REVENUE MAKING MACHINE – MUSIC

REVENUE MAKING MACHINE – MUSIC

Musical works are revenue-making machines if exploited properly, once the music is good and well-accepted the revenue-making opportunities are endless. More than ever, Independent artists now have access to more revenue-generating opportunities than ever before. In this excerpt, we take a look at some of these opportunities available to you to build multiple revenue streams:

Touring & Live Performances:

Despite the proliferation of digital music streaming platforms like Apple Music, Tidal, Spotify and so on, providing a regular source of revenue for the creative industry, Touring/Live performance ticket sales still serve as the primary source of income for most musicians today. Live performance is said to account for over 28% of an average artist’s income and is the largest piece of the pie.

While streaming gives the fans easier access to an artist’s catalog and provides a platform for artists to grow their audience, Live performances foster connection with their audience on a personal and emotional level that may not be achieved via streaming. This is why Live music will continue to be a big deal.

Brand Endorsements & Sponsorships:

Over the years, revenue generated from brand endorsements and sponsorships have become a significant part of an artist’s overall earnings as it offers artists the ability to endorse or sponsor a brand that they may genuinely like or display common interest with their audience and get access to additional revenue stream while at it. 

Whether it’s a fashion outfit, food or sports brand, collaborating with brands could help you extend out to larger markets and audiences than you may not have reached otherwise.

Also, one of the best ways an independent artist can make a consistent income from brand partnerships is by having a solid online presence and a significant social media following

Merchandise:

Through the sales of valuable items such as T-Shirts, CDs, mugs, stickers, and more, merch has become a key revenue generator for artists. Some artists are becoming inventive with mercy sales by setting up online stores and deploying e-commerce solutions through which their fans can make purchases beyond the traditional merch tents at concerts.

Royalties (Recording, Composition, Copyright):

If you’re writing original music, making recordings and having your assets used by others, you’re entitled to publishing royalties. Like all intellectual property, songs and recordings come with a set of rights. When a song or recording is used by others, the owner(s) of the property is entitled to various royalties.

There are two types of publishing royalties:

• Mechanical Royalties: are owed to songwriters and publishers when their composition is streamed, downloaded or reproduced.
• Performance Royalties: owed to publishers and songwriters when their compositions are played on the radio, performed in public, and more.

Synch Licensing:

Synchronization, otherwise known as Synch licensing involves placing music in film, TV, commercials, video games or other forms of visual media. Whenever a song is used in this manner, the songwriter(s), publisher(s), and label(s) get paid. While the licensing fee varies from project to project and how much of the song is being used, Synch licensing is a significant revenue source for artists.