The Business of Sound Design

"The way of art and the way of the shaman are identical. Except that the artist has a craft which binds him to this world." (Joseph Campbell, The Way of Art)


This section is devoted to the real task of staying alive while trying to create art. How does a designer "put food on the table" for themselves and their family while pursuing their craft? The section will mostly deal with finance, marketing, communications and contacts.


What does it mean to "be a professional"? The best definition I've found is attributed to Abraham Flexner 1990.

  1. Possess and draw upon a store of knowledge that is more than ordinarily complex.
  2. Possess a theoretical grasp of the practice.
  3. Apply the theoretical and complex knowledte to practical solutions of human problems.
  4. Add to and improve the stock of knowledge.
  5. Pass that knowledge on to others deliberately and formally
  6. Own responsibility for the culture of the practice. (criteria of admission, legitimate practice, and proper conduct.)
  7. Care about others. (A gentling of heart brings a gentling of fate.)



The following sections can be read separately for information about a specific topic. Sections do not need to be read sequentially. Writers from the fields of both the Internet and sound design offer helpful advice for collecting and using the tools that theatrical designers need. Whenever possible, I will point readers toward books and articles that provide more detailed information about a certain topic. I hope you are looking forward to this adventure. Here we go!

Table of Contents


Introduction

It is an exciting time to be a theatrical designer. An array of design tools awaits to create visions and sounds the likes of which Shakespeare never dreamed. Among these tools, the computer is unquestionably the most important design tool ever developed. With it, the designer can show clearly the inner visions of his creative mind. Indeed, it is the ability to communicate the creative vision that is at the core of the computer´s usefulness in theatre. The most recent development in the computer´s ability to communicate is also the most profound: the founding and growth of the world-wide Internet. Because of the Internet, the relatively small number of isolated designers who work in theatre can communicate with each other anywhere on the planet. They can now share and develop ideas for a theatrical process that is intrinsically collaborative. Tim Clinton, writing the introduction to the Callboard manual asserts, "If you are a member of a widely separated group, and need communication with other members of the group, the speed, convenience and efficiency of electronic systems is a great asset" (Clinton introduction).

Many of the technical capabilities of theatrical sound design mirror the technical developments of the Internet. An example of this mirroring is the parallel development of digital audio files in theatrical sound and on the Internet. The formats are similar in both disciplines. This parallel development of computer use in the theatre, and computer use in communications makes this handbook possible. Indeed, there is great excitement among some sound designers generated by the possibilities offered by this parallel development. Since the modern desk--top computer is the common technical core to both theatrical design and communications, there will be terminology and technical concepts common to both fields.

There are two diverse viewpoints concerning the use of the Internet for sound design purposes. The first viewpoint is that the flexibility and speed of digital communication provide obvious advantages for enlarging the market for the designer´s theatrical services. The second viewpoint is that electronic communications can never replace a one-on-one meeting between two people in the same room. This author believes that the Internet is an excellent tool for designing and marketing sound design. However, I also believe that the issue of trust and one-on-one personal communication is a serious one, and I will address it in this handbook.

Most Internet users and some designers who are already on the Net, look to the promise of doing theatrical work on the Internet. To determine the extent of this belief, in 1996 I posted a question to the theatrical community on the Internet. I asked national designers to describe the theatrical design and marketing opportunities they believed existed on the Net. This response was typical. "I think you're definitely on to something! I believe the theatre industry needs to recognize the power of the Net. Do you need a proof reader? You can add my name to the list!" (Cutleborn e-mail)

By contrast, some theatrical professionals have reservations about electronic communication for two basic reasons. First, managers and designers of amateur and semi-professional companies voice concerns about the lack of computer resources, and the time to learn how to use them. They are isolated from the Internet, and see no ready funds to "buy into the system." Second, some theatrical professionals assert that electronic communications can never replace live person-to-person discussion in an artistic medium that is so intensely collaborative. This position is exemplified by the comments of one designer who e-mailed to insist that the idea of designing on the Net should be disregarded.

Therefore, I find the idea of designing sound on the Internet quickly polarizes theatrical professionals; they quickly form their opinions, and stridently voice them. In addition, I see the same polarized pattern developing in the professional literature of both theatre and the Internet. Magazines covering the Internet and sound designers´ communities have carried extensive articles about creating multimedia productions for use on the Net. However, there is little in theatrical journals about sound design on the Net. I hope that "Theatre Sound on the Internet: The Designer´s Handbook" will contribute to a dialogue that will unite these two exciting and related fields. With that in mind, I began the research and formulation of this handbook. I have come to believe, in the course of my research, that it is not possible for a sound designer to earn a reasonable living by using the Internet as the primary tool for creating and marketing sound design. It is an important tool, but it cannot be your only tool. You must use the Internet as part of a larger strategy.

