Written by Maurice Cardinal … Part 3 of 3 …
Quincy Jones and Snoop Dogg deliver all kinds of MUSIC NFT announcements. NFT DROPS associated with their brands sell out sometimes within minutes, and sometimes at $250,000 a crack.
The REALLY GREAT NEWS is that any musician, indie label, or producer with the proper knowledge can also get in the NFT game and play at a high stakes level without big investment. It’s historic, and an incredible opportunity for creatives who move fast and have a plan.
UPDATE: The MUSIC NFT space is moving so fast it’s impossible to keep up. Here’s an example of a cat killing it already. Domino @dominosmusic just announced; “We sold $120k in album NFT sales in 3 weeks, have garnered over 3 million interactions and 3k followers in that same short amount of time.”
Go to Domino’s twitter space and check out his pinned tweet video. Domino is an act with vision who saw the MUSIC NFT potential and developed a strategy that is already paying off. Don’t be fooled though. It’s not as easy as it looks. This humble multidisciplinary MUSOID works hard at putting all the pieces of the MUSIC NFT puzzle into play. Most importantly, he has the right community headspace and PRESESSENCE, and he’s not scared to show humility and gratefulness.
Even though NFT is a formula, no one is a perfect fit at this stage. We’re all learning together.
There are already thousands of musoids exploring MUSIC NFT. Here’s a very short list of a few who are doing cool and innovative work on both artistic and business levels–all pioneers. I met a few of them on the amazing GM Spaces Show hosted by PROBCAUSE @ProbCause.
3lau @3LAU, NiftyMusicLabs @niftymusiclabs, Chic Bangs @chicbangs, Daramola @itsdaramola, NiftySax @NiftySax, illaDaProducer @illaDaProducer, Fifi Rong @fifirong, Wobblebug @Wobblebug, OLLIECHANIN.ETH @olliechanin, Cherub @CHERUBlamusica, Billy Martin @TheBillyMartin, Mike Shinoda @mikeshinoda, Dundo @Maroye, KONCEPT @koncept, Mint Songs @mintsongs, plus many more every day are being rolled into the mix.
Record labels know that something NFT BIG is about to happen, just not what or how because they’ve only recently become interested compared to those in visual art. For example, I’ve worked in the VISUAL NFT ART space for three years, and CRYPTO for six. The reality though is that we’re all still relatively early, which means there are new reasons everyday to explore MUSIC NFT.
Here’s another insight; If you want to SUPERCHARGE MUSIC STREAMING offerings, NFT can do it, and quickly surpass revenue you’re already hitting. I helped build a successful film distribution company eight years ago, so I’m familiar with VOD and streaming–UpStreamFlix.com. USF sells to Netflix, HULU, ROKU and all the rest. As a result, I’m familiar with revenue streaming numbers and how challenging it is to be profitable. When managed properly NFT can radically impact and improve revenues simply by increasing visibility.
Fractional NFT ownership also changes everything, but this complex investing topic deserves an article of its own, so more later.
Whatever you do, be cool
MUSIC NFT is exciting, but don’t jump around hyping it like it’s your savior. It’s not. You’re your savior.
MUSIC ACTS are excited about NFT for a variety of reasons. Unfortunately, NFT is complicated, which means anyone entering the space would benefit from direction from those who have gone before. Complexity was and still is the Achilles heel of VISUAL NFT and it would be foolish to repeat their mistakes and not educate and train the music world properly. We learned over the last year that many creators wanted to get involved, but most didn’t know how to start. For example, most still don’t realize that a new and very different style of collaboration with experts of like mind is the differentiating factor that leapfrogs you into positions you’d rarely attain on your own–essentially, bartering instead of buying.
Record companies are overworked like everyone, and also confused about NFT. Consequently many are still not moving as fast as they’d like. Learning on your own as you go isn’t an option for most fast-moving companies. Making mistakes can undermine hard won reputations and actually set you back.
ONE very unique part of the MUSIC NFT model is that FANS play a direct role in the growth and financial profit of a music act. With some MUSIC NFT models, when an artist profits, fans and supporters literally do too. It’s how it worked best over the last year in VISUAL NFT.
A critical element of MUSIC NFT is to have everyone in the chain contribute and prosper. When it’s done properly it works like a charm. When it’s done sloppily, those at the bottom get hurt. It’s why you hear Ponzi accusations. It’s not Ponzi though, it’s poor management, maybe even malfeasance. It’s also why an established company especially, can’t afford to make mistakes.
