They’re Hip to Other Business

When rap mogul Master P appeared on Forbes’ list of the 10 highest-paid entertainers last year, most readers attributed his earnings solely to his tremendously successful No Limit Records. But the New Orleans native also owns a film company, a sports management firm, a gas station, a shoe store and a restaurant, among other ventures.

Master P is not the first, or only, rapper to operate successful, non-music-related businesses. Pras (from the Fugees), Puff Daddy and Jay-Z are just a few well-known hip-hop acts who have started their own clothing lines--one of the first types of businesses into which rappers began to branch out. And with hip-hop music enjoying ever-increasing sales--it accounted for more than $1 billion last year--more and more rappers are investing their earnings in other types of start-up companies. They own magazines, kennels, liquor stores, barber shops, bookstores, clothing stores and restaurants, in addition to the old standbys--vanity record labels, recording studios and music publishing companies. And rap stars are modeling and acting in movies.

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“Master P really helped out a lot,” says Mack 10, who appeared in Master P’s breakthrough film “I’m Bout It.” Mack 10 recently launched his own film company, Hoo-Bangin’. “He let us know that the goals are reachable. You don’t have to sit around and wait on anybody to do nothing for you. You’ve got to create your own opportunities. If you’ve got the money, make it happen.”

Hoo-Bangin’ Films’ first movie, “Thicker Than Water,” will be released in October. Like Master P, Mack 10 stars in his own movie, which also features rappers Fat Joe, CJ Mac and MC Eiht in prominent roles.

Although these outside ventures may take time away from an artist’s music, many consumers seem to enjoy supporting musicians in other media.

“Fans want to feel a part of the artist’s life,” says Michael Caren, who represents high-profile rappers Trick Daddy and Twista at Atlantic Records. “If fans can feel involved on any level in addition to the music, they’ll feel closer to the artists. I think fans love it if they can say they went to see a rapper in a movie or went to his store. Fans also look at it as giving back to the community because [the rappers] have nice salons and stores in their community that they might not have otherwise.”

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While many rapper-owned businesses cater to urban dwellers, some aim for a ritzier demographic. Jermaine Dupri, for example, co-owns Silver Lake restaurant Paio with actress Regina King and also co-owns So So Def Sports, which represents 15 athletes, including Green Bay Packer Dorsey Levens and Indianapolis Colt Tyrone Poole.

“I’m influenced by a lot of other people that do things, entrepreneurs,” Dupri says. “I always wanted to be one, somebody that people could look back and say, ‘JD was one of those people that was really trying to build up things.’ ”

King, for one, was impressed enough with Dupri’s business acumen to approach the star musician with a business proposition. “Jermaine’s got so many things going on,” she says. “Like so many rappers, he wants a place that he calls his in every major city.”

And, of course, there are other motives.

“People always said this [music] was a fad,” Dupri says. “They always said, ‘Jermaine, you need something to fall back on.’ I’m doing all of these other business ventures so that I have something to fall back on.”