LLC and Record Label

Hey, Doc!  I have a couple questions for you.  First, what does the abbreviation LLC mean when used with a company name?  Second, I’m very interested in starting my own independent record label but I have no idea how to start or run a business or what it takes to run a label.  Can you suggest some resources that might help me learn how?  Thanks. - Anonymous

 

Anon:  Bummer.  I know what you mean.  My neighbor down the street needs a heart by-pass.  I wanted to crack his chest open and help him out, but realized I’m not a heart surgeon.  OK…on to your questions.

 

When it comes to a type of company, the letters “LLC” stand for “Limited Liability Company,” and shares characteristics from of a corporation and a partnership.  Like a corporation, an LLC protects its members from personal liability for the debts and obligations of the company; like a partnership, an LLC is usually formed by filing a certificate with the Secretary of State, and is taxed like a partnership.  In addition, like a partnership, the members of an LLC usually enter into an operating agreement that establishes how the LLC is managed.

 

For more information about LLCs and other types of companies, click on this Google search I set up for you…Types of Companies.

 

There are many things you can read about running a company and some things about running a record label.  Here are two searches for you that will get you started: Running a Business, and Running a Record Label.

 

Now…reading about how to do things is great, but you might want to consider working at a record label before you attempt to start your own company.  Just a suggestion.

Local Music

Why is it that so few stations play/support local music in their markets? - Anonymous

 

Anon: Although there are a few exceptions, most radio stations don’t play music from local bands because the music is unfamiliar and usually not "hit" material. If a band should happen to become popular in a wider area, some radio stations will add the music.

 

Local bands face the proverbial Catch 22. In order to be played on the radio, the band must have exposure, but to have exposure, the band must be played on the radio. This is a main reason why many college radio stations break new artists—these stations can take chances, but the big-time commercial stations can’t (or I should say, won’t).

Logos - Colors that Work

We will be changing our logo next year.  Is there any research that you know of on appeal of color?  Men’s vs. Women’s favorites?  Or most attention getting colors?  Thanks for your help.  I enjoy your knowledge.  Thanks for sharing. - Anonymous

Anon:  You’re welcome.  I’m glad you enjoy your column.  Yes, there is a great deal of information about the psychology of color on the Internet.  So I don’t have to reinvent the wheel, read some of the items in this search — color psychology.
 

But let me add this . . . I have tested hundreds of logos over the years.  The best procedure is to develop 10-20 prototypes and test them in focus group situations.  An effective way is to take slide photographs of each logo, and have each logo on a poster board of some type.  The poster boards should be no smaller than 8½ x 11 inches.

 

Show the slides to the respondents quickly (don’t race through them) and have them rate each one on a 1-10 scale, where the higher the number, the more they like the logo (an overall evaluation of the logo, not anything specific).  You now have their initial reactions.

 

Next, put all the poster board prototypes on a ledge that surrounds the room.  Go through each one and have the group talk about them to find out what they like and don’t like.

 

Finally, use a reverse approach and have them eliminate the logo they like least.  Keep going until you have a winner (or a tie for the best).

 

I know upfront that I can’t tell you to use blue or red or any other color because you may mix colors that produce different perceptions.  However, test several variations of your idea—some in solid colors and some in mixed colors.

 

One final point:  Listen very carefully to the respondents’ comments about the prototypes because they may give you clues to a very different type of logo you never thought about.  Respondents enjoy doing this type of project, so don’t worry about them not wanting to get involved.  They will.

Long Stop Sets

In the ideal world, fewer shorter stop sets would be best. In the real world, which works better longer stop stets or more stop sets? - Anonymous

 

Anon: All the research that I have conducted in the past 5 years or so shows that listeners prefer more stop sets with fewer spots.

 

Unbelievably, most listeners say they don’t mind listening to 3 or 4 commercials. They also say that the radio stations that have two stop sets an hour (with a "whole bunch of commercials in a row") train them to hit the button to go to another radio station.

 

While listeners appreciate several songs in a row, the listeners know that long music sweeps also mean long stop sets . . . and they go elsewhere. By the way, listeners also don’t like too many songs in a row because they get confused during the presell or backsell. The ideal? Three songs in a row. Conduct a good study in your own market. I bet you’ll find the same thing.

Long Music Sweeps

Which do listeners prefer: Long music sweeps, with fewer (longer) commercial breaks an hour, or short music sets, and short commercial breaks? Thanks! - Anonymous

 

Anon: There is no doubt about this one. The answer is the same by listeners of all formats: Short music sets with short commercial breaks. One reason is that listeners can’t remember all the songs when the titles and artists are mentioned (assuming they are mentioned). A second reason is that long stop sets train listeners to tune to another radio station during the commercials—an opportunity to go elsewhere (and that’s not good).

