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August 7, 2006

The spin doctor | An Ogunquit-based banking consultant and nighttime DJ teaches his fellow record spinners how to think like business owners

It started off as a favor for a regular who just wanted a place to play CDs about four years ago. Within a month, Vinny Lobello realized having a live DJ was drawing a younger crowd into his Ogunquit family restaurant and sports bar, Vinny's East Coast Grill ˆ— a crowd that stayed later and bought more mixed drinks. Then, the regular said that he wanted $200 a month or he was done spinning. "I said 'Well, I'm Italian so I don't like ultimatums,'" says Lobello.

That was the regular's last night. Lobello realized he wanted to keep a DJ at his restaurant, but he knew little about the field. He did know, however, that his friend and fellow Ogunquit resident Jerry Bazata might be able to help, because he seemed to have some experience as a DJ. "I didn't really know what he did at night," says Lobello, "but I knew he put on the suit and tie during the day."

As it turned out, Bazata ˆ— whose day job is with an international consulting company based in San Antonio ˆ— has been DJing professionally for about 25 years. During that time, though, he's held day jobs in industries as diverse as banking and limousine services. And for the past six years, Bazata has combined his passion for DJing with his experience in the business world to create J and J Marketing and Entertainment ˆ— a vehicle for him to teach other DJs what he's learned about business and help them turn their record-spinning skills into a lucrative operation.

It's an industry in which, according to Bazata, startups usually don't have much business experience. So Bazata's assistance can involve anything from teaching clients how to identify appropriate markets to training them on market techniques. The startups also don't have much capital, so he often works pro bono. "Most of the time I'm just willing to share my knowledge with somebody," says Bazata.

But when a client wants more than just a little advice and needs a thorough analysis of his or her business, Bazata charges about $50 an hour. "Jerry is an entire package, a good package," says Lobello. "He's got experience not only from the business point of view to make it more profitable, but also from the DJ point of view."

Bazata also delivers his insights to the masses by frequently contributing columns on the business of DJing to the DJ Times, the global trade magazine and self-proclaimed industry bible. And in March 2006, Bazata received an invitation to speak to 200 DJs and club owners at the International Nightclub & Bar/Beverage Retailer/Beverage & Food Convention and Trade Show in Las Vegas. "I talked about all of the financial tools you have available to you to either start, grow, or expand your business," says Bazata. "There was a wide variety in the audience there."

Take the show on the road
Imagine a DJ business consultant. It's not easy. The idea of business training clashes with the image of hip-hop culture or dark techno clubs. But like most stereotypes, those images are pretty far off. According to Bazata, a.k.a. DJ Jaz, it's the mobile DJs ˆ— the ones who do weddings, corporate events and bar mitzvahs ˆ— that make it as businesses. "Unless you're some big-name artist, like DJ Scribble or DJ Testo and you're booking in the super megaclubs and you have a following, it's difficult making a full-time living as a [club] DJ," Bazata says.

This is usually his first bit of advice to aspiring DJs. And, according to a DJ Times subscriber survey, it's advice a lot of DJs are heeding. About 50% of those in the field are identified as mobile-only DJs and another 30% both mobile and club DJs, compared to just 11% who are only club DJs. Although hip, the clubs represent a much smaller market and have a smaller financial return on the average DJ's time, Bazata says. Bazata credits his ability to deliver business advice to the surprising crossover he's found between his day and night jobs. "When you look at any type of business, you have to look at your market area and the customers you're going after," says Bazata.

For DJs, this translates into knowing their niche and deciding how much to invest in equipment. "Most clubs in the Maine area require DJs to come in with their own equipment," says Bazata. "So if you're only going to make $200 a night but you're going to spend $5,000 for a system, how long is it going to take to get it back?"

If one invests a bit more to become a mobile DJ, according to Bazata, the payoff is quicker despite the higher upfront cost. The club market in Maine is competitive, and typically pays no more than $200 for a night of work. By contrast, mobile DJ services experience higher demand and can average $750 to $1,000 a night. "So, if you spend $10,000 for a system ˆ— speaker and lights and everything else," says Bazata, "how fast are you going to get that payback?"

This difference often comes as a shock to the aspiring DJs Bazata advises. "They see the glory of the DJs spinning in the nightclubs and they think it's these guys who are driving Ferraris all around the place," says Bazata. "And it's not."

Over the course of a year, Bazata works with approximately eight to 10 clients that include startup DJs looking to expand their business. He also works with club owners like Lobello. To set Lobello up for regular DJ entertainment, for example, Bazata discussed the issues a club owner faces, such as the additional costs of security and the benefits of having video screens. Then he and Lobello flew out to the Las Vegas nightclub convention held in March to see how other club owners were handling the same issues. He and Bazata already are planning their next trip to the Las Vegas conference next March. "I've already been asked to speak," says Bazata. "I'll be speaking about banking issues for up-and-coming DJs and how to market a company."

It's not a crowd-pleaser like an extended remix of "Le Freak," but it may be exactly what that audience wants to hear.

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