What Hip Hop artist would you pay for to see live?

What hip hop artist will get you to come out to a live performance?  Nowadays, it’s hard to find that one act that will get people to come out and spend a couple dollars.  Don’t get me wrong, for major acts like Lil’ Wayne, Eminem, and Jay Z they have no problems filling the seats at any venue, but how does a promoter find the right act to get a good turnout without losing his pants? 

Will the Lox make you move?  How about Joe Budden?  J. Cole maybe?

For most businesses when planning they utilize break-even strategies.  When organizing an event of this nature, you have to do the same.  The trick is to be able to at the least make your money back.  I recently attended a concert at Indiana University of Pennsylvania that featured rap artist Fabolous.  For those who follow the hip hop music scene you would think that a Fabolous concert would sellout or at the least be a couple chairs just short of it.  Wrong!  There were approximately 400 – 500 people there, tops.  But how could this be?  Here is your answer.  While there were a couple hundred of black people in attendance, there were only a handful of white people there.  The key to a great turnout is to get white folks to come out and attend the event.  Statistically, blacks only make up 13.1% of the U.S. population according to the U.S. Census Bureau.   With that being said, it is very difficult to get a successful turnout with only capturing the black audience. 

White people buy 75% of hip hop albums sold, so is it the actual event that keeps white people away?  Maybe white people are not comfortable at these types of events, but if that was all the way true, then people like Lil’ Wayne and Drake would not sell out either?

So many things came to mind as I wrote this blog.  This article can go many ways, but I hope those who read this leave their opinions.

Planning any event can be tough, especially when the overhead becomes too much.  Remember, planning a break-even strategy is imperative for preparing for an event, but the key to a successful hip hop event is to find an artist with mass appeal for a fair price.  

Negotiation and Deal Making Part 2.

Let's Make a Deal!

With negotiation and deal making being such a critical part of getting what you want from others, how do we get better at it?  As a continuation of the Let’s Make a Deal series, I will build on from the previous blog Negotiation and Deal Making Part 1 and continue to present my readers with interviews from those actively working in the entertainment and media industry in a deal-making capacity.  For this blog I reached out to Lee Davis. 

Lee Davis is an entrepreneur, organizer, mentor and youth advocate, who has seen his fair share of negotiations in his 18 years of experience in the music and entertainment industry.  He co-owns Promotional Push, which is a Pittsburgh, Pennsylvania based and nationally recognized urban marketing and promotion company.  In 2012, Davis worked with Universal Music Group and R&B star Ray J, and executive produced a compilation album entitled “Pittsburgh Hip Hop AllStars” that was released nationally in January of this year.  Through a partnership with Universal Music Group, he has recently become the new Co-CEO of the national record label Mission Control Recordings, which has placed him amongst some of the music & entertainment industries top executives.  Lee Davis is considered to be a one of the "go to" consultants for local and national record labels and artists to help create balanced music and cultural expression.

I spoke to Lee about his experiences with negotiating and this is what he had to say.

Ron:  How do you separate the people from the problem when you are negotiating?

Lee:  Speaking from the management side of things.  I separate the artist from the negotiations.  The artist normally has nothing to do with the deal.  Typically the artist does not know their value.  You have to separate the emotion and talk to the facts.

Ron:  How do you handle positional bargaining tactics? 

Lee:  Bring more value to the deal.  Avoid the “back and forth”.  A lot of times it’s about wants and needs.  Address the needs and cut out the nonsense.

Ron: When does it make sense not to negotiate?

Lee:  When someone is trying to devalue you or not bring much to the table.  It also depends on the relationship.  Sometimes you have to bite the bullet when you see the potential. 

Ron:  How do I enhance my negotiating power?

Lee:  With Google and free libraries there shouldn’t be a person who is not educated in negotiating.  Study the craft and be educated on the topic.  Find a mentor that you can learn from.  Mentorship is very big at any level.

Ron:  Have you come across any “dirty tricks” others have used while negotiating?

Lee:  9 times out of 10, the dirty tricks come out of the paperwork.  That’s when you utilize a good attorney.  Be aware of the small print and always have someone in your corner who has experience in going over paperwork.

Ron:  Do you find yourself in more deals that you are negotiating the position or the underlying interests?

