Managing music makers’ money: Kella Farris

Kella Farris, who has a degree in finance and an MBA from Harbert,  sees the creative and the financial sides of the music business. In this podcast, she discusses how her company helps recording artists and songwriters deal with the business side of music as their streams of creativity lead to streams of income.

Transcript

Narrator:

Welcome to the Harbert College of Business podcast, with your hosts, Sarah Gascon and Currie Dyess.

Today's guest is Kella Farris, a partner at Farris self and more in Nashville. Her company provides business and financial services to songwriters and recording artists. Farris has a BS in finance and an MBA from Harbert.

Currie Dyess:

Kella Farris, War Eagle, and welcome to the show.

Kella Farris:

Thank you. War Eagle from Nashville.

Sarah Gascon:

So great to have you today. You started a boutique business management and financial planning company that specializes in the unique needs of hit songwriters and major recording artists. How did you get here in your career?

Kella Farris:

Well, it all started with Dr. Butler down in Auburn. I knew I wanted to work in the music business and I was in grad school down in Auburn, and I had to get an internship, and I had done the Europe trip with Dr. Butler in undergrad and he knew I loved country music. And I just told him, I was like, "I want to do a fun internship, but I don't really know where to start or what direction I want to go." And he pretty much was like, "If you could wake up every day and not have to worry about making money, what would you go do?" And I just wrote down, "I'd move to Nashville and I'd work in the music business." And he was like, "That's what you need to go pursue."

Long story short, Jeff Cook of the group Alabama was testing a biodegradable fishing lure through the fisheries department at Auburn, and he connected me with Jeff and I got an internship in Fort Payne, Alabama, and that's really what kicked off what I'm doing and it just goes from there. I worked for them for a couple years, and then I moved to Nashville and I worked for a big firm, Flood, Bumstead, McCready & McCarthy, here in Nashville, doing business management. And business management is basically you oversee all the finances for an artist or a songwriter, everything from paying their cable bill and their power bill to running tour budgets, contracting bus leases, the whole scope of the financial planning process of budgeting, personal budgeting, making sure their estate plan is tied up, insurance planning, tax planning. Basically I tell people anything with a dollar sign related to their career will come through our office. So that's what it is.

And I worked for Flood for a couple years, and then I just saw a niche for songwriters. I started going out the songwriter round and met some incredible writers, and they were like, "We need what you do, but the larger firms are more focused on the big artists." And so I basically said if I got a couple of clients, I would leave and go work with just songwriters, and a couple clients came or signed on with me, luckily, and that grew.

And then fast forward to where I'm at today. I was doing it all by myself for about 10 years with just songwriters and a couple employees. And my two partners, the day I found out I was going to be a mom, I met with them and I was like, "Hey, let's just scale and grow this thing." And now we work with artists and songwriters, and we've got about 40 or 50 clients and 25 employees.

Currie:

That's a really unbelievable journey, especially considering the prestige of your clientele, going from an internship at Auburn University to working with the biggest names in the industry in Nashville. It's an impressive story. Sarah and I were curious, how has business management evolved since your internship or is it relatively the same?

Kella Farris:

I mean, it's relatively the same. My internship, I would say, was a little different in Fort Payne from the standard business management, just because of the way it was set up. The Alabama guys each have someone handling their stuff in Fort Payne. And then in Nashville, they actually have business management firms that artists work with. And in my internship, it was all local in Fort Payne. So it is a little different.

Sarah:

Do you have songwriters that are with the artist or do you have artists that bring along their songwriters to work with you in your company?

Kella Farris:

Good question. There's a couple different things. So basically when someone moves to Nashville and they're an artist or a songwriter, they can be both. So I have clients who moved to Nashville and they knew they wanted to do the artist thing. So they're pursuing their artist career, but they happen to write songs. And so they move here and they start writing in the songwriting community, and then they get their record deal and they're just an artist who is also a songwriter. So I have a lot of those.

A lot of people think that the artists always write their own songs, but that's not true either. You look at someone like George Strait. His go-to songwriter was Dean Dylan, and Dean Dylan wrote so much of George Strait's songs. And George didn't write and he's had a huge career. So you have both. You also have the career songwriter, which is what I also work with, and they are the ones who are channeling these songs and writing with the artists. So you can have both, and that's what I work with are artists who write, and then I have just songwriters who do not pursue the artist route.

