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what’s up guys baby Keys here today
we’re going to talk about making money
as an artist something I’ve touched upon
a few times in my other videos go back
and check out on my youtube channel
things like stop selling music stop
selling ep’s I truly believe there is a
way of making money in today’s landscape
of being a musician but I do think we
need to think in a different way the
definition of madness is doing the same
thing again and again but expecting a
different result
and I feel like that’s where we’re at in
the music industry and I also feel that
musicians and the music industries are
lagging behind other creative industries
because of tradition because they’re
holding on to that amazing tradition
that we’ve had in the 60s 70s 80s 90s of
selling physical and wanting it to be
the same when it just isn’t so the way
we’re gonna do this is we’re going to
have a look back at history we’re gonna
look back at the landscape from 20 years
ago we’re gonna look then of why that
doesn’t work now then what we’re gonna
do is we’re gonna look at the look at
the landscape of today and the next few
years and then after that we’re going to
look at other creative industries that
we can take these ideas and bring them
into our own because there’s other
industries that are making a lot of
money in being creatives that I feel
like we should be adopting and stop
lagging behind so that’s today is how
we’re gonna do this firstly we’re going
to go back in time to I don’t know the
year 2000 so in the year 2000 that was
the most amount of CDs sold in one year
that was the peak of CD say at the peak
of physical distribution that’s why I
picked the year 2000 now in the year
2000 nearly a billion CDs were sold that
is a lot in a space in the US now if you
fast-forward to 2018 50 million CDs
result 5 percent so we know there’s been
like a crazy massive decline in CDs and
other physical sales yes I know you can
talk about vinyl but we’re still talking
small amounts and not huge formats so in
the year 2000 nearly a billion CDs were
so crazy big that’s why I’ve picked this
time of how the music industry works now
we’ve all heard of these horror stories
of how the music industry worked but I
want to go into math today I want to
the math of why it worked how it worked
and why that doesn’t work anymore and
why we’ve got to stop gripping onto
these traditions so we’re back in the
year 2000 I know it’s maybe you know a
Wednesday you’re in your band you’ve
just signed a major deal now the biggest
selling CD of the year 2000 was Hybrid
Theory which was Lincoln Park sale but
first album and sold 10 million albums
but you’ve just got signed and you are
going to sell you don’t know this yet
but you’re gonna sell a million CDs now
you’re like holy I’m gonna be
buying a Ferrari I’m gonna be making so
much money I’m gonna be on MTV Cribs be
like check if my basketball court that’s
gonna be amazing
but is that true is that what’s gonna
happen now you know I’m gonna say no
right because you’re watching the video
we all heard these horror stories but
why why does that not work well let me
tell you sell a million copies of a CD
back in the day 20 years ago CD price at
that point was let’s say 15 pounds or 15
dollars 15 million quid that is chit
chit chat chit chit Ching there’s a
license to print money yeah fantastic
except the way that you signed your
record deal and this is the same for
pretty much all record deals back in the
day was you don’t get all the money
obviously so out of the 15 quid $15 it
is broken down into parts don’t forget
we’ve also got the shop that’s selling
the CD has to make its money but the
record labels taking a certain amount so
let’s say the record labels taking about
50% overall and that also has to include
things like distribution it has to
include the marketing side to it it’s
got to include the manufacturing it’s
got to include everything so it’s taking
say eight let’s say eight quid eight
quid out of the 15 16 that it that CDs
been bought for and you as the artist
are usually on around about 10% so
you’ll get somewhere between one pound
20 and one pound 50 for every CD sold
you like boom caching that’s no problem
fifteen million quid sale set CD sales
and you’re gonna take over
Numan it’s example between 1.2 and 1.5
mil whoa oh are you because the way
labels work is you’ve signed a record
deal which says any money they spent is
kind of alone to you so let’s break that
down let’s say you make a record now
back then everything’s a bit more
expensive in order to make a record it
probably is gonna cost you a quarter of
a million 250 300 350 thousand in order
to record your album you got asked quite
a lot of money
Plus on top of that then you’ve got the
promotional costs well we’ve got to get
it on TV or on radio all those things
cost money and so that’s gonna cost 50
100 150 200 thousand pounds worth of
actual marketing to get this so people
know about it you go oh yeah I’ve got to
pay for that and then the record label
of throwing parties because you know we
need everyone to know about this and
you’re like yeah party and there’s loads
of champagne that’s being drunk and you
go allow as lots of expensive champagne
and the people who’s drinking the
champagne the people from the record
labels that’s right and there’s loads of
expensive meals happening because the
labels need to take out other people to
schmooze them to get it on the radio and
this goes round and round and round and
they’re like hey we’re gonna put you
guys on tour and you’re like whoo gonna
