Even the most independent of indie musicians can use a little help every now and again and, fortunately for them, there are organizations with precisely this purpose, whether you’re looking for some financial help, or simply a place to crash.
One of the most important things that I tell young artists is to embrace their status as a business of one – a sole proprietorship, if you will. It may not always be that way, but when you’re first starting out and trying to build your brand, you have to face the fact that no one besides your parents cares if you sink or swim – and even they may secretly wish that you became an accountant like your cousin, Earl.
The key is to proudly don the titles of founder, CEO, marketer, sales team, and vile henchman. This is no easy task. It takes a great deal of commitment, research, stick-to-itiveness, tenacity, guts, and humility. My suggestion is to find a decent money job that doesn’t completely suck your soul, and then get creative.
As you probably already know, one of the best things you can do is put yourself out there. It’s often said in marketing that a product needs to make seven impressions before ingraining itself in the consumer psyche. The same is true for your music. Get in front of people, make connections, and shout your brand from the rooftops – or treetops, depending on your locale.
Fortunately, there are many excellent resources and organizations out there that exist solely to help you, the artist. I’m talking grants, residencies, masterclasses, crash pads, support groups, and much more. Here’s a few that I find particularly cool:
Gone are the days of the stowaway! You can actually apply with Amtrak for a roundtrip writer’s grant. These are long routes that allow you to peep the American landscape while scratching out some boss lyrics.
When I was a kid, the greatest dare at the movies was to see how many of these pucker-inducing jellies you could cram in your mouth at once. Flash forward 20-something years, and it turns out that Sour Patch Kids are indie fans. So much so they’ve created free crash pads in Brooklyn, Austin, and Hollywood. Think The Real World meets Airbnb. In exchange, all you have to do is post your stay on your social accounts. You know, here a tweet, there a tweet, everywhere a Periscope.
The YMCA is decidedly not cool (no offense). Conversely, the 92nd Street Y is completely rad. In addition to the many cultural programs and performances offered, 92Y provides a series of masterclasses with some truly outstanding musicians. Not only is a masterclass an opportunity to snag some new skills, but it’s the perfect spot for you to gain exposure with peers and and least one top professional in your field.
These guys really get it. They are completely committed to understanding your needs and providing the money necessary to really help – from $250 to $15,000. Check the site for application guidelines, bookmark the page, do it year after year. A little money can go a long way when you’re trying to serve your art and creativity.
Fender brings music to our communities by awarding grants to music education. This may not directly benefit your pursuit, but it could be an incredible opportunity to give back. The easiest way is to donate, but if there was a wonderful music educator or program that fostered your talent, perhaps you’d like to nominate them to receive a grant! It always pays to give back.
And now that we’re talking philanthropy, here’s a chance to really get involved. I think we can all agree that music is wrapped in some incredibly beautiful magic – the power to connect, to communicate, to bridge the divide. Musicians Without Borders travels the globe to spread peace and creativity through music. If you’re looking to truly make a difference, perhaps this is your calling.
Jonathan Hack is a Brooklyn resident, musician, writer, and ping pong aficionado. His career in the theatre has spanned acting, music direction, production, carpentry, and more. As a marketer, he has worked with major brands in music and fashion. He is a proud member of AEA and NATS. Follow him on Twitter @writerninja and on Instagram @jonnyhack.
According to the Wall Street Journal, Spotify has just raised $1 billion in convertible debt financing.
The funding round was led by private equity firm TPG, hedge fund Dragoneer Investment Group and Goldman Sachs. TPG and Dragoneer will reportedly buy $750 million of the debt, and Goldman Sachs will purchase the remaining $250 million.
Most importantly, the funding was raised with strict guarantees tied to an IPO, according to the Journal’s report. The deal is simple: in return for the financing, Spotify will pay annual interest on the debt, and if Spotify takes the company public, the investors will be able to convert the debt into equity at a discounted rate to the share price that is offered to the public, according to
What does this mean for Spotify?
The massive loan value draws more attention to the company’s stressed financial situation. And there’s little doubt that the music streaming market is being swarmed by the uprise of new entrants. Just last year, both Apple Music and Tidal were launched, with SoundCloud entering subscription this week.
Although Spotify is currently in the lead with more than 30 million paying subscribers, Apple Music is not far behind with 11 million. And this is still an early race: Apple acquired those customers in approximately 9 months. Indeed, Apple hit 10 million during its first 6 months, a milestone that took 6 years for Spotify to reach.
In that light, there’s little wonder that Spotify wants to boost financing for ‘strategic purposes’. Every effort will be made to better their service and keep those subscriber numbers growing whilst slowing down the growth of its major competitors.
Debt financing definitely has its advantages.
Debt has to be paid back, of course, but it also allows Spotify to get the money they need from investors without having to part with any equity. The investors cannot get involved in any of the executive decisions or decide how Spotify runs their business. Once the money has been paid back with interest, the agreement essentially ends.