Currie:

So when it comes to business management, you're managing these artists' financials. What is the most difficult part of that?

Kella Farris:

I don't find any of it difficult, if I'm being honest. I just love my clients and I love getting to help them. And if I had to choose something the most difficult, maybe it would be in the beginning of our relationship, just figuring out what makes them tick and what's important to them and really just, it's such a personal relationship. I've worked with some clients now for 15 years and I just know what their goals are, what their lifestyle number is. I mean, I just know them so well. I know their kids. I just know them. And so working with a new client, sometimes it takes a minute to get there and figure out what their goals are and their dreams and how they view finances.

A lot of times artists and songwriters, people think, "Oh, it's an overnight success," but they've been working so hard at their craft for years before anything happens and barely making ends meet. And then they have their first hit or their first artist song breakout, and they start getting these big checks in, and it's really just educating them on, "Okay, how are we going to plan for this? We've got to save for taxes. We're going to save for a down payment on a house. We're going to reinvest it into your career by putting it into your touring account." I go from that realm all the way to clients that I've worked with for 15 years to doing high level estate planning and multi-generation planning. So it's a whole gamut, which is fun.

Sarah:

Are there specific criteria that you establish between the artist or people that you bring on to assist?

Kella Farris:

It's different for songwriters versus artists. So for an artist, we typically like for an artist to have a record deal in place, music going to radio. We're hitting the charts. A good manager, an agent, just the team. We're just one part of the whole artist's team. And so we like to have that momentum already going with an artist, because they don't really need you until they're heading out on tour or they get their record label advance or the money streams start coming in. And so that's usually when we get involved with an artist.

And then on the songwriter side, because songwriters are not out touring and on the road, they usually don't need us until they hit that level where it makes sense for them not to have to deal with it anymore and to pay us to do it. And so it's usually the more high net worth songwriter or the one who's cranking out the hits, a couple hits a year are the ones we usually work with.

Sarah:

And just as a follow-up, you mentioned that income streams are different for an artist versus a writer. Could you elaborate on that?

Kella Farris:

Yeah. So as an artist, you're going to sign a record deal and you're going to get record royalties for the records you put out. You're going to get endorsement deals. You're going to have merchandise, so you're going to have merchandise income. You're going to go out on the road and tours, so you're going to have touring income. You're going to have employees you have to pay. And with songwriters, it's really just the PRO income, which is the performing rights organizations like BMI, ASCAP, GMR. Once you have a single out on radio or even streaming, you're going to get money from your PRO. And then you're also going to have your publisher. So your publisher is who publishes your music. Depending on your publishing deal, you're going to get publishing royalties. Those are the two main sources for songwriters. And then obviously if you're an artist writer, you're going to have those sources as well.

Currie:

Kella, one of the things that Sarah and I love most about doing our research on you is that your motto at Farris, Self & Moore is all in. And that is really an extension of the Auburn creed, which is why I think maybe it hits home so much.

Kella Farris:

Don't tell my Georgia business partner that.

Sarah:

We won't.

Kella Farris:

Or my South Carolina other business partner.

Currie:

That's hilarious. Now, with your all in motto there at Farris, Self & Moore, how do you balance the work there and being member of several organizations and sitting on boards? Now, where is the line? How do you maintain all in with each one of those really difficult things that you have in your life?

Kella Farris:

Great question. I feel like in my 20s, I was just getting out there doing whatever I needed to do, going to songwriter rounds, making relationships. I wasn't married. I didn't have kids. I was just out there building my career and hustling and working on Saturdays and doing what I needed to do. And then my 30s, similar. And then I got married and I was like, "Okay, I've got to figure out how to streamline." And I think as FSM has evolved, honestly, it has allowed me to be able to focus more on the ... I do the high level stuff at our firm, and I have such an incredible team who does all of the day-to-day client bookkeeping and their needs and taking care of them. And then I get to do the high level stuff, which also allows me to sit on a board and do that kind of stuff as well. I honestly think it's just the team at FSM that supports me.

Sarah:

Tell us about your leadership style in respect to FSM, and how would your employees describe it?

Kella Farris:

Oh, man. I feel like I lead by example. I don't know if that's a style, but I lead by example and I just have a passion for the client and a passion for the music and a passion for what we do, because I can see the impact that it has on our clients. I mean, just the peace of mind they have that they can go be creative and we've got all the numbers handled. It just allows them that extra creativity brain space. And that's just I think the passion. I think the employees can see my passion for that.

