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Business Owners – Learn A Lesson from Music Piracy!

May 1, 2010

Music Piracy Isn’t The Problem

Resistance Is Futile

The music industry is resisting change when it comes to music piracy, like book owners. Very few authors will get rich. Most of the money comes from the merchandising, movie deals, etc. So why is it that music industry is clinging so tenaciously to the music itself?

Yes, it would be nice if we could stamp out music piracy but there will always be ways around it. The musicians should be looking for the backend products like having an insider’s circle paid membership on their website with some kind of stuff for fans, and high-margin physical products that could be sent to them.

Businesses Take Note

Competition is very tough. Usually there is a teaser product that gets people on board. Many businesses are resistant to giving up this information. Often they want to charge for this product that has marginal value. By stopping there they miss the “big picture” of backend sales and all the upsells along with it.

Also known as a ‘loss leader’ By selling a well known, popular item at a reduced price you can often generate other sales of more profitable goods or services.

A Quick Disclaimer

First off, I’ll say that I am against pirating (illegally copying) of music via the Internet. If a music artist freely posted the music, it’s fair game, but the various P2P networks break the law… even if we can’t prove it. I’ve resisted coming to terms with this for some time but have since pulled the P2P networks off and pitched my CDs.

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