go on tour now back in the day the way
it worked was everything was revolved
around the album you get a promotional
tour that men it was promoting the album
you were single so thirteen to seventeen
year olds would go to town on a Saturday
and they would buy a physical CD single
or a vinyl single it would cost
somewhere between one and three quid it
was a loss leader it meant it didn’t
make any money but what it did was it
promoted the album everything was
revolved on the album the promotional
tour promoted the album and all of this
stuff the merch promoted the album
everything was just pyramid pyramid
pyramid because if we can sell a million
CDs bang that record labels gonna make
eight million quid or not so much but
you know four five six million quid then
you’ve got everything else on top of
that so we’re gonna play you on tour
it’s gonna be amazing they’re gonna
they’re gonna say well we’ll pay 50
percent of the tour and you get 50
percent but back then talk tour ticket
prices were different it’s only been the
last 10 years that going on tours really
making the money so back then in in the
year 2000
just before the year 2000 the average
ticket price was about 2223 quid I know
that’s how much it cost and we’re
talking for arena and stadium levels
it’s only been recently that the money’s
really come into it so everything’s
pointing towards the album and you are
paying all of this stuff back but here’s
the cash so you’re paying back part of
the talks you’re paying back the
marketing you’re paying back the
recording you’re paying back the parties
you’re paying back the promotion you’re
paying all of this back but not out of
the 15 quid hour the $15 you’re paying
it back out of your 10% so all of a
sudden you’ve made you million – three
hundred for recording – the two hundred
for promotion – the fifty to a hundred
for touring – all the parties at the
most expensive swanky restaurants with
all the champagne all of a sudden you’re
left with a hundred 150 thousand which
then has to be split between all of the
band members your managers taking 20%
etc etc you can see how it doesn’t make
the money because all of the money
that’s spent is coming out of your 10%
and not the CD sales so when we look
back and say hey back in the day was
amazing was it that’s why you had so
many artists that are so angry about
their labels because they weren’t making
proper money and you had these record
labels with with just you know 15 floors
worth of people who worked in the
offices now then let’s fast forward to
today let’s fast forward to today’s
market Napster came along in 2001 ruined
the whole physical sales then all of a
sudden instead of having physical sense
you could steal music and at that point
it was a bit of a wobble CD sales
started to fall now after Napster
the floodgates have opened because music
became digital and it wasn’t attached to
anything it wasn’t something that you
could if you wanted to steal music
before that you’d have to shoplift and
we were like no I’m not prepared to
shoplift I’ll steal music digitally but
I won’t shoplift
that seems a step too far well the
fast-forward today and it’s not even
stealing because now you legally buy all
of the music in the world for free
effectively if you want to not have
adverse for it then you pay a 10
that’s literally how much we’re paying
so music is free but we’re still
determined to sell music we’re still
determined to try now how hard is it to
sell music so you’re not selling music
you’re selling the physical thing you’re
selling nostalgia or you’re selling a
memory or you’re selling something here
as a keepsake or you’re selling guilt
because you’re saying buy this you need
to buy this because I can’t do this
without you you’re selling those
emotions which are attached to now a CD
which we can’t play anymore
because most of us don’t have CD players
we don’t have you know we have vinyl but
I buy old vinyl so I’m more likely to go
and buy Fleetwood Mac vinyl that I am
going and buying something from you know
the 1975 which I probably wouldn’t have
thought to buy an vinyl so music as we
know from a physical form is therefore
for keepsakes it’s part of merch but we
don’t use it to play the music if you
look at the landscape instead of
everything pointing towards buying the
music it doesn’t everything now is
pointing to two new things merch and
tour sales so back in a day like I said
you went on taught the tall would
probably tour tickets for well the Spice
Girls in 1990 a talk at Wembley Stadium
that was at 80,000 people gig gig ticket
fee was 23 pounds which is about 25 26
maybe 27 dollars now in today’s money
that probably works at 35 36 37 dollars
with inflation you look at today’s
ticket price last year the biggest
selling artist on tour was Ed Sheeran
surprise surprise
so ed Sheeran went out and he made 435
million dollars worth of tour sales to 5
million people
his average ticket price was 75 to 80
dollars and he’s pretty cheap compared
to all of them if you look at the Eagles
who were touring last year or the year
before they were bringing in a hundred
and seventy five dollars per ticket
Elton John one hundred and seventy
dollars per ticket this is average I’m
not saying it’s the lowest it’s average
same thing was with Taylor Swift 120
dollars per ticket you can see how
ticket prices have shifted massively
that’s a big part of where people make
money now that they didn’t before it
used to be promotion now it’s the game
if you look at merchandise
very very different thing back in the
day everyone will go and get their fruit