And I'm definitely not a micromanager. I just have such great, great people at FSM who love our clients with the same level of passion. And you have to have that service mindset to do what we do. I mean, it's not fun to call Comcast and sit on the phone and try to get a cable bill down. Or some of that stuff is just not fun, but we've all done it, and that's the daily stuff that we do for our clients. And then the high level stuff is the estate planning and the insurance planning. And it's A to Z and it takes an entire team of people to do that.

Currie:

And speaking of leadership, a lot of folks conflate leadership and management. You're in a unique position in that you lead a company and you manage other people's businesses. Can you talk a little bit about the difference between the two?

Kella Farris:

Yeah. I mean, as far as managing other people's money and businesses, I just think my role there is to provide them with the information and the tools and my experience and advice. But at the end of the day, it's their money. It's their career, and they're the ones who make the decision on everything at the end of the day. We have meetings and I present them with the tour budget and it's like, "Okay, here's the tour budget. And here's how much we have in production expense. Do you want to spend this much in production or do you want to take it down a level and add more to the bottom line?" And it's their decisions on all of that stuff. And it's like, "Do you want to add another bus? Do you want to take your family out? What does that mean, monetarily?" and then they make the decision.

And the same for songwriters. At the end of the day, it's their decision if they want to buy a second home, and how do we pay for that? And what does that do to their entire financial plan? And is that okay? And I just guide them through it and give them the information, and then they make the decision.

And then leadership style wise, I guess, at FSM, I just try to be available. Anybody needs me or has questions, I really just try to be accessible and available. And I know I keep talking about what a great staff and great people we have at FSM, but we really do. And it's fun to see that next generation of leaders at FSM coming up and really taking ownership of their clients and their employees. And it trickles down. It trickles from the top down, and we just have a great team.

Sarah:

How did you find yourself on the CMA board and what is your role?

Kella Farris:

I used to VHS record the CMA Awards when I was six years old, seven years old, all the way up through high school. I would put the VHS tape in, and we had to go to church on Wednesday nights, and so I couldn't watch it live so I had to record it. And I would set the VCR timer to come on and record the CMA Awards, and then after church, I would get home and watch it. But yeah, the CMA is just very near and dear to my heart. It is the flagship. It's our trade organization for the music industry. It does so many wonderful things for our industry.

The two big events obviously are the CMA Awards in the fall, and then CMA Fest, which is about to happen this week here in Nashville, four-day music festival, which half of the profits from CMA Fest goes to the CMA Foundation, which supports music in schools, which is also unbelievable and amazing. So yeah, the fact that I get to serve on the CMA board is just an honor. It's awesome.

Sarah:

Yeah. A follow-up to that. I know Curry and I are passionate about the fitness side of being in school and PE and recess and lunch and how important play is. And I think that's one important aspect of the entire music industry seems to come together to try to raise money to add music programs into schools. How valuable do you think that is to our communities?

Kella Farris:

Oh, man, it's huge. And another thing the CMA does every year is we have our Music Teachers of Excellence awards, and we award teachers in schools and we give them a night to shine. We even invite them to the CMA awards and just treat them like royalty, because they are. Teachers are just huge. And then you put music teachers in with that, and it's just such a need. I mean, I have two kids and I see it daily of just how different my kids are. You never know if a child is going to go the sports route or maybe the creative music route. And so to have that opportunity for them in school to have music class is awesome.

Currie:

You have and you have had a dream career. What advice would you give listeners who may be wanting to follow a similar career path?

Kella Farris:

Oh, man. You just I think you have to have a lot of faith, too. I think faith is obviously the cornerstone of my life. It's funny. I prayed sitting in my apartment in Auburn that God would lead me to Nashville, and I wanted an internship in Nashville, and that's what I was praying for. And the next day is when Jeff Cook of the group Alabama called me and it was like, "Okay, not going to Nashville, but I'm going to Fort Payne." And that is what opened the door for me. So I think just knowing that if you're trying to pursue your dream, and I was dead set on Nashville, but the next day God was like, "Nope, you're not going to Nashville. You're going to go to Fort Payne." I think you just have to be open to that, and you have to just trust that there's a bigger plan in place.

