Rapcointelpro: Hype

By Wendy Day from Rap Coalition

According to SoundScan, in 1998 there were 477 independent rap records released (none went Gold or Platinum). In 1999, there were 997 rap records released by independent labels. Again, none went Gold or Platinum. Why? How come when Eminem released his Slim Shady EP in Detroit, he only sold a few thousand copies, but when Dre added a few more tracks and re-released the album two years later, it sold almost 4 million copies just in the US? Em's first album through Aftermath/Interscope, Slim Shady, in fact sold a total of 88,000 in Detroit as of July 1, 2000. Yet those 88,000 people didn't buy his self-released version of the album which was 7 songs, (and the same 7 songs appeared on the Interscope release, by the way). So the question is, what do major labels bring to the table that these small independents do not? And more importantly, how can we, as indie labels, learn from that and apply it to what we do? The answer is "hype" and, well, a bigger machine (which also accounts for their high failure rate as well).

"Hype" is something most smaller labels forget about, yet hyping up a release is not so difficult or costly. It takes perfect timing and planning, and a few well placed connections willing to help. A connected publicist is worth his or her weight in gold, because getting publications to write and talk about your release is key. If your goal, as a label, is to release your project locally and then get a major label to step in and pick your project up and take it national, you need to limit your hype to your small regional coverage area, because once a national publication, like The Source, XXL, or my favorite, Murder Dog, writes about you, it's going to be near impossible for the label picking up your project to get the magazine to write about you again a few short months later. So only exhaust this avenue if you really have to (like the magazine calls you and declares their allegiance to the success of your project, which is doubtful). A major label will not pick up a project they feel has already exhausted the marketplace. Universal picked up Lil Troy's album because they felt the fledgling label who had released the record prior did not saturate nearly all the possibilities. Their thinking proved to be on point, as Lil Troy's album went on to sell another 2 million units at Universal

Street teams are another way to hype up the project. Provided the music is good, it is just a matter of letting people know the album is available in stores (oh and you must get it into the stores first). This is what street teams provide: awareness. By handing out flyers, stickers, posters, T-shirts, snippet tapes -- whatever you can afford, the streets become aware of the project. Once one person checks out the music, they will either tell people they know and it's "the bomb" or that "it's wack." Positive word of mouth is crucial in urban music! More people buy CDs and cassettes based on what they've heard others say about it than they do based on radio or video play. Smarter budgets will also allow the use of cable advertising locally (local spot ads during Rap City are smart buys, and the cost is relatively minimal -- for example a cable ad in Houston during Rap City of BET is about $50) and billboards locally. Priority Records is about to release C-Murder's new album (separate from No Limit, I believe) in August and they hired a company in LA called APB which set-up cable ads and billboards for C-Murder in his key markets (APB only works with major labels and properly financed independents so I chose NOT to give out their phone number in this article as I normally would….).

Once the project hits and begins to sell, distributors will approach you. Real distribution companies look for three things:

1. Do you have good music and talented artists?
2. Are you properly financed so you won't run out of money half way through the project? Do you know what you are doing and have a good plan, as well?
3. Pipeline: Are you a real record label with more than one project to release? You get paid more regularly based upon your flow of projects through the pipeline. Distributors hold your money in escrow, which they call "reserves," and you will get paid as the distributor is guaranteed more projects to recoup "returns" money from.

In the South and Mid-West, most independent labels utilize Southwest Wholesale and Select-O-Hits to distribute product. Before doing deals with anyone, you should talk to labels currently utilizing the distributors you are considering using, and get feedback on how thorough their distribution is, how easy or difficult they are to work with, and how they pay. You should also talk to record stores in the areas where you want to sell records and ask them what they think of distributors and who they'd recommend. Distributors want only one thing; to sell records. If your product sells easily off the shelves, you have a win-win situation. If your product sits on their shelves and doesn't sell, you have your worst nightmare. And that is the distributor's ONLY responsibility; to get your record into the stores. It's YOUR job to get consumers into the stores to buy it. Distributors are NOT banks and do NOT have to advance any funds (RED Distribution rarely advances money, for example) to you to carry your product, so if your finances are not straight, don't even attempt to do this. Do it right, or don't do it at all. Best advice I could ever give you in this column if you don't have the proper financing? Get a job. In 1999, there were 997 rap records released by independent labels. How many did you buy? How many did you even know about?

On a happy note, there were quite a few independent rap records on the SoundScan/Billboard Top 100 Rap Album Sales Chart the week I wrote this article (July 1, 2000). For example: Slum Village was #35 on the Billboard Rap Album chart and had a total of 12,405 SoundScan sales in 2 weeks. The Ying Yang Twins (#44) have sold 43,475 albums (off that one blazing single) in 8 weeks. Mr. Serv-On (#60) his first week did 3,561 units while Twista's Legit Ballin' (#64) sold 3,384 the same week bringing his total up to 79,682 sold in 31 weeks. Spice 1 (#67 this week) has sold a total of 16,159 in 6 weeks while Young Kyoz (#74) sold 10,297 units in 4 weeks. And my Poster Boy of Do For Self, South Park Mexican (#76) has sold 122,883 in 31 weeks. Cali Agents (#88) sold 4,002 in 2 weeks; Del the Funky Homosapien (#92) sold 42,884 in 11 weeks; and Woss Ncss (#100) has sold a total of 7,480 units.

This series will continue in every issue of Murder Dog and will contain information on pressing, street teams, distribution, foreign licensing, overseas distribution, artist development, flow of product, retail and radio, artist imaging and more. Each issue will also answer two specific questions sent in by our readers. Although questions can not be answered individually, they should be directed to Rap Coalition at 111 East 14^th Street, #339, New York, NY 10003 or powerbroka@aol.com. And remember, if you don't own your own shit, you're just a sharecropper.

