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By Linda M. Sekulic
As the title would indicate, we are going to address the topics
of funding, sponsorship, and various types of Government Grants
specifically for the Music Industry.
Merchandise sponsorship
if a band expects to survive
the enormous cost of touring in their “first years” ticket
sales and CD sales alone are not going to earn them any profits,
so it is an absolute necessity for a band to have a line of merchandise
for both men and women. If a band has an independent production,
owns the Copyright, therefore will be in control of publishing,
and can basically negotiate their own terms, showing the backer
(sponsor) a “mutually compatible” “recoupment
plan.” Merchandise leads to Branding, which is also a necessity
in the highly competitive music market. All the designer labels
offer a unique, individual image, just like original recording
bands. It is all Commercial Branding. Think about how the sales
markets vary in different countries, and expand your product
line to accommodate. Eventually, when the demand exists, move
from an International market to a World market. Social Media
is a critical element.
In the lovely Canadian Province of British
Columbia, there is a music industry non-profit organization
called Music BC – formerly
called the Pacific Music Industry Association. This organization
has been involved in the annual New Music West Festival, hosting
the Showcase gigs of over 300 original bands in over 3 days,
for major industry reps, annually, for quite a long time now.
Music BC also hosts an annual Music Industry
Seminar series on different topics in the music industry – everything
from production to management, marketing, videos, promotion,
recording, etc. They also offer Provincial Government funding
grants called Factor Grants and a band has to have an independent
production, and a two year recoupment plan. There is also a type
of Federal Government Funding, called Mitap Funding, that is
designated for touring, and major promotion. The Factor Grants
are typically used for recording and music video productions,
while the Mitap Funding is designated for international touring
to establish a viable market.
Another way of “acquiring funds” through an “outside
means” would be: if you happened to own a company that
is Incorporated, you can sell off a certain percentage of company
shares, and once you have shareholders, you could set up a company
trust account, then secure major investors.
These are all legitimate and successful
ways of “getting
the money to make it all work…” the most critical
element beyond life insurance for band members, would be “high
liability” insurance on the road gear (music equipment).
Linda has been a musician for
over 40 years playing several instruments, including bass, guitar,
drums, vocals,
For over 16 years she has working in the field of Entertainment
Law and is the President of an
Independent Record Label for over 20 years. Formerly listed
in the Who's Who Music Directory, then listed annually, in Music
BC's Business directory, her largest business deal to date:
a distribution deal (with Spinner Distribution) involving 20
bands that were unsigned, and had no existing management for
a compilation CD to market in Europe.
Volunteer for the New Music West Festival, and Music BC (formerly
the Pacific Music Industry Association)
Linda M. Sekulic is the
Owner/President POP RECORDS INC
She can be reached for
inquiries at linda_sekulic@yahoo.ca
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