Strange Music‘s CEO Travis O’Guin and Vice President Tech N9ne recently spoke with Bizjournals.com about how to create a successful business. A few of their suggestions are to  Make yourself distinctive, Go where customers and revenue are, and if take care of your customers, and they will take care of you. You can check out this full article below.

From Bizjournals.com:

As the record industry spun into decline in the early 2000s, few thought Strange Music Inc., an independent rap music label in Lee’s Summit, would have much staying power, let alone grow to national prominence.

Now, almost 13 years, thousands of tour dates and millions of CD sales later, Strange Music is one of the nation’s largest independent music companies. CEO Travis O’Guin and Vice President Aaron Yates (also the label’s lead artist, better known as Tech N9ne) have signed 10 other artists and generated more than $20 million in annual revenue.

So what can the aspiring hip-hop moguls offer their traditional entrepreneurial peers? Advice on how to thrive when few believe you have a chance.

“If you believe nothing will get in the way of this succeeding, you will eventually prevail,” O’Guin said.

• Make yourself distinctive

Both said a fledgling firm has to put itself out there and differentiate itself from the crowd to succeed.

In Kansas City, Strange is known for its “street team” of advertisers who drive around town in vans decked out with Strange’s logo — a snake with bat wings — hanging up posters and handing out free music samples.

O’Guin said the company isn’t afraid to invest more than $200,000 on the free disks because it creates more fans who will buy CDs, merchandise and concert tickets.

O’Guin said Strange also focuses on signing distinctive artists. Yates, who scouts all the talent, said he tells newly signed acts not to change a thing, unlike some industry peers who try to conform new artists to fit the “hot” image.

“Their direction is what they’re already on. We’re not trying to change them to fit the Strange mold,” he said.

• Go where customers, revenue are

Strange has found success in being where others aren’t, whether it’s on tour or online.

“People want to know what’s your secret, but it’s not really a secret,” Yates said. “Relentless touring — we’ve been doing it since day one.”

O’Guin said that touring — not the norm for the rap industry — allowed the brand to be exposed to new markets, expand its fan base and pump up revenue from ticket and on-site music sales.

The firm also has an endorsement deal with beverage-maker Monster Energy Co. and is finding new ways to make revenue from selling ad time on its music videos hosted on YouTube.

O’Guin said online ad sales alone have allowed him to invest $500,000 in better video production equipment.

• Take care of your customers, and they will take care of you

Yates said the most important thing, next to making great music, is fan support. After every show, he stays late shaking hands, signing autographs and talking with fans, as does every other artist on the label.

O’Guin said they started doing it when the label was unknown because it makes a lasting impression and keeps Strange in the good graces of music venues. That’s not changing anytime soon.

“We’re not ever going to lose sight of what got us to this point,” he said.

 

Websites:

• bizjournals.com/kansascity