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Self-Funding Your Career

JOHNNY HI-FI

With numerous US and Asian tours under its belt, Johnny Hi-Fi's Alternative Rock sound has captured fans all over. In 2005, the bands video reached #8 on MTV Chi's top 10 video charts, and helped them land the "Artist of the Month" spot on Billboard Magazine's Underground series and a feature in the magazine. The band has appeared on CBS News, in The New York Times and World Journal, and on radio stations from Texas to Taipei.

Call it “Entrepreneur or Overachiever Rock” – Johnny Hi-Fi is successfully defying stereotypes - eschewing major label support and the starving artist lifestyle – the band members manage to fund their music careers by dint of hard work, great music and lucrative day jobs that supplement grueling weekend touring schedules and CD sales.

The multi-ethnic and multi-talented group includes Taiwanese lead singer/guitarist Eric Hsu and Japanese bassist Justin Matsubara, both founding members and chief executives of successful Internet companies. The third permanent member is Pakistani drummer and Allergery & Immunlogy specialist Asif Khan, MD. Together they have earmarked $20,000 of their own money to support their self-released albums and a 4-city, 7-shows in 10 days tour throughout Asia including Hong Kong, Taipei & Tokyo culminating as main stage headliners at the Beijing Pop Festival.

AtlasPlugged caught up with front man, Eric Hsu to discuss how the band collectively decided to invest in themselves to achieve financial and artistic independence.

AP: Why did Johnny Hi-Fi decide to self-fund?
EH: I think we all know that good things don’t just fall out of the sky while we sit around and wait. So we agreed to “invest” in the one thing that we really believe in and feel passionate about.

All musicians self-fund one way or another. While most spend a ton of money on their instruments, we simply decided to take it a little further and invested a ton of time and money into our recording, marketing and our tours. We did all of this just to get our name out, to become better performers through experiences on the road, and above all, to get the whole experience which always in the end keeps us humble.

AP: How did you first raise the money- did you go to private investors, family & friends?
EH: If you count college tuition that mom and dad put in to get me the job I have, then yes, they contributed. But almost all of the money that we raised came straight from our checking and savings accounts.

In addition to our regular tours, we’ve also gone around the country to dozens of colleges as part of a seminar called "Passion and Profession.” We truly believe that achieving a balance in both our professions and our passion is the only way to go. Everyone in the band holds decent jobs with good wages. And with the money we saved, we were able to put that right back into something that we’re more than happy to do for the rest of our lives. It really is a win-win situation.

AP: What obstacles have you encountered along the way?
EH: The biggest obstacle I would say is to get your family and friends’ unconditional support. Some of us have families, and a certain lifestyle that we have to live up to. What would you say when your spouse comes home and asks you to give up driving a nice car, but instead putting the band on the road? It’s hard to convince family and friends that it’s “good investment”. Especially right now, when the economy is bad and everyone is saving up for the rainy days, we’re still spending money making records and doing shows.

AP: Does the band have a formal/binding agreement?
EH: Thanks for the reminder! It is absolutely crucial to have something written on paper. I’ve had many bands before, and you wouldn’t believe how fast money tears friendships apart and throws trust out the window. Right now, we have all agreed verbally on our finances, but rest assured that we will have something inked very soon.

Since we are mostly self-funded, our agreement is that all the earning goes straight to paying off the investment first, with no interest. Once the investments are paid off, then we start to split equally the profit. And just FYI, we’re still to trying to get the money back that we put in, and we’re not that far off. But no, we are still in the red, and we’re not rich by any means. But did we have a heck of a time doing it? You bet!

AP: Why do you think that others are willing to invest in your career?
EH: Again, it’s extremely hard to get people to part with their money when the economy isn’t doing so well. But we’ve had extraordinary luck in finding people who believe in what we do as much as we do, and are more than willing to put in the time and sweat to help out in all shape and form. Our manager, our street team, friends who spread the words, and the fans who’re supporting us through social networks, all are practically working for free. And without them, we wouldn’t be here doing this interview today.

AP: How much money do you typically need to raise?
EH: We raise anywhere between $5K to $15K for each recording, and every major tour costs $25K to $40K.

AP: How do you use the money … to support recording, touring, promotion, etc?
EH: First let’s talk about recording. With the advancement in home recording, we’ve also jumped on the DIY bus. We have a home studio that we can use 24/7, and take as much time as we need to make sure we got the best performance tracked. Some of the money goes into purchasing more recording gear and instruments, but the bulk of the money is spent on mixing engineers, mastering the tracks, and finally packaging the actual products. As much as we love our studio at home, it does not have what it really takes to get great mixes and mastering. Spend some money here and you won’t regret it.

Touring. Now that’s an expensive hobby. Taking 4 guys (who not only live a decent lifestyle off the road, but have insane palette for gourmet food) on the road can be costly. We figure since we are already on the road, might as well “live it up”. So we would always try to stay at decent hotels (not in our touring vans), and do as much research as we can before we leave to find out the best places to dine (we don’t do Micky-D’s). And of course the tours won’t be successful if you don’t entice your manager to do a great job planning and marketing. Don’t cut corners there by all means.

AP: How have your financial needs changed over the course of your career?
EH: I do remember the time when we slept in the car, or cram the whole band and our girlfriends all in a Motel 6 room. But we’ve come a long way and learned to be smart with the choices we make. We know by now where to cut the budget and where to spend more. I guess you can say we’ve figured out the best bang for our buck. So what used to be an expensive yet limited recording process is now a balanced process between DIY and studio time. What used to be a furious quick tour on the road has incorporated a lot of taking our time to enjoy the experiences everywhere we go. I don’t care if this makes us sound old and lame, but we wouldn’t change a thing.

AP: What advice do you have for other artists seeking to self- fund their careers?
EH: At the end of the day, a band is a company. And music is a business. You have to have a vision, a business plan, a point of differentiation. Once you have put in the work and actually planned out how and where you’re spending the money and how and where you can save, it becomes a more attractive proposal to anyone who’s interested.

And when the planning is done, don’t forget to put these things down on paper. Again, this whole thing isn’t all about money. So the last thing you want is to have money destroy anything and everything that is important to you. And last, the most reliable source is yourself. Try to find a way to be self efficient and independent. Owing isn’t a good feeling. If you can, DO IT YOURSELF.

Without a doubt, Johnny Hi-Fi is one of the hardest working unsigned bands out there. Lead singer Eric Hsu formed his first Indie Rock band in 1992, and since then has performed more than 500 shows both in the US and around the globe.

Currently, Johnny Hi-Fi is in the studio preparing 2 albums to release by the end of 2008. The band will also be getting back on the road later this year in support of the new release. For more information and free music, visit www.johnnyhi-fi.com.