write off hundreds of millions of dollars (if not more) in one of the most staggeringly expensive hires ever made by an entertainment company.

So what is it that drives otherwise fairly intelligent and rational business people to make these irrational compulsive and often insane decisions about executive compensation at entertainment companies? It's a question we've been fascinated with for years. In 1982, I asked that question to then-CEO of Warner Communications Steve Ross. I've never forgotten his answer; he said, very assuredly, &quot;In corporate leadership, what you're really being paid for is your ability to make the right decisions for the direction and growth of the company.&quot; To a 21 year old kid just entering the music business, that seemed to be a very simple, yet logical, answer that made perfect sense. The response has probably been imbued with a greater sense of importance over time, especially since it came from such a legendary captain of industry in the entertainment business. Reflecting on that conversation twenty-four years later, I'm saddened by how distorted and truly destructive executive compensation has become at many of the major labels and the very damaging effects it has had on the companies. It's distorted because it stops being about compensation at a certain point and becomes a misguided sense of entitlement where, more often than not, there's absolutely no consequence for any financial losses to the company as a result of the CEO's performance. Today, more often than not, this is something contractually sanctioned by the corporation. It's destructive, I believe, because as we've seen over and over, especially in the last four years in other industries, the consequences of these types of compensation packages DO NOT promote any sense of commitment, devotion or loyalty to a company, its growth, financial well-being or even in the most extreme cases (e.g. Worldcom, Enron) its very survival.

So what could possibly be the primary reason corporations continue to do this? It's driven, we believe, by a core yet completely misguided fear that no one else is capable of doing the job -- NO ONE!! Consequently, these executives have to be given whatever they ask for! Nothing reflects this mentality more clearly than the often-obscene severance packages you see CEOs carrying away when leaving or being fired from a company.

A further manifestation of this mentality in the business is reflected in the hiring of the same CEOs and executives over and over again regardless of their track records or past performance levels. As we always say &quot;the names in this business never change, just the addresses underneath them.&quot; This practice of rotating top executives further creates the very powerful perception that there are very few people who can actually do the job. In 25 years of being in this business, we've never believed this, yet this deeply held belief is very difficult to change, especially at the highest levels of a company.

A few years ago at a party, I asked a CEO of a major label why this practice seemed so prevalent at the top executive levels of the music & film industries and the response was astounding. He said, &quot;What you have to understand about the decisions to hire executives at that level, is that very often the boards of the company hiring them are much more comfortable with someone who's already had the position and done the job regardless of their past track record than someone they don't know regardless of their ability!&quot; It was a sobering statement to say the least from someone who really understood this process and the mentality that goes into these choices. It also provided real insight into why so few companies today have any executives that go up all the way in the ranks. There are a few, such as Jason Flom, Sylvia Rhone and Jordan Katz, but not many.

So, the question in the boardroom today needs to be, &quot;How can we inspire a level of dedicated commitment and accountability in our top CEOs to grow the company we've made the consequences of failing so financially lucrative?&quot;

In this day and age, when so many of our firmly held beliefs about the way things are in the music industry are continually being broken apart and we're repeatedly being challenged by the brutally sobering new financial realities in the post-merger major label world now emerging: (Viacom's $18 billion decrease on their radio station valuations; Sony and BMG merging their recorded music operations worldwide; the fracturing of powerhouse NYC law firm Grubman, Indursky & Schindler, once one of the largest and most powerful law firms in the music business, who recently had one of its name partners, Paul Schindler, depart to a competing law firm as well as laying off several attorneys), it's a very powerful statement of just how out of touch and destructive corporate values like the financial compensation packages at Warner Music are to even their own financial well being and survival. The tragedy, and I use the classic definition of tragedy as &quot;a fall from greatness due to an unseen flaw in one's own character,&quot; (and labels truly don't get much greater than Warner Bros., Elektra & Atlantic, historically speaking), is that the leadership at the Warner Music Group in the most profound sense just does not get it! They truly don't see it. They still believe, &quot;this is the way our business needs to be run.&quot;

This isn't so much a case of &quot;corporate greed,&quot; but rather something that has become much more pernicious, especially in the last ten years, and that's this pervasive mentality of &quot;I truly don't care as long as I'm taken care of.&quot; The Enron & WorldCom scandals are absolutely classic text book examples of this mentality on a grand scale in every respect!

Ultimately, this just illustrates how Warner Music (and the other labels who subscribe to this mentality in this day & age) still have a real commitment to maintaining & keeping a broken, malfunctioning business in place rather than seeing what can be done to creatively re-invent it in a new way. Their solution is to reduce personnel and cut the amount of artists of the roster, while continuing to pay themselves and their top executives as if they had just had the greatest year of their history. There's absolutely nothing creative about that! The real tragedy here is not that Warner Music spent $21M on five executive salaries and bonuses, (while letting 1600 people go as well as a drop a significant percent of the Artist roster), but that they felt they had to.

As Bob Lefsetz, a leading music industry consultant and writer so aptly said recently, &quot;To be this out of touch is to demonstrate you should not be running this enterprise.&quot; And in a creative industry like music that has always thrived on innovation (radio, TV, CDs, the Internet, iPods, satellite & internet radio), and in a time where such rapidly developing and emerging technologies are creating dramatic changes in the culture at an alarming pace as well as creating incredible opportunities and challenges, what great artists starting their career in music would want anything to do with a company that cares more about itself and its own survival than it does about the artists and music on the label?

Is it any wonder the Major Labels Market share continues to stagnate? Or that their ability to break new artists has reached an all time low? This is exactly why major labels in their current state have no future in this New World Order. If they are to be a part of it, they're going to have to reinvent themselves in a completely new way that reflects the world and times we live in today, not some fantasy of the past.

In closing, I'm reminded of a quote that a brilliant man named Breck Costin once said: &quot;Always remember that your fantasies have to die before your dreams can come true.&quot;

Ritch Esra 818-995-7458 ritch@musicregistry.com

Bio: Ritch Esra

Since 1992, Ritch Esra and Stephen Trumbull have been running the Music Business Registry which includes The A&R Registry, The Publisher Registry, The Music Business Attorney Registry and The Film and Television Music Guide. "The directories give everyone vital, accurate and the most up to date information they need to contact the entire A&R, music, publishing, legal and film/TV music communities," says Ritch. "Each directory tells you how to reach these industry veterans by regular mail, E-mail (including web sites), direct dial telephone and fax. Additionally, we provide the exact title, street address, the name of their assistant and the style of music that each executive deals with. Due to the volatile nature of A&R, the A&R Registry is completely updated and reprinted every eight weeks and often has over 100 changes in a single issue. There's no directory of this kind anywhere in the world." Ritch says that among the subscribers are record company executives, music publishers, managers, agents, attorneys, studios and other various music business professionals.