This is step three in my online music marketing series. In the last two posts (step two and two-A) I discussed the importance of having your own website and some tips on creating your site. Please check out Marketing Your Music Online – Step Two and Two-A for your reference. In step three I am going to discuss an incredibly crucial piece of the puzzle. Something that is so important to online music marketing that if you were to make poor choices in this department it would ruin your efforts in other areas. Keep reading…
Digital Distribution
In previous steps I have talked about setting up your online presence in the sense that you need an online presence and even before that you need to do a little bit of leg work in order to figure out who you are marketing your music to within this online presence. This step is going to be all about making your music available to purchase online. That’s right, that incredibly confusing subject of Digital distribution. This subject confuses so many artists today and rightfully so. It seems that a lot of artists I meet simply go with the most well known distributor or the one their friend is using. Why is this subject so confusing? Well here is my opinion (I want to stress the fact that it is my opinion)… Online retailers of digital products have opened up their formats so that any individual could potentially distribute their products within their stores. I am not saying that this process is easy, in fact, its not at all. However, it is possible. This made it a lot easier for someone to develop a business designed to distribute digital products to all of the various online retailers. A middle-man. Not a bad deal for musicians, deal with one company and your music is then available in every major and many minor online retail locations, available for the masses to discover, purchase and fall in love with. This sounds great. The fact of the matter is that it is great. This is the very reason that making it as an independent musician is possible in today’s market. Having the opportunity to distribute your product to so many venues and make it available to so many potential consumers is really phenomenal. Here’s the downside… There are a lot of hacks out there. There are some tried and trusted entities out there as well. Then there are the lesser known companies that may be fine and may not. Who to choose is an ongoing discussion. This is precisely the discussion that I am trying to engage in right now.
Easy Now…
I am purposefully going to tread somewhat lightly on the subject for two reasons. One – I do not consider myself to be an expert on this subject specifically (meaning, I am not specifically in the digital distribution business), although I do know some things and I intend to share what I do know. Additionally this part of the industry is always changing. The technology that enables companies to distribute to all of the online retailers is always changing and so is the technology that enables all of the online retailers to distribute to the end users, the consumer. What I will not do in this post is, to make a recommendation on a specific distribution service. I simply intend to point out a couple of gotcha tactics that can make their way into the terms of service and the fine print. I will also mention a few distribution services that I am familiar with as examples of the common differences between platforms. My overall goal, to be clear, is to provide an overview of a solid format for an online music marketing campaign to be successful in generating CD and merchandise sales at the same time as creating meaningful exposure. I think an entire book could be written on digital distribution and maybe one should be. The distributor that you ultimately pick will need to fit your specific needs and goals. I will make the simple point that you need to do the research on whatever company you choose in order to really know what their deal is.
Ok… So, rule number one when picking your digital distribution company… What is your goal? You will have to go back to Marketing Your Music Online – Step One in order to figure this out. As I said above, the distributor you choose will need to fit your specific needs and goals.
There are several different platforms and business models to consider. each one varies sometimes very little and other times it couldn’t be more different. Along with business models there are just as many fee schedules and gotcha clauses that may or may not really get in your way. So, rule number two is to read the Terms Of Service (TOS), Frequently Asked Questions (FAQ) and as much of the website as possible.
Don’t Do What Everyone Else Does
I want to point out that it doesn’t matter if there is a musician you’ve heard of who is a customer of the distribution service that you are looking into. It matters only if the service will meet your needs. I would like to point out a couple of different models that are available and the companies that offer them. This is not, by any means, a complete list of digital distributors. Nor is it a complete list of business models. (For a complete list of distributors along with a complete list of a ton of other useful services I would recommend you check out the Indie Bible). I’ve mentioned these companies and business models to provide examples of the differences in services available. I will also point out that the different models out there essentially consist of distribution plus… That is, distribution to several online retailers as well as some other service. The different models that I have examined for this post are as follows:
- Main stream digital distribution plus social networking
- Main stream digital distribution plus physical distribution
- Direct to fan distribution
- Main stream distribution plus direct to fan distribution plus marketing
Each company offers more smaller, and sometimes quite substantial, pluses that I have not mentioned above.
