Ways to Make Money in Music Right Now (for artists)
by Carl Rushing
Diversifying is one of the most important concepts for an artist who wants to have an independent career in music. We've all heard, "Don't put all your eggs in one basket" or "Don't place all your chips on one bet". For most successful artists, generating a small amount of money from a number of different areas adds up to dollar signs. These primary areas of income are listed below with descriptions and advice for each. I hope you find this information useful in generating income.
Merchandise
Sale of merchandise includes CDs, t-shirts, hats, and any other physical item with your logo or music on it. For independent artists, sale of merchandise will be mostly sold at an event you perform at. Therefore live performances are vital. www.cdbaby.com and www.amazon.com are the 2 primary sites where indie artists can sell a CD online. You can also create and sell merchandise other than CDs at sites such as www.cafepress.com .
Digital Sales
Digital sales encompass any digital music format (MP3, FLAC, etc) purchased at online stores such as iTunes. These sales are great because there is no manufacturing costs and they can be purchased instantly by anyone in the world with an internet connection. Having music available at all the main online retailers is a necessity and very easy to do. www.cdbaby.com and www.tunecore.com both have great programs for digitally releasing your songs. For promoting your music online, it is crucial to have positive articles, reviews and links to your music. This will increase your search-ability and the chances that a new fan will find you in the clutter of online music.
Teaching
While teaching is usually the last thing an artist wants to do, it is also one of the most practical and guaranteed methods of getting paid in the music industry. Imagine where we'd be without the people who taught us what we know over the years. It can be a positive way to strengthen your foundation and make some money in the process. There is a saying that says, "The best way to keep what you have is by giving it away." You can advertise for free at www.craigslist.com . There are also music schools and traveling teaching organizations you can get involved with too.
Songwriting
Writing for other artists is as much of developing a relationship with that artist as it is writing the song. Many of the artists in need of songwriting are young, pop-centered artists who's investor is looking for a "hit".
If you have a knack for writing hit songs but don't care to perform them, there is a world of opportunity here for you. Songs (in the form of a polished reference) are usually pitched to investors by a producer and songwriter team. If the investor likes it and an agreement is reached, the song is considered "placed". You will likely receive an upfront payment as well as songwriting royalties if the song gets played. If you've developed a solid reputation as a songwriter and someone has an idea for a song, they may pay you an advance to custom create a song for their project.
Song Placement
Song placement generally refers to a song that has been used by an advertising, movie, or television company in their production. The great thing about getting a song placed is the song has already been recorded which means your job is done (unless you're the one negotiating the contract).
A publisher, who's job it is to get a song placed and negotiate, is usually involved. It is standard for a publisher to receive 50% of royalties. Finding a good publisher to push your music can be very profitable for both parties.
A friend of mine once got a check for $50K for the use of one of his songs in a Sprint ringtone commercial during a Superbowl ad. And he has always been an independent artist!
www.taxi.com is one of the more popular companies who help writers and publishers place their songs.
Shows
Events that pay are generally put on by established promoters, organizations, corporations, or festivals with a set budget for entertainment. Most of these groups have a submission process for being considered.
Formal private events such as weddings can also pay very well but usually require the artist to play cover songs that the crowd knows. Showcases and parties thrown by other artists or small-time promoters almost never pay (and some even require the artist to pay).
If you enjoy staying out late and being social, many artists have found success in promoting their own event. Keep in mind, a 2% attendance of people you promote to is considered a success!
Whatever public event you perform at, play a part in promoting it, and you are more likely to be asked back by the promoter and gain a larger fan base.
Investors / Labels
Manufacturing, studio time, merchandise, and promotion can all be very expensive and time consuming for any one person to take care of themselves. For this reason, investors and labels are in most cases great for an artist. Most investors or labels in the independent world are started up by friends, associates, or fans of the artist. These investments work like loans that are only repaid by the artist from the sales of music. This does not have the same risk for the artist as a credit card or bank loan.
Grants
Donations
Other than family financial gifts, donations are made primarily by loyal fans who download your music free with the option to pay. This model worked great for Radiohead who gave their 2008 release, Rainbows away for free but still generated a lot of income from fans who clicked the "donate" link on their site. While this might be more difficult for an independent artist, it is a good idea to have a "donate" link on your site if you plan to give any of your music away for free.
Sponsors
Sponsors are people or groups who use an event or artist to promote their brand or product and in return donate money or promotional products. A couple examples of sponsors are Run DMC and Adidas or The Seagrams Gin Tour sponsored by Seagrams Gin.
For the independent artist sponsorship might come in the form of an artist agreeing to wear a brand of clothing by an independent designer at a public event in return for free cloths. Another agreement could be the artist placing the logo of a business on the back of their CD and in return that business donates their goods or services. Remember, it is always cheaper for a company you deal with to pay you with goods or services than with cash. If there are indie or local brands you genuinely like, approach them on sponsoring you.
Featuring on Another Artist's Song / Session Work
Session work for singers and instrumentalists range from free for up-comers and $30-$75 per hour for established independent artists. While it is almost always looked at as a promotional opportunity for independent rappers to feature on another artist’s song, a well-known independent or famous old-school rapper typically makes $200-$1,000 per 16 bar verse. Major label artists usually make over $15K per verse. Having a well-known feature on your project and being a feature on other artists’ projects can benefit both parties by sharing fans.
Engineering
Engineering is one of the more stable areas in the music industry. There will be a need for an engineer as long as people are recording vocals or instruments. If you have the patience to perfect this skill, you will not only be able to run your own sessions rent-free, but you can also help other artists and will be paid in the process. And your experience on the mic will give you an edge over other engineers.
If you already have a computer, you can buy studio starter kit for under $1000 (which will likely include a condenser mic, Mbox (includes Pro Tools), studio monitors, headphones, and wires). Look for tutorial videos and private lessons offered by studios to learn Pro Tools. Starting rates for home studios is $20-$30 p/hr.
Beat Making
You can custom craft your own sound and save time and money on working with and finding producers by making your own beats. R Kelly, Eminem, Kanye West, Akon, and Pharrell are a few of the artists we know who have found success both on the mic and beats. FL Studio is a user-friendly and very popular beat making software for beginners. If you are interested in marketing your beats to other artists, be sure to check out www.soundclick.com and www.pmpworlwide.com .
Graphic Design, Photography, and/or Video Editing
Graphic design, photography, and/or video editing are also skills you can learn that can both save you money and make you money. With a laptop, software, and a camera you'll have the essentials to getting started. For online classes, www.lynda.com is highly recommended!
