As Artists Monetize Fandom, Absolute Merch Rules Touring

Music merch has become a key aspect for artists dropping a new album. Pop-up experiences and limited edition collections are also part of the strategy to engage fans, generate new revenue and bolster brand value.

According to a recent MIDiA Research report, “Music merchandise demand: Who, what, and where,” the global merchandise market is set to become a $16.3 billion industry by 2030. However, annual revenue growth is expected to drop to 1.6% as the market matures.

Digital disruption in the music industry requires artists to evolve how they generate revenue and connect with fans. Merch has replaced album sales as the primary revenue driver for some of the world’s largest touring acts, including Rüfüs Du Sol, John Summit and The Used.

From apparel and accessories to lifestyle and tech items, music merch offers fans personalized and bundled options like artwork, cookbooks, hand-written lyrics, limited-run vinyl or festival survival packs (hat, water bottle, sunglasses and sunscreen included). For artists, physical merch is scalable and an exciting way to play up their social media, websites and live shows.

Merch mogel Billy Candler, co-founder and CEO of Absolute Merch, today generates more than seven figures of revenue in merch sales for artists. His trajectory in the music industry went from concert promoter and artist manager to entrepreneur who launched Absolute Merch with no funding in 2012. He has built the brand into a $150 million business with a staff of 14 to rival merch industry giants.

Dominating the touring space, Candler strategizes with musicians to cut through the challenges of streaming and AI and exceed their revenue goals. He says it all comes down to his streetwear strategy and mastering the art of creating meaningful merch akin to a fashion label.

“We treat band merch more like it’s a clothing brand. The supreme streetwear model, really cool high-end limited drops and finding ways to make merch feel like fashion,” Candler says. “Merch is an oversaturated product now, so it’s trying to find ways to make it special, making sure there is an intention and story behind it to create businesses that are sustaining our artists.”

Independently founded, owned and operated, Absolute Merch outpaces most artist merch strategies by crafting fully-tailored fashion lines as an extension of each band’s personal brand. Creating custom cut-and-sew pieces and high-end designs inspired by nostalgia and viral moments, the company turns artist merchandise into collectors’ items promoted by marketing campaigns generating more than seven figures of revenue for some of the biggest touring acts.

Inspired by streetwear marketing that plays on exclusivity and hype, Absolute Merch’s full-scale merch strategies also feature merch drops and limited-edition designs that power community and revenue, often leading to merch trades among fans.

Thomas Gutches of Thomas Gutches Artist Management has a long-standing working relationship with Absolute Merch. One of the company’s longest-tenured bands, Gutches says he made the connection when Candler purchased his first printing machine and offered to create a limited-edition hoodie for the band.

“Merchandise is one of the few things an artist has complete ownership of. It is one of the few things record labels do not have control over in terms of cross-collateralization,” says Gutches. “Recording royalties are not as substantial as they once were due to streaming, so bands are having to invest additional effort in merchandise to cover daily overhead and touring costs.”

According to Gutches, merch proved instrumental in Beartooth rock band’s survival during the Covid-19 pandemic. The band sold unique apparel and home items including pajama pants, woven blankets, card decks and a puzzle.