Examples of Economic Chains in Different Art Forms

The goal of the economic chain  exercise is to look at the places and people that money flows from & to in your industry.  There are many different revenue streams in every industry.  Looking at economic chains helps you understand your field better, broaden your understanding of markets, and reveal the value networks (underlying connections) in your field. Buy seeing how revenue flows it can reveal  opportunities that you hadn’t considered- for earning cash flow, and for finding audience/customers for your art.    It also can help you identify things like geographic locations that are fertile for your field, and under-served niches that you might look into.  Here are a few examples in varying levels of detail:


Field: Ceramicist

Economic Chains:

Buyer -> Gallery ->

-> Gallery Personnel
-> Artist ->

-> Studio Space
-> Supply Stores


Field:  Multi-instrumentalist musician (person who plays 4 or more instruments well)

Economic Markets:

•    Broadway
•    Cirque Du Soleil
•    Major cities such as: Las Vegas, California, New York etc.
•    Hollywood (film scoring)


Field:  Live Music Performance:- Cello

Economic Chains

Bars/clubs (no cover charge)

Concert-goers/Average audience member/Bar customer

Bar/club owners

Percentage ranging from 10%-30% of money made during performance goes to the band
Which is usually distributed evenly among the members.

The money the band makes turns into spending money/bill payments/equipment purchases necessary to play

Venues/Clubs (with cover charge/ticket price)

Concert-goers/Average audience member

Venue/club management or owner

Depending on the number of acts, range from 40%-75% of ticket sales/cover charge goes to performers, Headliners generally receive at least 10% more than openers. The rest goes to business costs (employees including sound engineer)

The money the band makes turns into spending money/bill payments/equipment purchases necessary to play

Classical Symphony Concerts (ticket sales)

Concert-goers/Average audience member

Symphony management deposits sales to a budget. Symphony management generally agrees to a rental price with the concert hall, arts center, church, etc. ahead of time and has paid in advance or contractually agrees to pay after.

Symphonies (amateur and professional alike) make contracts with their members on pay. Most of them agree to pay each member a fixed rate for each “service” including rehearsals and performances. Members are paid after the performance.

 

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