The NFT demographic is also very specific.
NFT is especially valuable for music acts who already have development money in place. Acts that also have IRL/real world marketing experience and prior success already know the basics and can move quickly. In some respects, a young ACT is ideal because they’re fresh, but new isn’t the only or sometimes the most important consideration. Experience and funding are critical factors at this stage. NFT isn’t expensive per se, but it demands a lot of time, and time is money, so include sweat equity in your roll. ROI is a real thing.
Having silo knowledge of NFT, STOCK TRADING, and GAMBLING is important. The reality is that NFT is still considered gambling in some respects–unregulated gambling until new regulations are in place, which could take a couple of years. I’m fortunate to have hands-on experience in all three fields. Not many NFT directors and producers started in music, moved to stock trading and gambling, and then gravitated back to music. I’m fortunate to have such a wide range–I managed artists and shows on the arena and stadium circuit for two decades.
If you see something here you don’t understand, or doubt, contact me. Much of what I share here is based on what has already occurred in VISUAL NFT. The big question today is, HOW LONG will it TAKE to transition to music? Realistically, it will probably take less than a year. It’s happening so fast that the longer you wait to become involved, the harder it will be to adopt and adapt.
The NFT learning curve is steep. Consequently, in order to manage the NFT space effectively one needs to know FIRST, the ART form, whether visual or music. SECOND, how to trade stocks, and THIRD, the psychology of promotion and gambling. I lived in Vegas for two years producing and managing shows at The Riv, Bally’s, and Caesar’s, plus many other large venues over a twenty year span. Consequently, and even though I’ve never gambled in a major way, I’m intimately familiar with gambling psychology.
Several years ago I also helped build a CRYPTO TRADING EXCHANGE, but again, it’s an article for another time.
On the music side, if you haven’t seen the Netflix documentary, Quincy, I highly recommend it. Q is making bolder moves than anyone in NFT MUSIC, and when his posse gets involved, there is no doubt something big will happen.
Here’s something that almost everyone has a hard time getting their heads around. I know it’s hard because I’ve seen it play out a number of times over the last couple of years. Each time, people on the outside scratch their heads wondering what just happened. It took me a while to figure it out too, and I only fully got it when I was an integral part of an NFT ecosystem. Just like in traditional music, it often looks like a star is born overnight. The reality is that for every NFT success there is usually a highly-efficient team making it happen. Luck and artistic talent are important, but skillfully managing the community formula is the critical factor.
NFT has a release party too, but it’s different.
All genders are in the space of course, but wealthy NFT collectors are mostly middle-aged men, who just happen to also STILL LOVE MUSIC. Who knew? They are powerful, incredibly competitive, and sometimes even boastful and eager for an opportunity to FLEX. Some have already bought high-value MUSIC NFTs through companies like OneOf. Essentially, they BID ON NFT packages that, among other features, deliver a lifetime of VIP treatment and tickets for concerts and semi-private music events. Again, if you don’t understand this, talk to me and I’ll walk you through it. Supplemental features are key to the success of MUSIC NFT.
Regarding song writing royalties and intellectual property rights. All that still applies, however, and whether right or wrong, musicians don’t care as much anymore about writing royalties when they can sell a concert ticket and merch for $250,000 for a live performance that might not happen for years, if ever.
Music value is radically shifting … again.
Anyone can share in relatively similar revenue if you adopt and leverage a formula like my NFT 50/30/20 split. As a musician, it’ll help to know how to pitch MUSIC NFT ideas to labels and producers. On the flipside, as a record label or producer, your goal is to master NFT before your competition slams the door and shuts you out.
Dojo Cat recently sold what is essentially a future NFT concert ticket for $188,000! Again, if you don’t understand the info in these links, talk to me and I’ll walk you through it.
Just like in the real world, picking winners accurately in the VISUAL NFT space is important. Labels and producers will have to do the same in MUSIC NFT. Identifying future winners however isn’t as easy as it looks. Everyone has different skills and experience. For me, I draw on my music, stock trading, crypto, and gambling experience. For example, last February I predicted, and figuratively bet big that Justin Aversano would be a major player. He hit $1.11 million several months later at Christie’s and made history by outselling Ansell Adams. It wasn’t because I was lucky. I researched hundreds of interesting NFT photographers before deciding to interview and introduce Justin to the world through iADX365.com. Did we BREAK Justin? Definitely not. He’s his own taskmaster and inhouse promotion machine. What we did however was help bring his very unique energy to a crowd that at the time was not familiar with PHOTOGRAPHIC NFT or Justin, and we did it before most others had even heard his name.
