Nigerian music artists have seen their fortunes rise significantly due to the worldwide surge in popularity of Afrobeats. This genre has not only elevated their global recognition but also boosted their income through various revenue streams like streaming, endorsements, and merchandise marketing.
However, their highest and most reliable source of income remains performance fees for events, shows, and concerts.
Determining the fee for performances is influenced by numerous factors, making it a complex matter. To shed light on the matter, News platform, Vanguard, reported that Adeshola Adefuwa-Cole, the CEO of Cole Management Services, had offered insight into the fees charged by top Nigerian music acts for events both at home and abroad. A common trend is that these artists prefer charging in dollars to align with global market forces, according to the report.
RELATED: Pricing strategies you should know as a business ownerÂ
As per Adeshola, Burna Boy currently leads the pack with a staggering charge of 1 million dollars or more per show. Following closely is Wizkid, who commands between 800 thousand to 1 million dollars per performance. Davido secures the third spot, charging around 500 thousand dollars, alongside Olamide, who also charges the same amount.
However, these performance fees are not the only factors to consider when booking these artists. They often make additional demands for themselves and their crew, which contribute to the overall success of the show. Wizkid’s requirements for example, includes a chartered flight, business class and economy return tickets, specific accommodation arrangements, and per-diem allowances for the artist, manager, and crew.
Interestingly, emerging talents like Rema have also started charging substantial fees, with Rema charging 200 thousand dollars, surpassing the fee of established artists like Tiwa Savage, who charges 100 thousand dollars. The rising stars Tems and Ayra Starr demand 50 thousand dollars each, while Kizz Daniel and Asake charge 200 thousand dollars and 100 thousand dollars, respectively.
Entrepreneurs are you following?…Â
As business owners, there are valuable lessons to be learned from the success of these music artists. One key takeaway is the importance of creating value for customers. By offering high-quality products and services, delivering excellent customer service, and establishing a unique brand experience, entrepreneurs can elevate their offerings and command higher prices.
However, the process of increasing prices must be approached with care. Researching competitors’ pricing and communicating transparently with customers about the reasons for price adjustments are essential steps to avoid alienating clientele. Gradual price increments ensure a smoother transition and maintain customer loyalty.
Final thoughts…Â
In summary, Nigerian artists have demonstrated the power of creating value for their fans, leading to increased demand and higher performance fees. Business owners can emulate their success by focusing on quality, uniqueness, branding, and effective marketing to build customer loyalty and confidence, enabling them to elevate their prices without compromising customer satisfaction. By applying these principles, entrepreneurs can create a stronger market presence and pave the way for sustainable growth in their respective industries.