And so at every turn, it may not be what you think, but there is a plan. I would just tell everybody to be faithful and trust and work hard. I mean, I know that sounds cliche, but when I interned with Jeff Cook, I fed his goats in the pasture, I cleaned up the office where I worked. I mean, I kept it tidy. There wasn't anything above me. I mean, I just did whatever I needed to do. And I think that work ethic was just instilled in me even from my parents and my grandparents, and there was nothing that I couldn't do.

Sarah:

Yeah. A lot of business people have said that they just never said no. They just said yes to everything and just went on that path wherever it led them. Was that very similar to you?

Kella Farris:

Yeah, that is. That is very similar. Yeah. When I moved to Nashville, too, I didn't really know anybody up here. I just was taking interviews, and I didn't even really know there was a such thing as business management. I was just taking any kind of interviews I could when I moved here. And after a couple months, I didn't have a job and I thought, "Well, I'm going to apply at Starbucks." And I think I filled out a Starbucks application and I had an undergraduate degree in finance and an MBA, and I was about to apply at Starbucks, and then a job came through. So yeah.

Currie:

Kella, I have a bit of an odd question. What do you know about NFTs and how they are going to change the game when it comes to music?

Kella Farris:

Oh, man. If I had a crystal ball, I think all my clients would want me to rub the crystal ball and tell them this. But no, I think it's valid. I mean, it is a topic. It's a hot topic right now. I don't know that we know the answer, but I do think NFTs will affect the live touring in some way, just with ticket sales and resales, and that model, I think, will be affected in some way. Obviously you're seeing crypto becoming part of the conversation in is it an asset class? Do you invest in Bitcoin? I mean, obviously I've had that conversation multiple times. TBD. I mean, I think it is the wild west right now. And I don't know that we can say exactly how it's going to affect the music business, but yeah, I do think it will and let's just keep informed. And I think the touring industry, for sure.

Currie:

In what way did COVID and the lockdowns that we experienced, in what way did that affect the country music industry and specifically how you managed your clients' business and financials?

Kella Farris:

I mean, it was like the middle of March when the lockdown happened and everybody was on tour, and the next day all the tours were canceled and we were all at home. And as a company, we immediately set up remote work and everybody took everything home and we started the remote work, just like the rest of the country and world, which that was a learning curve for everybody. Because we are an in office service collaborative firm, and we transitioned. I think the key word for 2020 was, I think it was pivot. Everything we would pivot. We would pivot. And so as a firm, we did a huge pivot to work from home, and obviously with all of the secure information and files and everything we work on and deal with, we had to do some IT, investments in IT and figure it out, and we did.

And then you add on top of that all the government programs that were rolling out. Our CPA, that was her one job, not one job, but her role during COVID was to keep us all informed on the government programs. And it was like drinking out of a fire hose, PPP and Employee Retention Act and stimulus packages. And I mean, the venue, there were venue things. And then all of our organizations, Music Care, CMA, ACM, they were all offering grants, and you were just daily trying to apply and get all of this for your clients who were literally off the road and at home and needing to pay their band.

And I think the trickle down effect was what was not talked about as much outside of the music industry and the fact that you have production guys, crew members, touring managers, lighting guys, riggers, people who worked at the venues. All aspects of the music industry were shut down. And we were getting PPP, Paycheck Protection Program, money for our clients so that we could try to keep some of their band on payroll. And it was just drinking out of a fire hose. But yeah, I think we took care of our clients in the best way possible through that time. And it's fun now. I think, too, it was a wake up call, obviously, because I don't think we take one show for granted now that they get to play and go out and do.

Sarah:

Yeah. It seemed like the country music industry was the first industry to open up and have shows and play outside and welcome their fans back.

Kella Farris:

Yeah. There was definitely some pent up demand.

Sarah:

Yeah, yeah. For sure. It's been great speaking with you, Kella. How can our listeners contact you?

Kella Farris:

Well, I'm not on social media. Yeah. Our website, FSM's website. They can email me. It's all on our website, www.fsmnash.com. It's probably the best way. I think my email is on there and my assistant's email is on there.

Sarah:

It's been an absolute pleasure speaking with you today, Kella. Thank you so much, and War Eagle.

Currie:

War Eagle.

Kella Farris:

War Eagle. Come see us in Nashville.

Sarah:

Yeah.

Currie:

Yes, ma'am.

Narrator:

Harbert. Inspiring business.