Los Angeles

Doc:  I have been meaning to write to you, but I keep forgetting.  About a week ago, I was walking near the KRTH-FM building in Los Angeles and saw you (I think) walking with two other people.  If I can be nosey, who were those other people?  Especially, who was that woman? - Mitch

 

Mitch:  Geez.  Small world.  Were you spying on us, or what?  Or should I say something like, "I can't go anywhere."

 

Anyway, the two other people were my wife and Jhani Kaye, the PD of K-Earth 101.  I have known Jhani for many years and he was taking us to the station for a tour.  My wife is a dermatologist and knows very little about radio, and she is thrilled to see radio stations.

 

We arrived at the station during Shotgun Tom Kelly's shift on K-Earth and I took a picture in the studio.  I asked Tom and my wife if I could put the picture of them on the column.  They both agreed.  So, this is Shotgun Tom Kelly and my wife, Darnell (Martin-Wimmer) (Click on the thumbnail for a larger photo.):

 

 

Losing License - FCC Enforcement

Dr. Wimmer:  Thank you for your informative and entertaining supply of content!  I stop by your section at least once a week.

 

What does a radio station have to do for the FCC to revoke a radio station's license, or fine the station beyond a financially viable point?  Is it forgetting to do a legal ID?  Forgetting several?  Indecent content?  Other things I left out?  Thanks again. - Anonymous

 

Anon:   I’m glad you enjoy the column.  Thanks.

 

A radio station can be fined or lose its license for a variety of reasons.  The best thing for you to do is check a list of items the FCC lists on its Enforcement Bureau page.  Click on each of the areas (the bullet points on FCC page) and you’ll get an idea of the range of things the FCC may consider for fines or license revocation.

Lost Item Conundrum

Why is the lost item you are looking for always in the last place that you look? - Anonymous

 

Anon: Because when you find it, it’s no longer lost and you don’t have to look anymore. Now, to ease your conundrum, you can do one of three things the next time you lose something:

Lost Your Cool?

Hi Doc:  Have you ever received a question that was so over the top or stupid or offensive that you have lost your cool over it?  Your answers to questions here are so neutral and so professional.  Have you ever given a very strongly worded opinionated response?  Thanks. - Anonymous
 

Anon:  Very interesting question and I thought about this for a while before I started typing.

 

My answer is . . . No, I don't think I have ever really "lost my cool" over any question I have received, but my problem is that I don't know what you mean by "lost my cool."  I'll put it to you this way . . . I have been answering questions for this column for almost nine years and during that time, I have answered somewhere around 5,000 questions (several are private answers that don't appear on the column).  Among all those questions, I have received several that have frosted my shorts, but I'm not sure if I'd say that I lost my cool over these questions.

 

What kinds of questions frost my shorts?  Well, as I think about the questions I have answered, those that create an emotional reaction and prompt me to use more strongly worded answers are those where people submit questions that are based on some sort of "it seems like" information or an urban legend type statement they heard from a person of authority (a boss, a PD, a consultant, or a group VP, and so on.)  Those are the questions that really get to me.

 

For example, a person may submit a question that says something like, "My (enter any authority-type figure) said that . . . "  When I see that introduction to whatever the authority figure said, the odds are that the information isn't based on empirical data, but rather personal opinion or some other non-scientific Vulpes Fulva leavings..

 

Those are really the only types of questions that get to me.  However, I do receive many questions where I need to be careful about what I say and how I say it.  When I receive sensitive questions, I do one or more of the following:  (1) I answer the question but don't post it until I read it the next day.  If my answer sounds silly, goofy, wrong, or anything else other than accurate, I rewrite my answer; (2) I ask my wife to read my answer to find out if she gets the wrong impression.  If she does, I rewrite my answer; and (3) I often send questions to Joel Denver to make sure that I don't cross any boundaries.  However, I have to say that in almost nine years, Joel has never told me not to post an answer I prepared.

 

I have never received a job description from Joel Denver in relation to how I should answer questions I receive for my column, so it's up to me how I handle things.  Joel just said, "Would you like to do the column?"  That meant it was up to me to decide how things should go.

 

When I first started the column, I didn't think that most people would care about my opinion in most situations.  Instead, I perceived my role as an objective observer who provides people with information to allow them to make the most intelligent decision.  In some cases, people simply ask for an answer to a non-controversial question, and those are always easy to answer because in most situations, there is only one answer.  But many of the questions I receive are not simply "black and white" issues and I think it's best for me to answer the question from a variety of perspectives—not just one.  That's my goal.  And since you said, ". . . your answers to questions here are so neutral and so professional," I interpret that as an indication that I have achieved my goal.  Thanks.