This web page will give sound designers and theatrical managers specific information about using the Internet to create and market their designs. This author does not intend this page as a textbook on theatrical sound design or as a primer for new computer users. Rather, the author assumes that the sound design reader has a basic knowledge of:

1. theatre design concepts and process

2. basic computer terminology

3. theatre management hierarchy (who to approach, when, to get what done)

4. how to get on the Net. (If you are reading this page, you already know that.)

 

Creating sound design is really two things: the solitary design work -- the composing, and the collaborative design -- communicating with the other design departments involved with the particular production. I believe the process starts with the designer´s first reading of the script. The author of the script wants to tell a story. The sound designer looks for ways to make that story more compelling using the tools of his trade. Then, she must use her craft to create sound that others can listen to. Upon listening, the process begins again, with the sound designer modifying or designing anew: she brings the revised design back to the design team for review and possible inclusion in the production. In this most collaborative of artistic endeavors, sound designers are extremely concerned with communication. Both the process and the play itself are nothing but communication. Since the Internet was created for communication between people, it is an excellent tool for designing your sound and communicating that design to other members of your design team.

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Using the Internet During the Solitary Design Work

While each designer needs to decide what methods and techniques work well for him/her, let me suggest some ways of using the Net throughout the design process, from initial inspiration through to final output. In The Company You Keep (Links), you will find a list of Internet resources. Click on any of the listed addresses, and take a look at some of these interesting sites. Also, always remember that each of these sites also has links to other interesting places as well.

Improving your craft at sound design is an ongoing process. The Internet has many sources of information to help you improve your sound designs, and increase your knowledge. Using any search engine, enter keywords such as "Sounds" and "Sound Design". Also, learn about Newsgroups. The newsgroups are bulletin boards where people who have a common interest in a subject exchange ideas. The newsgroups are an excellent way to discuss problems and exchange ideas with other designers and professionals. The important concepts here are "discuss" and "exchange" ideas. It is not good for people to just "take from" or"lurk" in the newsgroups. Let me explain.

There are two philosophical ideas that have shaped the culture of the Internet. The first idea was that the Internet was designed to provide a fast and easy way to exchange information. In other words, content was (and is) valued by long-time Internet users. Knowledge, and the sharing of knowledge is still valued by Internet users. The second idea was that the Internet is a way to democratize knowledge. In many cases, the ordinary citizen on the Net has the same information available to her as the government, or any large corporation. Information is not locked up in some vault where it is available only to the highest bidder.

The ideas of the importance of content, and the democratizing of information still form the basis for the "culture" of the Internet. Culture is a term that connotes the values of an institution, what is considered proper behavior, and what the criteria is for admission. You will find these values expressed and debated on the Newsgroups. The contribution of knowledge is one of the highest values of the Internet. Internet users who read the newsgroups and contribute nothing are called "lurkers," a term that suggests hiding and observing, and not coming out and actively participating. There is nothing wrong with that, it´s just that readers who do not contribute are not valued as highly as contributors because lurkers do not improve the stock of knowledge on the Internet. I should add that this culture applies to web pages as well. Pages that just advertise and ask for your money are not as interesting as pages that have some worthwhile and interesting content to share.

The point is that if you are reading the newsgroups, and you come across a user who has posted a question that you know the answer to, post the answer to the newsgroup. You´ll feel better for helping out a fellow traveler, and help that goes ´round, comes ´round. You may also develop a friendship with a future collaborator.

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Using the Internet During the Collaborative Design Work

Let´s assume that you have already started designing for a particular production. How can the Net help you with the ongoing collaboration needed to incorporate your design into the overall production concept? Once again, remember that the Net is all about communication. So, how do you communicate with other design departments and theatre management? Good question! Let´s find out.

Theatre administration generally functions as the clearinghouse for information about a production, as well as the coordinator of efforts in building that production. Therefore, it´s natural to start your communication efforts there. Unfortunately, theatre administration presence on the Internet depends on a theatre´s having some resources in gear and personnel. It takes some money to buy the software and hardware, and it takes some time from someone to configure and use the tools. Therefore, at this time only the more established theatre companies are using the Net for communicating with their designers and patrons. They typically use e-mail and the web.

Either service is excellent for transmitting the information you need to other design departments, and the administration. For instance, e-mail can let the production coordinator know about your hang and circuit lists, packing lists and cue sheets, and what discussion topics about sound you want included in the agenda for the next production meeting. If the theatre company has the computer power and ability, sending examples of design for evaluation by the design team is a very powerful use of the Net. Once again, remember that if you are sending large files over 1 megabyte in size, send them via FTP. This will require you to know the FTP address of the theatre company, but will save you time and confusion.

