What's the Deal? Will I succeed with this investment?
Many of you are going to get your record labels started with 10K to 50k next year and you’re looking for an artist to invest in or perhaps you’re considering your niece or nephew this holiday season.
Here’s the looming question… will this be a successful investment? My answer is it can be. However, we’ve got to dig deeper into this artist first before we determine if it will or not. If you want to know what to do when you have no experience you can always go back and watch this video. 4 BulletProof ways to Start Your Own Record Label without any experience.
Right now you don’t have a lick of experience or connections but that's okay because you’re the money person! This is why you feel unsure.
It’s okay to feel this way but just know you can always find experienced help. However, you must consider these next few questions before you press go!
I can testify!
I’ve seen and worked with too many private investors that lost money due to inexperience, connections, and the fact that they never did any intelligent due diligence on the artist. When I was an engineer I would get paid to work with investors who had the bag! In my heart, I knew that the artist wouldn’t succeed but I needed to succeed at making $35-$45 an hour!
Where's the love for the investor?
As an investor ask yourself… Do you really know what you’re looking at? Do you know how this thing can make money? 9 times out of 10 investors fail at investing in music because the money doesn't come back as easily as investing in the merchandise side of the artist ecosystem. Many investors don't know that it's always going to start at the music level and the music doesn’t give a hearty ROI in the beginning like you think it does.
Is the artist already profitable or at least generating cash flow?<