🎶Artist Business Model

🎵 The Artist Business Model 🎵

What’s up y’all 🔥 here’s Issue #8 of The Dice Roll 🎲 newsletter!

In the modern music business, understanding as an artist that you’re also a business is crucial to being successful.

🎧 While taking care of your song registration and royalty collection is important, you need to craft a rollout plan with the different building blocks of the business model canvas in mind.

Let’s dive into the 9 building blocks that make up a business model:

👤 Customer Segments: For whom are you creating value? Who are your most important customers? The different types of customer segments are mass market, niche market, segmented, diversified, multi-sided platforms.

🚀 Value Propositions: This is the reason a customer decides to pick you over another brand. The value prop solves a problem or satisfies a customers need. Some examples include: newness, performance, customization, getting the job done, design, brand/status, price, risk reduction, emotional message, social-cause affiliations, etc.

📺 Channels: These are touchpoints along the customer journey. Channels have five distinct phases including awareness, evaluation, purchase, delivery, after sales. They also can be direct or indirect and either owned or partner channels.

👤 Customer Relationships: This is your fan relationship. What type of relationship does your customer expect you to establish and maintain with them. In fact, there are several categories of relationships including personal assistance, dedicated personal assistance, self-service, automated services, communities, co-creation. For fans this can mean the level of authenticity and personal connection (responding to messages, tweets, having a fan chat, etc) you establish with them.

💰 Revenue Streams: A business model can involve two different types of revenue streams including transaction revenues and recurring revenues. Transaction revenues result from one-time customer payments. The recurring revenues result from ongoing payments to either deliver a value proposition to customers or provide post-purchase customer support. Some examples of revenue streams include: Asset sale, usage fee, subscription fee, lending/renting/leasing, licensing, brokerage fees, and advertising. Two types of pricing: Dynamic and Fixed pricing structures.

🔑🔨 Key Resources: These resources allow an enterprise to create and offer a value proposition to reach markets and maintain relationships with customer segments to earn revenues. Key resources can be categorized as Physical, Intellectual, Human, and Financial.

🔑🤳Key Activities: These are the most important actions a business takes to make their business model work successfully. What key activities do our value propositions require? Our distribution channels? Revenue streams? Key activities can be categorized as follows: Production, Problem Solving, and Platform/Network.

🔑🤝 Key Partnerships: This describes the network of suppliers and partners that make the business model work. They can be distinguished into four different types of relationships: strategic alliances between non-competitors, coopetition:strategic partnerships between competitors, joint ventures to develop new businesses, buyer-seller relationships to assure reliable supplies. Companies create alliances to simplify business models, reduce risk, and acquire resources. There are three different types of motivations behind forming partnerships: Optimization and economy of scale, reduction of risk and uncertainty, acquisition of particular resources and activities.

💵 📈Cost Structure: Describes all costs incurred to operate a business model. Creating and delivering value, maintaining customer relationships, and generating revenue all incur costs. Such costs can be calculated fairly easy after defining Key Resources, Key Activities, and Key Partnerships.For example some airlines are “no frills” and built entirely around cost-reducing models. The two different categories of cost structures are cost driven, and value driven. Many businesses fall between these two. They can have the following characteristics such as fixed costs, variable costs, economies of scale, economies of scope.

Now you can fill out the Business Model canvas…

[If you find this interesting then you can get the workbook online or at a used book store. Also there is a second workbook that’s a companion to the first book called Value Proposition Design. Take a look: https://www.strategyzer.com/library/business-model-generation

⭐️Here's a reminder of what you can find on my socials:

🚀 Industry Insights: Stay up-to-date with the latest trends, insider leaks, and developments from streaming strategies to new social platforms launching.

🎸 Tips for Independent Artists: Discover actionable tips and strategies to help you thrive in a competitive market.

📢 My Network: See exclusive information and panels hosted and curated by my network of music professionals and record label executives.

📺 Veteran Videos: Watch some of the most successful and motivated artists give us some practical advice and helpful reminders.

⭐️⭐️New Channel: New long-form content from me in the near future. This week I posted a teaser on my instagram so go watch! It’s called “DICE GAME”, pretty fitting right?

Don't miss out on the opportunity to stay up to date on the music business!🎶

BONUS OF THE DAY 💎

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The #1 online label and community for artists, producers, and all types of creatives. As a music business service provider and HRDRV Music News host, I can tell you first hand that this community is awesome. My music news segment is every Sunday at 2pm on “MusicMoneyMindset” that’s hosted by @JhnyWzdm the CXO of HRDRV!

Interested in checking out my music news segment live? Join HRDRV for free with the starter plan and check out the Sunday call at 2pm CDT on “MusicMoneyMindset” hosted by @JhnyWzdm the CXO of HRDRV!

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That’s all folks! 🥕

Stay tuned for another letter in the next few days and thanks for reading! 🙏🏻🎲

For more tips and thoughts on the music business be sure to follow me on all socials at @chasethedice and feel free to reach out to connect!