And thanks to Brother Lynch Hung for telling me that rapcointelpro in every issue of Murder Dog is essential to Siccmade…and that the column is mandatory reading at his company. I'm so happy you look forward to the articles, Lynch (old articles can b e found at www.rapcointelpro.com)!!

Peace to Mystikal who gained his freedom from No Limit yesterday. He is once again a Jive Recording artist. And FLC to Marlon Williams.

17. My partner and I are currently locked down. The timing was bad, we were in the process of releasing a finished CD by one of our artists, Sol. We tried to get distribution before we came inside, but it all comes down to us hitting the streets ourselves and slanging CDs in the 'hood in PA, OH, and WV. We have three other artists but since two of the three heads of the company are locked down, that leaves just one person and our artists to run the company with limited finances. How do we get this project off the ground? - Sean Thompson in Elkton, OH

1. Wow. Damn, homie!!! Sadly, this happens all the time since the streets are so close to the music business, ya know? Running a label is hard enough, but running a nation from incarceration (thank you Cube) is next to impossible. The two things you needed to have in place before you went inside were: proper financing and the ideal person to run the company. I've been meeting with a guy in New York who just caught a Federal bid for a gun charge, leaving no one to run the company and a bunch of tight finished albums. His funds were depleted by legal fees fighting the charge. Unfortunately, he didn't set up his business before he went in, to run smoothly while he was away so that when he got out he'd have an empire already in place. It's not too late, but you may not like the answer because it's going to involve a lot of trust on your part since you are out of the day to day picture. You need to find someone to run your label who has the experience and dedication to do so properly. Experience; meaning they know how to do it and have done it before. Dedication; meaning they understand your vision and agree with it. Hopefully, that third partner is the one. Once you have someone in place, they can get financing from outside sources, associates you'd be willing to have invest in your shit, or someplace like the Small Business Association. Then they must build your company from the ground up with you approving every step of the way (if you trust their ability and their vision, this could be done with minimal input from you). The only other choice you have is to find a connected, experienced entertainment attorney to shop you a deal at a label in NY or CA which will drastically reduce your share (meaning; you won't make any money) but your artists will have viable careers and when you get out they will hopefully remember what you tried to do for them when no one else believed in them but you, and support whatever new projects you are putting out. Just FYI, Twista's partner in his Legit Ballin' Entertainment was the guy who believed in him back in the day when he was still Tongue Twista, did a stretch of Fed time, and now today he's a partner in Twista's new company.

17. How come you work with some labels and not others? What is your criteria to work with a label? - Eddie Lassiter, Atlanta, GA

1. Anyone with "people skills" can negotiate a deal. Anyone with connections in the industry can negotiate a good deal. Anyone who studies good and bad contracts (especially as long as I have), understands the music industry, and knows what will sell and won't sell can negotiate a great deal. I'm very fortunate that I possess all of the skills above. I run an organization (Rap Coalition) that helps artists, so that's my number one priority. My number two priority is helping labels that have the ability and mindset to change the status quo in the industry, not to just be another puppet shucking and jiving to make money for a larger multi-billion dollar corporation--ethics, morals, strength, honesty, and loyalty are key traits I look for. I'm not interested in building slaves or sharecroppers. When I spot a label that has potential, treats their artists (and staff) well, and understands the importance of ownership, I take notice. That's what gets my interest. To keep my interest, the label has to exist for more reasons that just making money. To me, money ain't shit. A label doesn't necessarily even have to be properly financed to attract my attention. I'm just trying to build powerhouses, I'm trying to build empires. 99% of the people who run labels say they aren't just about the money, but they are lying to themselves. When they make moves solely for financial gain, no matter whom they take advantage of, they are only about the money whether they want to believe it or not (some even justify it by feeling they are sacrificing in exchange for that wealth or by calling themselves astute businessmen). Unfortunately, this takes awhile to peep out, and illustrates a personality trait I veer away from the second it rears its ugly head.

Because there are so many labels out there selling units, and because distributors (such as Universal, BMG, Sony, etc.) and larger labels prefer signing labels with a track record (lessens their risk), almost every label I have worked with has a track record of sales. Right now, every project on my desk has sold a minimum of 80,000 to 100,000 units, and most have put out more than one record successfully (proves to a major distributor that the label is not a "one hit wonder"). But in addition to those SoundScan units sold, I'm looking at the label and their long term plan, how they treat their artists, their loyalty, morals and ethics, etc. I look at the long term plan and decipher if what I'm being told is bullshit or not. I look at whether or not people do what they say they are going to do. Most do not. Imagine what happens AFTER the money comes. Money magnifies people's worst qualities. So someone who's disloyal, selfish, and greedy becomes 100 times worse when the real money roles. In. And oddly, people never see these qualities within themselves, especially after the money comes. Working with an up and coming label is VERY time sensitive, especially one run by someone who has not spent anytime in the industry. So I am VERY fussy about the people I choose to help. I am not trying to get "deals for labels," I am getting ownership deals for labels who are ready. I'm not trying to build more sharecroppers, I'm building empires. Without just the right ammunition to take to a large distributor, it is impossible to get an ownership deal -- the only kind of deal I do. I'd rather do 5 deals in my lifetime that have significance to the artists and owners, than 100 mediocre deals where I can buy my own island. I don't give a fuck about the money. Never had, never will. But I do give a fuck about someone's word and mindset. Nuff said?