Monetizing Fans? What's Missing From This Conversation?

I understand this is the music BUSINESS,

but the emphasis on monetizing fan bases is losing the plot.

The conversation is lacking nuance.

There’s some disconnect between what many artists & their teams know vs how the music industry prioritizes that knowledge.

Intuitive artists & teams know that building a genuine support system around an artist leads to longevity.

A core fanbase matters.

Although you definitely want your fans to spend, looking at them as the ultimate cash cow who is directly responsible for your success isn’t quite right. However, due to shifts in the music industry (streaming, fluctuating revenue, and increasingly decentralized revenue models), an urgency to generate income FAST has become more commonplace than ever. 

But just like when your partner is rushing you to get dressed for dinner, you will inevitably miss some steps. 

Emerging artists are missing two major steps on their journey to ‘monetizing’ their fan base:

1. Building a fanbase!

Before putting the topic of money on the table, identify the people who connect with your music, message, or personality.

The ones who connect with all three are relationships that you want to nurture.

Even if they’re small in number, it’s important to show that you see and care about them. If you skip that step and jump straight to trying to monetize the people who like your personality but don’t really see your message or mildly like your music, you’re going to lose them.

Imagine if I met you at an event. We talked, laughed, and established a great connection. I invite you to my house to watch my favorite movie, and I ask you to bring a friend. When you arrive, I ask you to Venmo me for popcorn and soda. That’s not an uncommon scenario. In many events, it makes sense. But how much would you like me? Would you want to come back to my place? After all, we just met, and I’m already asking you for money. How do you know that popcorn hasn't been chillin in my pantry for months? What if I made it obvious that I only asked y’all to Venmo me because I’m trying to buy myself pizza later? We don’t have enough of a connection for you to respect my motives.

Now imagine that we’ve hung out several times before I invited you to my house. I’ve opened up to you. I’ve listened to you open up to me. We’ve exchanged emotions and moments. When I do finally invite you to my place, I let you know that the money’s kinda funny right now. I still want you to come and share this moment with me, but I need some money for popcorn and soda. By then, you know my story. You WANT to pay because you support me. You might help me pick pizza toppings even though you won't be having any!

This brings me to the second major step emerging artists are missing on their journey to monetizing their fan bases. 

2. Super-serving your fans!

Fans WANT to support their favorite artists, but they want something real in exchange.

It’s a transaction, not a property tax. Fans want to exchange money for something of value. Physical music was the product before the music industry changed so drastically. Now, most artists need to supplement their released music. 

So aside from streaming, what service can the artist provide?

That’s the daunting question the music industry is throwing at artists. 

Obviously, fans don’t want to pay a monthly subscription for half-hearted, inconsistent live streams or vlog content. Fans may not want to pay for merch with lackluster designs.

Fans want to pay for value. That has always been the case. J. Cole’s Inevitable Series is a perfect example. That man sat in a studio with two of his closest friends and told us the stories of his journey toward becoming one of the greatest rappers of our generation. 

Artists don’t have to be superstars to tell compelling stories or build a personal connection. They do, however, have to make time to tell those stories.

Artists & their teams have to develop creative ways to connect with people’s deepest comforts or concerns. And, they have to invest the time into doing it either consistently or extremely well.

In my opinion, this especially applies to artists with Black audiences. Although Black audiences in the U.S.  have high consumption patterns, it’s not our norm to subscribe willy-nilly. We have to feel it. 

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These steps are critical for longevity. Despite the external pressures, artists must build and serve if they want to continue reaching people through every era or the industry.

In general, artists & their teams should be mindful of the state of the music industry.

Currently, the major labels and music companies are promoting an ‘artist-centric model’. They’re arguing about the best way to ‘put the artist’s interests first’. That looks like finding ways to monetize every aspect of the artist’s career. However, doing this puts an unusual burden on the consumer. Since sources of revenue for the music industry have become so decentralized, the same consumers get financially tapped everywhere they turn. You see a similar trend with film and TV streaming, for example. 

Eventually, music consumers are going to tap out completely. In the next few years, I anticipate that the industry conversation will shift to ‘consumer-centric models’.

Music Companies will start sounding like: “Let’s put the consumer first in our decision-making. They don’t want to pay for all of these services. It’s not their fault the music industry collapsed in 2012. Let’s centralize these platforms a bit so consumers can easily support artists with their favorite out of these 3-5 methods.”

When that happens, artists and their teams will be jolted into another frenzy. 

The artists who built a solid community will be just fine.

A community that aligns with an artist’s music, message, and personality will sustain itself through whatever phases the music industry is experiencing. 

Sincerely,

Latifah