Trust, Not Fear, Sells Music

By Eric de Fontenay (Founder & Publisher) (more articles from this author) 2003-08-18

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It seemed like one of those boring summers, with the latest on the RIAA subpoenas as the high point... that was until Moses Avalon's article on CD Baby's Digital Distribution Deal. But what was most interesting was not the critique itself, but the ensuing firestorm and what it tells us about how so many in the independent community make career decisions.

When the CD Baby deal was announced there was little talk of the intrinsic value, if any, of having one's music in Apple's iTunes Store, or the risks/benefits of shifting to an Orchard-style distribution model, or whether the deal would even pay for itself in most artists case. That's the type of talk for those decision makers in the business world. This is the music industry after all. So instead, legions of artists congratulated themselves on being among the first pioneering indies in CD Baby's new venture, some admitting to not even having read what they were signing up for. Who cares right? This is CD Baby and Apple we're talking about. They might just use our music for the next hip iTunes commercial! Another case of indies thinking with their hearts, not their minds, right?

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Of course, we as a community must be forgiven for we have so few mentors to look up to. What became the Enron/WorldCom/... shock for the financial community is business as usual in the music business. If the business world is a jungle, the piece reserved to music is its swamp, full of traps, rats, scams and flim-flams,... you name it, we have it. In such a world, where you can't trust the words in a contract and success is often synonymous with bankruptcy, trust assumes an importance rarely seen.

In the typical business world, trust is gained through the enforcement of rules. You trust that the food in your local grocery, restaurant or outdoor vendor is fresh because its got that FDA stamp or city license. You trust your doctor because he has a degree and is held liable for malpractice. You trust the subway conducter or bus driver because they'd lose their job if they didn't follow the rules.

But what happens if there is a lack of rules and/or enforcement. The fact that a law such as proposed in California is required to assure that labels meet their fiduciary responsibilities to their artists says a lot about rules in the music industry. In this case, you can no longer afford to assume or trust in the rules, you need to find out, first hand in most cases, whether your trust was warranted. The result is that several entrepreneurs in the indie community need to work twice as hard to develop that trust among artists, despite an impressive track record of dedication and results. Call it the Trust Tax.

Derek Sivers, though, is as unique as his look. Derek inspires trust, simple as that. Part of it is built on fact: CD Baby is the most successful music retailer serving the independent music community AND artists using the site have benefited financially from that success. That's a mouthful in this industry! Part of it is that Clintonesque ability to connect with people, especially hard working, independent artists. I would contend that he understands his clients more than nearly any major label or dot-com executive could. Part of it is his uncanny ability to stay 'above the fray' - while dot-comers were running and screaming like chickens with their heads cut off during the bust, CD Baby and its founder were a sea of tranquility as they announced yet another million bucks had been paid to otherwise disenfranchised artists. Then there's all the passion he has demonstrated over the years.

So what's up with Moses? Ironically, I believe that Moses has paid everyone the greatest service by getting people to actually read and examine the contract they had signed. We keep on repeating it, Derek included, yet indie artists continue to be cavalier about contracts and stuff like that. The fact is that most artists pay about as much attention to the contracts they agree to when uploading their music to a site as most consumers do to the agreements that come with any software they install.

Since Moses' piece, while several have since reportedly availed themselves of that "30 days' written notice" get-out clause, the overwhelming reaction has been to look to and stick with the one they trust. And so they should, especially considering the alternative(s). But trust does not relieve artists of their responsibility to their careers and fans, ie., read the contract and seek professional legal advice. It simply gives a layer of assurance that the contract will be respected in its letter and spirit. THAT is what Derek has always delivered on.

For those of you not in the 'indie' world, this little episode should also be a big warning sign. Music buyers just like indie artists have been entering an uncharted and uncertain digital world. People like Derek, Michael Laskow and Noel Ramos (don't hold it against me if I didn't mention you) can attribute much of their success to their dedication to educating their customers (paying & non) about this new world and help them shape rules that will benefit everyone: the artist, consumer and themselves. This is why they're still around and thriving in many cases.

The music industry's strategy on the other hand has frankly been built on fear and harassment. They have gone out of their way to antagonize the buying public which doesn't trust that the artist will get paid, that their CD/music file can be played, that DRM won't turn into a token booth, that they won't be relegated to perpetual lessors versus owners. The RIAA's latest move to sue hundreds of consumers cannot build trust in their products or intentions, just the fear of getting caught. While it may drive many away from file sharing, I'll bet it'll drive few into the arms of the labels.

On the other hand, the only successful online music store's success is clearly linked to trust. Mac users, the only ones' able to shop at the iTunes store, feel and express that same trust CD Baby has been enjoying. And frankly, this Mac addict has bought a ton of their products over the last two decades not based on the due diligence I usually do when spending big wads of cash, but because it was Mac and that was good enough for me. Over those two decades, I have never been steered wrong and have never even contemplated the alternatives. I don't need to know what XP looks like, or how cheap Dell is or cool the latest VIAO looks - I trust Apple. Just like legions of artists that trust CD Baby.

Related MusicDish e-Journal Articles:
» CD Baby's New Digital Deal Is Not What It Seems - Poorly Structured Contract Could Tie Up the Rights of Artists for Years (2003-08-12)
» Analysis of the CD Baby Digital Distribution Agreement (2003-08-18)

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