by R. Asmerom
Entourages have always been part of the rap game. But these days, the entourage is part of the act. From Death Row to The Diplomats, hip hop has turned to creating artistic alliances as a way to build business and a strong brand value. Capitalizing on a classic business model, famous artists like Jay-Z and Lil Wayne leverage their own fame to push new artists, thereby expanding their own companies, procuring creativity into the music marketplace and proving their own business hustler savvy.
But as we all know, some business ventures succeed. Some don’t. We collaborated with Erin O’Patton, author of “Under the Influence: Tracing the Hip-Hop Generation’s Impact on Brands, Sports & Pop Culture”, and founder and principal of branding consulting firm TMG to assess the strengths and weaknesses of a few of the hip-hop families that have come, gone and sustained.
Death Row Records: Packaging and selling notoriety
Grade: A-
Notable Members:Tupac, Snoop Dogg, Dr. Dre, Suge Knight
“Controversy sells,” says Patton. No one can argue that Death Row failed to create a memorable brand – one associated with thuggery, West coast flavor, fearlessness and notoriety; that image was matched by the off-camera antics of its feared leader Suge Knight and an unpredictable Tupac. “At the end of the day, branding is understanding two things. First, what differentiates you from anyone else competing in the same space. The second is what is the unique value that you generate for your consumer,” said Patton. “In the case of Death Row, they clearly recognized what differentiated them was a West coast heritage. They took some of the equity that had been built by brands like NWA.”
As evidence of its branding success, the company’s investors (who saved the label from bankruptcy) are still tied up in legal disputes dating back to January 2009 with each party fighting over the valuable assets and recordings from Tupac, Dre, Snoop Dogg and others. The catalogue built up by Death Row is valuable especially when you consider that the label sold over 50 million albums worldwide.
Roc-A-Fella: One Leader Can’t Carry The Weight
Grade: B+
Notable Members: Jay-Z, Memphis Bleek, Young Gunz, Amil, Beenie Siegel, Kanye West, [Rihanna, Teairra Mari]
Jay-Z is arguably one of the best rappers of all time but one’s own talents can only go so far in carrying a whole staff. He may be heralded as one of the most important businessmen in hip-hop but he’s only now coming to understand the formula for launching artists with his Roc Nation venture.
“When you have an enormous amount of talent, it’s difficult to replicate,” said Patton. “When you’re in a league by yourself, what is instinctive to you requires a focus and considerable effort over time for others. To the extent that Jay was unable to find in other artists the same natural desire, will and drive coupled with talent, may have created some challenges for him as a manager.”
Although Roc-A-Fella succeeded as a brand, which garnered much acclaim for the business deals that Damon Dash and Jay himself executed, it also gained attention for not being able to launch the long term careers of much of its roster. Today, that weakness is still rapped about by Jay and former members like Beenie Siegel.
Cash Money: The All Star Business Model
Rating: A
Notable Members: Lil Wayne, Mannie Fresh, Birdman, Juvenile, Drake, Nicki Minaj
“They’re cutting edge and they maintain a diversity of talents,” said Patton. “They have provided a variety of ways to address the marketplace and needs that consumers have by bringing dimension and different personality to it.”
Since they broke out on the scene in the 90s, Cash Money has demonstrated astute business precision. They made hip-hop business history in 1998 when they signed a $30 million pressing and distribution contract with Universal, entitling the label to 85% of its royalties, 50% of its publishing revenues and ownership of all masters. Since the Juvenile and Hot Boys days, the company has not taken its success for granted or horded it for that matter.
Growth and expansion are key indicators of business success and Cash Money certainly wins on this measure. Lil Wayne took his time in selecting and nurturing the talent that would herald his Young Money venture; Drake and Nicki Minaj have not only turned out to be astonishingly successful in a short time but also proven that the Cash Money camp has an eye for talent. In other words, an artist like Drake or Minaj may not have been the obvious choice but they turned out to be worth the investment from Birdman and crew.
Ruff Ryders: A Short Lived Union
Grade: C
Notable Members: DMX, Eve, JadaKiss
The short lived “Ruff Ryders” collective wasn’t much of a business powerhouse in terms of stability or lasting power but Patton says that their ability to brand themselves for the short term amongst consumers was an achievement. “I think they had a really strong run. [The Ruff Ryders label] did get branding on a conceptual level,” he said. “They understood how to create value through their artists and through other platforms and across platforms.” The ferocity of DMX and the matching female fierceness of the up and coming Eve played up the edgy theme of the label.
“Their position was one of an aggressive brand. In that time, they did an effective job of owning that piece of the consumer mindset in terms of their street credibility. The logo, the look, the feel, the whole thing was very consistent. Their brand identity was always consistent.”
G-Unit
Grade: C-
Notable members: 50 Cent, Lloyd Banks, Young Buck
I think G-Unit is a good example of how a brand can be inextricably linked to the driving force behind it,which is 50,” offered Patton. “The same could be said for Jay-Z [with Roc-a-Fella].
G-Unit emerged on the scene with 50 Cent’s debut success with Interscope Records. Together, the group found mainstream success with its 2003 debut album “Beg for Mercy.” The group, however, was immediately mired with internal strife with Young Buck, for one, being kicked out of the group. Regardless, Patton says that G-Unit never did a great job at investing enough in its artists to establish itself for the long term. “The fortunes of that brand tended to ride the cycle of 50’s popularity and his success. The other artists were on a peripheral and not significant enough to really move the brand needle.”
