5 Key Mistakes Artists Make In Their Merch Business
Merch is a crucial revenue stream for artists, yet many make avoidable mistakes that cost them profits and fan engagement. Here are five key mistakes artists make in their merch business and how to avoid them.
1. Ignoring Who Their Fans Are
Without fans, there is no music business. Your fans are the primary consumers of your merch, so understanding them is key. Consider their age, gender, geographic location, and style. Use analytics from streaming services, social media engagement, and in-person observations at shows to gather this information. Knowing your audience helps in choosing the right products that resonate with them.
2. Missing Out on Live Show Connections
Historically, over 80% of merch sales occur at live shows. This is because merch is often an emotional, impulse purchase driven by the fan's connection to the artist in the moment. If you don't capitalize on this connection, you're leaving money on the table. Make sure to have your merch booth ready and your best sellers in stock at every show.
3. Treating Merch as an Afterthought
Merch should never be an afterthought. Planning and strategizing for merch needs to be prioritized. When left for last, there's less time for thoughtful and authentic creation, leading to potential lost sales, rush costs, and unavailability of merch when needed. Invest time in strategizing upfront to avoid these pitfalls and maximize your merch's potential.
4. Failing to Track Inventory and Sales
What would happen if a retail store failed to track inventory and sales? It would likely go out of business. The same applies to your merch business. Tracking inventory and sales helps ensure you have the right sizes and styles on hand, understand what’s selling, and know if you're making a profit. Implement a merch management system early on to take the guesswork out of the equation.
5. Not Selling Merch at All
It takes approximately 3400 streams to make $15. An indie artist can potentially sell one T-shirt and make $15 gross profit. The math is simple: selling merch is a more direct and profitable way to support your career. Don’t miss out on this vital revenue stream.
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