Lee:  There are always underlying interests.  Most of the negotiations are based off of the underlying interests.  At the end of the day, it’s all about what they bring to the table.

Lee concluded the interview by saying, “The point that you are already at the table shows your worth.  Show the value in what you are bringing to the table.  State the facts. Work towards a common ground.”

Let's Make a Deal!

Negotiation and Deal Making Part 1.

Everybody wants to be a winner, but sometimes it takes a little compromising.  It’s not always easy to get what you want, but sometimes you have to ask yourself, “What is it going to take?”  Sometimes it just takes some negotiation and deal making.  Believe it or not, you are a negotiator and have been all your life.  Whether if it was bargaining with your friends as a child for a candy trade or compromising with your mother as a sixteen year old to take the car out for the evening.  Like it or not, you are a negotiator.  Think about it.  Haggling price with a car salesman, discussing a raise with your boss, and even discussing the cost of an item with the cashier at your local retail store, makes you a negotiator.  With negotiation and deal making being such a critical part of getting what you want from others, how do we get better at it? 

In today’s entertainment industry deals are made everyday. For this blog I decided to interview a professional who is actively working in the entertainment and media industry in a deal-making capacity.  Please let me introduce you to Donna Baxter.  Donna M. Baxter is the CEO and WebMistress of Soul Pitt Media, an African American Internet marketing and graphic design firm based in Pittsburgh, PA. Founded in 2000, this award-winning company helps individuals, businesses, and corporations reach African American consumers through online advertising, print and radio.  Former rap artist turned Internet Tech Diva, Donna Baxter has gone from “Rhymer to Digital Designer”. This “Cool Nerd” explains technology in ways you’ve never heard all while making it easy to understand, funny, and entertaining and leaving audiences motivated to “Get Online or Get Left Behind!”  Donna was recently elected as the President of the National Women’s Business OwnersAssociation.  Find out more about her at www.donnambaxter.com. 

I asked Donna a few questions about negotiating and this is what she had to say.

Ron:  Can you give me an example of how you worked toward a mutual benefit when you were negotiating a deal?

Donna:  Doing some “give and take” works.  You have to throw something in that would be valuable to them, but not cost you a lot.

Ron:  When does it make sense not to negotiate?

Donna:  Where you don’t benefit.  Sometimes stuff is just bad business.  It may be a conflict of interest.  I won’t negotiate when the result hurts one of my clients.  Especially when a potential client is a competitor of an existing client.

Ron:  How do I enhance my negotiating power?

Donna:  Try negotiating more throughout the day.  Commission sales experience helps.  You really learn some things doing that.

Ron:  Have you come across any “dirty tricks” others have used while negotiating?

Donna:  Yes, when someone gets me in a comfortable setting and sounds good, but vague, then when it is time to get down to business, it was really a facade to get me to the table, just to talk to me about some nonsense.

Ron:  Do you find yourself in more deals that you are negotiating the position or the underlying interests? 

Donna:  In sales, I’m usually negotiating the position.  You have to add value to the sale without much expense to yourself.  Find the value and make them see it.

Donna closed by saying, “When dealing with negotiations, have confidence with your own value.  Go in with confidence.  Deal with the issue and know your value.  Have them see the value."

The 411 on 360 deals.

For many aspiring artists, the plan is to get a major record label to notice them.  For many record labels, the plan is to make a profit.  The problem, however, is that the record labels are now seeing ever shrinking profit margins and some aspiring artists are seeing even less than before.  Even artists who are considered today’s veterans in the music industry are scrambling to find security and a handsome reward. 

As the music industry entered the new millennium it was introduced to an alternative to the traditional recording contract. This alternative is called a 360 Deal.  The company agrees to provide financial support for the artist, including direct advances as well as funds for marketing, promotion and touring.  In return, the artist agrees to give the company a percentage of all of their income, including sales from recorded music, merchandise, live performances and any other form of income.  If you noticed, I said the “company” and not the “record label”.  These types of deals allow other companies in the entertainment business, who do not consider themselves record labels, to capitalize and take the opportunity to engage in signing acts.  Something that was unheard of just a decade ago.