Lottery

Since the recent election in Tennessee legalized a state lottery, does that mean that radio stations in Tennessee no longer have to ask the “prize, chance, consideration” question?  Thanks. - Josh

 

Josh:  Good question.  However, so I don’t have to reinvent the wheel, I went to the FCC’s website and found your answer.  In its publication titled, “Broadcasting Contests, Lotteries, and Solicitation of Funds,” the FCC says:

 

“The FCC has defined a lottery as any game, contest, or promotion that combines prize, chance and consideration. Federal law (18 U.S.C. Section 1304) prohibits the broadcast of any advertisement of, or information concerning, a lottery. There are a number of exceptions, however, to this provision. Among them are:

  1. Lotteries conducted by a state acting under the authority of state law, where the advertisement or information is broadcast by a radio or television station licensed to a location in that state or in any other state that conducts such a lottery;

  2. Legal casino gaming. The Supreme Court has held that the prohibition on broadcasting advertisements for lawful casino gambling could not constitutionally be applied to truthful advertisements broadcast by radio or television stations licensed to states where such gambling is legal. The FCC and the United States have concluded that the lottery advertising prohibition may not constitutionally be applied to the broadcast of any truthful advertisements for lawful casino gambling, whether or not the state to which the broadcaster is licensed itself permits casino gambling;

  3. Gaming conducted by an Indian Tribe pursuant to the Indian Gaming Regulatory Act;

  4. Lotteries that are authorized or not otherwise prohibited by the state in which they are conducted; and

  5. Lotteries conducted as a promotional activity by commercial organizations that are clearly occasional and ancillary to the primary business of that organization, so long as the lotteries are authorized or not otherwise prohibited by the state in which they are conducted.”

You can find the entire document by clicking here.

Lottery Numbers

Doc: You being the King of Statistics, is it possible to pick winning lottery numbers based on what numbers have been drawn before?  My buddy says the programs that track winners and suggest numbers based on what has come before work.  I say those Ping-Pong balls are all drawn randomly and a computer generated pick on a lottery ticket has just as much a chance of winning as anything else.  What say you? - Anonymous
 

Anon: First, thanks for the comment about "King of Statistics," but I think that's a bit overboard.  I know a few things about statistics, but I'm not a statistician.  I'm a researcher.  However, I will alert my wife about my new title.  On to your question . . .

 

The quick answer to your question is that you are correct about the randomness of the lottery.  Your buddy is wrong.  Here are the reasons:

 

All state and interstate (Powerball) lotteries are very tightly controlled and operate under very strict rules to insure that the games are not influenced in any way.  The number one concern of all lottery operators is that the numbers are drawn at random.  The word "random" is the key word here because the process itself supports the fact that websites or other programs that track winning lottery numbers are not effective in predicting future numbers.

 

A true random selection of numbers means that there is no way to repeatedly predict future numbers.  I say "repeatedly" because it is occasionally possible to predict random numbers on the basis of chance alone.  For example, Powerball uses 59 white balls to select five numbers and 39 red balls to select a sixth number.  In the white ball selection, there is a 1 in 59 chance of successfully predicting the first number.  There is also a 1 in 39 chance of selecting the red ball number.  However, there is only a 1 in 195,249,054 chance of selecting all six numbers correctly.  The reason is because all the numbers are selected randomly.  There is nothing predictable in the process of selecting the six plastic balls (or whatever method is used).  The plastic balls are the same weight and size, and there is nothing in the mechanism or selection process that gives preference to one set of numbers over any other set of numbers.

 

Now, the reason why the thousands of websites and computer programs that select or predict future lottery numbers do not work is that the random selection of one series of numbers does not influence (bias or effect) future selections of numbers.  That is, if this week's numbers are 5, 11, 23, 31, 45, and 22, these numbers do not influence in any way the selection of numbers in following lotteries.  A true random selection of numbers means that in every selection, each number has an equal chance of being selected.  The selection process, to repeat, does not bias or influence future selections.

 

Although websites and computer programs may track previous lottery number selections, the interpretation of these results has no bearing (none, zilch, zero, nada, zip) on which numbers will be selected in the future.  A track of previous winning numbers may show some type of trend, but the trend is based only on chance and does offer any information that can be used in an algorithm (formula) to predict future numbers.

 

Many statisticians suggest that random events may have some type of pattern, similarity, or predictability, but there is no evidence anywhere to suggest that websites and computer programs that track lottery numbers are any better at predicting future lottery numbers than simple guessing.

 

I'm amazed at the number of websites and calculators that are available that supposedly will give an edge in predicting lottery numbers.  Some even sell predictions for a fee.  Wow.  But the worst thing I saw on the Internet is a patent for a "Lottery Number Selection Device"—click here.  Gag me with a beaker.

