Hip Hop Entrepreneur n.-- an entrepreneur who has turned his/her Hip Hop passion into business profits!

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RECENTLY WE MANUFACTUERED A 3-SONG (8MIXES) EP ON ALL 3 FORMATS YOUR BOOK KIND OF CONFUSES ME THOUGH, IT SUGGESTS $3.50 AS THE PRICE TO AFFIX TO AN EP, HOWEVER A DISTRIBUTOR ASKED ME "WHAT PRICES ARE YOU GIVING ALL 3 FORMATS" AS IF TO SUGGEST CDS SHOULD BE PRICED DIFFERENTLY THAN CASS. AND VINYL.I KNOW THERES A PRICE DIFFERENCE WHEN YOU BUY PRODUCT AT THE CONSUMER LEVEL. CAN YOU CLEAR UP THIS CONFUSION FOR ME...I WANT TO SERVICE RETAIL THIS WEEK AND I DONT KNOW IF IM SHORTCHANGING MYSELF.

ANSWER:

Dear BIGCAE,
Yes, there is a price difference between CDs, tapes and vinyl, at the wholesale as well as the retail level. However, distributors usually know the standard prices for all formats.

The price in the book was based on what ep's were going for at the time the book was published. Therefore, as things are constantly changing, I would suggest simply asking the distributor what an ep is going for at the wholesale level. They'll usually give you a range that other labels are selling at. You can price yours accordingly.
Thanks for your inquiry, and remember...
success is a journey,
not a destination!

Walt Goodridge
The Hip Hop Entrepreneur Help Desk

What up, Walt!
I'm on one of your mailing lists, my name is Dave Wilcox. Anyway, I was wondering if you know anything about sending Demo Tapes out. I have a bunch of addresses and I have a bunch of copies of my Demo( it's pretty phat, too) but I'm wondering is that all I need? Do A&R departments at record labels want more than that, like a photo or something? I don't even know, but I was wondering.
Also, I dig those Friday inspirations, that was a good idea.

Take it easy,
Dave Wilcox
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Dave, (Your question and response will also be available for viewing on the Niche Market Website at the "Hip Hop Entrepreneur Specialist Column")

In order to project the best image for your artist, you'll want to prepare a presskit which should include a photo, demo tape or video, bio and cover letter. HOWEVER, keep in mind that randomly mailing demos to record labels is NOT EFFECTIVE! Your success in getting a record deal will depend on the relationships you make with people who are in the key positions. Get out into the industry, attend events, hand out cards, make friends, offer your help and services FIRST, build relationships and work your way into the lives of the people who you aspire to be like.

In my book, This Game of Hip Hop Artist Management ($49.95) (featuring Chuck D.) I go into detail about preparing a presskit for your artist or group. Chuck also has a chapter entitled "24 ways to get a record deal".
Hope this helps.
Walt Goodridge
The Hip Hop Entrepreneur Help Desk

From: jjg3@dana.ucc.nau.edu
To: walt@hiphopbiz.com

Walt...

I founded and run an upcoming independent record label. We have achieved moderate success and earned a lot of respect on the indie scene. But I still would like to expand the label some more. I feel that I don't have access to the financial resources at this minute to effectively promote and expand the label. I would like to possibly work out a pressing and distro deal with a larger label, or to make my label a subsidiary of a larger label. This is because, like I said above, I am still in graduate school and do not have access to the financial resources to really make the label blow up. Also, I want to keep the label somewhat independent from the majors so as to ensure our creative control. Do you have any advice on the most effective way of going about this?

Momaw Nadon

********

Momaw,
There are several ways you might consider to expand your label. First of all, however, unless you can negotiate a deal with and advance, it will take money (your own, or someone else's) to finance your label. In my book, Change the Game, I explain how I was able to do it with income from my 9 to 5 job. Outside of that, you might wish to talk to family and friends, or the artists themselves, about contributing to their own as well as the label's success. Make sure you offer them an attractive incentive like a percentage of sales or part ownership of the label.

Another possibility might be to interest a distributor in financing the pressing of your product. They MIGHT consider it depending on the s strength of your product. Keep in mind that if they do this, they'll want a better wholesale price from you (i.e. you make LESS per CD sold).

Bottom line: Until you get money rolling in, it's going to take hard, smart work to make it happen, and you, the artist and anyone else on the team MUST be willing to delay your rewards and even lose money for a while until things take off.
Again, I explore the different options in more detail in Change the Game, which you can check out on our website

Thanks for your support and remember...

....success is a journey,
not a destination.

Walt
The Hip Hop Entrepreneur Help Desk

The Hip Hop Entrepreneur Help Desk says: Pauly Paul,
One of the first things to keep in mind is that promotion is the key to selling CD's. Promotion is the act of getting people to know that your record exists. That means giving free copies of your CD to radio stations, DJ's, magazines, distributors, and even some stores, with the intention that they'll play it, review it and make it available to the public. Once people know it exists, and hear it, if they like it, then they'll buy it (provided they know where to get it)

Therefore, a certain number of those 500 CD's should be used for promotion. How many you use will depend on how wide a publicity/promotion campaign you wish to do. Honestly, it might be a bit of a challenge to make any real money from your initial sales of these first 500. If you're selling them directly to the public, check out the stores in your area and see how much CD's go for. If you're selling them to stores, you can give them 50% discount off retail. If you're selling to distributors, call a distributor in your area and ask what the going rate is.

For more detailed tips on promotion, check out our publication: Change the Game.

For a list of distributors, check out The Hip Hop Entrepreneur Lists of Exposure

For more details, or to order, check out the products page

Thanks for your question, and remember...

....success is a journey,
not a destination!

The Hip Hop Entrepreneur Help Desk