In 2008, LiveNation made news for their deal with hip-hop mogul Jay-Z.  LiveNation reportedly signed Jay-Z for a $150 million, which is one of the biggest music contracts ever awarded.   LiveNation signs artists as a record label, but predominantly takes the role of a promoter, rather than owner of music, which is their niche and what they do well.  

A 360 deal gives labels a chance to fatten their pockets once again, but as you see the examples of Jay-Z, Madonna, and U2, artists are finding success with these deals as well.  If the advances to artists continue to be generous, then artists definitely have the incentive to jump at these types of deals.  However, critics of these deals feel that the artists are giving up way too much in return for the initial payouts.  Other critics have even said that these types of deals eventually make the artists feel like they are losing control, especially of their creativity.  On the flip-side  companies like LiveNation, who offer these large deals, may have problems even generating any profits.  So who is really winning?  Are 360 deals really the solution?  Moreover, the major record labels will continue to struggle if they are not willing to match the money of similar 360 deals and artists will continue to flock towards companies like LiveNation.  So again I pose the question, “Who is really winning?” 

Please be sure to leave your feedback and comments below about who you believe is getting the real deal.  The company or the artists?

Check out this insightful article titled “Exploring the 360 Deal” for more information about 360 deals.

Success with Full Sail University: Fact or Fiction

As I considered going back to school to sharpen my skills and obtain a master’s degree, I decided to look into Full Sail University.  Full Sail is a Florida-based college that offers courses in entertainment business management, game design, film, music production and other studies related to the media and entertainment industries.  A few friends of mine already attend the school and it seemed to be the only college of its kind that offers an online education.  However, the more I researched Full Sail online, the more statements I found about the school being a scam. 

Because Full Sail is a for-profit higher education institution, many people feel that the institution is in it for the money and not to provide an exceptional education.  While Full Sail is more affordable than some of its four-year institution competitors, cost is an issue for Full Sail students as the institution gives out little financial aid.  With Full Sail’s high costs, low placement, troubles with credit transferring, and not being regionally accredited; the institution has even drawn criticisms from its own students.  

“Full Sail is a scam and there is no question about it.  You can verify it yourself by simply talking to any other college or government agency about Full Sail degree or transferring credits from Full Sail and you will hear it.”

                                                                                                studentsreview.com

The naysayers should beware.  There is no business like show business, and like any business this is a competition.  Full Sail provides their students the knowledge and skills to give them the competitive edge in today’s marketplace.  When weighing Full Sail against more affordable institutions you have to factor in the university’s academic strength and alumni success stories. 

Thirty-eight Full Sail graduates worked on the production of seven different Academy Award winning movies.  61 graduates were credited on 47 projects nominated in 36 categories.  The credits on this year’s Emmy Award nominees show Full Sail alumni working on hits like “Game of Thrones”, “Mad Men”, “Girls”, “Breaking Bad”, “American Horror Story”, and many more.  Full Sail alumni have also been credited on gaming projects like “Halo 4” and “Dishonored”.  Some notable alumni are Gary Rizzo Oscar Award winner, three-time Grammy winner Phil Tan, four-time Grammy and eight-time Latin Grammy winner Sebastian Krys, director and screen writer whose credits include director of Saw II, Saw III, and Saw IV; and JD Harmeyer, Head Producer on The Howard Stern Show.

Full Sail University provides the tools and the education that I need to not only get into the entertainment industry, but to get into the entertainment industry and be successful.  Trust me, going back to school was the furthest thing from my mind.

After receiving my bachelor’s degree a decade ago and still living with college debt I told myself and others that going to college right after high school is not worth it.  My reasoning for this is, because many like myself graduate from college expecting the world to be ours when in all reality, the majority of us end up back at home living with our parents in deep debt with no experience. 

At the age of 18 I wasn’t truly sure what I wanted to be when I grew up.  At this point in my life I do, and a few months ago I figured out how I was going to get there.  I decided to go to back to school, because of the up-to-date education, networking, opportunities, and doors that will open with attending Full Sail. Full Sail University gives their students the competitive edge and an experience way beyond face value. 

“Full Sail gave me a great base, and then you take that knowledge and apply it to wherever you need to.”

DJ Swivel

DJ Swivel’s credits include Jay Z, Kanye West, Rihanna, Beyoncé, Rick Ross, Britney Spears, Mariah Carey, Wale and more!