of the Loom black t-shirt stick your
band logo on it and they’d sell them at
gigs and they’d sell them through that
website for a tenner 15 quid that was
fine no longer the case anymore
bands are do that our old school and we
need to look at other creative
industries and the landscape of now if
we look at who is bucking the trend who
is ahead of the game when it comes to
creatives its youtubers they are far
ahead of the game they understand the
model of today the model of today is how
can we build the audience and monetize
it how you build the audience is not
trying to sell them something that’s
free it’s giving them stuff in youtubers
case is they make content they make
content day in day out and if they’re
making great content it might be week in
week out and they build that audience
and then the way they’re monetizing it
is live shows and merch but the
difference between the merch of
yesteryear and and and low-end bands of
today and merch from youtubers of today
is it isn’t just whacking a logo on and
selling it all of a sudden these
youtubers are creating fashion brands
you go on their website and it’s not
t-shirt they’re selling a whole shop you
can have 15 different types of t-shirts
and twelve different types of hoodies
and six different hats and instead of
just having their logo emblazed across
it which is a bit uncool they’ve
actually done something clever they’ve
actually branded something in a way
where you know it’s theirs
but it doesn’t have Damian keys written
right across the chest what they’ve done
is they’ve been cleverer and they’ve
said hey let’s have a a word or a logo
or brand just like Reebok just like Nike
just like all of those other fashion
brands like All Saints like this or
you’ve got a little a little whatever
that is skull thing all of a sudden they
do the same thing and they’re selling it
via their shop but you can see the
difference in quality and you can see
the difference in price they’re not
going and getting some cheap through the
new t-shirts whacking anything off it on
it and just hoping for the best they’re
going for the best quality but they’re
gonna pay the best quality as well
because you’re going to get honey this
is gonna cost you $70 $80 $90 but it’s
gonna be a really great quality hood
that you’ll wanna wear on a daily basis
not just so you can go it’s got my name
strapped across it but also because it’s
actually something I genuinely would
wear but I’m gonna pay for that because
it’s a fashion brand and the quality
represents that but here’s the best bit
because in the year 2019 2020 2021 we
don’t have to do what we used to do with
CDs which is buy a thousand copies to
stick them under the bed no what we do
now is we approach companies that will
will print as many as you want
but they’ll have a shop online that will
do a cut off the top that will say we
will for example we will for every
hoodie that goes out we’ll take a tenner
and then you’ll get the rest of it so
it’s actively printing one in one out my
book for example went on Amazon I don’t
I don’t have to print anyhow the next
book which is coming up in about a
month’s time which is all for musicians
but go straight on to Amazon you’ll pay
a ten I want to see any of them it’ll go
straight from Amazon they’ll print it
send it to you I’ll get 50 percent job
done I don’t have to I don’t have to buy
in bulk to send them out so you can see
how you can start to build the audience
which is the key and we’ll come to the
point of entry in a minute so you can
monetize them with value not take the
piss out people but monetize them in
ways that they want rather than trying
to monetize them in forced ways that
they don’t want which is what musicians
are trying to do that other creative
sectors aren’t trying to do and there’s
something else so there’s a guy called
rule Reynolds now if you don’t know who
this is you might have heard of his band
his band’s called Enter Shikari now this
guy is amazing he plays the game
perfectly and it doesn’t think him as a
game he just looks after his audience so
Enter Shikari a really big band they do
he’s always got time to meet people he’s
always keeping on top of sending
messages to people and not gonna stop he
did a genius thing this month which is
he released a book because people want
things they want books but they know
they can’t play and play their CD so
instead of making the CD he made a book
and on this book it is the lyrics and
the meaning behind the lyrics including
you know tour photos and other things
like that for a coffee table book for
the fan base
there that’s what you can monetize you
can make something beautiful and
creative and fantastic that people will
hold and go art this is a this is a
thing of beauty
and they will show their friends and
they will post it on their Instagram but
they’ll also leave it on their coffee
table and they’ll treasure and they’ll
look at it and it will be a moment in
time rather than trying to sell them
something that they go yeah CD yak don’t
know what to do with it but it’s a nice
thing to own you can see the difference
in vibe and feeling he’s done something
which is just slightly different he’s
done at all he’s taken a bunch of
pictures of the tour he says I want to
share this with everyone in a book he’s
charging 23 quick now if he’s done that
by a CreateSpace or if he’s done that by
a way that he can put that onto Amazon
himself he’ll be taking 17 quid for a
book Santi quid go and sell a thousand I
just made 17 grand just from that one
book which he basically made via that
all you can see that this is about
