Did you know that if music creators develop their business skills they are more likely to succeed in music and be happy? As we share this month, as a music creator, love it or hate it, you are a music entrepreneur.
In building your entrepreneurial career, it’s helpful to understand to whom you’re selling your products or services.
Music creators are typically selling both products and services to various audiences. Your live music performance is a service that you are selling when you book shows at venues.
Likewise, your recorded music is a product that you are selling to fans via merchandise sales, like CDs or even through streaming services (though more indirect) where you get a royalty for fans’ streams of your music.
As you think about your music career as a business it’s helpful to understand what parts of your music business are B2B versus B2C.
B2B means Business-to-Business, and this refers to a business selling a product or service to another business.
Here’s an example of your music being a B2B product/service:
When you book a show at a live venue for a performance, you as the music creator (a business) are providing a service to the venue (another business) so they can enhance their patrons’ experience while they buy food and drinks from the venue, helping the venue’s business.
Another example would be you as a music creator selling a license of your recorded music that you own to a film production project that needs music for its film. That film production is another business buying your music product from your business.
B2C means Business-to-Consumer, and this refers to a business selling a product or service directly to an individual, not another business.
We’ll take that live performance as another example. When you sell merchandise to fans (consumers) who attend your live performance, you are selling a product B2C directly to your individual fans.
Or, if you sell your latest digital album online on Bandcamp or social media, you are selling directly to your fans — again, B2C.
If you know you’re selling to other businesses or selling to individual fans you can tailor the way you approach your business interactions with those audiences.
For example, selling to other businesses may require a more professional business approach whereas selling directly to fans may require more of a conversational approach like being introduced to a friend of a friend.
Plus, B2B financial transactions often higher dollar amounts than B2C ones because you are interacting with businesses that typically have more capital to deal with versus an individual.
This is helpful so you can maximize every interaction you have within your music career as it relates to the audience you’re working with.