3 business lessons I learned from Beyoncé's "Formation"
Like what you're reading?
Get more in your inbox.
The world and the Internet went nuts on Saturday when the video was released on TIDAL, the music streaming service that she and Jay Z are partial-owners of. Followed by her stellar performance at the largest sports event in the world and subsequent announcement of a 40-city tour, everyone to celebrity gossip blogs was talking about it.
As an entrepreneur, Beyoncé's command of her business is exceptional. Her level of focus, precision, coordination and flawless execution is second to none. And the release of "Formation" is yet another example of why Beyoncé runs a $250 million empire.Here are three business lessons I learned from Beyoncé this weekend:
1. Compound your multiple revenue streams
In my last post about Beyoncé's business, I highlighted the importance of having multiple revenue streams. As an entrepreneur, the strength of your business is determined by how many ways you can attract cash to your bank account. You then need to take it to the next level and combine your multiple revenue streams.
Beyoncé not only released her music video on TIDAL, which is a music streaming service where artists earn and retain a larger percentage of the revenue share, partially-owned by her and her husband.
She then promoted her song during her Super Bowl performance, which she undoubtedly got paid a PRETTY penny to do.
And finally, after the performance she announced her 40-city concert tour. She's getting paid on paid on paid. At every turn, Beyoncé is earning revenue to do what she does best and to promote her products. Genius.
Takeaway: Create multiple revenue streams and brainstorm ways you can combine them in order to earn cash at every opportunity.
2. Create off-line and online experiences for your launch
Although the launch of her music video was incredible, that is not Beyoncé's main source of revenue. In today's music industry, the artist generally earns the most money during their tours. The music video is a teaser — a marketing strategy — to promote her 40-city tour.
"Formation" was an online experience for her fans and to get them excited to tune in and watch her Super Bowl performance.
Partnering with the largest sports organization in the world, she utilized the Super Bowl opportunity to connect with her fans off-line, reminding them why her tour performances are worth every penny. And the Formation tour, promoted by the Live Nation Global touring chairman, is where Mrs. Carter will make bank.
Her Mrs. Carter World Tour of 2013-2014 grossed $212 million from attendance of nearly 2 million at 126 shows, according to Billboard Boxscore. Following that tour, she launched the On The Run co-headlining stadium run with her husband Jay Z, which grossed $96 million from 832,769 tickets sold to just 19 shows in North America.
Takeaway: Identify your big money maker and create a marketing strategy that includes working with a larger brand.
3. Timing is everything
If nothing else, the success of a business is all about timing. Prior to the release of the "Formation" music video, Beyoncé has been criticized for not speaking up about police brutality and other racist events within the United States.
Now the world can shut their mouths. Between the black girl magic dance moves, the striking visual of the drowning police car with Bey sitting on top of it and cutting lyrics such as being a "black Bill Gates in the making," Beyoncé makes it clear that she has not forgotten where she came from and that she 100 percent supports the efforts of Black Lives Matter.
And what better way to make a political statement than during the biggest live concert in the world. One week before the Grammy Awards. Well played.
Takeaway: If you have an impactful message, do not be afraid to share it in the biggest way possible.
And now I'd love to hear from you! What was your business takeaway from Beyoncé's launch? Let me know in the comments below.
Danetha Doe is a celebrity business strategist and creator of Money & Mimosas, the money blog that encourages shopping sprees. A former NFL Cheerleader turned accountant and trusted resource on financial technology, she was recognized as one of the Top 40 under 40 accounting professionals by CPA Practice Advisor in 2015. For more money and business tips, click here to join the weekly #MoneyandMimosas newsletter. Follow her on Twitter: @danethadoe, IG: @danethadoe and Facebook.