Timing in the PR business is everything. On my path to selling 50 million albums and 3 million concert tickets I learned that in order to create a HIT it’s absolutely necessary to have everyone metaphorically and literally sing your song all at the same time. Managing promotion momentum is critical. To do this, community management using GAMIFICATION strategies is another prerequisite for MUSIC NFT success.
The MUSIC NFT business model we developed includes unique strategies and features. For example, invite FANS to PRIVATE MEMBERS ONLY NFT Pre-Sale/Launch Shows that do NOT announce the name of the artist – weird right? Here’s why speculative secrecy works … each audience member could be awarded 1 SPECIAL NFT from the show that they can keep or sell–it could be worth thousands, maybe millions. It could for example be a song that is NOT on the OFFICIAL SET LIST for the performance, or maybe it’s a live tune on the touring set list that is different than the album cut, or that contains a performance mistake like flubbed lyrics or solo.
Each audience member could also receive a gift bag of physical and virtual merchandise that they can keep or sell, i.e., NFT ART, Wearables (electronic NFT Clothing), plus Concert Tickets, Backstage Shots, Day-Of NFT interviews from the show, etc., the options are endless. The NFT event producer could for example also hold a contest for each show and give away 10 seats to AVERAGE NFT collectors who don’t have deep pockets, but who still want to be part of the community. It’s a great way to attract promotion volunteers, the lifeblood of any successful NFT gamification campaign.
Wearables – wNFTs are a confusing concept, partially because they live in virtual worlds like Decentraland, and also simultaneously in the real world as physical clothes. The opportunities for mNFT Wearables range from creating virtual NFTs that live on a SIDECHAIN in the ramp up to a tour or show, to having your mNFT TICKET, or wNFT T-Shirt TRIGGER, UPON ENTRY into a real world venue, an OBJECT that makes a FAN an integral part of the event. Again the delivery is complex because you can print an NFT SCAN CODE right on the clothing that links directly to the NFT HOST agent. OR … and this is huge, a Hoodie, T-Shirt, Hat, or Shoes can have a SECURE chip sewn in that TRIGGERS through RFID/Bluetooth, a series of NFT nodes in the vicinity of the wearer whether at a concert, or later as they walk down the street and pass an affiliate the following week, month, or year. Since 2019, NIKE has been experimenting with concepts like this through their CryptoKicks ecosystem. Imagine being able to purchase a unique mNFT of any of the LIVE SONGS in the show you heard that night, as you walk out of the venue. If you also bought a wNFT at the show you automatically receive 50% OFF.
mNFT Wearables are a modern version of the Grateful Dead’s War with Record Labels back in the 70s. NFT CHIPS can speak directly with the sidechain and the mainchain, and also indirectly to each chip. Think about that for a second, and the marketing possibilities onstage during the performance when an NFT event is TRIGGERED by the ARTIST in real time to 50, or 50,000 fans.
Getting back to PRIVATE MEMBERS SHOWS, if a MEMBER attends a show and they don’t necessarily love the ACT, they still receive ALL the NFT SWAG, which can be traded or sold, with first right of refusal to other MEMBERS, before it’s offered to the public. FLIPPING is a huge part of the NFT ART GAME. Numerous times in 2021 we’ve seen artists sell their work for 0.5E, and within minutes an NFT ART TRADER buys and flips it for 10X or more. Everyone wins using my 50/30/20 split model.
The opportunity to create GENESIS series packages and campaigns takes MUSIC NFT into a world that never existed a year ago.
Here’s my proposed breakdown to share the bounty–the numbers are all negotiable of course;
NFT SALES Dispersal:
MUSIC ACT receives 50%
NFT Label/Producer receives 30%
Audience receives 20%
Acts are already paying fees to develop NFT strategies for Pre-Tour and Pre-Song/Album release. NFT Pre-Show events in front of a small Members Only private audience are an effective PR strategy to generate interest, and a great way to “test a set” before taking it on the road live. NFTs created at the Pre-Event could be given away or auctioned at each live date.
