What does negotiating have to
do with the music industry? Well, I’m happy you asked. There are all types of negotiations that take
place in the music industry. Pertaining to someone who has a music career as an
artist or a musician, one of the major things you have to negotiate are your
contracts. You have to become wise about how you negotiate your contracts and
there are various types of contracts to negotiate. You may have one or all of
these: a manager contract, a producer contract, a record contract, and a
performance contract. These are only a few contracts that you may have to
consider within your career. Within each contract there are terms that have to
be agreed upon. The process that takes place to decide on those terms is called
negotiating. You have to negotiate the length of time of each contract as well
as what you are willing to give up in exchange for what you will receive. You
have to negotiate how much money you will receive for your efforts and when
those monies will be recoupable. You even have to negotiate what your
responsibilities will be in each agreement and how those responsibilities are
expected to be carried out. One of the main things to consider when negotiating
is the fact that nothing that happens to you in this business just happens. You are very rarely just freely given what you
want. A lot of what you receive is hugely a part of what you accept, what you
vie for, and what you negotiate. You are never obligated to accept every offer
that is presented to you. You have the right to refuse any offer or negotiate for
better terms. It is very important to be knowledgeable about the music business
and surround yourself with the right team of individuals that are knowledgeable
as well. This is definitely what I sensed when speaking with Mike Holloway, the CEO of Walking On Water Productions located in Detroit, Michigan. He is very
knowledgeable about the music industry and negotiating is a part of his routine
on a consistent basis. In our conversation, I asked him a few questions about
the technics he uses when negotiating and here’s what he had to say.
There
were three main questions that I asked Mr. Holloway. The first question was how
he was able to deal with positional bargaining tactics when negotiating with
his clients. Mr. Holloway uses objective criteria to deal with a positional
bargaining issue that might occur over the rates for his company’s services. He
stated that as an Audio Production Specialist, his company offers rates that
are set based on experienced claims of the industry. His company uses
historical data and trends for audio engineering services. This data is used to support their rates. Mr.
Holloway went on to say, “This strengthens our position in
the bargaining process as we are able to validate our rates being
considerably less than the rates in the industry.” The next question I asked
Mr. Holloway was if he could give me an example of how he worked toward a
mutual benefit in a negotiation. Mr. Holloway had this to say, “ In the audio
production industry, being able to build long-term relationships is vital.
Therefore, we work towards mutual benefits with all clients to develop these
relationships.” One of the examples he gave had to do with an organization
that produces multiple plays, concerts, and other various services. This
particular client approached Mr. Holloway’s company to help provide them with audio
production services. His company was able to develop a long-term strategy
for the organization. This strategy allowed his company to not just provide
services for one particular program, but they were able to negotiate a deal
that allowed them to partner with this organization and provide audio services
for all of their performance needs at all of their venues. The mutual benefit
in this scenario worked as the client was able to obtain a reduced rate for
audio services based on the long-term relationship and Mr. Holloway’s company profited
by gaining a long-term client with residual dividends. The last question I
proposed to Mr. Holloway was would he ever use dirty tricks when negotiating
with any of his clients. Mr. Holloway said, “We would never use dirty tactics
in negotiating with a client. All data we provide is current and accurate. We
would not speak adversely or provide any negative facts about any competitor in
the industry. Integrity has to be a priority in conducting our business.” This
is truly a principle that Mr. Holloway thoroughly stands by. He believes in
treating people right and treating people fair. He is more concerned with the
relationships he establishes with his clients and the longevity of that
relationship over trying to make a quick buck.
This
was a great interview. It gave some direct insight on how negotiation goes down
in the music industry with some clear examples. I believe Mr. Holloway has the
right idea about integrity and building long-term relationships. Success in the
music industry has a lot to do with relationships and good relationships that
are hard to come by should not be destroyed over the use of poor negotiation
tactics. I hope that you were able to gain as much from this interview as I was
about negotiating in the music industry.
-The Mike Sears
