Showing posts with label concert investments. Show all posts
Showing posts with label concert investments. Show all posts
Monday, November 14, 2011
Wednesday, January 26, 2011
How to invest in Music Concerts & Festivals
Artists are re-inventing themselves. CD sales are down. Music is being pirated left and right. So what's the logically BEST way for an Artist to make money? A Concert!! Fans have NO CHOICE but to pay to see and hear them perform.
David Vincent of Sankeys in Manchester, England, told Manchester Evening News “Artists are holding a lot more concerts now as they are not making much money from records anymore, so arenas are a growth area."
In the past few years, Mega Concerts and Mega Concert Promoters, like AEG and Live Nation, have shown sluggish sales and lack of profits. However, smaller venues and established concert promoters are seeing quite the opposite.
I spoke with Joe Fletcher, an established concert promoter who has promoted Motley Crue, Rascal Flatts, B.B. King, Hilary Duff, Kelly Clarkson, Korn, Lynyrd Skynyrd, 50 Cent, Eminem, Le Ann Rimes, Black Eyed Peas, Jimmy Cliff, Tori Amos, Snoop Dogg, Ludicris, Clay Aiken, Alison Krauss, Ani Di Franco just to name a few. Joe Fletcher has over two decades of experience promoting concerts. Joe stated that smaller concert venues have been filling up quite nicely. As he explained, in this economic recession,consumers still want to go out and enjoy themselves, but rather than paying a $150 ticket, they're willing to pay a $50 or $60 ticket to enjoy a nice evening out.
Horror stories abound regarding unscrupulous promoters taking investor's money and dissappearing. The key to concert investments is WHO you invest with. Joe Fletcher is an estabished persona in the concert promotion arena and he has an impeccable record. Artists respect him, business people respect him, and managers respect him.
"Pie in the Sky returns" aren't realistic. One story I read clearly stated that the promoter offered double the investor's money. When the promoter couldn't pay, investors cried fowl.
What is great about concert investing is that the investment is very short term, usually around 3 months. EVERYONE including the Investor(s) gets paid the night of the concert. Investments range from $25K through $100K, and promise returns of 10% to 15% (realistically). That would mean that in a year's time, should an investor continue to invest every quarter in a new concert, an investor can make a 40% return, conservatively speaking.
Concerts do have a lot of costs which include (first and foremost) the Talent (Artist) and the Venue. Then there's the ticket sales, seating arrangement, insurance, catering, staffing, etc. These arrangements are coordinated by the Concert Promoter. This is why the right promoter is the key to making sure the concert is a success.
Lesson for the Day: It's not how much you invest, but WHO you invest with.
Monday, December 13, 2010
Creative Opportunities to self fund your business AND not lose your shirt
We've all heard the old adage: It takes money to make money. Then there's the average rule of thumb that states that a business needs to be functioning for at least 3 years to fully support itself and grow. In the meantime, an entrepeneur needs to be able to either:
a) Have enough funds available to support the business for the first 3 years until the business starts producing
b) Get enough financing to get the business through the first 3 years before it produces
What if your business doesn't produce in the first 3 years? What if you need more years to produce? What if your estimates were wrong and you need more money than you originally thought? What if you lose all the money you've put into it? Worse yet - what if you obtained a loan to finance your business venture?
Going the traditional route to start a business doesn't suit every entrepeneur. The traditional route involves saving money, applying for a loan, and hoping that all of creation will be on your side as you grow your business. On the upside, if you have previous business experience, you are more likely to prevail. Newbie entrepeneurs have to tread very carefully to not mis-spend the loan funds. You must have extremely good credit, and cash reserves to hold you over for the first two to three years of business to help ensure your success.
This scenario does not apply to the majority of entrepeneurs these days. Creative procedures need to prevail here. As a budding entrepenuer, it is imperative that other routes of raising capital be found. Here's where thinking "outside the box" comes into place.
