In a world where music creators are bombarded with complex strategies and convoluted business models, it's time to simplify and rethink the process of scaling our music careers.
So I am presenting a new framework based loosely on the theory of constraints which I adapted to the music industry. The theory of constraints is a business strategy that reminds us, ‘a chain is no stronger than its weakest link.’
The theory of constraints is the idea that the output or quality of any system or process is often limited by a few constraints or ‘bottlenecks’, which is a point of congestion in a system that is limiting the total output of the system. (stratechi.com)
Those bottlenecks are what keep you from scaling your music money machine.
What does it mean to scale a business?
It means you are able to grow your music money rapidly, consistently and exponentially instead of slow, unpredictable and intermittent progress. This requires constant optimization to make sure you get the gears of the machine spinning together in unison.
So what are the gears in the machine?
Production x Marketing x Engagement
Each gear must be meticulously crafted and honed to perfection to achieve the velocity needed to scale your income as a recording artist. Let's delve into the principles that will help you embrace this new music business mindset.
Gear 1: Production - The Quality Factory
The first gear, Production, is the heart of your music money machine. It encompasses all activities, processes, and people involved in creating a market-ready product. No matter how brilliant your marketing strategies are, without a high-quality and consistent output, your music career will be a flash in the pan at best.
Forget the idea that endless and pointless content is king. Focus on perfecting your craft and consistently delivering truly remarkable work into the world. Build your music money machine on a solid foundation of excellence and innovation in your music and content creation.
Gear 2: Marketing - The Awareness Engine
The second gear, Marketing, is the engine that drives your music money machine forward. It comprises all activities, processes, and people that connect your product (gear 1) with the right audience. Without strategic marketing, even the best music will remain unnoticed and underappreciated.
Forget the idea that viral fame, overnight success or ‘getting a deal’ are the keys to scaling your music business. Instead, adopt a systematic and targeted approach to reach the right audience consistently. Understand your niche, identify your ideal listeners, and create an awareness engine that constantly propels your music to the forefront of their minds.
For more thoughts on marketing, check out my ‘Top Music Marketing Hacks for 2023’.
Gear 3: Engagement - The Superfan Builder
The third gear, Engagement, is the secret weapon in your music money machine. It encompasses all activities, processes, and people that foster deeper connections with your fans. Engaging your audience on a profound level will transform casual listeners into loyal, lifelong supporters.
One-off performances and occasional interactions with your fans are not enough.
Cultivate a community of superfans by investing time and effort in building meaningful relationships. According to the 80/20 principle, 20% of your fans will drive 80% of your income - making engagement a crucial element in your music machine's overall success.
How does touring and playing live fit into the picture?
One of the best parts about this strategy is that it doesn’t hinge on you playing live at all. I have personally witnessed many creators scale independently to reach over a 6 figure yearly income purely through streaming and sync. It is not easy but it is possible.
Of course there is a LOT of money in touring if you can sell tickets. So, here's how to work it into your music money machine:
When it comes to playing live and touring, shift your perspective to seeing it as a weak or even unnecessary component of your marketing gear, but an extremely powerful component of your engagement gear.
Playing live is marketing in the sense that it can definitely expose you to new audiences, but it's not as scalable as online marketing. Touring requires a massive investment of time, money and resources.
Instead, prioritize developing your brand presence in a specific area through connecting with local influencers or collabing with local artists before traveling there for a live performance. Travel with the mindset of turning casual fans into superfans through your stellar performance and in-person interaction.
Superfans are the lifeblood of your music money machine.
Engage with them on a deeper level and create meaningful experiences that keep them coming back for more. By focusing on engagement, you can build a tribe that will sustain and elevate your music career for the rest of your life.
The Big Picture Recap - A Well-Oiled Machine
In summary, your Music Money Machine needs all three gears spinning quickly in sync:
Production of outstanding content
Marketing to targeted audiences
Engagement to build superfans
IMPORTANT: The speeds must balance. If Production lags, you have nothing to market and engage fans with. If Marketing lags, you lack awareness from the right audiences. If Engagement lags, you fail to create lifelong superfans.
Optimize each gear, then scale them in unison.
Each day when you approach your work, make sure you wear each of these hats and work on each of your gears. Soon you'll create a well-oiled music money machine that propels your career to new heights.