The document discusses strategies for sustaining a career in the arts. It summarizes a workshop on creating a business model for artists, including developing value propositions, revenue streams, and key partnerships. The workshop also examines a case study of an illustrator named May who has successfully made a living as an artist. After graduating, May gained work experience in publishing and as a freelancer. To gain visibility early in her career, she entered competitions, participated in art festivals, applied for residencies and awards, and built relationships with galleries.

1. Sustaining a Lucrative Career in the Arts
eden strategy institute
Workshop for:
Date: 19 MAY 2012
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2. Agenda
1. Introduction
2. Creating your business model
3. Case study
4. Exercise 1: Business model (What to do?)
5. Break
6. Making rain
7. Crafting your own Artist Statement
8. Exercise 2: Role play (How to do?)
9. Q&A
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3. eden strategy institute
ABOUT EDEN Markets · Innovation · Sustainability
Asia’s Leader in Social Innovation
Who What Who do
are do we we
we? do? impact?
• Seasoned Strategy • Active seeding in local • Government agencies,
Consultants as well as start‐up enterprises Start‐ups, Angel investors,
writers, musicians, Venture capitals, NGOs
painters, and performers • Measurable outcomes
for holistic • Proven record of industry
• Deep international sustainability impact
expertise across industries
Business Plans Policies Processes Products & Spaces &
Models Services Experiences
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4. Myths about being artists
“Artists who make tons of money are sell‐outs”
“Art is a calling and other professions are not”
“It’s noble to be a starving artist”
“Money corrupts true creative expression”
“Great art and money don’t mix”
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5. Beliefs to make money so you can make art
Art is a creative endeavor, but it’s also a business.
Great art deserves great financial support.
Fans are nice, but customers
pay the bills.
Creativity is free;
paintbrushes aren’t.
Great art is financially valuable; surely the artist
deserves a fair share.
Money can help fuel
creative expression.
Artists who make lots of money have good business sense.
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6. Introducing the Business Model Canvas
Who can help me? How should I spend my Why would people How to interact with Who would most
time? buy my art? customers? appreciate this?
Low cost ways to How to go to market?
acquire resources?
Can we drive down my costs? How can I make money?
Source: Osterwalder, Pigneur & al. 2010
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7. Customer
segments
Do we know our Customer Segments?
‐For whom are we creating value?
‐Who are our most important customers?
Mass Market ‐Don’t distinguish between different Customer Segments
‐The Value Propositions, Distribution Channels, and Customer Relationships all focus on one large group of customers
with broadly similar needs and problems
Niche Market ‐Cater to specific, specialized Customer Segments.
‐ The Value Propositions, Distribution Channels, and Customer Relationships are all tailored
Segmented ‐By size, corporate vs. individual, level of sophistication, geography, demography, or psychographic ‘tribe’
Diversified ‐ Concentric vs. Horizontal Diversification
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8. Value
proposition
What is our Value Proposition?
‐What value do we deliver to the customer?
‐Which one of our customer’s problems are we helping to solve?
Which customer needs are we satisfying?
‐What bundles of products and services are we offering to each Cost reduction
Customer Segment?
Newness Design Risk reduction
Performance Brand/Status Accessibility
Customization Price Convenience /
Usability
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9. Channels
What are the Channels we can use?
‐Through which Channels do our Customer Segments want to be reached?
‐ How are we reaching them now?
‐How are our Channels integrated? Which ones work best?
‐Which ones are most cost‐efficient? How are we integrating them with
customer routines?
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10. Business landscape Customer
How do we boost Customer Relationships? relationship
‐What type of relationship does each of our Customer Segments expect us
to establish and maintain with them?
‐Which ones have we established? How costly are they?
‐How are they integrated with the rest of our business model?
Personal assistance Self‐service/Automated
‐Call centers ‐Point of Sale
Dedicated personal assistance
Communities
Co‐creation
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11. Business landscape
Revenue
How do we create Revenue Streams? streams
‐For what value are our customers really willing to pay?
‐For what do they currently pay? How are they currently paying?
‐How would they prefer to pay?
‐How much does each Revenue Stream contribute to overall revenues?
Subscription fees Brokerage fees
Asset sale
Usage Fee Lending/Renting/Leasing
Advertising
Licensing
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12. Business landscape Key
resources
Where do we get our Key Resources?
‐What Key Resources do our Value Propositions require?
‐Our Distribution Channels?
‐Customer Relationships?
‐Revenue Streams?
Physical ‐ How do you obtain your resources and physical assets needed
for your work?
‐Are your sourcing for your art inputs through the best/most
efficient channels?
Intellectual ‐ What is your brand? How strong it is?
‐ Can people relate to your brand through your artwork?
‐Do you invest in your human capital (both yourself and those
Human involved in producing your work)?
‐What are your revenue streams and how can you innovate on
Financial them?
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13. Business landscape Key
What should be our Key Activities? activities
‐What Key Activities do our Value Propositions require?
‐Our Distribution Channels? Customer Relationships?
‐Revenue streams?
