Finding talent is easy -- see local clubs, the Internet and relatives for leads. Signing artists is trickier. Make sure you gain ownership of the masters, or an exclusive license to tap them, before forking over any loot. Money you put into the band, known as an advance, is recoupable. "While artists get varying royalty deals, the label is entitled to be paid back for its investment before they see a cent," Poneman counsels.
Like a good lover, give your bedfellows a little breathing room. "Artists come and go, so let 'em," Poneman says. "There will always be more. If you find someone with commercial potential, let a larger label have them. As long as you retain rights to the masters, their catalog is yours. Major corporations will spend millions breaking and promoting the act. All you have to do is sit back and collect the money."
Artistic integrity be damned. As proven by the platinum success of Moby's Play, licensing is a viable way to introduce an audience to an act they'd otherwise never hear. "So many musicians cop this pretentious attitude about lending corporate America their music. It's bullshit," Poneman says. "Getting your music out there is the goal at the end of the day. From a band's perspective, it helps expose you to a larger audience. From a label owner's viewpoint, it's a major revenue stream."
Although it takes a while to notice when you're face down on the casting couch, the music business is full of sharks. Be reasonable -- work on inspiring trust amongst your artists. "If you want to keep your talent, you have to provide a sense of unconditional love," confesses Sub Pop's founding father. "There's always someone out there with better distribution, more money and a slicker rap. Not everyone has heart."
Yes, audiences have feelings, too. "Fanzine interviews, touring and building a dedicated fan base are essential," says Poneman. "You can't buy people's enthusiasm, but you can earn their attention. Press flesh, kiss babies, play the politician, because it's worth every minute."
Don't mass-manufacture recordable CDs on your little sister's computer, but don't waste cash on foil-embossed covers or bonus DVDs, either. "If you want to spend the money, it's cool from a collector's standpoint," Poneman says with a chuckle, "but from a business standpoint, it's disastrous." So unless you're hoping for eBay gold in 10 years' time, save some green on the super-deluxe packaging.
A strong local following can be critical to eventually achieving national stardom. "Screw distribution," Poneman exclaims. "Work on garnering local acclaim. If you have to, sell CDs to mom and pop shops on consignment to make money. Be strategic about how you roll out a band. Cultivate the region where the band is from, then work on assaulting the country's airwaves."
Don't worry, be happy. "The biggest misconception about this gig is that it's so damn hard," says Poneman. "Sure, it's tons of work, but it's engaging. The troublesome aspects quickly dissolve into pure pleasure. Every week I hear new artists who should have great careers, but need a pipeline to reach new fans. It makes you wonder what's wrong with all the damn DJs out there."
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