Optimizing Artist Income: A Case for Equitable Business Models in Music

Optimizing Artist Income: A Case for Equitable Business Models in Music

In the ever-evolving landscape of the music industry, where streaming revenues often fail to sustain artists financially, companies like Bonsound are redefining the relationship between musicians and the business side of music. By addressing income diversification, cutting out middlemen, and fostering creative autonomy, Bonsound exemplifies the power of a business model that places artist needs at the core. This strategy offers valuable insights for the broader principles of Conversion Rate Optimization (CRO), especially in industries reliant on creative output.

Income Diversification and Artist-Centric Services

Bonsound’s approach mirrors key CRO practices, particularly in identifying diverse revenue streams and optimizing interactions for maximal value. Just as CRO focuses on enhancing user experiences to drive conversions across multiple touchpoints, Bonsound enables artists to maximize income by providing more than just traditional record sales.

The company supports artists in selling merch, vinyl records, and even offering a flexible record label structure, where artists receive a more equitable share of profits. This diversification is similar to CRO’s goal of offering varied user pathways that increase conversion chances. For artists, multiple income streams—such as concert bookings, merch sales, and intellectual property licensing—reduce dependence on a single revenue source, improving their financial stability and engagement with their audience.

Eliminating Middlemen for Better Margins

A critical function in CRO is streamlining processes to eliminate friction and enhance user engagement. Bonsound’s model takes a similar approach by cutting out the middlemen typically involved in music sales and distribution. In the traditional music industry, artists see a small percentage of revenue from streaming and live shows due to venue fees, ticketing cuts, and record label takes. By providing a more direct route for artists to sell physical products like merch and vinyl through platforms like Shopify, Bonsound increases the artist’s revenue share, which can be seen as an optimization of the “conversion path” for an artist’s sales.

For CRO specialists, this approach mirrors the concept of simplifying user journeys. Just as e-commerce companies reduce steps in the checkout process to boost conversion rates, Bonsound optimizes artists’ income by eliminating unnecessary intermediaries, ensuring that more of the profit reaches the creators.

Flexibility and Customization in Collaboration

One of the key elements of Bonsound’s success lies in its flexible service offerings. Artists can choose to collaborate with the company in various ways, whether it’s booking concerts, managing merchandising, or leveraging publishing services. This adaptability to the specific needs of each artist echoes CRO’s emphasis on personalized experiences for different user segments.

By tailoring their services, Bonsound allows artists to scale their involvement based on their individual needs and goals. For CRO professionals, this highlights the importance of segmentation and customization. Just as businesses increase conversion by catering to the unique preferences of different audiences, Bonsound’s à la carte model ensures that each artist can maximize their engagement and profit potential without being locked into a one-size-fits-all contract.

Enabling Creative Expression and Collaboration

Finally, Bonsound’s support of creative collaboration stands as a testament to how business models can amplify artistic freedom while fostering industry-wide change. By facilitating projects like Elisapie’s covers in Inuktitut, the company not only allows artists to express themselves but also assists in securing necessary permissions and resources. This support system mirrors CRO’s role in ensuring users have all the tools they need to successfully complete their journey—whether it’s providing intuitive navigation or helping users achieve their ultimate goal.

In the context of CRO, Bonsound’s approach underlines the importance of creating an environment where artists (or customers) feel supported throughout the entire process, from creative ideation to the final sale.

A Model for Future CRO Applications

The principles behind Bonsound’s artist-first model are directly applicable to the field of Conversion Rate Optimization. By streamlining processes, diversifying income streams, and offering flexible, customizable solutions, businesses can enhance the experience for users and create more impactful, long-term engagement. In the case of music, this not only improves financial outcomes for artists but also contributes to a more sustainable and equitable industry. Similarly, CRO’s focus on improving conversion paths, reducing friction, and personalizing user experiences can lead to greater profitability and satisfaction for customers across sectors.