The Membership Series is almost like buying a regular show ticket, except it’s private, easier, and sells out based on NFT excitement. Interestingly, artists don’t mind playing second fiddle to NFT because it’s so lucrative. The NFT component is a big part of the draw, and as you’ll see, in some cases even a bigger enticement than the music.
The NFT Producer, the Act, and the Audience share ownership of these NFTs, and ALSO share in profits on secondary resales–FOREVER! Secondary resale royalties make all this possible. It’s the first time in history that an artist can benefit when their art is RE-sold. Yes, musicians still collect performance and mechanical royalties, but NFT takes it into the stratosphere by ensuring everyone gets a pre-negotiated piece of the NFT pie. We’re not talking about pennies each time a song is played either–NFT secondary royalties can amount to millions. I work closely with one of the visual artists who was a catalyst and helped create the historic NFT Secondary Royalty system, Lawrence Lee, so I’m fortunate to have deeper insight than most about how it works and why it’s so important. NFT royalty pioneers like Matt Kane who led the secondary sales effort should be revered for his contribution to all artists–musicians included.
@Micah_Johnson, @BardIonson & @Twobadour nailed it in the tweet below …
In my MUSIC NFT model, the NFT Producer package could be introduced to the ACT as a tool to launch an NFT album release using a live studio performance, and/or, to also introduce a Pre-TOUR NFT promotion.
MUSIC NFT Producers can create affiliations with any of the MUSIC NFT Hosting companies coming online to handle the backend, while at the same time building an NFT Music Label–OneOf and the Sturdy.Exchange are just two of many more NFT Hosts looking to collaborate. There are so many coming online recently it’s hard to keep up. Due diligence is required.
MUSIC NFT Producers will soon regularly partner with Traditional Labels, Concert Promoters, and Entertainment Media. Work In Progress NFTs could also be generated before the songs are even released to help pay for costs. The options are endless. If you don’t understand the UNLOCKABLES concept contact me. It’s a very critical part of MUSIC NFT marketing that many overlook.
I’m currently working with a group to develop a MUSIC NFT Indie Label that incorporates a real world-style, A&R department that will help ACTS adopt and leverage NFT strategies. A&R is the biggest piece missing from VISUAL NFT. It’s such a serious problem right now that it is polarizing the visual art community.
NFT host companies unfortunately, don’t have A&R departments. It’s mostly because HOSTS are still making EASY MONEY on low-hanging fruit. It’s about to change though now that the market is flooded with artists scrambling to get rich quick. Someone has to not only curate the constant flood of great music, but also train musicians how to leverage NFT effectively.
We already know that most of the people who currently buy high value NFTs are genuinely wealthy, and that they use their purchases as bragging rights. It’s an elite small audience that runs parallel to the larger mainstream audience. An act would, initially of course, target these wealthy millennial+ players, but as importantly also offer opportunities for average ACTS and FANS/COLLECTORS. Some MUSIC NFT ecosystems already do this beautifully by using the environmentally friendly Tezos and Polygon options. Others produce and manage two completely separate campaigns, the second often using E.
Any large nightclub, or small theatre can roll my MUSIC NFT business model into their mix. The challenge however is to get into the market and capture it before it is overrun. Early adopter and first-in are critical–anyone already in NFT knows this is indisputable. Whoever does it first will own the WEALTH market, and everyone else will have to compete for smaller returns in the mainstream.
We already play a critical role at iADX365 through our collaborations with visual artists who provide creative for MUSIC NFT. Because of NFT’s anonymous nature, most people don’t yet know though that you don’t have to be big, or live in a major city to generate MUSIC NFT revenue. Residing in small countries and villages works too. A Canadian visual artist in Montreal for example recently sold a single NFT abstract art piece for $7 million–totally unheard of. Another artist from Vancouver is now one of the most respected NFT Photo-Illustrators in the world. The biggest COLLECTOR of NFT Photography is also Canadian. All of these people would welcome an opportunity to collaborate on a MUSIC NFT project, and it is these players who already have large global followings of very wealthy collectors. The bottom line is that these WHALE collectors, are currently making million-dollar purchases for art that they feel is SCARCE and unique. One sale could net substantial revenue if a music act does it properly.
Wealthy collectors will pay to become a member of a very exclusive MUSIC NFT club that gives them access to an opportunity that could make them millions overnight. Wealthy collectors can come from anywhere in the world–there literally are no borders. Most wealthy NFT collectors have backgrounds in investing and trading, with ART being a BONUS that also makes it possible for them to show their peers how smart they are without openly bragging. Flexing is a bigger incentive than you might imagine.