However, on the other hand raising cash through debt financing most certainly has its drawbacks.
The major downfall is the large monthly repayments that the company will have to pay regardless of how well the business is doing. As much as the financing could enhance Spotify’s growth, it could also falter there growth, as large monthly payouts often mean the company will have less disposable revenue to invest in recruitment etc.
(Image by Sorosh Tavakoli, Creative Commons, Attribution 2.0 Generic, cc by 2.0)
When trying to craft a song that will stand out from the pack, many artists will often try to force intricacies that ultimately detract from the overall piece. Here we look at three things to keep in mind when composing your next song that can prevent you from overdoing it.
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In this recent piece, originally appearing on MusicThinkTank, Mylène Besançon provides some songwriting advice on keeping it simple the next time you put pen to paper.
“Keeping this basic song structure in your head is the easiest way to ensure your songs stay simple and are easy to digest by the audience. Most popular songs that are highly listened to use this basic construction, which can come in the form of verse – chorus – verse – chorus – bridge – chorus for example. You can even drop the bridge for some songs or add a ‘pre-chorus’ if needed.”
[UPDATED] Debt has become an increasingly popular funding mechanism for mid to late stage startups as investors grow tired of sky high valuations and seeing their stake reduced by later equity infusions. Now, Spotify has jumped on the debt financing bandwagon, raising $1 billion under some potentially difficult terms.
In its 13th funding round, Spotify has raised another $1 billion, this time in debt funding from TPG, Dragoneer and clients of Goldman Sachs. That puts Spotify’s pre-IPO total potential cash intake at $2.56 billion.
This time the cash comes with some potentially onerous terms. For starters, Spotify must pay 5% annual interest on the debt, adding 1% more every six months for a total of up to 10%. Investors can convert their debt to equity at a 20% discount of Spotify’s IPO share price, and if there is no IPO within a year, their discount increases 2.5% every extra six months. Additionally, the new investors can sell their shares just 90 days after the IPO, well before the 180 day lockup for Spotify’s other investors and employees.
WHY?
The public line for investor TPG: “This financing gives them the strategic resources to further strengthen their leadership position.” But Spotify apparently still has more than $640 million in the bank, a source tells TechCrunch. So, why accept such horrible terms?
Spotify may believe that, with increasing competition, there will be no better time to raise more cash then now.
It plans to IPO within a year before the more expensive terms start to kick in. Risky, given the volatility of global markets.
It wants the cash to buy something like Rhapsody (why?), SoundCloud (maybe), Pandora (valued at $2 billion, its too expensive)
Video. According to Peter Kafka, “for many years, Spotify’s (private) pitch to investors has been that it will grow beyond music, and into video.” After all, Spotify has 70 million ad-supported users and advertisers love video. And yes Spotify already has video, but nothing you can’t see elsewhere. Exclusive content costs money.
The first time I heard Terra Naomi was at the Ho Ho Hotel Cafe Holiday bash in 2010. The annual holiday celebration in Hollywood brings together singer/songwriters who are a part of the Hotel Cafe family who get up and play a couple songs each. I was new to LA and the Hotel Cafe was my holy grail. When I was a wee young singer/songwriter in Minneapolis I dreamt of one day playing the Hotel Cafe (that dream has since been realized about a dozen times – still just as special every time).
The wonderful thing about the Ho Ho Hotel Cafe holiday show is that because the performers are heartbroken singer/songwriters, you ain’t gonna hear the standard holiday selections. No “Holly Jolly Christmas” or “Rockin’ Around The Christmas Tree.” However, I think I heard 4 different renditions of Joni Mitchell’s “River” that night. Terra Naomi played a new, non Christmasy, original of hers, “I’ll Be Waiting.” And I was stunned. Heartbroken and torn up. It was one of the most honest, beautiful and heart-wrenching songs I had ever heard. Not just that night. Not just at the Hotel Cafe. Ever.
I knew I had truly found a special artist. I made a point to meet her after her two songs and started seeing all of her shows around town.
Fast forward 5 years. I finally learned her full story when she asked me if I would be interested in sharing it with the greater music community via DMN.
As the first YouTube star on the platform, she knew she was doomed when at the first meeting she had with the label’s marketing manager he said “so tell us about this YouTube.” She stated:
“It was 2007, I knew about YouTube, all my friends knew about YouTube, I’d launched my career on YouTube, and the people now in charge of my career knew nothing about YouTube?!”
Labels seem to always be 5 steps behind the public. Behind the trends. Behind the fans. Behind!
In her piece, she revealed what most artists are too embarrassed / ashamed / disheartened / fillintheblank, to admit: she made a huge mistake. Signing to a major label when her career was starting to take off, was the wrong decision.
What Terra had to learn the hard way and what most artists soon learn shortly after signing to a major label is the old men in charge of the (old) music industry don’t give two shits about you. They care about themselves. They care about money. They care about their luxurious lifestyles. They care about sales standards set by those who came before them. And Terra was just another “failed” artist. Collateral damage. No biggie. The label had Amy Winehouse to make up for this minimal loss.
