Why You're In The Wrong Industry

[AgainstAllOdds]

I have friends that are making music, paintings, and films. They're all extremely talented, yet all of them are struggling.

Why?

Because they're not filling a need.

And I know what you're probably thinking: I listen to music, enjoy art, and love a good movie. How are they not filling a need?

But before we answer that question, let's take a step back and define what "filling a need" really means. In abstract terms, it can mean virtually anything. However, in economic terms, it's defined by one thing: the exchange of money.

Whenever someone hands you a dollar for a product or service - that's an indicator of you filling a need. The customer is willing to part with their money in order for you to provide them with value. Therefore, it can be assumed that the more money you make, the more of a need you're filling.

So how do you take that info and determine if you're in the right industry?

Simple.

If you're struggling to make money, then here's a two step process to determine if the industry is a right fit. Ask these questions:

1. Does it seems like the odds are stacked against me, or can I control the growth of my business?
2. If the odds are stacked against me, then is the market size large enough for me to make a considerable profit? Or is there too much competition relative to the market size?

Now let's run through an example:

Let's say your goal is to become wealthy. On top of that, you're a musician. You love making music, but are not making money. On the other hand, you have an idea for a dog toy that seems promising, but you don't know if it'd make sense to make dog toys instead of music.

Well, let's take a look at the size of each industry.

• In 2014, the U.S. Music Industry had revenues of $15.04 billion. (source: http://www.statista.com/topics/1639/music/)
• Same year, the U.S. Pet Industry had revenues of $58.04 billion. (source: http://www.americanpetproducts.org/press_industrytrends.asp)

Therefore, the pet industry is 4x larger than the music industry. And in relative terms, it provides 4x as much value as creating music does.

On top of that, there's hundreds of thousands, and maybe even a couple million musicians in the U.S. However, there's only a couple hundred thousand dealing with pets.

Thus, not only is the competition lower in the pet industry, but the payout is also 4x higher. So if your goal is to be wealthy, then does it makes sense to play a harder game for 1/4th of the payout? Or does it makes sense to play an easier game and earn a lot more?

tl;dr: Industry size and the ratio of competition to industry size define how difficult or easy it will be for you to make money. If wealth is your primary goal, then get into industries where the odds are stacked in your favor. Sell pet products, not music.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Guest34764]

While I do agree with your point about the competition I don't agree on the whole Industry size.When you have 58 billion in an industry such as pet toys and when you notice that there is less competition I think that rings a bell that the industry of pet toys is run by bigger companies.Bigger companies can crush little companies if they wanted.Also, I don't think that industry size is relative to getting more money.There's more money available, but it doesn't mean you'll get it all or even 20%.20% of any billion dollar industry is amazing, but it doesn't correlate to profit.

How I see it is that the best industries to be in are the ones where no one is doing and the ones who are doing it are little bugs.You can squash a little bug, but you can't squash an elephant.If an industry has only one billion in revenue, but you have this sweet idea go for it.Now I do agree on the whole music industry, you really shouldn't get into it unless you are already famous.

If you can dominate a small industry and make it huge you're not playing a harder game you're playing the smart game.

Idk just my thoughts, not to discredit AgainstallOdds.Just wanted to throw my 2 cents in here.I'm also 15 and I have no experience selling anything.

¯\_(ツ)_/¯

 

[HAL]

I agree, but there are some other factors at play in the music / film / art world. One of the big surprise hurdles I encountered in the entertainment industry (Los Angeles) is that there are so many people who look like they're making a living in the industry doing what they love, but they are actually trustafarians / independently wealthy or otherwise have some mysterious sources of income. You will meet them all the time in the art world. They have the luxury of free time and money to create art -- I didn't and spent a long time struggling to figure out how they were doing it.

Secondly, and I know luck is not a popular word around here, but I know people who were very lucky a single time in the entertainment industry -- they would be the first to tell you that -- but they haven't been able to repeat their success. But one time is all you need to carry your whole career. Meanwhile people constantly go to their Q&A's and try to get some useable nuggets to capture lightning in a bottle.

My advice If you want to create art: make money first, they create the art you want.

 

[Draven Grey]

I personally know a lot of musicians who are very successful. A few are even Millionaires from their music. The industry is full of entitled, lazy dreamers, who are willing to do zero work that actually adds value, and instead just want to stroke their ego. Many of them work their asses off, but are doing the same thing everyone else is doing, and getting nowhere.

As Pat O'Bryan stated it:
"You’d be amazed at how many artists and musicians are just sitting around waiting to be discovered while they continue to do the same thing all the other musicians and artists are doing. Losers, losing by following losers. Not much of a plan, but it’s pretty popular."

I coached bands all over the world for about 15 years, signed and unsigned. Very few had an entrepreneurial mindset, much less a manager with one. There are far too many myths and flat out lies about "making it" in the music industry that the artists I described above hold onto because it's romanticized and fun to think about.

