I have a question for youse guys & gals. I'm at a point where I've raised my fees about as high as I feel my market will allow, I don't advertise at all and I'm turning business away. I've been referring my overflow jobs to talented and reliable peers in my area...but they're pretty well saturated as well. Business is good...and growing!

I've been toying with the idea of taking a couple of young adults aside and training them as "Happy Dan" (My Trademark Character) clones. Clearly, my style of entertaining children and families works and promotes positive word of mouth support. I'm considering teaching this "style" to a couple of interested and talented young adults and marketing them as versions of "Happy Dan" (Happy Stan & Happy Fran?).

I would train them in my general style, costume them, equip their show, provide liability insurance and manage their bookings. In return, I would retain a reasonable agent's fee plus a rental fee for the show equipment. I would have them sign a "No Compete" contract that would legally prohibit them from promoting or providing a similar service independently within a 100 mile radius of my home base for as long as they are contracted to me and for a minimum of two years after leaving my management.

I'm at a point where I would like to ease away from the birthday party & daycare markets and concentrate on the commercial and corporate fields. By creating a couple of clones I can resume advertising to increase demand and field the lesser jobs to the clones...without losing the income.

I don't want to become an agent...I hate paperwork and sitting behind a desk! I simply want to create an "overflow" channel for clients (& income) that I'm turning away...while maintaining the family & kid-friendly style and quality of my character's identity. Does any of this make sense?

What are your thoughts on this? Am I overlooking something important?

Skip

Whenever I do a two man juggling show I find that worrying about the other guy consumes me. To represent people that may not be on time, or take as much pride in their work to me is unacceptable (to me).
My thoughts
Al

Skip,
Do you want employees? What you're descibing are employees. Check with a very good tax attorney as I don't think you want the hassles.

There comes a time in a performers life when he or she just moves on to new levels. I just finished the last library show of my career. I'm firing myself from the market. My clients were sad to hear it but it's time to move on to bigger venues. It's just business growth. Reached the top of the income ceiling and decided I needed more... Over my career I've fired myself from birthday party work, daycare work and afterschool program work. Each time my business in new markets has doubled my prior income levels. Pass the work on to competent associates and collect a fee but forget clones unless you like LOTS of headaches.

Hope this helps!
John Cooper

Excellent advice, Al & John. I'm listening! I had considered taking them on as subcontractors...but, the "No Compete" contract pretty well locks them in as employees...with all of the inherent bureacracy and expenses.

John...what if I dropped the "No Compete" contract and served as their agent. They would contract through me and I would avoid the employee hassles. A franchise, perhaps? I would then fire myself, as you so aptly put it, from birthday parties and daycares...so I wouldn't have to be concerned with the competition. I would sell the show package to them through installments and rent the tech equipment to them, as needed. My greedy little brain doesn't want to give up entirely on this particular income stream I've nurtured over the years.

Darn! Guess I'm gonna have to retain a tax attorney. Thanks, guys! John, I'll see you at KIDabra Marketing Day, Yes?

Skip

Skip even if you become their agent you are still responsible for them turning up on time and also all the other hassles .
You will have all the problems of their contracts ...if there are any . For me if my book is full I would be quite happy .
However if you want to expand into the agency business there are many things to considder . Derek

Skip,

Congratulations on your success. Careful, you might have just invited a flood of magicians moving to Raleigh, NC!

If you don't advertise and are still getting so much work that you are turning away business, then I don't think you have raised your fee as high as the market will allow.

My suggestion is to raise your fee in $50 increments each month. When you start losing too many shows you have found the limit the market will bear.

I have two other magicians that I refer work to. They pay me 15% for each referral. That way I don't have to worry about employees.

They charge about $100 less than me. When I get a call, I pitch my services and fee. If I am too expensive or if I am fully booked, I refer them to the other magicians.

The caller understands that they can't get me, but are happy to get someone else who I recommend. They almost always book one of the other magicians.

We operate on an honor system and I know they pay me for the referrals. It is in their interest to do so, because I keep a steady stream of shows coming their way.

I am happy with this set up. It is simple and win-win for everyone involved.

Best,
James

Can you find anyone that wants to be a clone? The referral idea sounds good to me.