If you are touring with a theatre company on the road, e-mail is an efficient and practical way to communicate with the home office. You can send your time cards, production notes, attendance reports, and expense reports. And hopefully, management will send any new information out to you while you´re in the field. For touring companies on the road, having an Internet account with an on-line service is a distinct advantage. America On-Line, CompuServe and other on-line services have toll-free telephone numbers in all major U.S. cities. So, when you are in your hotel room, you can plug your computer into the hotel room phone line, and dial the local number to connect with your theatre company.

Talking to other designers outside your geographical area may allow you to devise and exchange solutions to common problems without the fear of competitive advantage being given away. All designers have little tricks and signature features which make their designs distinctive and valuable. I have had designers in my local area refuse to talk to me about design because they wanted to keep their trade secrets. Personally, I believe that exchange of information and ideas helps everybody. That viewpoint is not universally shared. Contacting designers via the newsgroups (remember contributing?) and e-mail can eliminate the reluctance of some designers to share their tips with you when you both compete in the same geographic area.

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Marketing Your Sound Designs on the Internet

Marketing brings up thoughts of greed, distasteful schmoozing, and selling yourself for money. That perception is caused by a few disreputable theatrical hacks who rely on their charm rather than skill in their craft. The real purpose behind marketing has been overlooked. Basically, you are trying to tell people that you can solve their theatrical sound problems, and that you will help them tell their story using sound. An experienced theatre company manager and director once told me, "It´s not sufficient that you´re brilliant. You´ve got to let them know that you´re brilliant."


I feel that any sound designer who wants to use the Internet for marketing designs must examine four considerations. First, the Internet is a useful tool for communications. The role of those communications and their content must be considered in light of the designer´s overall mission. Second, every designer builds relationships with his collaborators and clients. Building relationships on the Internet requires skills and sensitivities that allow a person to communicate their information and their personality even while the current state of the technology cannot deliver immediate physical feedback. Third, a discussion about using Web pages is important because the Web page has become the primary means of establishing an Internet "presence". Finally, as sound designers become more proficient in using the Internet, they must become aware of the computer skills of the theatre companies with whom they wish to make contact. Go Back to Table of Contents


Your Mission Statement -- the Key to Your Approach

As you start thinking about marketing your sound designs on the Internet, it is useful to think about how sound design fits into your entire life. In other words, create a mission statement. Creating a mission statement will help you think about what you want from your life in general, what values you hold, how your theatrical design work expresses who you are as a person, and how you want to treat both the people you help and the employees and suppliers who help you. The importance of a mission statement is well documented in business literature. It helps keep you on track to accomplish your goals, helps to define which jobs you will take and which jobs you will pass by, and helps you to allocate your time, energy and money. Finally, a mission statement is important when considering using the Internet for creating and marketing. Before you spend money and time in learning to use the Internet, and maintaining your presence on the Net, you will need to decide if the practices and values of the Internet are close enough to the practices and values you profess for yourself when writing your mission statement.

A good mission statement answers the following nine questions. Taking the time to answer each question will pay off in the long run.

1. Customers: Who are your customers?

2. Products or Services: What are the your major products or services?

3. Markets: Where do you compete?

4. Technology: Is technology a primary concern for you?

5. Concern for survival, growth, and profitability: are you committed to economic objectives?

6. Philosophy: What are your basic beliefs, values, aspirations, and philosophical priorities?

7. Self-Concept: What is your distinctive competence or competitive advantage?

8. Concern for public image: Are you responsive to social, community, and environmental concerns?

9. Concern for employees: Are your employees considered to be a valuable asset?

(David, 97)

It´s important to remember that developing a mission statement is an ongoing process, and the answers you give to these questions should be reviewed periodically as you design business changes. As you develop your mission statement, the direction you want to take as a theatrical sound designer will become clear. These are considerations you may not have thought about before, but they are important to your business and your career. Please refer to Appendix 5 for an example of a completed mission statement. Finally, a mission statement is important when considering using the Internet for creating and marketing.

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Building Relationships -- Doing Business on the Net

Doing business is all about creating relationships: between yourself and your client, yourself and your suppliers, and yourself and your employees. A designer´s world view and beliefs influence who he builds relationships with, and how business will be conducted. In the collaborative environment of theatre, trust and respect are extremely important qualities to build and maintain. Therefore any Internet communications you engage in will either add to or subtract from the environment of trust and respect that you want to create. Both sides of any relationship must create trust and respect for that relationship to be successful and comfortable. You must do your part to start the creation of those qualities. Show people that you can be trusted. In using the Internet, you can demonstrate your ability to be trusted by adhering to the following rules of Net etiquette, or "netiquette."

