So lucky

It’s rare to get a glimpse inside the world of a celebrity’s actual business empire, which is what makes a story from British newspaper Mail on Sunday about the financial world of Kylie Minogue so interesting.

The paper obtained the financial accounts of Kylie’s company Darenote from Britain’s financial reporting regular, Companies House. They show the business empire of the pop princess made a profit of $6.8 million in the 12 months to April 2009, up sharply from the $2.1 million it made the previous corresponding period.

According to the report, the accounts (signed off by Kylie’s accountant father Ron Minogue) show a dividend of almost $2 million was paid from Darenote to Kylie herself.

For someone who had her first hit more than 20 years ago, the Darenote profit really highlights the singer’s impressive longevity and remarkable earnings power.

But look closely at the way Kylie has structured her business affairs and you can see some lessons that all entrepreneurs can use:

• Concentrate on high margin jobs. It’s worth noting that as with most performers, Minogue’s earnings are drawn mostly from the old-fashioned source of long, hard tours – mainly due to the fact that she gets to keep so much more of the revenue generated by ticket sales as opposed to album sales. Indeed, albums increasingly act as loss-leaders for many artists, particularly those who can draw huge crowds like Kylie.
• Premium pays. In late 2009 (during the period covered by the Darenote accounts) Kylie appeared at a special concert to open a hotel in Dubai. VIP or private appearances attract huge dollars for artists – all of which shows that exclusivity does have a real value.
• Diversify. The problem for many celebrities is that earnings can be so up and down. To smooth this out, artists such as Kylie extend their brands into other areas. Minogue’s endorsements include homewares, perfume (for women and men), books and clothing.
• Tap into new markets. Minogue has been brilliant at constantly finding new markets – just look at the way she still attracts customers who loved her as an actor, 1980s music star, pop diva, gay icon and fashion icon. She’s also continued to look to expand geographically. The Dubai hotel show was her first in the Middle East, while she launched her first major US tour in late 2009.