The over saturation of the industry with "losers" is the whole reason my group changed from a band to a Modern Vaudeville group, putting our efforts into multi-layered, multi-media, immersive experiences, rather than just being another rock band on stage. Sure, some rock bands put on amazing experiences. But when's the last time you associated an amazing experience with a local band? They're all doing the same damn thing, and often not very well.

We used a Lean Canvas and focus groups of our ideal fans to figure out what to do. So far, it's been fantastic. Our test event did so well that we're confidently seeking investors to take it to the next level. Musicians need to stop thinking about the traditional way of doing things and start thinking like entrepreneurs. They need to map out and test their ideas. They need to listen to the market. If more musicians took CENTS to heart, the industry would turn on its head. Some musicians are doing just that. Thankfully, we're not the only ones thinking outside the box of "how it's done."

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Supa]

I can only agree with some parts of your posts. Yes the music market, as an artist, is a really competitive one and lacks some CENTS commandments, like control or entry. But the reason you name does not make too much sense to me. I wouldn't choose one industry over the other just because the industry seems to be bigger. That's something that needs to be considereated when thinking about Scale. But do you think MJ would've wrote his book about another topic just because there where some bigger revenues in that other topics?

 

[BaraQueenbee]

Hmm, interesting topic.

I think its comparing apples with banana's.

Music/art is much more form of an expression and exchange of emotions, rather than it being a business with perfect business plan.

YES, music CAN be a business, if you pump enough money into it.
Also, music/art and other related, are very much boundarie-less. Such as many business only serve a certain crowd:

-pet supplies only for pet owners
-garage only for car owners
-make up only for humans that like to dress up
etc etc

Music and art do not have this certain need or specific you can target.

What does art/music do? Move. Evoke. Create. Think. Entertain.
Who is the target group? Everyone.

Sure, one can say "I make country (or enter any random genre) music. Who is my audience? All a bit of everything. They are not only the ones living in the southern states, they are not the ones who say yee-haaw.
They are girls in highschool, businesspeople, not State related.
They can be pet, car and house owners, as well as they can not be.

When you have a specific product, you'll only be able to sell to the crowd that is affiliated with that product.

With music? Art? Entertainment? Far from the case.

Does it still require hard working a$$ off? HELL YES.
I think the Fastlane mindset can and should be still applied, but I feel it's in a different way than a more conventional business.

Edit/additional: art/music/entertainment never reaches its plateau for its ever evolving and timeless.
Products can be too, but in a complete different way.

 

[FastNAwesome]

I coached bands all over the world for about 15 years, signed and unsigned. Very few had an entrepreneurial mindset, much less a manager with one.

This is key. And the music industry is amazing for those who know what they're doing.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[FastNAwesome]

One of the examples of slowlane mindset is when participants of music contests
complain when not being chosen.

They forget how huge marketing they get by even appearing on a big show.
Even for just once.

They should ask around how much 1 second of advertising costs on such shows,
and multiply it with number of seconds they've gotten.

Instead of riding this wave of free marketing to schedule gigs, put out videos
and get some followers, they'll complain or hope they'll have more "luck" next year,
or in some other show.

And today you can have your own music channel on the internet, your fan page,
you can reach more people than ever - for free or with cheap ads.

And making music has never been cheaper either.

Silly trick that works - instead of hoping your song will be a hit,
or wondering which one of your songs to make a video for - why not test it?

Of course - your closest friends will be super-supportive, but still...some
songs will filter out as being more popular. Play them to people.

Sometimes people will have suggestions too. For example saying some part of
the lyrics is not that cool. Instead of letting your ego take over and the attitude of
"they don't understand" - at least consider their suggestions.

You can see critique and hatin' (although there always will be some hatin' if you're worth anything)
Or you can see valuable feedback (if I may say, since I'm not a fastlaner yet)

Of course, test your music with the right audience. Playing dubstep to your grandma may not give you realistic results

Stubborn artists are funny to me

If you're making music for your own amusement, that's cool, do what you want.

But if you want it to be a business, it's useful to approach it like business.

 

[Draven Grey]

One of the examples of slowlane mindset is when participants of music contests
complain when not being chosen.

They forget how huge marketing they get by even appearing on a big show.
Even for just once.

Sadly, at least with the few I know who were on American Idol, they are under contract for several years after the show. Anything they create and release during that contract is owned by the show. I don't know if X Factor and The Voice are the same way, but I imagine they follow a similar model.

 

[BaraQueenbee]

Sadly, at least with the few I know who were on American Idol, they are under contract for several years after the show. Anything they create and release during that contract is owned by the show. I don't know if X Factor and The Voice are the same way, but I imagine they follow a similar model.

