Somewhere between then and now the music industry almost died. Did it happen because of the digital revolution or because the revolution passed up the music industry? The fundamental dynamics by which consumers discover, digest and distribute content have been irreversibly changed.

Technology makes for a fickle bedmate. On the one hand, if you understand how to stoke the fire, technology can reap millions for the astute business. On the other hand, if you “diss’” technology, it can turn on you like a scorned lover.

Every industry from travel, music, movies, newspaper publishing, and, heck, even software itself is being pummeled by the ferocity of the online world. This new world order has leveled the playing field for global companies of ONE versus oversized, over budgeted multi-nationals of MANY. Simply put, one smart entrepreneur who knows how to leverage the right technologies can decimate an industry.

Witness the story of Marcus Frind, CEO of PlentyOfFish.com. In the last 10 years online dating has evolved into a billion dollar industry, dominated by companies like e-Harmony, Match.com and Chemistry.com. These companies make millions of dollars annually, but they have huge staff overhead and spend millions of dollars in advertising to acquire new customers.

Along comes Marcus Frind (cover of Jan 2009 Inc. Magazine). He decides that his dating service should be free … nada … zero. The result? 1.6 Billion … yes Billion … website visitors every month … $10 Million in annual revenues … 50% margins … 3 employees. What does he sell? $180,000 a week in advertising sales. Why do people pay him for this privilege? The demographics and the traffic are an advertiser’s dream come true.

Throughout the years, the music industry, like many others, has struggled to keep a tight grip on its intellectual property … and, rightly so. Singers, songwriters, and musicians all have the right to be paid for the work that they’ve lovingly produced.

The problem? Technology has leveled the playing field. Now a musician who wants to get his or her music “heard” can just plug in a mike, flip on an electronic keyboard, switch the dial to record and upload to YouTube or Vimeo … Voila, instant “channel”. In this era of digital music uploads and downloads, the world is literally ones oyster.

Instead of imposing artificial constraints, such as digital rights management (DRM), inflated prices or limited availability, the music industry should re-invent itself as the Industry of Music. The magic switch is to think of music as just one component of a broader merchandising platform. For example, sell a 99 cent (or less) song, follow it up with a $9.95 e-book, then a $4.95 fan base newsletter, a $30 / month coaching service, and so on.

The key is to grow ones subscriber / fan base. Then build a relationship with the base by continually “touching” them with quality content. Once trust has been established with this community, complementary products and services can be introduced and sold. The mantra? Sell plenty of fish to selected, qualified markets, rather than trying to sell the same fish to every market.

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Communicating effectively is one of the top skills that everyone should learn to master. And, the sooner, the better. While I did not formally study communications, I believe that I communicate well. Effective communications is so important these days because there is so much “noise” in our lives … on the news, over the Internet, and absolutely on our mobile devices. The key to communicating effectively is to assess the situation in which you are in, decide on what you want and figure out how you’re going to get it.

Let’s take an example of workplace dynamics. Clearly, there is a “protocol” for communications and an unspoken power dynamic between two participants. If you manage people, the proper communication method is to use leadership skills to communicate. However, if you are communicating upward, you’ll want to maintain your self-esteem, while recognizing the upward authority. Certainly, strongly voicing your opinion is encouraged; however don’t be offensive.

Many effective communications authorities would recommend that one should be looking for a win / win outcome. In other words, you get what you want by giving something in return. For example, if you’re looking for a raise at work, you could recommend new procedures that could save the company money or help increase company revenues.

There are also effective communication techniques in business development as well. Perhaps, you’re looking to partner with a new company. They have funding and implementation expertise, while your company has unique software intellectual property. In this scenario, effectively communicating how both companies would benefit from working with each other would be the best outcome. For example, a win / win scenario could be that you enlist the implementation company as a sole source provider for their services. In return, the implementation services company could provide much needed marketing and business development funds.

There are many more examples of how effective communications can streamline business discussions, as well as help create mutually beneficial relationships. The key to effective communication techniques is to take the time to do your homework. Make sure you understand what your counterpart is looking for and what motivates him or her. Decide on what you or your organization is trying to achieve, craft a proposal where both parties win and then succinctly communicate that proposal.

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