Some of the Players
Perhaps the most well known distributors for independent musicians are TuneCore and CD Baby.
CD Baby has been on the scene for quite some time now. Infact, Derek Sivers, the founder of CD Baby, basically invented distribution for independent musicians. CD Baby entered the scene as a physical distribution hub and a kind of music discovery warehouse. Since, CD Baby has merged with the main stream of digital distribution offering distribtion to Itunes, Rapshody, Emusic, Amazon, Napster and so on… CD Baby will also provide artists with a credit card swiper for CD and Merch sales at shows. The current fee schedule is $35 one time fee plus $4 per album sale and 25% ($0.29 min.) for every mp3 download. CD Baby additionally allows you to set your own prices. I don’t know… if you plan on selling a lot of CDs this model could get really expensive. But… a lot of artists like CD Baby. I personally have followed Derek Sivers for some time now and I have to say, I really like the guy. That being said, he no longer owns the company. The company overall does appear to be very proactive in finding ways to assist Independent Musicians. That’s worth a lot. CD Baby is also partnered with Sonicbids, an online DIY booking hub. I am not entirely clear on how this partnership works. There is also Host Baby. CD Baby’s sister web hosting site. I suggest you read the TOS. In my quck review of the TOS I couldn’t find any information about take-down fees. I would think they are there, but I didn’t see anything when I looked. Again, read the TOS.
TuneCore was one of the first digital distributors to make a splash in the DIY Indie Musician world. The general structure of TuneCore (as of this writing) is digital distribution to all of the major etailers such as Itunes, amazon, Emusic, Napster, etc. and physical distribution through Amazon. The fee schedule currently looks like this: $49.99 for the first year per album and $19.98 per year for each subsequent year. Singles and ringtones are $9.99 per year. This is a flat fee. TuneCore delivers 100% of all net proceeds from the retailers to the artist. WATCH OUT! There’s a gotcha here… When signing up for the distribution package you need to pick your stores. If there is a store you missed then you will have to pay $1.98 for each additional store after you have already given the green light. So, make sure to pick all of the stores you will want before you say go. A couple of pluses that TuneCore offers include: music video and film distribution to Itunes, a partnership with Guitar Center to allow for TuneCore artists to be played on Guitar Center Radio during business hours and a partnership with Universal Music Group to offer a la carte record label services. The partnership with UMG was controversial when it was established. Some applauded the record label’s intention to cater to the DIY Indie Musician and others seemed to feel that it was a sneaky attempt by the label to rob musicians from the inside of the DIY network. Who knows what they are thinking. If you think this works for you, then maybe TuneCore is your thing. Oh… There is a take-down fee (termination of service) of $20 for each album that has been active for less than six months.
I would also mention SongCast. SongCast is pretty much straight digital distribution. The pricing is $5.99 per month plus a $19.99 one time fee per album. In some circumstances this may work out to be less expensive than some of the alternatives. For example; if you have several albums to make available. Notice there are no annual fees for each album. Just a reasonable monthly fee for all of your music and a one time fee per album. Songcast additionally has a radio station that plays songcast artists 24/7. I don’t know what their listenership is. I suggest researching that before you let your decision hinge on that fact. There is a take-down fee for any album terminated that has been active for less than 8 months.
The next company I want to talk about did not start out as a distribution service. Reverb Nation was originally geared toward providing social networking between musicians and their fans. However, Reverb Nation has joined the game and is now competing with the larger distributors. Reverb Nation has two distribution plans. The Standard plan provides distribution to 28 stores and costs $39 per CD per year. The Pro plan provides distribution to 38 stores for $59 per CD per year. Reverb Nation does not take any additional monies on the sale of your music. There are other limitations, but nothing out of the ordinary. Reverb Nation offers a whole slew of other services including email marketing, street team management and all kinds of stuff. There are other companies that probably do a better job these other services, but Reverb Nation has them all under one roof. Reverb Nation overall offers some really great stuff for musicians and it is worth knowing about and their digital distribution service could well be for you. The take-down fee is $30 for the standard plan and $50 for the Pro plan. These are steep in comparison to alternative services.
