TapTape: Invest In Music

Business News Daily: The “Cool” Investment

Could you become the next music mogul by supporting up & coming artists through a new investment opportunity that lets fans invest in musicians? The founders of TapTape think so! As it turns out you might not need to be Jay Z, Dr Dre or David Geffen to sign the next music superstar.

TapTape allows you to invest in music you love. But is it a wise investment or a scheme to bilk fans?
TapTape allows you to invest in music you love. But is it a wise investment or a scheme to bilk fans?

If you follow business news daily and have always wanted to invest in music but felt shut out of the impossibly exclusive music industry then TapTape might be your foot in the door.

Are you the type of person who hears a song and knows its going to be a hit before anybody else? If so perhaps you have to ask yourself the question: is it time to make your move and invest in music?

Well, I’m here to help you translate the latest business news into profits so lets take a look at the possible payouts of investing in something you love: talented musicians.

Read this article from top to bottom and you will know if TapTape is right for you! Lets start with some basics you might not expect!

Tip: Invest Like You Are In Vegas Smashed on Grey Goose

Ed Helms and Heather Graham in The Hangover 2 and proving there are more fun ways to lose your money than investing.
Ed Helms and Heather Graham in The Hangover 2 and proving there are more fun ways to lose your money than investing.

(No I’m not kidding)

Here are three types of advice that basically sum up my investing tips:

  1. Invest smart with a longterm plan
  2. Invest aggressively like a seasoned pro and get rich quick
  3. Invest like a drunken sailor on payday and enjoy every minute of it

Most people understand my pitch for smart investments with a long game vision. That’s the keeper.

But lots of people want prospect #2: aggressive investments with super high returns that  will make them rich quick. This is one I love to see but which most of us will never regularly and predictably achieve.

So often when people come to me to validate their gambling habit (notice I didn’t use the term investing here) I suggest they might as well take things a little farther. So I give them this option: go catch a plane to Las Vegas, get drunk, hit the roulette table and bet with your heart and your alcohol addled brain!

Tip: At Least Once Invest In Your Passion (Wisely)

man burns 100 dollar bills
As a smart investor keep your money safe, particularly when you are investing for pleasure or passion.

The fact of the matter is that when I’m advising people on investing I consider it my duty to steer them towards investing smartly with a long term plan and clear end game. But when they get all excited about some high risk venture, or worse a “friends and family” business that they think its going to be “fun” and make them rich, I just give them options that are truly more fun. Like getting smashed on Rum and Cokes at Caesar’s and playing Blackjack.

My Vegas plan is no less risky than many half-baked schemes people tell me are a sure thing. My opinion is this: if you are going to gamble like an idiot with your money then light it up! There are more entertaining ways of gambling than investing in risky businesses. And if you compare startup success rates versus your chances in Vegas you’ll see that I’m often giving good advice.

At the same time I do understand something about investors, particularly seasoned ones with great intellects, and that is this: sometimes you simply want to enjoy the act of investing your money.

Can A Smart Investor Disregard ROI?

Don't risk money you can't lose but once in your life you may want to invest in a business for something other than return on investment.
Don’t risk money you can’t lose but once in your life you may want to invest in a business for something other than return on investment.

I once invested in a winery. They make an exquisite Pinot Noir which I love. Every season I went to the vineyard and helped the staff pick grapes. My (relatively small) investment was used to finance their expansion and after 3 years I consider myself lucky enough to have had my exact investment (without interest) returned when the winery was bought out by a major investor after they won a number of gold medals. Someone will make money on that business but it won’t be me.

In the end I lost a bit of money but I still think it was one of the best investments I ever made. Why? Simply because I liked investing in a product I truly loved, both on a spreadsheet and with a pair of grape shears in my hand.

I never expected to get rich off a small batch producer of wine and I’ll admit that as an investor I would have appreciated a return that at least matched inflation but what I got out of the experience was 3 years of being in the wine business, if only in a slightly more than armchair way.

So now here I am thinking about my other passion: music. I’ve always been interested in music and despite my snobbery and love of discovering things before anyone else, I’ve never put too much thought into music as a means of investing. Lets take a look.

Taptape vs Kickstarter vs Indiegogo

Kickstarter's anyone can play model has given rise to some horrible ideas.
Kickstarter’s anyone can play model has given rise to some horrible ideas.

The first question I had was this: how is TapTape any different from supporting up and coming artists on Kickstarter or Indiegogo? Chances are you thought the same thing. First of all its this: Taptape is not open to anyone and their cousin and their cousin’s dog and their cousin’s cousin’s dog.

This is a curated site that is presenting you with validated artists to invest in. For this part imagine that you are the music mogul, you are sitting in the boardroom and the plebs come in to pitch. You are in the drivers seat looking at a selection of music people are backing. You are not walking down the street looking to find the next biggest rock star busking on the street.

The other difference is that TapTape is about investing rather than earning perks by repurchasing merchandise. For me this is of course a huge difference. Or at least I hope so (keep reading to find out why!)

TapTape Pros

checkmarkI like the model of TapTape vs Kickstarter and Indiegogo. I’m not interested in buying things that haven’t been made as much as investing in a product. I like it that TapTape is trying to make a difference that way.

TapTape Cons

no-signMy biggest let down about TapTape is that they didn’t make the distinction between Kickstarter and Indiegogo even stronger. I wish they had made it more about investing and less about getting money out of fans.

In an interview in Forbes, TapTape CEO Christopher Nolte put it like this: “We believe in artists that see their fans as an essential part of the team.”

Woman wears hipster band t-shirt
Fan or Investor? You decide!

The article goes onto explain that the TapTape uses a currency called the “TapCoin” that can be used to unlock rewards such as a chance to go hang with your artist backstage. This I really hate. It makes me think that TapTape is just a re-skinned version of Kickstarter and that the TapTape vs Kickstarter battle will be over soon (spoiler: Kickstarter already won that one before we started.)

Instead of pushing hard on the “fans as part of the team” merchandise marketing angle I wish they would have paired all that back and made it about one simple thing: investing in music. If I invest enough then maybe one day I’ll be backstage but I don’t want to have to pay for it someone spending $750 bucks to get a picture with Bon Jovi.

As TapTape gets input on its launch I hope they see that they have a good idea here but that part of the good idea they seem to be doing is actually Kickstarter. so I hope they make it truly about investing rather than into a marketing gimmick to make music fans feel like investors.

You can invest in a business you love but its still business and you should treat it as such. Don’t think that because you are investing for the joy that you should let your guard down as an investor. Keep your guard up to continue enjoying the experience as an investor.

Endgame: TapTape Lets You Invest In Passion

Working with your passion can be rewarding. Just think of Kanye West hauling it in at the Grammys.
Working with your passion can be rewarding. Just think of Kanye West hauling it in at the Grammys.

So what’s the choice for investing? Well if you are a music fan and you want to be involved in supporting your favourite acts then keep an eye out on Kickstarter and use your pocket money as you see fit.

If you are a music lover and a smart investor and want to engage in both then I suggest you check out TapTape and maybe even put a few dollars in. Fund it from the drunk-in-Vegas portion of your portfolio. Then see how TapTape and your favourite artists grow. And watch how TapTape handles you as an investor or if they handle you like a fan.

As a startup TapTape is itself unproven and to double down on risk it is asking you to invest in unproven talent. But in that is the excitement. So don’t bet the ranch. But have some fun. And who am I to say that it may not end up being the best investment you ever made in your life.