looking after your audience and giving
them things that they want as opposed to
giving them things that you want them to
have which is a very different thing
which comes on to my last point the
point of entry if you’re gonna do this
every single day people come to me and
they go I’ve got my CD what do I do
I’ve got my album finished what do I do
the question right I know you’re not
gonna like this but I’ve done an AP
what’s the best way of getting it out to
people and I’m like you it I know
you don’t want that to be the answer
watch all the videos I keep posting you
it you’ve come in right at the
wrong pinpoint you’ve basically got got
my CD
well drink ten thousand of them and go
and give them to people and say to them
here they aren’t they’re free it’s gonna
cost you a fortune is that the right
thing to do it’s the only thing to do
because you can’t just put it on Spotify
and say a favor for you I’m giving away
my music like everyone else in the whole
world you’ve missed it your best bet is
to put a strategy over a year or two
years before that where you’re giving
away pieces of music you’re giving away
songs at a time then you are dispersing
that with content every time I do a song
I will do a video every time I do a song
I’m gonna do a live video every time I
do a song I’m gonna go into a cold
with someone and do a video and I’m
gonna build this up on my YouTube I’m on
my Instagram and on my Facebook page not
forgetting that people aren’t seeing
much on Facebook page
people don’t want music on Instagram
they just don’t they want stories on
Instagram but YouTube you can get away
with this stuff but you owe as a
trifecta you’re pushing all of this
stuff to say here’s for you this is for
you this is for you this is for you this
is for you
so that down the line you are building
fans and you are not building just mates
that go oh god you have got by that CD
because yeah I know I’ve got by a CD I
get it you’re you’re building an
audience that goes I love what you do I
keep I wait for your videos and if
you’re not there I get I just get a
little bit despondent because you’re not
there I want to see another of your
video and every time the video
notification pops up oh I get really
excited that’s a fan when you’ve got a
fan you can monetize that fan but you
need to realize the point of entry of
how hard it is for you to get someone to
that fandom for most people it isn’t
just I just watched a piece of music and
now I’m a fan that is the start of the
journey and they need more they need to
see more music then you see more of who
you are they see more of the story until
they gets a point we go yeah I’m a fan I
want to see more I want that routine and
then when you start to introduce stuff
there’s stuff that you introduced that
cost money it needs to provide value and
by that I don’t mean value for you I
mean value for me the person they’re
buying it I’m prepared to buy your stuff
for 20 quid if I want it but if I don’t
want it I’m just doing you a favor that
isn’t the music industry that’s a
friendship what we want is to make
things of value of beauty of of Worth
and a hoodie which is which I would buy
anyway because I just think that’s
amazing that happens to represent you
and the story I also want that book of
all those tour stories that you did
because that’s fantastic anything that
you can do like that is merch and then
when you go on tour you’ve got people
going of course I want to come and see
you play live and following this story
and that’s when you start to get people
to come to your gigs and if you’re
saying people don’t come to gigs no they
don’t come to your gigs but edu last
year played two
five million people and you can you can
look at me like that and you could go to
Ed Sheeran but if someone haven’t get 5
million people to gigs in one year then
you can get people to gigs if you do the
right thing if you get people into your
band people will come to your gigs if
you make something of value and you make
them feel part of something and you make
them want to come to the gigs if KC nice
that comes to Brighton and comes to town
am I going to his kick yes yes I’ll be
the first person in line because I love
KC nice that John Mayer of course I’ve
got tickets of course I have why
wouldn’t I I want to go see him play
live because I’m following the journey
or when that value of seeing him play
like is for me not for him he gets loads
of money brilliant but the values for me
and that’s what we’ve got to think of
and the point of entry is much earlier
that I’ve made my music what do I do
with it
you break it up for parts and you spend
the next year providing value after
value after value giving it to people
giving them what they want what do they
want they want to see you they want to
see your journey they want to see your
story that is the difference between
then and now and how that triangle of
everything going towards an album an
album is now upside down the music is at
the bottom but the merch and the tours
that’s where the money’s at but it’s
it’s a different level of how much value
you need to put in now than it was back
then let me know your source but more
formally do me a favor
I’m loving this awful not having the
pressure of doing daily videos I want to
do a bit of a bit more stuff I wanna do
some challenge videos coming up so I’ve
got some exciting ideas but if you can
like subscribe more importantly just
come and talk to me in the comments
below because I’d really appreciate that
but have a great day I’m gonna go enjoy
the sunshine see you soon

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