Our friends at Long & McQuade provided a series of seminars in the month of March 2003 for their Long & McQuade University event. The fifteen different presentations took place at L & M stores in the Greater Toronto Area and featured something for everyone in the business of making music in Canada.

On Monday, March 10, Bob Roper presented an in-depth lecture entitled "The Business of Music." This is part 3 of 8 that will appear in the GW Review, presenting some of the insights shared by Roper.

When Do YOU Need a MANAGER?

When you think of successful recording artists in the music industry, you think of the artists composing and performing their work. What you don't think of initially is the team of 200 plus individuals that work as a "team" to manage, promote and, most importantly, SELL RECORDINGS. During the pursuit of my musical aspirations, I've encountered many well-meaning types who try to tell me where I should concentrate my efforts in order to get ahead in the music industry. "You need a managager" or "you need a booking agent" or "you need a publicist" or, even more bizaare "YOU NEED A LAWYER..." At this point in the game, why would I need a lawyer? I'm sure there are lots of entertainment lawyers out there right now who would love to take my money and spend a couple of hours talking to me, but, in the end, until I'm entering into legally binding contracts, it might be a little premature to start sourcing a good lawyer. (If anyone has some insight into entertainment law and how to find a good lawyer, please e-mail me).

According to Bob Roper, new, independent bands and artists need strong management, but they don't need a third party manager--at least not until they're generating significant revenue. The fact is that managers and management companies won't consider you unless they believe you will generate revenue for them in the short term. After all, no one wants to work for free.

So, in the beginning, most new artists need to be self-managed. Roper recommends that someone take responsibility for these activities from the onset in order to suceed in the music industry.

Your best strategy is to be organized in your approach to the business and manage your time and money well. Always be professional and make sure you keep accurate financial records. Roper muses that as soon as you put musician on your tax forms, be prepared for an audit. Therefore, it is essential that you register as a business, open REAL bank accounts and keep all your receipts and records up-to-date. For your information, you can register yourself as a Canadian business ONLINE at www.strategis.gc.ca in as little as THREE DAYS!

In order to move from point A to point B you need a Business Plan. A Business Plan is a formal document that outlines your set goals, timelines, targets and identifies where you would like to be in 3 years. There are many resources that can help you create a formal plan, but the key is to start from where you want to be in 3 years and work backwards to where you are now. A Business Plan will help you clarify what needs to be done in order to accomplish your goals. It will also help you identify in what order you need to accomplish tasks in order to move to the next step. It will also help you prioritize and assign duties to others. According to Roper, your Business Plan is the most essential tool for management in the music industry. Once you've created it, refer to it often and measure your results against it to help you keep on track.

WHAT Does a Manager DO?

Well, you wouldn't be the FIRST person to ask. Your manager is like the TEAM LEADER making sure all the pieces are in place to create a whole. Key management functions include; building your Business Plan, creating and maintaining a professional and stable business environment, banding and creating a recognizable image and making sure you have a great team of lawyers, agents, publicists, sound guys, etc. (Ah, so the MANAGER knows at what point I need a lawyer...)

Another KEY part of management is determining and knowing your DEMOGRAPHICS. Who is your audience? It's seems like a simple question, but it can be difficult to answer objectively. Questions like; what is the average age of your audience? Are there more men or women listening to your music? Are they specific to any sub-culture, race, religion, etc? These are questions that you NEED to know the answers to. It also helps to make reasonable comparisons to artists that are similar to yourself in genre. This will help you to identify your potential market objectively.

Once you are generating significant revenue, you can start to shop around for a third party manager. Perhaps this is part of your 3 year plan? Once success begins to materialize for you, it becomes necessary to incorporate more members on your team until you too are the FACE of the 200 invisible "team members" managing, promoting and, most importantly, SELLING YOUR RECORDINGS.

According to Roper, most management deals take 15-20% of EVERYTHING (all revenue generated by the artist/band).

Our next issue of Networking 101-The Business of Music will focus on Promotion, Marketing and making a NICE press kit.

Bob Roper is the President of The Bob Roper Company and is currently managing Larry Gowan, Rick Emmet and Glass Tiger to name a few. Bob also lectures at The Harris Institute and was formerly the A & R rep for Sony Music Canada. Bob has an extensive history of success in the Canadian music industry, too notable to do justice in this short profile.