1. Music Business Starter Kit Jonathan G. Shaw Ibilion Music Shaw Music Studios Moshito 2010

2. First the downside…

3. www.ducksdeluxe.com/jokes.html A guy walks into the doctor's office and says, "Doc, I haven't had a bowel movement in a week!" The doctor gives him a prescription for a mild laxative and tells him, "If it doesn't work, let me know." A week later the guy is back: "Doc, still no movement!" The doctor says, "Hmm, guess you need something stronger," and prescribes a powerful laxative.

4. Still another week later the poor guy is back: "Doc, STILL nothing!" The doctor, worried, says, "We'd better get some more information about you to try to figure out what's going on. What do you do for a living?“ “I’m a musician.”

5. The doctor looks up and says, "Well, that's it! Here's R100.00. Go get something to eat!"

6. Would you let an unqualified doctor operate on you?

7. Would you let an unqualified artist perform for you?

8. Mmm, maybe I’m overstretching my analogy here? Or am I? Did you ever hear the joke about the broke doctor?

9. You’re Probably Won’t Succeed 95% of new recording artists in the U.S.A. fail to go gold (recoup the costs of releasing their first record) 95% of new recording artists in the U.S.A. fail to go gold (recoup the costs of releasing their first record) –Attributable to Courtney Love’s “Open Letter to Recording Artists”, 2004 This stat is 7 years old… This stat is 7 years old… It’s also based on the most successful music country in the world… It’s also based on the most successful music country in the world… That means, because of the the internet era, this percentage is probably higher That means, because of the the internet era, this percentage is probably higher –In fact recording revenue has been shrinking over the last decade, down 7% from 2008 to 2009 globally (IFPI, 2010)

10. Now the upside…

11. There is Money in Music But wait! Define success? But wait! Define success? –Fame and fortune? Fame OR fortune? –What is a career? –In what ways can you make money? –Think outside the “record” box –I’ve spent the better part of a decade looking at all the ways to make money directly, and indirectly, from music: there are lots!

12. Mindset General ignorance and lack of professionalism General ignorance and lack of professionalism –Heck, but it’s a creative industry! –Can you afford it? –DIY is the new record deal? –“Save me” mentality Having a sustainable career Having a sustainable career –Jay-Z was the biggest earning rapper of last year, and only a fraction of his income was from records –Overnight success takes 10 years of preparation Maintaining/honing your craft Maintaining/honing your craft

13. Mindset cont. (2) Don’t get lost in your genre Don’t get lost in your genre –But don’t play to someone else’s tune Wrong expectations from band members Wrong expectations from band members –Are we in it for the same thing? –Do we understand each other? Are you prepared to busk your way to the top? Are you prepared to busk your way to the top? Are you that special? Are you that special? –Rejection is part of the game but so is passion

14. Risky Business Opportunity cost Opportunity cost Trade-offs Trade-offs

15. Pitfalls Transferring ownership of your copyright Transferring ownership of your copyright –Sacrificing yourself for “the deal” –Recapture of rights –Misunderstanding contracts – e.g. term songwriter Royalties Royalties –Advances and a decreased cash flow –Escalations Signing contracts without understanding them first or knowing what is in your best interest Signing contracts without understanding them first or knowing what is in your best interest –Exclusivity –Catch-all clauses

16. Pitfalls cont. (2) Relying on partners (record companies, publishers, agents, managers) to do it all Relying on partners (record companies, publishers, agents, managers) to do it all Choosing the wrong team members Choosing the wrong team members Relying on the Net to get noticed Relying on the Net to get noticed Incorrect information supplied to collective management organisations Incorrect information supplied to collective management organisations

17. Don’t Get Left Behind There has never before been a better time to learn about the industry There has never before been a better time to learn about the industry –Almost everything I teach is available from the Net, if you take the time to look for it (although its mostly from the U.S., why is that?) –Nothing is set in stone, only what has worked in the past Artists find competitive advantage through better business practices Artists find competitive advantage through better business practices Be aware of the Creative Workers’ Union Be aware of the Creative Workers’ Union

18. Successful music relies on passion, trust and positive relationships Thank you!

19. Contact Details www.smstudios.co.za www.smstudios.co.za www.ibilion.com www.ibilion.com www.mbac.co.za www.mbac.co.za 083-498-1807 083-498-1807 jshaw@ibilion.com jshaw@ibilion.com