Dan Tsurif (VP Artist Management & Digital Strategy)
Jun 22, 2020
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Dan Tsurif, VP of Artist Management & Digital Strategy at BRXND, has worked with notable artists like Zakk Wilde and Black Veil Brides. He dives into the financial complexities of the music industry, revealing various income streams for artists. Tsurif discusses the essential roles of managers, booking agents, and promoters, and how they navigate challenges like COVID-19. He also unpacks the intricacies of merchandise sales and the cultural dynamics affecting band popularity across regions, offering invaluable insights for aspiring musicians.
Touring serves as the main income source for artists, but reliance on it poses significant risks due to potential disruptions.
Record labels provide essential financial support for artists, making favorable contract negotiation critical for long-term success and profitability.
Merchandise sales can be costly and complex, often leading bands to prefer e-commerce for better profit margins through strategic inventory management.
Deep dives
Understanding Touring Income
Touring serves as the primary income source for many artists, particularly those not diversified in revenue streams. For bands operating in smaller venues, like those with a capacity of 500, the income generated from live performances is essential, as many rely heavily on ticket sales, merchandise, and VIP experiences. However, this reliance presents risks, especially if circumstances, such as injury or unforeseen events like the recent pandemic, disrupt touring schedules. Such disruptions not only halt income for the band but ripple through the entire support network, affecting managers, booking agents, and other professionals tied to the band's operations.
The Role of Record Labels
Record labels function similarly to banks for artists, providing crucial financial support like tour support and marketing investments necessary for a successful music release. They often cover upfront costs, which bands then repay through their earnings, although the terms of each contract can vary widely. Some bands may find themselves in debt to their label due to extensive investments, impacting their ability to profit from streaming and sales. It's crucial for artists to negotiate favorable terms with record labels, as their financial backing significantly influences the success and sustainability of a music career.
Merchandise Dynamics
Merchandise sales at concerts are often viewed as critical revenue sources for bands, but the reality is they involve high costs that can significantly diminish profitability. After accounting for venue fees, local taxes, and the expenses associated with transporting and selling the merchandise, the profit margins can be quite slim. Many bands find that e-commerce can be a more lucrative avenue for merchandise sales, where inventory can be pre-ordered and managed more strategically. The complexity of managing merchandise often means that successful sales require careful planning and execution, particularly regarding inventory management.
Merch Company Relationships
Typically, bands work with a single merchandise company to streamline operations, although larger bands may license their designs to multiple companies to maximize exposure and sales. For independent bands, initial runs of merchandise usually require upfront funding from the band, which can be a substantial investment. Once a band has gained traction and sells enough merchandise, they might enter agreements with merch companies that allow those companies to finance merchandise production in exchange for a cut of the profits. Managing multiple merchandise relationships can lead to complications, making it advantageous for many artists to maintain a focused partnership.
The Importance of Booking Agents
Booking agents are key figures in determining the financial outcomes for bands by negotiating performance fees and securing gigs that can enhance exposure. Their payment structure typically involves a percentage of the earnings for each show booked, incentivizing them to push for higher guarantees. A good booking agent assesses not only the immediate financial return but also the long-term potential for growth, advising artists on optimal venues to play. Through strategic choices, they can position a band to sell out smaller venues, creating demand that can lead to more significant opportunities down the line.
Dan Tsurif is the VP of Artist Management & Digital Strategy at BRXND. He works with Zakk Wilde and Black Veil Brides, among others. On this episode, he dives into the various ways that managers and artists can make money, the roles of booking agents and promoters, and much more. If you're in a band or are looking to manage bands, you'll want to take notes!