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Building Web Pages: Meet the World

By far the most important development on the Internet has been that of the World Wide Web (WWW). This portion of "... The Designer´s Handbook" is a brief backround of design concepts used in creating your presence on the Web, file formats to use in creating your Web page, the use of "links", and the use of search utilities.

If you're reading this, then you probably know that the WWW is an electronic web of files connected by hypertext links. Hypertext links are addresses "embedded" in certain highlighted words that let you move from one file to another with a keystroke or a click of your mouse. The actual location of the files is irrelevant -- you can be reading a document from a computer server in Portland, Oregon, and follow a link to a related file in London, England. The best feature of the WWW is its ability to carry sound files, downloadable graphics, software programs, spreadsheets, and interactive displays. Sound designers will use most of these abilities to create and market their designs.

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Design Concepts Used in Creating Your Web Page

The art of Web page composition borrows from practices used in graphic design and architecture. The thought needed to arrange your layout of text and graphics will remind you of both the efforts to lay out a good magazine or newspaper, and also the way architects help people find their way through spaces. For complete and informative instructions on how to build a Web page, please refer to the book Web Publisher´s Design Guide for Windows by Mary Jo Fahey and Jeffrey W. Brown. It is easily the best resource I´ve found for composing and implementing a World Wide Web page. It comes with a CD-ROM, which has sample Web sites, and demos of Web page building tools.

According to Fahey & Brown, two composition terms are important when first planning your Web page: "wayfinding" and "hypermedia".

"Wayfinding: Although the term initially referred to the process of reaching a physical destination, wayfinding design involves themes that can be adapted and applied to Web site development:

  1. Decision diagram. A decision diagram is a list of decisions a visitor has to make to navigate a site... As in space planning for physical sites, visitors should take as few steps as possible to get to Web destinations.
  2. Graphics as landmarks. Web site pages should have related graphics that act as a masthead, but multiple mastheads should not be identical.
  3. Redundancy. ... the "glyphs," or identifying icons, are repeated to remind Web visitors where they are at all times. Although the size varies, this reoccurring graphic assures that a Web visitor is not lost.
  4. <LIColor. Color can be used as an effective identifier to help a Web visitor navigate.

  5. Iteration. Web designers should anticipate from 5 to 20 cycles of change in the the development of a Web site" (Fahey & Brown 16,17).

Hypermedia: The Web is a hypermedia system developed in 1989 by Tim Berners-Lee, a software engineer at the Center for European Particle Physics. Hypermedia is interactive information that has no beginning and no end. Although "home pages" are starting points, Web pages should be thought of as non-linear. Link found on each page jump to other Web pages, providing a random sequencing of information. Viewers can choose to "navigate" through an information base in a variety of ways, depending on the link they follow -- and the information base can be spread out all over the world. Hypermedia is a term invented in the 1970´s but the concept dates back to 1945. ... An underlying theme in every form of hypermedia is the viewer as active explorer. As a traveling ´participant´ in the media, the viewer is given the option of deciding where to go and how to get there" (Fahey & Brown 24, 25).

While all Internet services can transmit text, the principle advantage of the Web is its additional ability to transmit both video, and more importantly for this discussion, sound. With the addition of sound, your page can become unlike any print or architectural medium. You can present examples of your design work, or offer up a library of sound files to other designers. Your skills in the design of sound will be on display. However, you will now need to develop and improve your abilities in writing and the use of graphics software as well to compose a good Web page. You may ask, "Why does a sound designer need to become a graphics software user, or a good writer? I deal in sound!" To answer that question we must consider two aspects of Your Mission Statement.

The first question that a good mission statement answers is "Who are your customers?" When you thought about that question, you may have asked yourself, "Do these people know much about the nature of sound?" Most theatrical producers and directors think that the practice of sound design is "high-tech voodoo", in the words of one producer I work with. It is difficult to explain the distribution and propagation of waves that are invisible. Visual aids help explain this "invisible art" to set designers, costume designers, directors, producers, technical directors, and lighting designers -- people who are basically visual designers. They have difficulty understanding what they do not see. Compounding the communication problems of the sound designer is the fact that when the sound for a show is perfect, the audience does not notice most of its elements. The sound design is considered "transparent" when it is well done. Sound designers use their ears as other designers use their eyes. We know that you need to focus a speaker box the same as a lighting designer must focus his lights. Explaining that sound design concept to a visually oriented person is easier if you use pictures.

The composition of your Web page is impacted by another part of your mission statement. The mission statement, as noted above, must also answer the question "What are your basic beliefs, values, aspirations, and philosophical priorities?" Your answers to this question will determine how your Web page will be composed and what information it will communicate. What a small business puts on its Web page is now the subject of some controversy.