Music Concerts have always been a great form of entertainment. However, the larger concert producers have hit a snag in this economy. Bigger isn't always better. Live Nation is a huge conglomerate in the music business. With big arenas no longer filling up to a satisfactory capacity, LiveNation's profits have dropped for the 3rd quarter of 2010 (http://www.variety.com/article/VR1118026955). AEG Live owns and operates all of their facilities and swallows up contractually their artists. The average human being believes they cannot invest to profit from music concerts - or can they?
There are investment opportunities with smaller music concerts. There are legitimate smaller concert promoters that organize and promote musical acts and smaller venues. It is possible to invest with these promoters in their concert acts. The amount can be as small as $10K to 100K, depending on several factors which include the cost of the act, and the venue. The value is the short time you need to invest and the return on investment. You can invest for as short a time as 3 months to 6 months and get excellent returns.
Oil and Gas has ALWAYS been a lucrative investment. To get the most return on your investment you need to invest early on in the company - before the stock splits, and before they go public. Getting in on the ground floor is key. There are legitimate Oil and Gas ventures that during their nascent phase will offer what is referred to in the industry as "mailbox money" returns. This means that for your initial investment, which can be as low as $16K (depending on the company), you will receive monthly checks as long as the oil and gas wells produce - that could virtually be as long as 50 years.
Short term/high yield unconventional investing can work. Just as long term investment in a market that is sure to be around for decades. Doing your homework and knowing who the leaders are is an absolute must. Using these investments while you are raising the money to start your business operations can save you from having loads of financial headaches down the line. These are a few of the great ways you can self-fund your business venture and NOT lose your shirt.
Tune in next week while we further explore business start-up self funding.
a) Have enough funds available to support the business for the first 3 years until the business starts producing
b) Get enough financing to get the business through the first 3 years before it produces
What if your business doesn't produce in the first 3 years? What if you need more years to produce? What if your estimates were wrong and you need more money than you originally thought? What if you lose all the money you've put into it? Worse yet - what if you obtained a loan to finance your business venture?
Going the traditional route to start a business doesn't suit every entrepeneur. The traditional route involves saving money, applying for a loan, and hoping that all of creation will be on your side as you grow your business. On the upside, if you have previous business experience, you are more likely to prevail. Newbie entrepeneurs have to tread very carefully to not mis-spend the loan funds. You must have extremely good credit, and cash reserves to hold you over for the first two to three years of business to help ensure your success.
This scenario does not apply to the majority of entrepeneurs these days. Creative procedures need to prevail here. As a budding entrepenuer, it is imperative that other routes of raising capital be found. Here's where thinking "outside the box" comes into place.
Music Concerts have always been a great form of entertainment. However, the larger concert producers have hit a snag in this economy. Bigger isn't always better. Live Nation is a huge conglomerate in the music business. With big arenas no longer filling up to a satisfactory capacity, LiveNation's profits have dropped for the 3rd quarter of 2010 (http://www.variety.com/article/VR1118026955). AEG Live owns and operates all of their facilities and swallows up contractually their artists. The average human being believes they cannot invest to profit from music concerts - or can they?
There are investment opportunities with smaller music concerts. There are legitimate smaller concert promoters that organize and promote musical acts and smaller venues. It is possible to invest with these promoters in their concert acts. The amount can be as small as $10K to 100K, depending on several factors which include the cost of the act, and the venue. The value is the short time you need to invest and the return on investment. You can invest for as short a time as 3 months to 6 months and get excellent returns.
Oil and Gas has ALWAYS been a lucrative investment. To get the most return on your investment you need to invest early on in the company - before the stock splits, and before they go public. Getting in on the ground floor is key. There are legitimate Oil and Gas ventures that during their nascent phase will offer what is referred to in the industry as "mailbox money" returns. This means that for your initial investment, which can be as low as $16K (depending on the company), you will receive monthly checks as long as the oil and gas wells produce - that could virtually be as long as 50 years.
Short term/high yield unconventional investing can work. Just as long term investment in a market that is sure to be around for decades. Doing your homework and knowing who the leaders are is an absolute must. Using these investments while you are raising the money to start your business operations can save you from having loads of financial headaches down the line. These are a few of the great ways you can self-fund your business venture and NOT lose your shirt.
Tune in next week while we further explore business start-up self funding.
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