Gonna START the Business!!!

[fong]

I've been comming around for some time and really have come across some really great information. You guys are great and very knowledgable. And I think its finally time to stop thinking about doing it, and JUST JUMP IN and GET 'R' DONE!!!

I'm from Charlotte, NC, and I want to run a Successful Karaoke Business just like some of you veterans. The only thing is I have very little knowledge about hardware, software and licensing. The rest I'm sure, with some elbow grease, and persaverance. I'll make it happen.

I need your HELP...And I'd like to thank you in Advance, because I know how you guys are on this board...

After reading some on this site, I've decided that I wanted to go with a Laptop Base system as opposed to CD's...But where do I get the music, and how much do they cost? What are the pro's and con's

And Second, (legal stuff)

Do I really need to get a license for playing these songs? If so, where would I go? Do I need a business license, for tax purposes? Do I need to start some tyoe of LLC or something?

Third, (pricing)

I've been researching and calling around for KJ fees, and it looks like they're charging around $500 for 4 hrs...Is that @ fair market value? Or too much? I just need 3-4 gigs a week @ $250-$300 a night...

Fourth, (Gear)

What do you use and what would you recommend me to purchase? How much capital did it take you to get your business running?

Guys, I thank you again in advance Please any information relative to above or any background on how you got your business ROCKIN will be GREATLY appreciative...THanks Again

[Bigdog]

$500 a night???


I'd quit my day job in a heartbeat....

Yeeeee haaaa.... I'm moving to Charlotte.

Is that in The Hilton or the Playboy Club or the King of Englands wedding??


My initial investment was $20,000.

That includes a used van, new PA equipment and music.

I now have over $40,000 in music alone.

I am switching to computer and it is going to cost $5,000 to do it the way I want to do it. I will not play without a backup computer. So I just ordered 2 new laptops. I will have backup hard drives too.

You need to have legally purchased music.

The pros... never have a scratched or skipping song.

Cons...To have music on a hard drive is considered to be an illegal format shift by most companys. Some KJs will say having a 1-to-1 backup is legal.

[fong]

BigDOg,

THanks for the reply, well from what these people are telling they'll cater a private party for anywhere from $400-$500 for every 4 hrs...As far as the clubs/bars/restuarants...I'm not sure yet, maybe I should call them and pretend I'm a business owner looking for their services...

BTW good info, but what is a 1-to01 back up? So if I were to store all songs on a laptop, it'd be considered illegal?

[Bigdog]

According to the disc companies. Yes

1 to 1 is ..You buy the original disc(1), then you make a copy of it to another disc (1) or a hard drive (1). If you make 2 copies you are technically illegal. That is 1 to 2

Many KJs feel that they have the right to protect their original investment with one copy. I have many original discs that are becoming usless because the foil is oxidizing and you can see holes in the foil. You can not copy a disc with holes in the foil, because the disc will skip or the words will glitch on the TV screen.

I charge $100 hour for private stuff. But I may increase my price. Right now I could care less if I ever do another private party. I have steady bar work. To me a steady bar gig (bread & butter) is worth more than a once in a while party (icing). Unless you plan on specializing in parties. Bar income is steady cash, week after week.

Weddings and some private events are more headaches. Your bar gigs are a little more laid back. Only 2 things screw up a wedding or a party. Bad food. Bad music. A lot of pressure with a wedding. Making sure you do everything right.

[fong]

Again THanks for replying BigDOG...

What do you charge for bars??? And how many songs do you carry???

[Bigdog]

I don't get the amount of money my show is worth because there are several hunderd KJs in my metro area. Many are fly-by-night undercutters that can only work if they play cheap. I am forced to make $175 a night for 4 hours. That's almost $9,000 a year per job. That's why I say the bars are steady income.


I will be starting a new job that pays $200 for 3 1/2/ hours.


I lost a bid on a job several years ago because the other guy was $5 less.

I have almost 1000 discs. Over 10,000 one-of-a-kind songs. I don't count the duplicates.

[letitrip]

Ahh finally, a thread where I can agree with Big Dog. The Bar/Club scene is usually around $200 for a 4 hour show. However that sometimes varies by day of the week. Saturdays usually put us in the $300 range for club because that's a night we could be playing a more lucritive wedding gig.

Private parties will always net you more. We charge considerably more for private parties than the club scene. Weddings go even higher yet due mostly to the requirements and potential for problems and the usually prime time saturday night hours.