At the time that I am writing this, 1996, two cultures of thought and values are present on the Internet. The first culture is that of the original Internet users who were mostly technicians, academicians and scientists who needed rapid transfer of information. In short, content was all important. They were joined later by a large group of Internet users who believed in the democratization of information and computer power. The belief of this group of users was that information and computer power should not be available solely to governments and corporations. The advent of desktop computers promised a wealth of information to any individual who could afford a desktop computer, and took the time to learn how to use it. The Internet was considered by the original Internet users as a public goldmine of free-of-charge useful information. (The concept of "shareware software" comes from this same philosophy).

A new culture of World Wide Web users sees marketing potential in the large and rapidly growing number of people interested in exploring the Internet. As millions of people took to the WWW, companies saw potential in advertising their goods and services on that electronic medium. For this group of users, information and content must be paid for in order to justify the expense of equipment and manpower needed to maintain a WWW site.

Each theatrical designer who composes and maintains a WWW site must decide how much content and how much advertising to put on the site. My personal opinion is that the Internet continues to attract people who are looking for content. If the Internet turns into just another advertising outlet, people will lose interest in it. Therefore, my Web page has examples of my work which are available to download for free. These sounds can be used in your production, royalty-free, by any designer who needs them. There´s plenty more where that came from!

While sharing content is admirable, how much of your sound design are you going to give away for free? My page states that other designers are invited to share their sound files either on my page, or by link on their own pages, with the Internet community. In the almost two years that I have had my Web page on the Net, I have not received a single contribution from another sound designer. I can only guess at the reasons for this.

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File Formats to Use

File Formats to Use

The file formats you use in your Web page must be accessible to most people who visit your Web site. In addition, "When you place images and sounds on Web sites, be sure to make the data appealing to a variety of users." (Gray & Richard 26) Web browsers for both PCs and Macs can view text and either .JPEG or .GIF graphics files easily. To hear sound files, the browser must have the additional capability of launching an audio playback software capable of playing back the type of file you store on your Web page. The following audio formats are commonly used:

Type of file

Format to Use

PC sound files

  • use files in the .WAV format.
  • The size of the file is determined by the resolution (8-bit, or 16-bit. 16-bit is professional quality to be used in theatre or recording, but 8-bit is fine for home computer playback and demos.) the sampling rate, whether it is in stereo or monaural, and the length of the playing time. Please see the chart below for various file sizes.

    Mac sound files

    • AIFF.
    • Please see chart below for various file sizes.

    Size of File for monaural 15-second sound (file size is doubled for stereo file)

    (size in Kilobytes)

    11.0 Khz

    sampling rate

    22.05 Khz.

    sampling rate

    44.1 Khz.

    sampling rate

    8-bit resolution

    156 K

    312.5 K

    625 K

    16-bit resolution

    312.5 K

    625 K

    1,250 K

    Time To Download A 1,250 K. File On A Modem

    speed of modem

    14.4 kbps

    28.8 kbps

    download time

    24 minutes

    10 minutes

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    Links -- The Company You Keep

    As noted above, the WWW is an electronic web of files connected by hypertext links. Links show up as colored, underlined, or highlighted phrases and words in text. When you click on the link, your browser retrieves the file it is linked to. The file may be on your server computer, as another page on your Web site, or it may be on someone else´s Web site. This allows for a collection of Web pages about a related subject (in this case sound and other theatrical designers) to be linked together. On my Web page, I have a collection of links to other related sites. Why do I want to send someone to another site? For two reasons:

    First, I want to aid the person who is looking for information about theatrical sound. Second, netiquette on the Web requires that if you get a link from someone´s page you give a link to that person´s page. This requires that you establish contact with other designers and theatre-related organizations. If you like a particular Web site, you ask for a link from their page to yours, and you reciprocate by installing a link to their site. Once again, Fahey & Brown´s book Web Publisher´s Design Guide for Windows is a good source to learn how to install links on your page.

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    Search Utilities - How People Find You

    Several sites on the World Wide Web are set up to help you locate particular pages and subjects. These sites use "search utilities" to match Internet sites with your interests. And, more importantly, these search sites help people find you and your Web site. However, you need to register with each search utility so that the utility performing the search knows the content and location of your Web site. That site then stores information about your site in its data bank, and directs people to it when they are searching for it. However, how people search is the critical issue here, and there has been a lot of research done recently on how to search the Internet properly.

    Below is a list of the most popular search utilities, their addresses, and their search methods. Each search utility listed here has an information page to help you to make better searches.

    Alta Vista ( http://www.altavista.digital.com ) catalogs individual Web pages, rather than entire Web sites. It is one of the largest and fastest search services available and also includes Usenet discussion groups.

    Excite (http://www.excite.com ) reviews Web sites and displays the review of each site found. Excite also searches Usenet discussion groups and classified ads.

    Infoseek Guide ( http://www.infoseek.com ) shows Web pages that match your search criteria and provides lists of pages in related categories for easy browsing.

