How to Make Money From a Band's Unsold CDs

As is the case with many bands or artists, an overly optimistic attitude can often lead to problems. Once a new CD is ready for production, most people opt for the 'great deal' offered by CD manufacturers to order just 1000 copies. For those of you who have never had 1000 CDs delivered to your front door, it's a lot of CDs! I once read an article that said "only 1% of all CDs produced in a calendar year will ever sell more than 1000 copies". This means that unless you're Madonna or The Rolling Stones, you probably have boxes of CDs that you are currently using for furniture. If so, here are a few suggestions as to how you can get rid of them.

Instructions

Difficulty: Easy

Things You’ll Need:

• Lots of unsold CDs

How to Make Money From a Band's Unsold CDs

1. The most obvious step is to sell these CDs to fans. Although this sounds extremely simple, remember that you're probably sitting on a box of unsold CDs right now. * When trying to sell CDs to fans, think outside the box. Offer a 'free' CD with every cover charge collected at your next show. Although this isn't a great profit margin, you might draw in some more fans. * Work out a deal with the venue to give away a 'free' beer with every CD sold. You sell a CD for $15 and then pay the bar owner $3 for the beer. You net $12 and the bar owner sells another beer. Everybody is happy because they perceive a great value.* Bundle CDs with band stickers, t-shirts or other merchandise as a package for sale.
2. Try approaching local charities or other groups that need to raise money. They usually try to sell candy bars, gift wrap or open a car wash. Offer to sell them your CDs at a wholesale price of $10. They can then sell your CDs for $15 and then keep $5 per unit sold. This is a great deal for them when you consider that the profit margin on a candy bar is about $1.
3. Try offering a free CD to anyone who comes to a live show and promises to post a comment or review on your website. Although this isn't a direct way to make money, it might increase your live show crowd (which will make you money) and will increase your website traffic and provide lots of new reviews and comments.
4. Give your CDs away. Although it sounds like a bad idea, it can really help you on your taxes. CDs given to venue owners, writers, booking agents, producers, radio stations, fans or anyone else can be considered a "promotional" expense and offer a great deduction on your taxes. These CDs can be written off at full retail, which means if you give away 100 CDs at a value of $15 each, you have a $1500 tax deduction. Be sure to consult your accountant or attorney before using this deduction.

Tips & Warnings

• Be creative when looking for avenues to sell your CDs
• Don't limit yourself to just live show sells. Investigate opportunities on the Internet to expand your potential market.
• Try packaging your CDs with other acts you perform with. This increases the value to your fans and make lure them to purchase.
• Don't undervalue your CDs just to move them. This creates the illusion of a 'cheap CD'
• Don't continue trying an idea that doesn't work. Move on.
• Stay away from consignment situations. This can spread your CDs all over the place and create an inventory nightmare.