Production
‐ What are the different stages in the journey towards producing
your product?
‐Do you focus on designing, making and delivering your product
in substantial quality and/or superior quality?
Problem solving
‐Do your products address a ‘problem' or ‘need’ in society?
eden strategy institute ‐ How responsive are you to your clients’ requests?
Platform/network
‐ What network‐related key activities do you engage in to sell
your products?
‐What do you do to make your networks serve you the best?
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14. Business landscape Key
partnerships
With whom should we form Key Partnerships?
‐Who are our Key Partners? Who are our key suppliers?
‐Which Key Resources are we acquiring from partners?
‐Which Key Activities do partners perform?
Optimization and economy of scale
‐ Are there untapped channels/partnerships which could help
optimise your resources and increase the scale of your
production (if that is the desired outcome)?
Reduction of risk and uncertainty
‐ Are there partnerships you can form to reduce the risk in
producing your product?
‐ Are there shoulders’ of giants you can stand on to promote your
products?
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15. Cost
Structure
What is our Cost Structure?
‐What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
‐Which Key Activities are most expensive?
Value‐driven
‐Unique selling point
‐Value proposition
Competitor‐driven Value
Cost driven
‐Material costs
‐Equipment
Variable Costs ‐ Wages
Economies of Scale
‐ Time cost
Economies of Scope Fixed Cost ‐Rental
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16. Case study: A Real Journey
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17. Background
May is an illustrator. Within a decade of graduating from school, she has a gallery in Hong Kong that
permanently displays her art, and has exhibited in 13 countries in Asia, Europe and N. America. May
has successfully earned a living being an artist. Besides selling her art, she also alternates between
being a freelancer for commercial jobs and being employed at news publishers.
How did she get here?
Her journey:
May was born in Singapore and had followed a “traditional” path in education.
During her time in university studying Chemistry, she took a fine arts elective
and discovered drawing. May decided to pursue her passion.
Her first job:
Fresh out of university, May did not have connections in the fine arts space. Her interest was in encouraging
dialogues about real live scenes she illustrates.
She decided to learn about the industry by working as an illustrator in a well‐known publishing house.
May put together a portfolio and emailed the editor for an internship. The editor liked her work and she got
the internship. The internship worked out very well and she landed a full‐time job.
The Problem: But, the publishing house shut down less than 2 years later. May had to find something else.
She decided to give it a shot as a freelancer. But she was still considerably new in this field.
What would you have done if you were her?
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18. Gaining Visibility
What do you think she did to gain visibility in the beginning?
What most people will think of:
• Leverage personal networks for recommendations for freelance jobs
• Ongoing subtle reminders to personal networks through some light
marketing, e.g. email updates
What else she did:
• Enter local and global competitions
• Participate in local and global art festivals
• Respond to open calls from museums globally
• Apply for residencies globally
• Apply to win awards
• Get small “press” mentions every once in a while (through her journalist friends)
• Build relationships with gallery owners
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19. Generating Revenues
What different revenue sources could she tap into?
What most people will think of:
• Try to sell own work locally
• Get recommendations for and “cold‐call” for commercial jobs
What else she did:
• Enter competitions
• Give workshops to both adults and children
• Apply for grants from Foundations who are interested in the dialogue she
creates from her work
• Take on residencies with museums overseas
• When times are bad, she takes on part‐time or contract roles with magazines
and news publishers
• Because of the relationships she nurtured, she now has a gallery that
promotes and sells her work.
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20. Sample Business Model Canvas for Artists
Key partners Key activities Value proposition Customer relationships Customer segments:
• Practice to perfection
• Trainers / Coaches / • Performance (e.g. • Networking • Mentors
• Finishing your work
Mentors / Critics aesthetics) • Customization • Peers
• Expand relevant portfolios
• Producers / Content co‐ • Design • Self‐service • Critics
• Killing off unfinished works
creators • Newness / novelty • Automated service • Connectors
• Find networks, build relationships
• Performance / • Brand / status (e.g. • Communities • Information brokers
• Research clients for alignment
Exhibition Venues premium artist • Co‐creation • Promoters / dealers
• Create visibility (e.g. by giving work)
• Recording / Digitization reputation, in‐group) • Fans
• Stage / exhibition time
studios • Risk reduction • Die‐hard supporters
• Sales: Explain, Envision, Design, Channels
• PR, Brand building & • Accessibility • Actual customers, by
Story • Promotional channels
Marketing agents • Relationship segment
• Gather feedback to iterate • Sales force
• Sales channels • Convenience / usability • Local vs. overseas
• Event management Key resources (e.g. functional division • Online • Mass market vs.
firms of a space) • Own gallery niche
• Physical (e.g. co‐sharing / bartering • Pay premium galleries?
• Customer / Fan • Customization • Individual vs. high
studio, equipment/ tools) • Wholesaler
management tools • Getting job done (e.g. networth vs.
• Intellectual content creation • Feedback channels
lending class to a space, corporate vs
• Human (e.g. advisors, assistants at • Mailing lists
communicate message) foundations /
acad institutions) • Platforms (e.g.