Here’s an old article from way back in 1997 that surprisingly explains the psychology of HOW and WHY MUSIC NFT works today.
How to Truck the Brand: Lessons from the Grateful Dead–critical NFT reading
Dreamverse NYC in partnership with TIME magazine and the two most famous NFT collectors in the world, @Twobadour and @Metakovan, illustrates how the Grateful Dead Model plays out in 2021 regarding NFT.
MUSIC NFT works because recorded music unfortunately no longer carries the same intrinsic economic value it did pre-MP3. Instead, value has shifted to tertiary products like live performance, merchandise, and NFTs, which puts musicians and producers at the center of all the action.
Here’s a case-study of how it works from OneOf;
OneOf Promo starts here …
Get in The Game with the first-ever NFTs from the rawest voice on the West Coast hip-hop scene.
The Game’s Genesis collection is coming soon. This first collection contains 3 drops – “Get In The Game”, “Elevate The Game”, and “Master The Game”. Each NFT drop will feature one unique pack containing digital trading cards, action figures, and album imagery spanning The Game’s music, hobbies, and interests. The rarity of NFTs increases with each pack–the “Master The Game” pack contains the most exclusive NFTs. Lucky fans can win highly scarce NFTs, along with bonus content that only The Game could provide, including an unreleased track with every NFT in the collection!
Keep your eye out for the first drop featuring the “Get in The Game” NFT pack!
“I have been able to put my creative vision on display and show, not only the growth of my music career but also the passion I have for basketball and gaming with these digital card packs. This Genesis NFT Collection will give a nod to my albums The Documentary and Jesus Piece, and will also have two (2) unreleased tracks for my fans”
End of OneOf promotion …
Articles about MUSIC NFT are popping up everywhere. A lot of it is hype, but there are a few exceptional pieces that share valuable information about the rapid NFT growth coming into 2022.
YouTube video of OneOf … Founders
How NFTs Are Set to Disrupt the Music Industry
20 Companies that utilize BLOCKCHAIN for NFT MUSIC
Zora is a NFT HOST that allows large NFT files for video.
Are NFTs The New Napster?
This Time, the Music Industry Isn’t Taking Chances
The embrace of NFTs by Kings of Leon was a wake-up call for their record label—and the music industry, which is now racing to avoid the same mistake that almost killed it 20 years ago.
Crypto art is gaining traction and one of its biggest stars is an artist from Thunder Bay with a manager in Vancouver who runs the 604 Record Label
You’re probably wondering, if my NFT MUSIC Model is so unique, why share it with the world and lose competitive edge? The reason is that we now live in a NEW WEB 3.0 WORLD, and like music, it is the sharing of ideas that holds value.
I’m sharing my NFT MUSIC model FREELY because I’d like musicians, indie labels, and producers to adopt, modify, and make it their own in true OPEN SOURCE fashion. Web 3.0 btw, is as much about how society interacts with each other as it is about technology. Web 3.0 is the protocol that makes NFT and DAOs possible. It gives co-op-like organizations the flexibility to govern a project in a decentralized and autonomous manner, as opposed to a hierarchy.
Community is the critical factor in art today. It’s also about how quickly one can execute ideas before your competition scoops you. I know firsthand how hard the MUSIC NFT execution part is, so anything I freely share here to move it along is a benefit to our music and art communities.
Ideas are one thing, and execution another. Even though I share my MUSIC NFT formula, the reality is that any formula is just a base and place to start. The real work happens when you start to customize and fine tune a process for a specific use or company.
Even if you’re not interested in MUSIC NFT, please share this with anyone who might be, because sharing is the only way we can move forward and evolve.
As I was writing this article, Bitcoin shot up to an all time high of USD $66,974.77, and ETH too to USD $4,734.44.
MUSIC NFT is closely tied to cryptocurrency growth. The higher that crypto climbs the more expensive it becomes to get in the game, but also the greater the profits and rewards.
Welcome to the Metaverse 😊 … the IMPORTANT Metaverse, not the one bought and paid for by fake news. The one instead built through organic community and trusted partners and affiliates.
Read Part 1 and also Part 2 of this 3 part series on MUSIC NFT
Here’s how PROTEST & ACTIVISM fit into the NFT landscape
This article was updated Nov 26/21 & Feb 02/22