anyone doing the " promise 50" thingy in here to sell records?

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pipelineaudio

pipelineaudio

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A lot of the small emo labels I worked with did the " promise 50 " network thing. They would promise to buy 50 copies of the other label's next release and it would go back and forth into a big network of small runs each...seems a lot of guys got heard thru this stuff

just wondering if anyone is doing this in here ?
 
Hey Pipeline,

I do this all the time. We are networked with 10 other labels from NYC-Chicago-LA-Canda-Miami..... It establishes 2 very important things....

1. Guaranteed to sell 500 records on the release

2. You gain exposure to other area's you normally would not



I must point out to you its not as simple as you stated. Their are rules regarding how the network works.... for example you can't push 4 releases in a row to the network and only buy 1 of theirs..... It works in groups. Realistically, you just keep turning over your initial investment, but you gain exposure for your artists at the same time showing sound scan transactions. I'd be willing to explain it in depth on an off board discussion and answer any ???? you may have.....
 
I don't get it... say 10 other members that buy 50 copies each at $10 giving you $5000 in the end.. less manufacturing cost ~$500 for a grand total of $4500...but you have to buy 500 copies of other people's CD at $10 costing you $5000 so you lose $500 in the end...

unless it works like a distrubution network and the members are in return selling your CD say... they buy 50 CD each at $5 a piece for a total of $2500 minus the manufacturing cost (still $500) for a grand total of $2000... then you buy 500 of the groups CD's at 5 so yo pay back your $2500 BUT you are alowed to retail them for $10 so you now have potentially $5000 in invintory that cost you $500 (or whatever your manufacturing costs were)

is my math right?...math is the one thing "I don't do"
 
Like I offered to Zeke I'll have an off board discussion if you wish to learn how the network operates. You are close... couple points real quick....

1) the initial investment of 5k you used would be correct. Remember every one in the network has soundscan abilities meaning that your CD transactions are selling outside of you and in other areas of the country.

2) Each label has the right to turn profit on the respective CD by selling any means they have...local stores, mix shows, street etc and turn their own profit on the CD. Those CD's that turn profitable you often get requests for 50 more and so on.
 
how far set up as a distributor do you have to be to make a realistic go at this ?
 
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