Little-Known Ways Musicians Can Make Money

Generating an income is one of the biggest tests musicians are facing. Music sales and touring are not any more reliable to earn a living. The traditional and more modern income streams are mixed to help today’s musicians generate revenue for their music career. Here are the little-known ways musicians can make money.

1.     CD, Vinyl, and Digital Sales

If you will be playing live shows, having CDs on hand is a great takeaway souvenir for your fans. Each band members can easily sign on it. Printing a few batch of vinyl placed at your merch table generates an extra income. To make the most money, you can sell digital music through your own website besides online retailers, who take a percentage of sales.

2.     Streaming and Live Shows

The streaming services let your new fans discover your music but not solely your income generator since the per-stream payouts tend to be small even if they accumulate over time. One of the best ways to earn income for musicians is money made from live shows. You can make money from selling tickets and merch.

3.     Physical and Digital Merch

Income from physical merch like t-shirts, buttons, and stickers depends tremendously on a number of live shows you and your band play. You just make sure that you bought them when there’s a band tour. Digital merch items such as videos, PDFs, exclusive photos, lyric books, sheet music, artworks, and live concerts can be sold to your fans as well through your website.

4.     Crowdfunding and Sponsorships

A crowdfunding campaign that is skillfully carried out can also raise enough money to counteract the cost of your album production and marketing process. There are some companies that are very much willing to sponsor those musicians you have a fan base to get connected to those fans. These sponsorships range from cash to freebies, as well as free services and gear.

5.     Royalties

You can collect publishing royalties on your music including the mechanical royalties like in streaming, the sync royalties like in commercials, and the public performance royalties like in radios, live venues, and TV. You can also collect digital royalties from services such as webcasters, Pandora, and SiriusXM radio. PROs (Performance Rights Organizations) will pay the musicians with royalties from those live performances when they perform an original material at a bar, club, or any music venue.

6.     Licensing, Songwriting, and Composing

The licensing fees from your song placed in the TV show, commercial, or film vary greatly. They depend on the budget for that project and how severely they want your song. Being a songwriter has an advantage too since you can write some songs for other music artists. You can also compose music for a specific film and television.

Conclusion

Many musicians give music lessons to others using their instrument of expertise. It allows them to hone their craft and generate their income at the same time. Some would shamelessly play cover gigs at parties or any private or corporate event. There are many little-known ways to help develop your monetization strategy, and attitude and perseverance are all needed to your music career.

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5 Foolproof Tips Before Getting Into Music Investment Agreement

Beginners in the music industry have queries on how to structure a relationship between the musician and the investor. You must have a music investment agreement that provides the details between the investor paying money and you as a musician receiving the funds. So, here are the foolproof tips before getting into such music investment agreement.

1.     The Investment

Some musicians raise money to record and promote their latest album to online platforms such as Kickstarter to obtain financial assistance from fans, family, and friends. Others get lucky enough to have a wealthy pal who is investing in your music. Most investments are made in the next album, and the investor is likely rewarded specifically from the music album. You just make sure that you are on the same page with the investor. The payment owed to the investor is much more far-reaching if they invest on the artist broadly.

2.     The Masters and Decision-Making

The musicians preferably want to take control as much as possible while covering financial obligations to the investor. You need to check as to what extent you must consult with each other in terms of business and creative decisions regarding the music album.

3.     Roles and Responsibilities

There should be clarity in the music investment agreement about each person’s role. You might be expected to do certain tasks other than doing your music, such as team arrangement or writing and performing songs. It’s advisable to ask your investor first about his expectations and have it incorporated into the agreement consistent with his wishes as long as you have already agreed with those.

4.     Expenses

You make certain that the obligation of the investor to pay for your expenses directly or through you is clearly stated in the music agreement. A budget must be set out from the outset that confirms the investor will full financial support. The cash flow, the time money is paid, production costs, and promotion and distribution expenses must also be stated. Also, the legal expenses for someone when the investor pays for your music album budget must be drafted and reviewed in the agreement.

5.     Timeline

A timeline of upcoming milestones from the creation of your music work to its exploitation should also be included in the agreement. Hopefully, those milestones will be hit once the agreement is signed. The investor must be kept updated, so you send them. Always make certain to follow any private investment rules based on your state or province you’re located.

Conclusion

The relationship with your investor is sort of a marriage close to a musician’s relationship with his band members, label, manager, or agent. You look out for a person whom you trust, shares the same definition of your success, and genuinely willing to take with you on your musical journey. In return, you’ll let him believe that your music will provide him a worthwhile financial return on their music investment.

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