Buffett Presentation

parrothead338 · Post by **parrothead338** » November 28, 2006 1:44 pm

I am doing a presentation on how musicians use their songs as a way to market other products and generate additional profits from their songs beyond simple record sales. For instance, last year McDonald's offered up to a million dollars to hip-hop artist who could work the word "Big Mac" into their lyrics. So I am looking at the ability of artists to market their songs and even go as far as selling their lyrics to the highest advertiser.

Well, one small part I was going to do is show how Buffett has cross-marketed his song Margaritaville and made it a multi-million dollar brand. In other words, it is not just a song but a restaurant chain, sandal brand, shrimp producer, etc.. I was even going to mention the small note of how Come Monday was censored on the BBC for promoting Hush-Puppy sneakers.

Well it took me way too long to get to my request for help... but I am trying to find one of the many articles that discuss Buffett's financial endeavors and how much money he earns annually of his various Margaritaville brands. The problem is I am having trouble finding any articles so I was wondering if anyone could point me in the right direction of some information. Thanks for any help you could be!!

trojan_sixtyone · Post by **trojan_sixtyone** » November 28, 2006 3:24 pm

I've seen it reported that from all of his brands combined (including records, touring, etc) he rakes in $60-80 million each year. I would say the Margaritaville brand is his cash cow (mainly with the restaurants themselves) at about 2/3 of his non-music related income. I would say the other 1/3 of his non-music related income is a combination of the branding on shoes, clothes, food, and Cheeseburger in Paradise restaurant royalties.

Quiet and Shy · Post by **Quiet and Shy** » November 28, 2006 9:04 pm

Neat topic, 338. There are really three different aspects on this...first is an artist selling an existing song or lyric to promote another brand...e.g. "Taking Care of Business" is used by Office Depot, Chevy trucks uses "This is Our Country". Second, an artist can directly endorse or lend their image to a product...e.g. Toby Keith and Ford trucks. The third approach (and what Jimmy has done with Margaritaville) is an artist builds a brand around their own songs, lyrics, image, etc.; JB basically merchandises his own products vs. someone elses'.

I don't know of anyone who has been more successful at turning his music and image into a marketable brand than Jimmy. In the past few years he's gone from owning everything outright to licensing out his Margaritaville brand for selected product lines (frozen foods, tequila, flip flops, Cheeseburger in Paradise restaurants). To my knowledge, however, he hasn't outright sold the name...he gets a share of the profits and the contracts very likely have tight controls around product quality, marketing, etc. So in these cases it's almost more of a partnership vs. an outright sale of the brand. (Outside of music, some other examples of people whose image and products are their brand include Emeril Lagasse and Martha Stewart.)

The 60 Minutes update from almost 2 years ago estimated JB's net worth at $300 million. Also, I believe Rolling Stone and/or Billboard do an annual estimate of top paid musical acts (you can do a search on this)...and JB easily made the top 10 due to his various business interests and touring (artists typically get 85-90% of the gate)...I'm thinking their 2005 estimate for JB was around $42 million. As JB privately owns all his enterprises, no detailed info is publicly available.

I hope this helps. Be sure to let us know how the presentation goes.

JustDucky · Post by **JustDucky** » November 28, 2006 11:28 pm

Also check out Forbes. You did not say if you did or not. They might have something within the website that would detail past articles as well as additional information that is not in the magazines. I'm guessing you Googled what you could. But just for the hell of it, Google it again but with different words - yearly income, touring income, etc...and see what you find. There's all kinds of info out there that is legit. Maybe even attempt to go straight to the source - email Margaritaville with what you're doing (so if they feel they could make sure what you say is true somehow) and see what happens. Worse case is they say No.

pleiades03 · Post by **pleiades03** » November 29, 2006 9:39 am

PH338-- what databases have you searched? I did a quick search on EbscoHost through my local public library's website and found a couple of articles. Depending on what's available through your school or public library, I'd try EbscoHost or Proquest or Academic Universe.

jackiesic · Post by **jackiesic** » November 29, 2006 10:46 am

I know that he was on the cover of Outside magazine about 1 year ago. I may still have the copy. I'll take a look today. If I do, and it contains any financial info I could photocopy and mail.

parrothead338 · Post by **parrothead338** » November 29, 2006 5:54 pm

Thank so much for all your responses... Ive been busy but as I do more work on this Ill let you know how it goes and any interesting things I find. Thank again!

ladyparrothead · Post by **ladyparrothead** » November 29, 2006 10:03 pm

Another artist that has done this to a lesser extent would Sammy Hagar with his tequilla and resturants.

CaseyPhins · Post by **CaseyPhins** » December 1, 2006 11:23 am

If you could get ahold of the CMT 60 Minutes interview with JB, if I remember correctly it states pretty much how much he makes and from what.

AlbatrossFlyer · Post by **AlbatrossFlyer** » December 1, 2006 11:43 am

jimmy has been known to refer to this extra income as "silly money" since he does nothing but cash the checks...