• Doing good interest groups
• Financial (e.g. friends, crowdsource, universities, galleries,,
• Cost availability(e.g. • Diversified
grants for start‐up, operational, auction houses,
multiple price points) • Multi‐sided
marketing costs) museums)
• Investment value
Cost structure Revenue streams
• Fixed vs Variable (e.g. guitar vs studio rental, paintbrushes vs paint) • Patron / Corporate sponsor • Alternative revenue streams e.g.
• Value‐driven vs Activity‐driven – costs should be driven by activities that • Originals • Corporate gigs
increase quality and pricing power (e.g. quality of training, quality of delivery, • Auctions • Murals, cars, sports gear
increasing accessibility of channels vs # of recordings, # of channels) • Lease • Design products
• Economies of Scale considerations (e.g. what is an optimal venue size in • Subscription • Live events
comparison to the costs of event management) • Limited run prints • Lectures
• Economies of Scope considerations (e.g. does it make sense to offer 2 types • Going commercial – art licensing • Training / workshops
of products leveraging the same expertise, such as photography for • Grants / contributions • DVDs
investigative journalism vs corporate headshots) • Advertising revenues • Residencies
• Brokerage
www.edenstrategyinstitute.com COPYRIGHT Eden Strategy Institute 2012 Note: Blue indicates aspects May addressed 20

21. Exercise 1
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22. TEAM SIZE OF 5 PEOPLE EACH
15 mins: Complete 10 items per box for 3 boxes
Key partners Key activities Value proposition Customer relationships Customer segments
Key resources Channels
Cost structure Revenue streams
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23. Break
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24. Making Rain
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25. Crafting your own Artist Statement
Write a specific artist statement in language that all can understand, so people
can connect to your brand, you, and your art:
• Why you make your art
• Unifying principles in your work
• The connection between your interpretation
of the message and the medium
• How you make it
• What its made of
Speak powerfully about who you are & what you do
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26. “Repetition adds to Reputation”
Andy Warhol
Work ethic
• Clutter‐free space in studio, with a small body of work that customers can be ‘alone’ with
• Be there
• Be attentive to all, just introduce yourself to anyone who seems interested
• Talk briefly to as many people you don’t know, not lecture
• Connect & ask what they want in their art, what art means to them, what they
expect to get out of it, and why they want to own it
• Speak their language
• Make people comfortable around your art
• Don’t argue with their interpretations
• Receive feedback
• Always stay positive, even about critics / competitors
• Give unexpected personalized statements / background / info to delight customers
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27. Brand You
• Find your niche
• Develop your own style
• Make your art distinctly
recognizable
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28. Promote shamelessly; no one will do it for you!
• How is your work special?
• Thoroughly research galleries for fit,
and obtain a referral when you’re
really ready
• Document portfolio / brochures /
articles / website: Recognizable
shows, awards, venues (e.g. even
restaurants), other collectors who buy
your art, what they liked, photos of
how your art is displayed
• Network to help others
• Make it easy:
• Say yes to every opportunity!
• Encourage clients to advertise
with your work / name / face
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29. Business cards
• Never leave home without them
• Hand them out often
• So interesting they won’t trash
• Develop a contact database to interact
with (e.g. postcards, press releases)
• Have as much art out there as possible;
your art is the best ‘business card’ that
sells more art
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30. Sell
• Why are you contacting a
gallery/dealer/museum/customer?
• Why would customers want to buy art
(e.g. personal connection to its
perspective/style/quality etc., as a
trophy for money/taste/knowledge)
• Customer concerns (e.g. confidence in
understanding art / expressing oneself,
quality, art becomes unfashionable,
price) and how other customers were
concerned but now ok
• No obligation sample / 2 week loan to
see how it will look
• Don’t oversell / pressure
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31. Structure your prices
• Understand true market rates
• Make sure everything is priced
• A structure for existing artwork & another for commissions. Rush fee?
• Confidently talk about how long it takes to make it, materials used, how you price, what subject
matters/ mediums/ compositions collectors like most, investment value, and recent sales
• Be consistent about how you set prices, not based on how attached you are or how broke you
feel
• Annual inflation adjustment
• People don’t value what they don’t pay for
• Demand % of sale even for charities
• Don’t use high prices to fix your self‐esteem
• Have a variety of price points available (e.g. different sizes)
• Structure a payment plan (e.g. installations, upfront deposit)
• Discounts for returning customers
• Adjust if not working
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32. It’s just “no” for now
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33. Exercise 2: Role play
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34. GROUPS OF 4 PERSONS EACH
20 mins: Take turns to SELL your art to 3 strangers
• Go up to the group and introduce yourself & your work
• Ask questions
• Answer questions
• Make the Ask
• Defend your price
• Negotiate
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35. Thank you!
eden strategy institute
Contacts: Calvin Chu Yee Ming
Partner, Eden Strategy Institute
E: calvin@edenstrategyinstitute.com
T: +65 9751 5817
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