    Lycos ( http://www-msn.lycos.com ) also catalogs Web pages, rather than entire sites. It provides you with an outline and abstract for each page that matches your search criteria.

    Magellan ( http://magellan.mckinley.com ) reviews and rates sites. You'll see a short summary and a link to the full review for each site found.

    Yahoo ( http://www.yahoo.com ) organizes sites by category. When Yahoo finds a site for you, it displays both a summary and a link to the related category.

     

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    Theatres on the Net -- What Their Capabilities Are

    If you use your knowledge of search utilities, you will find numerous theatre companies and administrators to contact. The Web can be an excellent way to research theatre companies that you may want to work for. Section VIII of this handbook has a list of Web sites for theatre companies. On these sites, you may find information on past seasons (sometimes with pictures), a schedule of plays for the upcoming season, the theatre´s location (sometimes with a map showing directions and parking locations), ticket prices, and ticket availability. Artists Repertory Theatre, one of the theatre sites I know of in Portland Oregon, (http://www.artistsrep.org), has an "Audience Services" page on their Web site, with a seating chart and other patron information. I do not believe that a designer can make a determination strictly from the Net about whether he or she should work for a particular company. However, it is a good starting point to begin a dialogue with that company from which both the company and the designer can assess the possibility of working together, and the closeness of fit in their artistic styles.

    After finding theatres on the Web, your next contact will be e-mail, postal mail, and if the distance is short enough, or your reputation has reached far enough, a personal visit. Notice that I said the word "reputation." It is an important word, as stated in a previous section. Once again, make it easy to verify your identity and work. Credibility is the key.

    Theatre companies prepare one full year in advance for their seasons. Your strategy for contact and closing a contract for work should likewise be long-term, and it should be an ongoing part of your design work.

     

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    Marketing Using the Internet

    This section of "...The Designer’s Handbook" will deal with creating and implementing a marketing plan for using the Internet to market your sound designs. Marketing involves showing your customers that you have a product that is better than the competition´s product. Your product (your sound designs) can be better because of any or all four of the following qualities: product quality, distribution, promotion and price. How good are your designs? How much will they cost? How do you let people know that you´re good? How do you get sound designs to the theatre company? We have already looked at using the Internet to improve the quality of your product, to promote your designs, and distribute your designs to theatre companies. Now, we need to look at general financial considerations in the theatre industry, and the costs of using the Internet. Following that, there will be two sample financial reports: one is a sample Pro forma Income Statement, and the other is a Pro forma Cash Flow Statement. These reports help you plan for the future of your design business

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    Industry Primer and Major Buying Influences

    The live theatre industry is characterized by unexpectedly high labor demands, and financial uncertainty. "Of the thirty-five new plays introduced in New York in 1994, three recouped their expenses and only two more show promise of doing so." (Selz, introduction) Tastes and trends in live theatre change quickly and constantly. However, local theatre companies reduce their risks somewhat by presenting plays that have proven to be popular and profitable. In addition, reducing operating costs allows any theatre company or design business to increase net earnings

    It is very difficult for the majority of sound designers to make a living from the local theatre scene in their respective town. Unless you live in New York, Chicago, or some other big "theatre town" you will need to begin thinking about becoming a "regional" designer if you want to make a living solely from sound design. If you have other skills, for instance you are a good director, or a good musician, or a good stagehand, then you can supplement your income with those jobs while you design. Otherwise, you will need to design in several towns, and become familiar with the theatre environments in those towns. This is precisely the reason for using the Internet as part of your marketing strategy. Now, having said that, let me state again my original perspective on using the Internet to create and market your designs.

    I have come to believe, in the course of my research, that it is not possible to make a reasonable living by using the Internet as your primary tool for creating and marketing your sound design. It is an important tool, but it cannot be your only tool. You must use it as part of a larger strategy.

    While I believe that all opportunities to do sound design are good, it is often necessary to limit your work to those companies that can help you "put food on the table" for you and your loved ones. So start researching those two or three companies in your town that can afford your services, then look in the larger geographical area for similar companies.

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    Costs of Using the Internet

    This section will list for you the most likely hardware and software expenses, typical expenses found in any business, and benefits of doing sound design business using the Internet. The best way to convey this information is with rows of categories and columns of numbers. I will use samples of two commonly used financial reports: a pro forma Income Statement and a pro forma Cash Flow Statement.

    "Pro forma" means that they are attempts to project your future income and expenses using data that you must research. These reports will come in two forms of spread sheets: the first spread sheets will have the categories of income and expenses with the numbers filled in, so you can see how the categories and numbers relate to one another. Below the sheets are explanatory notes.