**My Favorite**
The next type of service on my list is a topic that really excites me. The direct-to-fan movement is why I started this blog and Indie Leap in the first place.
BandBox is a service that gives you a widget (a music player where one can listen and purchase your music). You are able to put this widget on your own website, Facebook, Myspace or anywhere. You can upload what ever audio you want and provide it for your fans wherever you want. You can even upload the audio from a live show and have it be available the same night as the show! (if you want to stay up all night). I think this is great. This gives you the flexibility that you should have in today’s music industry. There are two levels of service. There is BandBox basic, the digital only service for $9.95/month and BandBox Pro which is digital and physical CD sales. BandBox does not take any additional money from the sale of your music beyond the monthly fee. What is really cool about this… is that you pay the monthly fee and you get unlimited album uploads. That is great. If you have a lot of albums, this could be one of the most inexpensive models available to you. However, there is no main stream distribution.
Another direct-to-fan system of note is Nimbit. Nimbit is really a platform designed to serve several needs of independent musicians in one place. There is a direct-to-fan distribution component to the platform. You can create your own store through Nimbit. Nimbit calls this a skin. The neat thing here is that you can put your store (skin) wherever you want to. Put it on your website, on FaceBook, and so on. Your fans can also put a store on their own site. How cool is that!!? It is common knowledge amongst marketing gurus that word-of-mouth or referrals are the most powerful and effective form of marketing in existence. Anything that facilitates that is a cool thing. There are 3 levels of service and with them come 3 different fee schedules. There is Nimbit Basic and that is FREE!! Nimbit basic gives you the ability to sell your digital music on FaceBook, MySpace and your own website, track your fans, some analytics tools and the ability to accept credit cards. Nimbit Indie costs $12.95 per month and gives you everything that Nimbit Basic offers as well as the ability to sell physical CDs, merch, etickets as well as MP3s on Faebook, Myspace and your website andwarehousing and fullfilment for Cds and merch. Once you start paying for your service you also get digital distribution to the major online retailers such as Amazon, Emusic, Rapshody, Itunes and so on. These are only some of the additional features of the Nimbit Indie. Nimbit Pro costs$24.95 per month and is their top level of service. Everything from the last two levels and this is where you can customize your storefront and really integrate their dashboard with your own website. Nimbit does take a 20% commission for all transactions coming from one of their storefronts. They don’t take any money from transactions from another online retailer. This can get steep if you are selling a lot of music. However, in my opinion, they are really offering a lot of flexibility to an artist. This is just another thing that you will have to weigh against your goals.
There are many, many other digital distribution services available. I have only highlighted a portion of them. The point here is that each service is totally unique. The platform of any given service could work great for you and it could be a total headache. I am suggesting as strongly as possible that you look into exactly what it is that the company is offering, read the FAQ and the terms of service, but beyond that, you absolutely need to know what your goals and targets are. If you have done a good job with Step One, you will have a solid grasp on what you need for distribution. For example; if you know that your target audience spends a lot of time on Itunes, then that will be your major concern. You will know if your audience generally buys one track at a time or whole albums. The pricing plans tend to work well for one or the other but not necessarily both. On the other hand, if your audience are big FaceBook users, then you are going to really want to consider Bandbox or Nimbit or something similar.
Take Away This…
I am trying to impress on you two major points… Know who you are selling your music to and READ! the FAQ and terms of service to really understand what you are getting. There are usually very annoying consequences to making the wrong decision. I know this was a long post, but this is a hairy subject to navigate. I was hoping to clear a path to some answers.
Keep a look out for Step Four of Marketing your Music Online in a future post.
Tom Siegel
P.S. – For more information about how to put together an online music marketing strategy sign up for my newsletter at www.indieleap.com.