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Sunday, May 1, 2011

Making Money Outside of the Music Business!

Quote from Chris Lighty (Violator - Artist Management Firm)
Black Enterprise Magazine (By Tennille M. Robinson; Jan. 2011; pg. 78)

"50 Cent, Sean Combs (P. Diddy) and Jay Z are the poster boys of what went wrong in the music business. They've made so much money outside of the music business, and the music business helped market and promote their brands; but didn't participate in being partners in their brands."


*Insight from B. Brown (BREG)

Chris is basically letting everyone know that these type of superstar artists are the reason the major labels have changed contracts to the "360 Deal" model where the label participates in the artist's entire brand (tours, merchandise, tv, movies, clothes, etc.)

So it is very important that artists understand what leverage they have when they come to the table with a record company and be ready to expand into other marketable areas outside of music. Music is just one component of your business brand as an artist.


Quote from Robbie Vorhaus (CEO & Founder of Vorhaus & Co., a brand strategy firm based in Sag Harbor, NY)
Black Enterprise Magazine (By Tennille M. Robinson; Jan. 2011; pg. 78)

Robbie describes many artists as "timekeepers," meaning they are singular in what they do. They may be "hot" but they aren't making money in their sleep, he adds. "50 Cent figured out he did not want to be a timekeeper. Instead, he said, 'I want to build something sustainable so that even when I'm not as popular as my talent, my production companies, movies or music that I discover will live on."

www.blackenterprise.com

Tuesday, March 29, 2011

Jay-Z’s $450 million Business Empire

Insight from B. Brown (BREG)

The article below is a very interesting piece about Jay Z and his mindset. He is no doubt one of the greatest rappers ever, but more importantly, he is becoming one of the greatest American businessmen ever!

I would like all of my aspiring Artists and Business people to read the article below to get a good idea on how we may want to build our portfolios and choose or not choose to be a part of and/or attached to certain companies, products and projects.

Each one of us is an entity, and we must protect and grow our entities properly.

I have a lot of respect for Jay Z, and I wish him continued success!

One Love!


By Daniel Gross | Daily Ticker – Fri, Mar 25, 2011 5:38 PM EDT

This is a superstar economy, in which A-listers live large while minor leaguers struggle. Hedge fund managers like John Paulson may rack up big returns, CEOs like Lloyd Blankfein of Goldman, Sachs bag huge compensation packages, and all-star baseball players like Alex Rodriguez ink nine-figure contracts. But few of them can match the combination of fame, public acclaim and monetary value that Shawn Corey Carter has racked up.

Who?

Amid the carnage of the music industry in the past decade, Jay-Z has managed to parlay artistic success into financial fortune valued at up to $450 million, according to Forbes. Jay-Z's many business successes (and few failures) are described in a new book by Forbes writer Zack O'Malley Greenburg, entitled Empire State of Mind: How Jay-Z Went from Street Corner to Corner Office.

In 2010 alone, he earned $63 million, more than all but seven CEOs of public companies, writes Greenburg. While the money came primarily from touring, Jay-Z has a business interests ranging from music to nightclubs, from restaurants to apparel, from sneakers to a chunk of the New Jersey Nets. As Greenburg and I discuss in the video, the Brooklyn native, who spent a chunk of his teens selling drugs before devoting himself full time to rap, has "a unique ability to set trends and profit from them, almost to an astronomical level."

Early on, Jay-Z displayed an acumen for business. In 1994, unable to find a company to produce his debut records, Jay-Z, Damon Dash and a silent partner founded their own label, Roc-A-Fella Records. And when a distributor agreed to take on the album, he negotiated a deal to retain ownership of the master recordings.

In the late 1990s, he discovered that sales of Iceberg apparel rose after he began including references to them in his songs. But when he went to Iceberg and asked for an endorsement deal, the company demurred. Instead, he started his own apparel company, Rocawear. In 2006, Rocawwear was sold to a brand licensing company for $204 million.