     

     

    Sheet1

    An Example of a Sound Design Business

    Pro forma Income Statements: 1996 - 2000

     

     

    1996

    1997

    1998

    1999

    2000

     

     

    Jan.

    Feb.

    Mar.

    Apr.

    May

    Jun.

    Jul.

    Aug.

    Sept.

    Oct.

    Nov.

    Dec.

     

     

     

     

    SALES

     

     

    600

    1,400

    2,000

    4,000

    2,000

    3,000

    1,000

     

    2,000

    700

    2,000

    19,000

    22,000

    25,000

    28,000

    COST OF SALES

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Recording tape, CDs

     

     

     

     

     

    50

     

    50

     

     

     

     

     

    150

    150

    150

    150

    Travel

     

     

     

     

     

    200

     

     

     

     

     

     

     

    500

    700

    900

    900

    Telephone

     

     

     

     

     

    25

     

    25

     

     

     

     

     

    75

    75

    75

    75

    Shipping

     

     

     

     

     

    10

     

    10

     

     

     

     

     

    50

    70

    70

    70

    GROSS PROFIT

     

    -

    600

    1,400

    2,000

    3,715

    2,000

    3,915

    1,000

    -

    2,000

    700

    2,000

    18,225

    21,005

    23,805

    26,805

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    SELLING & ADMINISTRATIVE EXPENSES

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Computer

     

    2,500

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Sound Card

     

    425

     

     

     

     

     

     

     

     

     

     

     

     

     

    500

     

    CD-ROM & speakers

     

    350

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    500

    Modem

     

    200

     

     

     

     

     

     

     

     

     

     

     

     

    250

     

     

    Sound Software

     

    500

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Internet Software

     

    225

     

     

     

     

     

     

     

     

     

     

     

    350

    350

    350

    350

    My Salary

     

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    1,500

    18,000

    18,720

    19,469

    20,248

    Office Rent

     

    75

    75

    75

    75

    75

    75

    75

    75

    75

    75

    75

    75

    900

    900

    900

    900

    Equip. maintainance

     

    35

    35

    35

    35

    35

    35

    35

    35

    35

    35

    35

    35

    400

    400

    400

    400

    Supplies

     

    40

    40

    40

    40

    40

    40

    40

    40

    40

    40

    40

    40

    500

    500

    500

    500

    Internet Subscriptions

     

    21

    21

    21

    21

    21

    21

    21

    21

    21

    21

    21

    21

    250

    250

    250

    250

    Licenses

     

    50

     

     

     

     

     

     

     

     

     

     

     

    50

    50

    50

    50

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income from Operations

     

    (3,071)

    (1,071)

    (271)

    329

    2,044

    329

    2,244

    (671)

    (1,671)

    329

    (971)

    329

    (2,225)

    (415)

    1,386

    4,107

    EBIT

     

    (3,071)

    (1,071)

    (271)

    329

    2,044

    329

    2,244

    (671)

    (1,671)

    329

    (971)

    329

    (2,225)

    (415)

    1,386

    4,107

    taxes @ 20%

     

    (614)

    (214)

    (54)

    66

    409

    66

    449

    (134)

    (334)

    66

    (194)

    66

    (445)

    (83)

    277

    821

    NET INCOME

     

    (2,457)

    (857)

    (217)

    263

    1,635

    263

    1,795

    (537)

    (1,337)

    263

    (777)

    263

    (1,780)

    (332)

    1,109

    3,286

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    An Example of a Sound Design Business

    Pro forma Cash Flow Statements: 1996 - 2000

     

     

    1996

    1997

    1998

    1999

    2000

     

     

    Jan.

    Feb.

    Mar.

    Apr.

    May

    Jun.

    Jul.

    Aug.

    Sept.

    Oct.

    Nov.

    Dec.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net Cash Provided by Operating Activities

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net Income

     

    (2,457)

    (857)

    (217)

    263

    1,635

    263

    1,795

    (537)

    (1,337)

    263

    (777)

    263

    (1,780)

    (332)

    1,109

    3,286

    Adjustments to reconcile net income to net cash

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net Cash Provided by Investment Activities

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net Cash Provided by Financing Activities

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    "paid-in" capital

     

    (2,457)

    (857)

    (217)

    263

    1,635

    263

    1,795

    (537)

    (1,337)

    263

    (777)

    263

    (1,780)

    (332)

    1,109

    3,286

    Notes about the Pro forma Income Statement

    1. Sales -- This means the amount of money you earn from your sound design business only. It does not refer to the money you also bring in from other "day jobs". Notice that the months of January and September are blank. Theatre seasons are typically in a slack period during these months. You need to plan for other income. Also, I have assumed a yearly total income of $18,000 for 1996, with 4% raises for succeeding years to keep up with inflation. $18K is not much of an income. In most markets, the supply of sound designers exceeds the demand of the public to hear them. You cannot buy a house with that income, and you can hardly support another loved one with it.

