Web 2.0 and The Thank You Economy

I had the opportunity to hear Gary Vaynerchuk yesterday, at a Drucker Business Forum event.

Vaynerchuck is a social media expert, entrepreneur, and bestselling author of Crush It! – Why Now Is The Time To Cash In On Your Passion, and The Thank You Economy. He is a regular speaker at events such as the TED conference and SXSW and consults on social media with companies like Johnson & Johnson, Disney, Pepsi, and Google.

He is best known for building a huge online wine business with his irreverent WineLibraryTV video blog and extensive use of Web 2.0 technologies. Gary is in the top 100 of people followed on Twitter. He is funny, intense, competitive, and has a ridiculous work ethic.

In The Thank You Economy he passionately advocates for the humanization of business by strengthening authentic relationships with customers using Web 2.0 tools and old-fashioned generosity and consideration.

Building strong relationships with customers is a long-term play. Established businesses, particularly public companies, resist investing in this kind of culture shift because they are focused on short-term profits and have difficulty computing the ROI on  Web 2.0 engagement.

Vaynerchuk insists that this is the future of business and if companies don’t start caring about their customers and employees they will not survive.

As passionate as this guy is about people, his focus is on making money. He believes that building generous and sincere long-term relationships is the key to success, not because he is Mother Teresa, but because he is driven to compete and create wealth. Many people dabble in social media, but they are not really sure what they are doing or why. After some experimentation they give up. Without a clear business model and a solid understanding of your potential market, tools like Twitter seem scattered and decentralized compared to old-school top down marketing channels like television, print media and radio.

People have a tendency to use social media as a ‘push’ PR broadcast channel, which it is not. I see this all the time with musicians advertising gigs and their latest accomplishments on Twitter and Facebook. This amounts to random electronic direct mail. When I see this kind of communication I immediately tune out.

Twitter and related tools are like a giant cocktail party. This is a medium for listening and conversation. How many times have you heard someone say, “I don’t get Twitter. Why do I care what so and so had for breakfast?” People are discussing their passions online. Facebook, Twitter, and mobile phones have become the new barber shop. Listen and learn. We are instinctively afraid to engage with strangers, but stepping into that conversation opens a new door.

The bottom line for business is this: Customers are talking about you every day, whether you like it or not, the good, the bad, and the ugly. You have the opportunity to join that conversation and build genuine, caring relationships. Vaynerchuk believes that unless businesses do just that they will be run over by the empowered consumer and the competition. I think he is probably right..

    The Future of The Professional Musician

    As the music business continues to shift, the future vision for professional musicians remains a work in progress. By professional, I mean a person who has devoted themselves to the mastery of one or several of the musical arts. This would include instrumentalists, composers, orchestrators, songwriters, recording engineers, educators and producers. Music is a deep and profound human language and I think Malcolm Gladwell is fairly accurate when he sets the bar for mastery at 10,000 hours. For most people pursuing music on this level, a professional career is essential to that process.

    To the general public, ‘The Music Industry’ is about pop music entertainers who may or may not be truly accomplished musicians. The topical conversations about freemium and direct-to-fan marketing have been focused on self-contained bands or singer-songwriters. The fact is, there are many complex business models contained within the music industry and all are been shaken up by the rapid changes in technology and the global economy. How do you plan your career if you are not primarily a singer-songwriter or performer?

    Professional musicians have always relied on multiple income streams to make money. Today, the business is changing so quickly that musicians will need not only a thorough understanding of the traditional elements of the business, but will also need to master the Internet to brand and market themselves. As you start your career, think about what you do best. What strengths do you have that can be applied to marketing, networking and business? Frank Zappa used to ask people he was auditioning, “What do you do that’s amazing?” That’s a great place to start.

    Who is your target audience? Whether they are music fans, film producers, music supervisors, educators, technology managers, or other musicians, be clear about your unique brand and use every tool at your disposal to get the word out and build your network. Educate yourself about the intricacies of music publishing and licensing. Get involved in the conversations about the future of copyright. See how you can apply direct-to-fan marketing strategies like Mike Masnick’s CwF + RtB = $$ to your career goals.

    There are many excellent blogs and resources on the web. There’s a good article in the latest issue of Berklee Today on Gerd Leonhard and his ideas for collective licensing and web marketing for musicians. Don’t get stuck on old paradigms. Even traditional aspects of the music business such as publishing, are in flux. The process of change will only accelerate and the successful business models of the future will be entirely new.

    The challenge is finding a balance between the need for self-promotion and the passionate pursuit of music. It’s not easy to spend twelve hours a day immersed in music and then put on your marketing hat. Planning is key. First figure out what you do best, then set specific goals for your career. The tools for self-promotion can be overwhelming. Having strong mission and vision statements and clear milestones and benchmarks will help you identify the tools and strategies that will work best for you.

    Above all, stay connected to the music inside you.