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Silence, Radio, Elevator Music, CD Player or Something that Sells?
[November 14, 2008]

Silence, Radio, Elevator Music, CD Player or Something that Sells?


Co-founder of IP Communications
 
In helping my clients work smarter but not harder I often ask about their marketing. Mainly we speak of print advertisement they may purchase but it always leads to what do you play on hold? What does the Law say about what you play on Hold, and what are the penalties?


 
The Law

By statutory definition, since a corporation or other company is a place 'where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered,' (17 U.S.C. SECTION 101) it is a public place for copyright purposes. Whether the performance is by the playing of a CD or tape, by a radio tuned to a particular station, or via music-on-hold (which constitutes a public performance by virtue of its being a transmission to the public), permission (called a 'license') must first be obtained in order for the use of that music to be lawful, and a fee (called a 'royalty') must be paid for such use.
 
I have never seen the Music Royalty Police, they are probably having lunch with the Mattress Police as I write but here are the penalties. This article in no way condones breaking any law anywhere for any reason.
 
The Penalties
Under U.S.C. TITLE 17, the law allows copyright owners to receive as damages for infringement between $500 and $100,000 for each work infringed. Moreover, a corporate officer who has the right or ability to supervise the company's music use and who has a direct financial interest in the corporation can be held personally liable for the infringement.
 
Therefore, you ask yourself, what are my options? I always say promote your business to a captive audience, besides it is a whole lot better than running the risk of your client listening to your competitors advertisement, and phone number while holding for you.
 
I asked my favorite Informative message on hold provider Casey Hart of the Informer Messages on Hold www.informermessages.com 800-862-8896 a few questions.
 
Zig: Who can benefit from MOH?
 
Casey: Businesses who need or want to maintain a professional image want to build repeat customers and who want to look different from other companies in heir field.
 
Zig: What do I want to tell my clients?
 
Casey: You want to tell them what you do and how you are different from your competitors, and give them more reasons to buy from you, not your competition
 
Zig: Does it make sense to list my products
 
Casey: a laundry list of products does no good, you need to drill down on your products and tell your core product story to your hold client how your product can benefit them most.
 
Zig: Is it costly?
 
Casey: Complete services are available for around the cost of a cup of coffee per day, Dunkin Donuts cost not Starbucks.
 
Zig: I am glad you clarified that, but can I really up-sell on hold.
 
Casey; The easiest sale to make is a sale to an existing customer, especially when they are in the buy mode, further it is easier to sell to a client than find a new one and it costs 5 times less.
 
Zig: Is this product for everybody?
 
Casey: No, it is not for fast food chains or ice cream .  But if your customers call you, for information or to order, we should look at it.  Do you have a lot of competition?  Then this is an opportunity for you.  Do you have different products you can “upsell” or “cross market”?  Then you’ve got more opportunity.  After talking with my client about their goals, we give them good ideas about how they can achieve more.   Insurance companies, Airlines , medical practices, or any service organization who receive volume calls.
 
Zig: Who is the easiest sell?
 
Casey: Someone who has gotten complaints about the length of hold time from their clients, and owners of companies or marketers who know the benefit of that captive audience.
 
Zig: Why not use Mozart on CD or a Radio?
 
Casey:  CD players ‘mysteriously’ disappear or burn out. Radios get staticy.And you’re always stuck listening to “somebody else’s favorite music!
 
 Zig: Bottom line this message on hold stuff for me, give me your elevator pitch.
 
Casey: Informer messages on hold inform your clients about what you do best and how you can help them and how you are different from your competition.  They’re the least expensive way to sound more professional.
 
 Zig: What else can you do?
 
Casey: We also do voice over for web-sites but our forte is making the most out of Hold Time.
 
Zig: So how can I stay out of trouble a little longer?
 
Casey: All of Informer Messages are custom written and professionally recorded to help you achieve more of your sales and marketing goals. You never have to worry about copyright infringement or paying fines. We can add music that is licensed specifically for you. The read can be a woman or a mans voice and we can do soft sell or turn it up a few notches whatever your business needs.
 
There you have it, everything you wanted to know about Music on Hold but were afraid to ask.
 
Zig Fekete co-founder of IP Communications in Stamford, Connecticut.
 
Zig Fekete has over 17 years of experience in carrier services with then Southern New England Telephone Company (SNET) now AT&T (News - Alert) in Connecticut. IP Communications is an authorized Allworx, 3-Com and Vertical Dealer including Vertical Wave.

Zig Fekete co-founder of IP Communications in Stamford, Connecticut. To read more of his columns, please visit his columnist page.

Edited by Jessica Kostek

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