There's been much more: a line of sneakers for Reebok, the 40/40 nightclub chain, an ad for Hewlett-Packard, and an interest in the hot New York City gastro pub, The Spotted Pig.

Jay-Z's career and business interests are vivid testimony to the mainstreaming of hip-hop culture. Deals come his way in part because he is, simply put, much cooler and culturally relevant than older guys in suits. It's not simply that he can attract a crowd, but that he lends a kind of legitimacy to all sorts of ventures — including the efforts to build a huge arena/ development to house the New Jersey Nets in Brooklyn. The New Jersey Nets, as Greenburg notes, had long been a second-tier team in the NBA, and an afterthought in New York. Facing political obstacles and community opposition, Nets owner Bruce Ratner offered Jay-Z a small ownership stake in exchange for becoming one of the public faces of the project. Another potential bonus: the other owners thought Jay-Z could help attract top talent like LeBron James to the Nets.

That hasn't quite worked out. And, of course, as is the case with most serial entrepreneurs, Jay-Z has had his share of business setbacks. He spent a fair amount of time last decade working on a Jay-Z Jeep, which fell apart due to issues at Chrysler. A GMC Yukon painted Jay-Z blue never got beyond the concept car stage. As Greenburg notes, the singer makes a strong effort not to highlight failures. "He doesn't want to be seen as anything other than victorious." Greenburg adds: "Even Jay-Z fails, but that doesn't make him any less of a businessman."

So what's next? Despite all his operations, music and performing remain at the core of his business, and of his brand. And here he faces something of a challenge. In rock and pop, it's not uncommon for groups and singers to fill big arenas well into their 60s — the Rolling Stones, Paul McCartney, even Neil Diamond (who is now 70!). But hip-hop is a much younger genre, and Jay-Z is already 41. "He's the first guy who is going to be out there and seeing what the market is for aging rappers," said Greenburg. "But if he wants to tour all the time like the Stones do, he could certainly do that."

Jay-Z has succeeded in part because of a tough-minded mentality that make him insist that he own a part of any operations he's involved with. And that explains in part why he and his team didn't cooperate with this book. When he signed his book contract, Greenburg went to Jay-Z's team, sought interviews, and explained the book as a business success story that "would put him up in the pantheon with Warren Buffett and Steve jobs." Came the response: "What's in it for us?" He didn't want to help with the production of a book that he wouldn't partially own. Besides, he was working on his own book. When it was published last November Decoded debuted as #3 on the New York Times best-seller list.

Daniel Gross is economics editor at Yahoo! Finance

Thursday, March 10, 2011

Can You Believe These Superstars Were Once Rejected By 'American Idol'?

Insight from: B. Brown (BREG)

As an Artist, you encounter plenty of up's and down's, but the key is not to give up and let a disappointing experience destroy your drive. You must regroup by honestly looking at your most recent performance and do everything in your power to improve from that situation. That's how you get better and secure the next opportunity that arises!

Check-out what these former American Idol hopefuls that did not make it on Idol, but became stars on other shows and in other ways.


*By Lyndsey Parker (Yahoo! Music | Friday, February 25, 2011)

These familiar faces didn't make the "Idol" cut.

The "American Idol" top 24 have been announced, and along with the expected ringers there are quite a few surprise omissions: Chris Medina, John Wayne Schulz, Jerome Bell, Carson Higgins, and Jacee Badeaux, to name but five. I'm sure they're feeling pretty rejected, and dejected, right now, as they watch their peers move on to the live "Idol" stage while they pack their bags and Greyhound-bus it back to the small towns from whence they came. But they shouldn't sulk. They should realize that quite a few talented singers were turned away by "Idol," but went on to bigger and better things.

Chris, John, Jerome, Jacee, et al: If you're feeling low, read about the following "Idol" also-rans and realize that your respective musical journeys are far from over.