 

Here is a summary of your odds in selecting the correct numbers in Powerball with the various procedures available:

  1. Computer programs - 1 in 195,249,054

  2. Websites - 1 in 195,249,054

  3. Fortune Tellers or a family pet - 1 in 195,249,054

  4. Using the number of times John Madden says, "Ya know" when describing six different plays during a typical football game broadcast - 1 in 195,249,054

  5. Tarot Cards - 1 in 195,249,054

  6. Randomly selecting six people between the ages of 1 and 59 and using their ages as your picks - 1 in 195,249,054

  7. "Quick Picks" - 1 in 195,249,054

  8. Asking a relative - 1 in 195,249,054

  9. Using the same picks every week - 1 in 195,249,054

  10. Guessing - 1 in 195,249,054

Lottery Numbers Again

Doc: You answered my question a while ago about lotteries and picking numbers.  In your answer you stated that picking "hot or cold" number combinations don't matter because each number has the same chance of coming up from one draw to another.  If I understand that correctly, I have the same exact chance of winning a "Pick 6" state lottery playing "111111" every time as I do if I mixed up the numbers? - Anonymous
 

Anon: My problem with answering your question is that I don't know the rules of the "Pick 6" game you are referring to.  I checked the Internet for a few examples, but still don't understand how the game works. 

 

What I don't know is whether a number that is selected is put back into the pool of numbers.  In other words, if a "1" is selected, is it put back into the pool so it can be selected again?

 

If that's the case—selected numbers are returned to the pool of numbers—then selecting "111111" has the same odds as any other combination of six numbers.

Lottery and Statistics

I’m not sure if this is a research question or not. It’s about state lotteries. There are many newsletters and things you can buy to predict state lottery numbers. Are these things any good? Will I have a better chance at winning if I buy the predictions. – Anonymous


Anon: Save your money. The numbers are selected totally at random and this week’s numbers have no relationship to past drawings. Your guess is as good as anything you can buy.

Louie Louie Lyrics

Do you know the words to the song "Louie Louie?" - Anonymous


Anon: One of the Denver newspapers (can’t remember which one) published the words about 10 years ago. The paper shows a copyright by Richard Berry-BMI Music. According to the article, the words are:


Louie Louie, Me gotta go.

Louie Louie, Me gotta go.

Me fine little girl, she waits for me.

Me sail the ship across the sea.

Me sail the ship by my all alone.

Never think how I make it home.


Louie Louie, Me gotta go.

Louie Louie, Me gotta go.

Three nights and days I sail the sea.

Think of girl constantly.

On the ship I know she there.

Smell the roses in her hair.


Louie Louie, Me gotta go.

Louie Louie, Me gotta go.

Me see Jamaica, the moon above.

It won’t be long me see me love.

Take her in my arms and then,

Tell her I never leave her again.


Louie Louie, Me gotta go.

Louie Louie, Me gotta go.

Loyalty to a Radio Station

Excluding TSL (time spent listening), is there any way for me to compare the loyalty of my P1s (fans) vs. the loyalty of my competitor’s P1s? - Anonymous

 

Anon:  Interesting question and the answer is “yes.”  The only thing you need is an operational definition of loyalty—that is, how do you define the term?  Once you do that, you can compare the P1s.

 

Anything can be measured.  The only requirement is that you have an operational definition of the dependent variable—a precise explanation of what is being measured.  If you ever take a philosophy class, one of the “tough” questions your teacher may pose to you is, “How many angels can stand on the head of a pin?”

 

The discussion ends very quickly when you ask your teacher to provide an operational definition of an angel.  IF you get that (you won’t), you can then answer the question.

Loyalty Again

In a conversation with my GM, he asked if we could do a small research project and ask listeners what is missing on our radio station so we could try to increase TSL.  I said that’s a tough question to ask.  He disagreed and asked me to pursue it.  Can you help me?  Who is right? - Anonymous

 

Anon:  If I have to take a side in your discussion, I will side with you—asking listeners what is missing on your radio station will probably produce a bunch of useless answers.  At best, you’ll get stuff like, “Have fewer commercials,” or “Play more music.”  While those kinds of comments are probably legitimate, they aren’t very clear.  I think you’ll find that most of your listeners won’t offer useful information.

 

It’s best to ask the question in a “round-about” way.  For example, for the past 20 years or so, I have been asking this question: “Assume you had only one radio and the radio could only pick up one radio station.  Which station would you want on your radio?”

 

In a follow-up question, ask, “Why would you want WAAA-FM as the only radio station you could listen to?”  Make sure to probe and say, “What else?”  The most useful information will come from those who don’t name your radio station.

 

If you pay close attention to the answers, you may find things you don’t have on your radio station.  This is just another way of finding out what people want, but using a slightly different approach.  It should also help increase your TSL.

 

In summary, if you ask a broad question like, “What is missing from WAAA?” most people won’t have a good response.  Ask the question a different way.

 

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