Hi Skip,

Although not quite the same scenerio as yours, I did have the opportunity a few years ago to pursue a business venture somewhat like you described. Not sure where I should start, so I'll just babble. Several years ago, I was fortunate to be one of a handfull chosen by our Federal Government to obtain a grant to pursue my business. This included living expenses for a year and to go to business college for 6 months,all paid by them. It was to give a head start to new business owners as stats show a very high ratio of new businesses fail their first year of operation. The money I made from my business all went back into it to help me that first year. I had a team of financial people assisting and providing feedback to plans that I came up with. They were very helpful but I did come to the conclusion that they thought in terms of busness and not in terms of entertainment which is what we do.

I had to write a business plan which involved market research, promotion, inventory, future financial forecast..(they insisted on a five year plan.) My five year plan consisted of opening up my own talent agency which as the year progressed I saw wasn't feasible. However, that was my own agenda and not to say it wouldnt' work for you. It was kinda ironic in a way,as I had worked at a magic shop which was run by the,then president of SAM in my area. He also served as a talent agent for the many people coming into his store and had something like 40 entertainers on his roster. Wanting to try something different he called one night and offered to just give me that part of his business. Yes! Just hand it over! Now this seemed like a dream come true however reality set in when I thought about it for a while.

You know that ole saying..becareful what you wish for....:O)
I realized the pressure would be enormous as I would have to take all the calls (he was going to foreward all of them to me) I would then have to book those entertainers in those events, send copies of the contract to the client and to the entertainers and keep track of all the paperwork.

It also meant paying over 5,000 dollars per month for the phone ads and the insurance to cover the entertainers.(Which meant I would have to really scramble for business just to cover those cost and make a profit) Once they work for you, you are legally bound to be the insurance provider and most companies want to make sure you are covered. There was also the problem of what if they didn't show up, you have your own rep at stake. You have to provide all the promotional material because ethically if they work for you, they (the entertainer) does not give out their own promotional material but yours as they are working for you. What if the client doesn't pay? Again, you as an ethical person must pay the entertainer, regardless if you have been paid. In a nutshell you have all the headaches and they entertain.

Now that was enough to put me off as I knew I would be so busy screening calls and providing that service I wouldn't have time to perform myself or very little. Decided it wasn't worth it. I opened up my own Children's Entertainment company..but I'm the only one that works for the company and a few times I contract out other people if I need assistance. I feel it works both ways, if I help out friends with jobs they do the same for me, and no money between us exchanges hands. I only recommend friends that I know do a good job because again it's a reflection of me and my rep when we work together.

So that's my long speel. I'm not saying it wouldn't work as many have done it with a lot of success. I just know I dislike paper work and am rather lazy at it so being honest as to my strenghts and weaknesses,that is one .You mentioned you dislike paperwork,so I included everything that may occur should you decide to pursue this.

Good luck to you whatever you decide to do

Chrystal

Derek -
Your butterfly book rules!!!
I LUV IT - IT REALLY GETS EM SCREAMING!!!
REgards
Magic Mike

Krantis
Glad you like The Magic Butterfly Book several new Ideas coming on line soon .....thanks a lot for your comments .
good screaming
Derek

Skip,
I'd drop it all except for referrals to talent you trust or train. Drop the "No Compete" and train them for a fee. Sell them the show and be done with the hassles. You'll find the work in new markets MUCH better!

No, I will not be at KidAbra this yr at all. Don't get me wrong, I love KidAbra! My speaking schedule will not permit it this yr. (Too busy making money!.....it's that bigger venue thing I keep talking about!) KidAbra is in my opinion though the BEST convention for children & family entertainers in the country!

In a performers life there comes a time when he or she grows or stretches into new venues. After being a fulltime family entertainer for 30+ yrs I've taken a new career path as a professional speaker/entertainer as well as business coach/consultant.

Have a great time at KidAbra! I'll miss all my friends.

All The Best!
John

We will miss John however, I don't think it matters what direction people are going in I will always have time for Kidabra. It is where I get to see my close friends. So it is not about money for me that week. I too as many others will loose money that week but what I gain in hanging out and sharing is priceless.

Ken

Yes, Ken KidAbra is very valuable. But we each have different paths though. My path is just moving in a different direction at the moment. At this point in my career I'm moving away some from children's entertainment as a performer right now. This yr I did my last library show of my career. Time to move on from the low end programs and move upward. After 30 yrs in the business it's just time to grow on....Am I never going to entertain children & family audiences again? No! I'm just making it less of my income stream. Bigger venues are coming on board.

As I stated earlier KidAbra is the ONLY convention of it's kind. It will knock YRS of your learning curve. It gets my highest recommendation! And yes I'll miss hanging out with my buddies! Who knows I might make it up Saturday for the day. I'll have to see how the flights back home go.

Have fun at KidAbra Ken....
John