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Crunkbox Agents
- By Nicholas Rios
- Published 05/24/2007
- Crunkbox Docs
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Nicholas Rios
Nick lives in Austin TX doing computer nerdy stuff during the day and catching live music during the night.
A
crunkbox agent is a special person.
He/she
must be an agent, a promoter,
a
salesperson, a friend, marketing wiz,
manager
and conduit of information.
A
talker and a thinker.
Must
be willing to attend/organize shows, parties - events and talk about the
artist's merchandise.
Must
be willing to hand out advertising media and close sales.
Travel
to record shops, trade shows - anywhere musicians are and push their artists’
material.
Must be willing to build relationships with DJ's, producers, engineers and media outlets.
Consider the difference between the
base price of merchandise
(cd, t-shirts, posters, stickers,
whatever) and the actual sale price….
That
is profit.
Most
of the profit should go to the artist.
I
mean it’s their music and their product right?
But
the sale….. The guy who actually makes that sale.
The
guy (or girl) who does all those intangible things to sell that product…
That
is something special too.
First
we pay the artist.
…
So if a CD costs $3.00 to press - package and ship - but it sells for $13.00 (or 9 or 10)…
-
Five dollars is credited to the artist's account -
-
Five dollars is credited to the agent's account -
Let's
recap.
The
crunkbox method pays the artist and the deal closer all of it.
crunkbox
splits the profits right down the middle with the artist.
Seriously.
It is very simple. Money is a heck of a motivator. Motivated agents means more
units sold.
More
units sold builds the artist’s bottom line and their image. Meanwhile a bigger
image translates to more units sold.
It
is a fascinating cycle.
Artists
can be agents too.
This
means an artist / agent takes 100% of the profits generated through the site.
That's
fair.
So is a 50/50 cut if someone else sells the merchandise on their behalf.
The artist is always getting half because it is their stuff.
There's a salesman cut available with artists who are participating.
IF the artist is the salesman he gets both cuts.
This
fairness - the simplicity and transparency is at the very core of our philosophy.
It
is one of those foundation things.
Building a business on mutual successes.
Signing Artists
Crunkbox charges an introductory fee for premium artist accounts.
We do it because the profit margins on cd duplication alone aren't enough to sustain a business of this size.
We decided to charge in an effort to attract only serious working musicians as members and put up a barrier for people who just like signing up for stuff. And we do it as a motivator to the Agents.
Crunkbox splits the introductory fee right down the middle with the agent who made the referral.
If hypothetically the intro fee was 20 dollars that's 10 dollars for a referral.
Extending this hypothetical were you to generate signups via the internet or advertising - it could turn quite lucrative.
At which point you would also be representing yourself very strongly in this young agent community.
footnote to that is we offer bonuses for keeping the artist happy and their career recieving attention.
Full time positions
Crunkbox
revenues are earmarked to further compensate those who turn into big dogs.
Bonuses,
vacations, monthly stipulations are reserved for people who show commitment and
talent at what they do.
A healthy stock incentive program has been established to secure top agents who want to make crunkbox a long-term career.
Anyone in that potential group will have a relationship with us by then and terms can be negotiated in private.We need to build this core team - it is critical to sustained success.
But it takes time. As the volume of general agents grows, so will the inner team of directors.
There is more to talk about.
But for now I will wrap up.
Please feel free to either post questions or comments below or contact us directly.
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