Their contracts are HORRIBLE !!!!!!!!
Can't believe people give away (not only their freedom, thats a luxury) but ANY saying in anything they do.

*sigh*

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[AgainstAllOdds]

YES, music CAN be a business, if you pump enough money into it.

But that's the problem. Pumping money into music is naive. Unless you have some sort of competitive advantage, then you're fighting for scraps in a market that has a $15 Billion revenue cap, and the musical equivalent of every "wantrepreneur" there is competing against you.

 

[BaraQueenbee]

But that's the problem. Pumping money into music is naive. Unless you have some sort of competitive advantage, then you're fighting for scraps in a market that has a $15 Billion revenue cap, and the musical equivalent of every "wantrepreneur" there is competing against you.

From this, pumping money into music is only lucrative if you have plenty of money already, and you "really" want to score a hit.
Then it's not about the music anymore though, its the image, sales etc.

Artists can be a pain in the a$$ indeed, for alot are attached to the feeling of their product and therefor it can not be treated as a rational business. Luck factor?

 

[Mineralogic]

I have friends that are making music, paintings, and films. They're all extremely talented, yet all of them are struggling.

Why?

Because they're not filling a need.

And I know what you're probably thinking: I listen to music, enjoy art, and love a good movie. How are they not filling a need?

But before we answer that question, let's take a step back and define what "filling a need" really means. In abstract terms, it can mean virtually anything. However, in economic terms, it's defined by one thing: the exchange of money.

Whenever someone hands you a dollar for a product or service - that's an indicator of you filling a need. The customer is willing to part with their money in order for you to provide them with value. Therefore, it can be assumed that the more money you make, the more of a need you're filling.

So how do you take that info and determine if you're in the right industry?

Simple.

If you're struggling to make money, then here's a two step process to determine if the industry is a right fit. Ask these questions:

1. Does it seems like the odds are stacked against me, or can I control the growth of my business?
2. If the odds are stacked against me, then is the market size large enough for me to make a considerable profit? Or is there too much competition relative to the market size?

Now let's run through an example:

Let's say your goal is to become wealthy. On top of that, you're a musician. You love making music, but are not making money. On the other hand, you have an idea for a dog toy that seems promising, but you don't know if it'd make sense to make dog toys instead of music.

Well, let's take a look at the size of each industry.

• In 2014, the U.S. Music Industry had revenues of $15.04 billion. (source: http://www.statista.com/topics/1639/music/)
• Same year, the U.S. Pet Industry had revenues of $58.04 billion. (source: http://www.americanpetproducts.org/press_industrytrends.asp)

Therefore, the pet industry is 4x larger than the music industry. And in relative terms, it provides 4x as much value as creating music does.

On top of that, there's hundreds of thousands, and maybe even a couple million musicians in the U.S. However, there's only a couple hundred thousand dealing with pets.

Thus, not only is the competition lower in the pet industry, but the payout is also 4x higher. So if your goal is to be wealthy, then does it makes sense to play a harder game for 1/4th of the payout? Or does it makes sense to play an easier game and earn a lot more?

tl;dr: Industry size and the ratio of competition to industry size define how difficult or easy it will be for you to make money. If wealth is your primary goal, then get into industries where the odds are stacked in your favor. Sell pet products, not music.

exactly and under the current model becoming a musician for money and riches is a joke. I've seen the ROYALTY checks of people i truly respect as singers/musicians and they are a complete joke. I'm talking as bad as one cent. I guarantee many musicians you think are making tons, are not. hence why they are on the road so late into their age if they made it
sure some of you can throw out the Idol or Voice people as winners or losers in contracts, etc.

I'm currently looking to see how I can create music that is more of a self empowerment tool and add more value that way as well

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MyronGainz]

Do you like Huey Lewis and The News?

 

[AgainstAllOdds]

Do you like Huey Lewis and The News?

Their early work was a little too new wave for my tastes, but when Sports came out in '83, I think they really came into their own, commercially and artistically.

 

[AndrewNC]

In 2014, the U.S. Music Industry had revenues of $15.04 billion. (source: http://www.statista.com/topics/1639/music/)

I'll assume that figure does not include other products under a musicians bigger brand.

Cologne brands or clothing lines.
Didn't 50 cent write a book?
What has Jay Z done outside his music career?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Mineralogic]

I'll assume that figure does not include other products under a musicians bigger brand.

Cologne brands or clothing lines.
Didn't 50 cent write a book?
What has Jay Z done outside his music career?

Most musicians make little to nothing on royalty/songwriting part unless at the very very top and doing massive volume
most musicians make their money by touring, showing up, i.e. SLOW LANE. Don't show up, don't get paid. Time trade.

Most really rich musicians/artists leveraged their slow lane intrinsic brand into businesses. Just look at Jay Z and Bono. Boom