Who gets the bigger cheque?: Why some artistes earn more than others

Performance fees in Kenya vary from Sh4 million to Sh4,000 for a two-hour show. Music is a business — you have to push and pull. Still, very few take home the big cheque. We delved into the matter to see what it takes to bag the big fish.

Though performance fees are still a primary source of income, more and more artistes are diversifying their income sources. According to the 2017 Forbes list of the world’s highest paid celebrities, P Diddy beat Beyonce to take the top spot at Sh13 billion ($130 million) for the year. The giant share of that came from selling his majority stake in his Sean Jean clothing line. Diddy began the venture nearly 19 years ago and has built it into a formidable lifestyle brand, with multiple product categories and international distribution. Beyonce came in second at Sh10 billion ($105 million), thanks to her Formation tour which grossed Sh25 billion ($250 million); selling two million tickets in 49 shows.

Master piece

Arguably the most hard working woman in showbiz, Beyoncé began with the creation of her master piece album Lemonade. The album involved over 100 collaborators from famous writers and producers, to singers no one had ever heard about. Following the massive success of the album and the consequent one-hour film, Beyoncé crowned it all with an album tour dubbed Formation Tour.

Other musicians on that list include Drake, who is number four with $94 million and The Weekend at number six, earning nine billion shillings ($92 million), most of which came from streaming.

It then begs the question, what determines how much a celebrity takes home?

Is it about finding the winning combination or developing better negotiation skills? Is it about diversifying income streams or simply identifying one’s niche?

Corporate emcee and renowned stand-up comedian Dr Ofweneke has in the recent past not just made a name for himself, but some good money, too. Dr Ofweneke has made major inroads in the corporate emceeing world; commanding some serious fees for just a few hours work.

“Clients look at a performer’s brand and the extent to which it represents who they are. They also look at the level of influence one has and how well one communicates to their target audience. Companies spend a lot of time, money and effort to build their brands and they will not associate themselves with anything that devalues it,” he says.

The comedian also says that performers must work on their craft to demand higher fees. According to him, there is a big difference between a comedian and an emcee; beyond being funny one has to hold the entire program together and represent their client well.
“I know I’m good at what I do. I put in the work to make sure my product is good and so I have to charge accordingly,” he says. “Charges vary, depending on the capability of the client, the timing and the type of event.”
With about six years of corporate emceeing experience, Dr Ofweneke charges a hefty fee for his services. He explains that it is better to do fewer gigs and charge more than to charge less and do more gigs.

Under pricing, he says, will eventually lower your brand value because word eventually goes round. This practice also makes it harder for younger comedians to generate money because both experienced and up-and-coming performers end up in the same price range.
“Invest in a good emcee,” he advises. “A great event with a bad emcee is as useless as the letter ‘K’ in know,”

Marek Fuchs is the managing director of Sauti Sol Entertainment, and possibly one of the most successful music executives this side of the Sahara. The talent manager admits that most Kenyan performers are gravely under-priced because they do not consider key determining factors.

These include potential event attendance numbers, social media numbers, relevance, the uniqueness of their product, and a comparative analysis with existing performers; both locally and internationally.

Same analysis

“Showbiz is a business like any other, and it is subject to the same analysis. One must study supply versus demand, and income versus expenditures,” Fuchs advises.

“Additionally, you have to compare your service and price against others in the industry. Finally, you have to take into consideration the spending power and overall economic situation of the market,”

“Once artistes make these mistakes and consistently charge less than they are worth, word goes around in the industry and business circles. This eventually makes it harder to change the pricing structure,” he says.

With extensive local knowledge and obvious staying power, gospel musician Victor Mbuvi has beaten the odds and survived many storms in the Kenyan music industry. For him, good financial planning and diversifying his income streams have been his saving grace.

Beyond performance and ministry, Mbuvi is a motivational speaker working with a growing list of corporate training firms to add value to their product.

“The music business has cycles and you have to find a way to survive them all. There is always a temptation to under price when business is slow, but once you do that, it’s harder to come up again. Diversifying your income streams will help you survive the tough seasons and reap in the high season,” he says.

Mbuvi also adds that having a good plan for your finances and storing up for a rainy day are crucial skills for performers. Though he admits that the discipline is tough, he relies on his management to keep him on the straight and narrow.

“As a gospel artiste, you can’t charge for all your performances,” Mbuvi explains. “Sometimes I do it as ministry to bless people and change lives. However, this is where I earn my daily bread so I have to balance between the ministry and the industry. Over the years, God has given me the wisdom to earn while still granting me the grace to serve.”

Like all businesses, showbiz provides a service at a price and quality acceptable to the market, while at the same time finding a way to make a profit. There is probably no magic to it and every artiste will have to figure out what works for them and maximise their market advantage.