Hillary Scott:
The stunning Lady Antebellum frontwoman auditioned not once but twice for "Idol," and never even made it past the preliminary rounds, never even sang for Simon Cowell and the other judges. "I never got to see them. I literally performed for the production assistants and the interns, and I just didn't make it," she recently told Entertainment Tonight. No worries. Hillary simply formed Lady Antebellum instead, and went on to win five Grammys this year, including Record AND Song Of The Year. No Idol has ever done that!

Colbie Caillat:
This plucky songstress also auditioned unsuccessfully for "Idol" twice, and on her second try she even warbled her own original ditty, "Bubbly." ("I was shy. I was nervous. I didn't look the greatest. I wasn't ready for it yet. I was glad, when I auditioned, that they said no," she later told USA Today.) I guess Colbie had reason to be glad. Not only did "Bubbly" eventually become a massive international hit for her, without "Idol's" help, but it's since been covered by various other "Idol" hopefuls, like Casey James, Katie Stevens, Katelyn Epperly, and Anne Marie Boskovich. Apparently Colbie wasn't too bitter to grant the show rights!

Amber Riley:
The "Glee" diva auditioned for "Idol" at age 17, but she too didn't even make it past the producers. But obviously, the singer also known as Mercedes Jones made it onto the Fox Network anyway. (And one of her biggest standout solo performances on "Glee" was "And I Am Telling You," a song famously performed by Idols like Jennifer Hudson and LaKisha Jones.) "You know what? I still work on Fox and I get paid! Thank you, 'American Idol,'" Amber recently gloated to Access Hollywood. You go, girl.

Robyn Troup:
Robyn is the least-known name on this list, but she actually made it the farthest, getting all the way to Hollywood Week in 2006. She was cut during the second group round, but she performed on the Grammys only a few weeks after her elimination aired, when she won Yahoo! Music's own "My Grammy Moment" talent search and got to duet on the live awards telecast with none other than Justin Timberlake. (And Jennifer Hudson introduced her!) Since then, Robyn has recorded with Santana, and is now prepping her debut album for the Emblem Music Group, a record label helmed by David Cook/Taylor Hicks producer Matt Serletic.

Tuesday, February 8, 2011

Every Record Label in the game turned us down .......

By: B. Brown (BREG)

I don't know if a lot of artists know this or not, but to become a signed artist, specifically with a major label, the artist has usually down a lot of non-glamorous work and has usually paid some very humbling dues to get to the point of signing a major label contract. Once the ink dries however, the fun really begins. More free shows (promotional shows) and a ton of appearances attempting to get your name & face out there! Oh, did that artist get an advance? Some do and some don't. You might be surprised. I'm sure you have heard the stories. Nonetheless, in most cases, being an artist is not what it is all cracked up to be. Becoming a Superstar and actually becoming Rich helps out tremendously if that artist is one of the Blessed few!

In Jay-Z's book, DECODED, he talks about how every record label in the game turned him down and that's what sparked him, Dame and Biggs to start Roc-A-Fella Records. Here's what Jay-Z says about being a recording artist:

"Being a recording artist on a major label is the most contractually exploitative relationship you can have in America, and it's legal."

*B. Brown: How about that! Artists, times have changed because you can easily produce & release your own records now, but you still have to market and promote yourself and there lies the problem for the overwhelming majority of artists today even with such a powerful marketing and promotional tool as the internet. A plan, work ethic and some type of budget must be in place to play ball!

Click on this link for more information on a business plan, budgets, etc.


One Love!

Tuesday, February 1, 2011

Tank - Staying true to R&B

*Thoughts by B. Brown (BREG)

My man Tank has always been a beast when it comes to writing and delivering hit songs like one of my favorites "I Deserve!" I take my hat off to this brother because he always seems to bring real-life-situation-music to the marketplace and that's why he has hit songs! Tank is overlooked a lot of times I believe, but I put him right up there with Babyface and R. Kelly in the song writing department.

