The Hip Lawyer

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Posts Tagged ‘funding

Bands, tours, partnerships…and tequila!

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My good buddy from high school is in a band.  This has been his life’s work, and his life’s dream, and I KNOW that if he is tenacious and consistent, the dream will come true.  

The band is touring for the next two months, up and down the Midwest, South, and Northeast.  They had looked at different avenues to fund tour costs, and they decided on a sponsorship with an organic Tequila company.  I actually want to call it a “partnership” because they emphasized they are partners, not sponsors.  

Its a quarterly partnership, meaning the band receives money every three months; half the money at the beginning of the quarter, half the money at the end of the quarter.  The partner also has the option to renew after each quarter, assuming results are good.  

I would imagine results consist of “product placement.” They want to see their tequila in bars and clubs.  The band pushes the product and becomes unofficial salesmen at each stop.  Another facet of the deal is exposure.  As a touring band, or any band, perception is your livelihood, and then of course great live shows.  But you need to be careful about being a salesman for something other than your music.  Some bands can do it, they can push a green initiative or an awareness program, but I think those work because they are philanthropic.  

So have we stumbled across a new business model?  I’ve mentioned “crowdfunded” music projects and the profit sharing/stock market dynamic.  But this new model joins two parties, with complimentary goals and assets and lets them work for each other. 

Assuming you find a partner with the same values and goals, this is viable option.  It is a challenge to manage and balance promotions between two entities, some will succeed and some will fail.  I know this band can do it, because they have to.

Written by realdealccr

March 7, 2010 at 3:20 pm