The undercutters are a frustrating part of the business because they hurt all of us. They reduce what we can charge and since they typically are the ones that come in and stink up the joint, they also make us look bad. There was a guy in our area who would (seemingly) only approach bars/clubs that had existing acts. He'd then offer up his services for seriously cut rate fees. Now some bar owners were smart enough to ask questions and find out that he only had about 1500 songs and a system not much better than my home stereo equipment. Unfortunately, many of them only found out after they had already blown-off their long term KJ's who now wouldn't go back. This kind of crap makes it much harder for club owners to trust hiring folks like us.

Anyway, I'm off my soapbox. Good luck to you, keep us up to date on how things are going for you As always, ask any questions you have, we're all here to help eachother.

[fong]

THanks KingofKaraoke...MAny thanks to all you guys on here...

Okay so realistically I want to do it right the first time, I don't want to screw anyone's gigs or anything. And I think networking with other KJ's is even better than trying to compete with them. It just brings in more business for everyone that way. Well thats what I think to say the least..

Realistically, guys...What is are your recommendations for a Newby?

In the beginning: What gears did you start off with? What packages of Songs did you buy? And where am I to find the best prices for songs and equiptments?

Lastly: Whats a good dollar amount to start with?

[DanG2006]

BigDOg,

THanks for the reply, well from what these people are telling they'll cater a private party for anywhere from $400-$500 for every 4 hrs...As far as the clubs/bars/restuarants...I'm not sure yet, maybe I should call them and pretend I'm a business owner looking for their services...

BTW good info, but what is a 1-to01 back up? So if I were to store all songs on a laptop, it'd be considered illegal?

In my area due to all the bottom feeders, one is lucky if they can get $100 for 4 hours worth of work.
As for licensing that is up to the owner of the bar or the customer. It is not the KJ company's responsability.

[letitrip]

Realistically, guys...What is are your recommendations for a Newby?

In the beginning: What gears did you start off with? What packages of Songs did you buy? And where am I to find the best prices for songs and equiptments?

Lastly: Whats a good dollar amount to start with?

Fong, there is a wide range of how much you could spend to get started. The question you have to ask yourself is what are your priorities. If you need to get started for the least amount of money possible, here's a bare bones list of what you'll need:

• A pair of 15" Passive (preferably 2-way) speakers with stands
  A powered mixer (i.e. the amp is built into the mixer
  A minimum of 3 microphones (1 for you, 2 for singers)
  A CDG player
  A TV and TV stand (these usually have mic clips built in)
  The necessary cables
  CDG Discs (I'd say start with at least 3,000 songs)

Now a couple details here. Brand name will make a big difference in cost. You get what you pay for as far as durability and sound quality in most cases so you'll have to balance cost with quality. A powered mixer is an easy way to go, but not very flexible. Once you've bought it, upgrading means a new mixer and amp (or a new powered mixer). Depending on where you're playing I wouldn't go with any less than 500 Watts of RMS power (i.e. 250W per channel). Microphones can make or brake your sound, wireless is nice but expensive so wired mics are in order for a small budget. For music, check out Sound Choice and Chart Busters, both have their "essentials" packs whcih get you a bunch of songs (450-700) for around $150-200. The infamous "bricks" are quite popular and an easy way to build a library.

All said and done, you're probably looking at a minimum of $3000 to get yourself started with the bare bones equipment.

Now personally, we had some significant financial backing to get ourselves started so we've got a little nicer rig. JBL speakers, Yamaha mixer w/effects, 4 wireless mics, computer based MP3+G library, on-stage monitor, backup CDG player (which we also use for house music between singers). We started with well over 5000 songs and have built that up quickly as well. We get compliments on our sound and rig quite often, and do pretty well as far as having the songs people want. We spent close to $10,000 on our equipment and song library. Still on our wishlist that we'll be getting soon are Subwoofers, DJ lighting, CDG subscription, etc.

There's no one best way to go. You have to really spend some time doing research into your options and decide what works best for your budget, the type of show you want to do, and your goals. Don't be afraid to start small and work your way up. I know some very successful KJ/DJ's who started with a bare bones rig and 1500 songs. The key to growing is being fair and entertaining.

[Bigdog]

In my neighborhood karaoke is a very cut throat business. Most KJs won't want to work with you or help you get started. They will be helping their competition in the long run. You will end up trying to get the same bars sooner or later. So don't be surprised if they are a little cool to the idea.

Come up with a budget to buy a good starter system.

I wanted to do it right from the beginning. I went to a music store and got the experts to tell me what I needed to buy so I wouldn't screw up. I started out with $20,000 and a loan payment. But I knew I could get work and pay it off.

The money covered my equipment and music and a used van to haul everything.

How good do you want to be. My investment in quality equipment propelled me right past all of my competition. They all know who has the best system around, now. They talk a good game, but they don't seem to want to spend the money required to come up to my level.