But what most people don’t realize is that success or failure on a label really has very little to do with the music, talent or an artist’s work ethic. It has a lot to do with the whims of those in charge at the label. And what most don’t realize, is that when you convince an artist that their entire career is dependent on the label’s definition of success (i.e. superstardom) and it doesn’t work out – for whatever reason – you crush that artist. Emotionally. Spiritually. Fundamentally. You convinced them that you, and only you, had the key to their success and if you couldn’t do it, no one could. So they’re left to think, “I’m finished! I’m a failure. I had the backing of fill-in-the-blank-label and they couldn’t do it for me. I must not be good enough.”
Except this is so disgustingly far from the actual truth. Considering 98% of all major label acts “fail” by label standards, clearly labels don’t really know what they’re doing. And they don’t have artists’ best intentions in mind with any of their practices. Who is really working for whom?
“Record contracts are just like slavery. I would tell every artist not to sign ” Prince
“The major label music industry has completely ruined every aspect of their business. At every step of the way they’ve had the tools offered to them to create an industry that works, and they’ve completely blown it. That’s why we never had any interest in signing a contract with one of these companies because they’re clearly completely clueless.” – Win Butler, Arcade Fire
“Record labels are the worst right now. No one knows what they’re doing.” –Adam Levine
Remember Katy Perry was dropped 3 times by 3 different labels before she broke out with “I Kissed A Girl.”
But that’s just one superstar’s story. There are literally thousands of artists who never got that 2nd (or 3rd, or 4th! chance like Katy Perry did). And there are literally thousands of artists who are succeeding just fine with an independent music career – without the help of a major label. Without the need for superstardom. And are happy doing what they love supporting the lifestyle they’d like to have. They just fly under your radar, that you don’t think they exist. But I promise you, they do.
Success can only be defined by you. No one else. Never forget that.
Terra Naomi is now in her late 30s. And she feels like she’s starting over. She recently penned a Medium post about what it’s like to be a woman “on the wrong side of 30” re-igniting a music career. She, once again, is vulnerable and honest – something so desperately lacking in today’s music industry:
“I came to understand that while men could take their time in creating their lives, careers, and families, women were not afforded the same luxury. My generation of girls was not encouraged to ‘love ourselves.’ While we were encouraged to ‘follow our dreams,’ it was perhaps even more important to look good while doing it. We did not talk about self-love. We were taught to view other women as competition in an ever-shrinking pool of opportunity.
“I know what it feels like to be told someone in the industry is not interested in listening to my music because they ‘already have a 20-year old who is doing basically the same thing,’ as if a number is the most important determining factor in the value, substance, and quality of art. (And if I were a man, would you have asked my age? Probably not. And is that question even legal??)
“So this one’s for the ladies. For those of us who know how it feels to grow up believing we have a shelf life, making sacrifices in one area or another because we were told we could not have it all, regretting the decision we made when things went awry, and fearing it was too late to pick ourselves up and start again.”
In reality, Terra Naomi is not starting over. Or starting again. She never stopped. She has always been an artist and every artist has ups and downs. Peaks and valleys. Sure, some peaks are higher than others, and sadly, many valleys are dangerously deep. But, once an artist always an artist.
Sure, many of her initial YouTube followers from 2007 are no longer with her, but some are (she’s already raised over $30,000 on her new IndieGoGo campaign and has hundreds of thousands of plays on Spotify).
I would encourage every indie artist to set attainable goals with a strategy on how to achieve them – without permission from some ‘industry exec.’ Because, now, more than ever, artists don’t need permission. Create art you believe in. Make it true. Make it honest. Put everything you have into it. Don’t cut any corners. Surround yourself with good people who want to help – regardless of their credentials or status in the industry. And work your ass off engaging your fans, your niche, your tribe. Pay attention to them. Cherish them. Respect them. Don’t worry about the rest of the world. Build it with those who believe, first and foremost. The tribe starts small, but you grow together.
And remember, you are making a difference in their lives. You don’t have to headline Madison Square Garden, get 100 million plays on Spotify, win a Grammy or top the Billboard Hot 100 to be successful. Those are superficial measures of status. Like a Ferrari or a private jet. What do they even mean? That you’re rich? Hell, more often than not these days, it doesn’t even mean that.
Are you happy? Are you a positive influence on people’s lives? Are you affecting people on a deep, spiritual level? Are you fulfilled? Those are true benchmarks of success. Trophies, chart positions, and cosmetic accessories will never bring true happiness. So why do we let others define our success by those standards?
Terra Naomi is a brilliant artist who is affecting people in a very significant way. I’m one of them. I can’t tell you how many nights I’ve put on “I’ll Be Waiting” and went there.
Age is meaningless. Terra Naomi could be 38, 75, or 17. It doesn’t make a difference. Her art is what matters. And her tribe will stand by her as long as she keeps delivering honesty.
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