Tank my brother, keep doing your thing and bringing great music to the ears and souls of many ......


By Melody K. Hoffman (Jet Magazine Dec. 27, 2010/Jan. 3, 2011; pg. 48)

Jet Magazine Website

In regards to his music, Tank says, "I like to call it classic, current R&B. I keep with the basic formula as far as who I'm sing to, what I'm singing about, and even the passion I'm singing it with. I keep that part of it in tact."

"R&B is about love---the good and bad. The stuff when we're together, the stuff when I'm trying to get you, the stuff when we're breaking up, the stuff when we're having fun, the stuff when we're fighting, all of it. I'm not mad at people singing about what they have on and being on their way to the club, that's fine. It just doesn't appeal to me on a substance level. For me, it's about legacy and making my mark in R&B and I want to be as true to the craft as possible."

Sunday, January 16, 2011

Let me handle my business!

*B. Brown's thoughts:

I am currently reading Jay-Z's book DECODED, and he makes point after point in his book about life in general and the music industry. The excerpt below talks about a powerful issue that has been a part of the industry for a long, long time, probably from the start of the music industry. What am I talking about? It is people saying that artist's should not learn about the business side of the industry, and they should just stay tuned-in with the artistry side of the business and that the artist will be fine. How could that be true? So an artist is supposed to be taken advantage of financially?

Jay-Z (Decoded; pgs. 30-31): The other part of "commercialization" is the idea that artists should only be thinking about their art, not about the business side of what we do. There was maybe a time when people in hip-hop made music only because they loved to make music. But the time came when it started to pay off, to the point that even dudes in the street started thinking, "Fuck selling drugs, this rap shit is going to be my hustle!" A lot of people came to hip-hop like that, not out of a pure love of music, but as a legit hustle, another path out of the hood. I've reflected some of that in my music because, to be honest, it was my mentality to some degree---when I committed to a career in rap, I wasn't taking a vow of poverty. I saw it as another hustle, one that happened to coincide with my natural talents and the culture I loved. I was an eager hustler and a reluctant artist. But the irony of it is that to make the hustle work, really work, over the long term, you have to be a true artist, too.

In the streets there aren't written contracts. Instead, you live by certain codes. There are no codes and ethics in music because there are lawyers. People can hide behind their lawyers and contracts and then rob you blind. A lot of street cats come into the music game and expect a certain kind of honor and ethics, even outside of contracts. But in business, like they say, you don't get what you deserve, you get what you negotiate. So I mind my business and I don't apologize for it.

There's this sick fascination with the dead artist, the broke artist, the drugged-out artist, the artist who blows all his money on drugs and big chains and ends up on a VH1 special. Or artists so conflicted about making money from their art---which so often means making money from their pain and confusion and dreams---that they do stupid shit with it, set it on fire or something. This is a game people sometimes play with musicians: that to be real, to be authentic, you have to hate having money or that success has to feel like such a burden you want to kill yourself. But whoever said that artists shouldn't pay attention to their business was probably someone with their hand in some artist's pocket.

Thursday, January 6, 2011

HAPPY NEW YEAR from B. Brown (BREG)

By: B. Brown (BREG)

Happy New Year!!! It is always great to start a new year and give thanks to the Most High for Blessing us with another year of life!

I am very excited about the opportunities out there that will positively impact my business endeavors in 2011, and I am looking forward to helping as many people as I can gain affordable access to the legal system and help as many people as possible protect and grow their businesses, be it an artist, a plumber, etc.!

One of the things that makes me feel very good thus far in 2011 is the Ted Williams story. Here is a man that would be considered down and out, but he continued to share his talent and gift with everyone he came in contact with and now he is receiving a second chance at life. May God continue to Bless him and keep him as he moves forward in his soberiety, re-connecting with his family and career. God is good!

Remember, "Big journeys begin with a single step!"

Have a great 2011!

One Love!