    In planning for your future in sound design, you need to ask yourself, "How many design projects can I do in a year?" Each project takes a different amount of time. And projects have a tendency to become more intense and take up more waking hours the further into the production process you are. Therefore, to increase your yearly income, you need to charge more per project.

    2. How Much Do I Charge? -- Figuring out how much to charge a client is an art. So many variables enter the picture that we cannot go into all of them. However, keeping the basics of theatre funding in mind will help. Most theatre companies are funded with a combination of grants, donations and ticket sales. Of these three, ticket sales generally account for more than half of the total income. If a theatre company asks you, "How much for your services?", a good rule of thumb to start with is a tiered calculation that results in a figure unique for each theatre. The tier is based on the number of performances, the number of seats in the performance space, and the average price of those seats. The formula is:

    (# of performances X # of seats X average price) X 2.5% = my fee

    Using this formula, working for a larger theatre company obviously results in greater gross receipts. However, working for a larger theatre production also results in greater variable costs to the designer. Working with smaller companies may offer benefits not found in the more established companies. Sometimes there is just not enough work available in the larger companies. Also, small theatres sometimes have an excellent artistic reputation which will help your career in developing your craft, or gaining favorable coverage in the media. In the event of scheduling conflicts, either priority can be given to larger companies, or temporary personnel can be hired as an outside contractor.

    3. Cost of Sales -- This refers to the cost of designing any particular show. Notice that some shows require a lot of materials, and some require only a little. Sometimes you can add the cost of materials to your sound design fee. But sometimes the theatre company expects you to cover those expenses out of your fee. A quick ethical note about learning the business. In this author´s view, it is not ethical to charge a theatre company for the time taken to learn a new piece of gear or software. Those are the tools of your trade, and you should be competent in those tools before offering your services to the company. Ongoing learning is a way of life for a sound designer. Also, upgrading your equipment is a way of life. You need to set time aside for learning throughout your career.

    4. Selling and Administrative Expenses -- This refers to the ongoing costs of running your business. This is where you would put your costs of Internet hardware and software, as well as your living salary, and the costs of keeping an office. These lines of data are important when you fill out your yearly taxes.

    One of the cardinal rules of business is "reduce your overhead", and one of the best ways to do that is to work out of your home. The upside is that it is much cheaper than renting a studio. However, the downside is that it is more difficult to set up a "classy" space to impress your clients when they come to your home. If you are going to deduct your home office on your yearly income tax return, the IRS requires that the space must be used only for your design business. So, make sure that you can prove to the IRS that the space is really a "business space".

    5. Income from Operations -- When you subtract all of your expenses from your Sales, you end up with your Income from Operations, (also known as Earnings Before Interest and Taxes, EBIT) This is the base income which is taxed for income purposes. Notice that many months have parenthesis around them, which means the same as "a loss". This amount of money needs to be supplied from other sources of income (such as a "day job") in order for you to live regularly month to month. For more information, see "Cash Flow Statement" below.

    Notes About the Pro forma Cash Flow Statement

    1. Net Cash Provided by Operations -- Lack of cash flow is the principal reason that most small businesses fail. It is also the principal reason that most theatre companies collapse. When a theatre company cannot pay its bills, it is most often because of a lack of positive cash flow. And cash flow must be planned for. Theatre income is sporadic, and you must plan for the times when you have no design income.

    In the months when the Net Cash provided by Operations is negative, you need to plan on other sources of income. If you project your expected future income periodically, you will avoid cash shortfalls.

    2. Net Cash Provided by Financing -- In this example, the numbers are the same as those for Cash Flow from Operations. In another business, it may be provided by taking out a loan. But beware! There is a lot to be said for staying out of debt. So, for the most part, this line of your reports will indicate how much income will need to be provided by other employment. Please note projected net profits in April, May, June, July, October and December of 1996. These profits can be used to reduce the financing needed in subsequent months.

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    1. How Much Will The Internet Add To My Earnings? -- These are the important points that I have learned from using the Internet to create and market my sound designs.

    2. Developing Contacts -- This takes time. Plan on spending 20 hours per week during your slack periods. Use the Internet, the phone, writing letters, and sending tapes to prospective clients to find out about the companies you want to work for.

    If you are now well established in your local geographical area, it is time to think about ways to become a regional or national designer. The Internet is a great help in this process in three ways; 1) it enables contact with theatre companies less expensively than telephone calls; 2) it enables a designer to research a potential theatre company that you may want to work for; 3) it enables a designer to reduce his travel time and time away from home by allowing the designer to transmit audio designs, written production notes, cue sheet, and scripts via electronic means. The establishing of trust and respect discussed above must be considered in regional work as much as in local work.

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