I. Recording during the Bubble? Which Bubble?II. BTW MixermanIII. Business College “Management Theory”IV. Introduction and Overview Bob VandenbergV. P.O.L.C.AVI. Two of the most difficult skillsVII. StrategicVIII. TacticalI. Vernon P LoveA. merchandise specialist-he can be short volatility because there is only a specific number of people at a show1. He has a ceiling on how much he can sellB. But it depends on how you look at it, Vernon is similar to agents and agencies (it is hard to tell if they are short or long votality)1. He gets a % of gross-longish2. Flat fee or salary-shortish3. A single show-shortish4. If he attaches himself to an artists career-long volatilityC. Not every occupation fits short or long volatility, it can be a mixII. per headA. Per head=gross merch sales/attendanceB. The sale of merch varies from band to band1. $1 per head/per show is a low figure2. $10 per head/per show is a great figure1. this is not a worthwhile activity for highly paid professionals but it might be worthwhile if your normal wage is very low, otherwise it’s better to specialize2. If you’re a eye surgeon it doesn’t make sense to raise chicken because you make more money performing surgeryIV. Direction of progress is in the direction of specializationA. When you’re self sufficient there’s more poverty, low productivity, protected markets, low technologyB. When you specialize: specialization, wealth, high productivity, global markets, high technologyC. Insourcing done right increases productivity overallV. InsourcingA. “Big companies doing things for little companies or individuals”1. the big company specializes so it does things more efficiently2. Example making a website with Bandzoogle.com: seems like self sufficiency building the website yourself but high specialization by bandzoogle.com makes this possible. (there’s software developers)B. Net more efficientC. Productivity gains by bandzoogle more than offset productivity loss of you doing it yourselfD. so overall net gain in productivityE. Unintended consequence Mass customizationF. Successful Insourcing only if there is net Productivity GainG. Productivity loss from doing some things yourself less than Productivity gain from efficiency of big companyH. Insourcing done right increases productivity overall1. Manufacturing and selling your own CDs, DiscMakers2. Distributing your own music online on iTunes, Spotify, YouTube, Google Play Bandcamp, Tunecore3. Recording your own albums at home Protools? Universal Audio?4. Creating your own website Bandzoogle, Square Space5. Selling tickets directly to your fans Frontgate,Ticketfly etc6. Making your own videos iMovie, Avid Express etcMBUS 3000 1st Edition Lecture 17 Outline of Last Lecture I. Recording during the Bubble? Which Bubble?II. BTW Mixerman III. Business College “Management Theory” IV. Introduction and Overview Bob Vandenberg V. P.O.L.C.A VI. Two of the most difficult skills VII. Strategic VIII. Tactical Outline of Current Lecture I. Vernon P LoveII. Perhead III. Self-sufficiency IV. Direction of progress is in the direction of specialization V. InsourcingVI. Theory of comparative advantage VII. Applying it to music business Current LectureI. Vernon P LoveA. merchandise specialist-he can be short volatility because there is only a specific number of people at a show 1. He has a ceiling on how much he can sell B. But it depends on how you look at it, Vernon is similar to agents and agencies (it is hard to tell if they are short or long votality)1. He gets a % of gross-longishThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.2. Flat fee or salary-shortish 3. A single show-shortish4. If he attaches himself to an artists career-long volatility C. Not every occupation fits short or long volatility, it can be a mix II. per headA. Per head=gross merch sales/attendance B. The sale of merch varies from band to band 1. $1 per head/per show is a low figure2. $10 per head/per show is a great figure III. Self Sufficiency A. Example: raising Chickens in your own backyard1. this is not a worthwhile activity for highly paid professionals but it might be worthwhile if your normal wage is very low, otherwise it’s better to specialize 2. If you’re a eye surgeon it doesn’t make sense to raise chicken because youmake more money performing surgery IV. Direction of progress is in the direction of specialization A. When you’re self sufficient there’s more poverty, low productivity, protected markets, low technology B. When you specialize: specialization, wealth, high productivity, global markets, high technology C. Insourcing done right increases productivity overall V. InsourcingA. “Big companies doing things for little companies or individuals” 1. the big company specializes so it does things more efficiently 2. Example making a website with Bandzoogle.com: seems like self sufficiency building the website yourself but high specialization by bandzoogle.com makes this possible. (there’s software developers)B. Net more efficientC. Productivity gains by bandzoogle more than offset productivity loss of you doing it yourselfD. so overall net gain in productivity E. Unintended consequence Mass customizationF. Successful Insourcing only if there is net Productivity Gain G. Productivity loss from doing some things yourself less thanProductivity gain from efficiency of big company H. Insourcing done right increases productivity overall VI. Theory of comparative advantage A. In economics, the law of comparative advantage says that two countries (such asindividuals or firms there as) will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods. Even if one country is more efficient in the production of all goods (absolute advantage) thanthe other, both countries will still gain by trading with each other, as long as they have different relative efficiencies.-wikipedia definition 1. “it’s best if we all we specialize in what we are least bad at” 2. and by best we mean we ALL get more productive and (hopefully) richerVII. Applying it to Music business A. Isn’t the music business re-organizing itself around increased self sufficiency? 1. Manufacturing and selling your own CDs2. Distributing your own music online3. Promoting your own music through Facebook and Twitter4. Recording your own albums at