A quality equipment investment will pay you back for years to come, as mine has.

[Marlena]

Do NOT go to the experts and tell them what you have to spend, because chances are they are selling you something you don't need. That is the # 1 Karaoke company conplaint. when your getting started you get screwed by those trying to sell you the system.

examples:
1) i got screwed on my amp (1300.00 brand new and could have got a good one for probably 5 or 6 hundred)

2) my best friend got taken on a 3 disc laser/vcd/cdg combo when a dual disc cdg player would have worked fine. (original cost of Laser/vcd/cdg was over 1500.00 and she would ahve spent about 5 or 6 on the other one)

3) powered speakers (don't even start me on those they are a rip off in my opinion

kingofkaraoke has given you a great list to start off with.

If I was starting out brand new to the business and had no music at all. here are a few alternatives to think about.

Madacy disks - wal-mart or k-mart sells them. I find them very reliable and cheap about $10.00 a disc. some have 7 songs some have 15 songs. all have a great selection and the reason I like them so much is that you don't get unpopular songs on them. normally they are all very huge hits.

Ebay is always another great place to get brand new discs for cheap. but again buyer beware

Also a trader magazine in your area will have people listed who have discs for cheap for sale and a good thing about it is. that you see the discs before you buy them and normally they will let you go through them without purchasing first.

Just my thoughts.
Marlena

[fong]

Marlena thanks for the details...Very in depth analysis, and very good info for me...

Not to mention...MAny THanks to Big Dog and KingsofKaraoke...You guys are the BOMB!!!

I hope your businesses FLOURISH this comming year, and I hope that it expands to unbeleivable heights!!! All of you guys!!!

Many many thanks...I'll keep you posted on the business, in the mean time, where are you guys from and what have you done differently from others that have helped your business GROW from ONE ACCOUNT?

[Bigdog]

The music store I went to is run buy musicians. The owner has his own $150,000 PA system. He does events like Billy Grahm, and stuff. So he knows what he's talking about. The system I got from him still works 14 years after. I get much technical and trouble shooting advice from him. I have spent over $40,000 (3 systems, repairs and new equipment) at his store. I am one of his best customers. If you go to a chain music store manned by $6 an hour "EXPERTS," you will get that kind of advice.

I told him what I wanted to do and he told me that nobody in the entire area was doing karaoke as I wanted to do it. (With the equipment I wanted)Then I told him I didn't want to make any mistakes and have to rebuy stuff that wouldn't work. He started pointing and told me exactly everything I needed and why.

My quality investment has paid me back many, many tens of thousands of dollars. I did I right the first time and I just duplicated what worked. My average now is $3,500 a month, with one system.


I use 3 cordless microphones.

I run an absolutely fair rotation. No favoritism.

Never play filler/dance music.

No waiting for a singer to come up after calling their name. I have a microphone in the next singers hand, so they are ready to go. They can sing from anywhere in the bar.

Never take a job for more money, if you already have one scheduled. I am a professional that means what he says.

Always start on time.

Don't buy crappy equipment. My investment put me right at the top of all the area KJs. I'm still there.

Update you music selection.

Remember that there are very few professional singers at karaoke. Treat every singer the same. It's about having fun.

Look and act professional. Put a curtain on your table to hide the black spaghetti.

Don't sing more than anyone else in the rotation.

Learn how to carry the show if you don't have many singers. I know over 500 songs.

Your business will only be as good as you treat it. I treat mine like a major corporation. I am serious and very passionate about karaoke and my business. Karaoke is a legitimate form of entertainment. The only one that can entertain all ages and musical tastes at once.

[letitrip]

OK a couple final thoughts. As far as who to talk to about what you need, you do have to be careful of salesmen, so if there is someone you can trust who wouldn't be out to sell you, check with them. I have the extreme benefit of being personal friends with a professional sound engineer that owns his own production company. He was very helpful when it came to getting the right rig for our sound quality and venue goals.

Second, Marlena, everyone has their own preference, but I love our powered JBL's. I wouldn't use them for a large band concert, but they give us the flexibility to play many different venus that require different levels of equipment. If we're playing a larger place, I just through a few extra cabinets in and daisy chain them off eachother. No need to have seperate amps and such. Works out really well for a Karaoke environment.

Third, Bigdog has a great list of things to remember when running your business. I disagree with not using fill music but that's a personal preference (some KJ's do, some don't). Wireless mics, while not a requirement by any means, score you lots of points with the singers and your clients. It's awesome letting people wander the bar as they sing, hell Darryl and I make extensive use of that freedom!