#3 - The basics of sales funneling for musicians

How to turn 👀 into 💵

If you haven’t read my last article in the “How to actually make money from your music” series titled “Why streaming pays like crap (CLICK HERE)”, then you’re about to fall behind REAL QUICK. Maybe not. But I’d give it a read.

So in the last article, I provided an incredibly coherent and well-spoken argument for why you shouldn’t steer your hard-earned fans to Spotify.

If you missed that post and want the summary, here it is:

Spotify pays $0.003/stream which makes it nearly impossible to earn a living from streaming income without a large promotional budget. Even with a large budget, it often is a losing investment to push fans to Spotify.

So this naturally begs the question… if I can’t make money from streaming, then how do I make money as an artist at all?

Great question.

It’s the very one that major labels have been scrambling to figure out for the last decade.

When hard music sales (paid downloads, vinyl, CDs, etc) faded in favor of streaming, many major labels simply started taking a percentage of artist’s other income streams as well, leading to the horrific invention of a “360 deal”…. where labels effectively take a share of ALL of an artist’s income streams including ticket sales, merch, public appearances, etc.

The only way labels have survived is by simply taking more money from the artist, when they should’ve spent their time innovating new ways for artists to actually make money in the first place.

But alas, that’s why Mad Records is here.

The good news is that you can make money…. good money….. from your music career.

The bad news is that there is no cookie-cutter approach.

Each artist effectively has to create their own business model that is unique to their strengths, weaknesses, and resources, and develop a “sales funnel” that turns eyeballs and impressions (on social media or in real life, etc) into money in your bank account.

But with my help, we can craft one together that makes sense for you.

But to do that, we need to start at the top of the funnel (or TOFU for my “funneling” friends).

Let’s begin.

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The goal of any good top-of-funnel marketing is to effectively take a “cold audience” (one that has no idea who you are or what you sell), and “warm them up” until they’re ready to actually purchase something from you.

This is why Costco hands out free samples of new products.

It’s why car dealerships offer test drives of new vehicles.

It’s why you probably got an email about this SubStack 😏

If you think about human behavior, most people don’t want to told to do something by someone we don’t know… it’s why we always run away from those aggressive hand lotion people in the mall ☠️

That’s why the top of any good sales funnel should focus on reaching a cold audience, and warming them up to your business, your music, or your brand by providing some sort of value instead of asking for something.

Let’s use a real-world example….

Let’s say I want to promote this SubStack so I walk down to Broadway (where all the bars in Nashville are) and set up a little stand with hard copies of my SubStack.

Now… since these people have no idea who I am or what my SubStack is, we can effectively say that this is a cold audience.

I can assume, however, that a large portion of that cold audience probably fits the core demographic for my SubStack (artists that want to monetize their music), so it seems like a good place to set up shop.

But remember, a cold audience has little/no interest in doing anything I ask them to because…. well…. they don’t know me!

So knowing this, which sign should I use on my stand on Broadway?

If you chose Option 1, then I’m sorry but the cops will be at your door shortly to arrest you…

Option 1 is a great option for a warm audience that is already familiar with me and my brand and are ready to subscribe, but for a cold audience (that sadly doesn’t give a crap about me), they likely won’t care (or subscribe).

(This is why shouting about “presaving your new single” often falls on deaf ears. Most people don’t know (or care) enough about you to actually do you a favor... yet)

Option 2 leads with value. Instead of asking for something… I’m asking a question. And not just any question like “what’s your favorite color”, but a question that my SubStack can help with.

This naturally filters the cold audience which includes some people who wouldn’t benefit from my SubStack, and engages those who would by asking a question that addresses their main pain point.

Now when someone approaches and asks “how I can hep monetize their music”, I can introduce myself and offer them a free hard copy of my SubStack in exchange for their email address.

This may not get me any subscribers for my Substack, but what it does get me is a list of email addresses from folks that I’ve personally provided value to that I know are struggling to monetize their music.

So NOW when I send them an email saying “Subscribe to my SubStack”, I’m no longer just some random guy with crazy hair on Broadway, I’m someone they already know (and hopefully like), and the conversion rates (% of people who actually subscribe) will be WAY higher than if I just shouted about subscribing on Broadway.

Now let’s apply this to your music career.

Top-of-funnel marketing requires high traffic locations (digitally or physically) where you can market your music cheaply and organically (without paying).

TikTok, Instagram, busking on the street, writers rounds, handing out flyers in the town square, etc, are all examples of the most used top-of-funnel options for artists.

Top-of-funnel marketing also requires a relatively high-concentration of your target demographic… so if you’re a heavy metal band handing out flyers at a church picnic, you’re doing it wrong lol.

Many artists are good at using top-of-funnel channels like TikTok, Instagram, writers rounds, etc…. the problem is that most artists go straight from introducing themselves to asking for something in return.

That’s like those hand lotion people in the mall who ask if your hands are dry and immediately try to sell you $200 in lotion. It’s sleazy (even if it works sometimes…………….. I no longer have dry hands).

Instead of immediately asking for something (stream my song, presave my single), the goal of any good top-of-funnel marketer is to provide value first to establish trust and a personal connection. This sets you up to ask for something in return later, once you’ve established that trust.

So what value can you provide with your top-of-funnel music marketing?

Well, this is where it requires some critical thinking skills.

Because with my SubStack example, it’s easy to know who would benefit from reading it (primarily artists looking to monetize their music).

But with music, it’s harder to make that direct connection, and it will be different for each person reading this.

So here’s what I’d like to do…

I’m going to ask some questions, and I want you to thoughtfully answer each one and post your answers in the comments below.

I’ll use one of these answers as a case study for my next article, explaining how to establish an effective top-of-funnel marketing strategy given what I know from the answers. I’ll explain how I think through each part of the process, so you can replicate it with your own unique circumstances.

Once we’ve cracked your top-of-funnel strategy, then we’ll move on to MOFU (or middle-of-funnel) marketing, and eventually BOFU (bottom of funnel), which is where we’ll finally make some $$$.

So stick with me, and kindly answer the questions below.

There are no wrong answers, and by answering you’ll encourage others (who are struggling like you) to join the conversation.

And that’s a nice thing to do.

To be continued…. (after you answer below)

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TOP OF FUNNEL QUESTIONNAIRE (ANSWER IN COMMENTS):

1. What is your target demographic for your music? Don’t say “everyone”. Be specific about who you think resonates the most with your music, and identify 3 core demographic traits (i.e. age group, genre preference, core values, etc).

EXAMPLE: This Substack primarily targets artists, musicians, and producers of all age groups that are looking to monetize their music careers and learn fundamental business skills so they can better navigate the music industry. We target primarily unsigned, independent musicians with a general distaste for the current landscape of the music industry.

2. What value does your music provide to this demographic? Is it entertainment-focused? Does it spread a message? Does it speak about a challenging topic?

EXAMPLE: This Substack provides information on music marketing and the music industry in a clear, inviting, and entertaining (hopefully) format. It attempts to bridge the gap for creative-minded people so they can better understand the practical concepts of business and making money.

3. Where can you find your target demographic?

EXAMPLE: Our target demographic is often found on social media (through targeted posts about music business), or in education communities for artists/musicians (online schools, free events, etc).

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AGAIN, there are no wrong answers. Give it your best shot and encourage others to do the same.

I’ll be off for a few days to celebrate the launch of Mad Records with the Mastering.com team here in Nashville, TN.

Looking forward to picking things up next week!

🫡⚔️

Michael from mad records