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32 Different Ways Artists Can Make Money...

Friday, February 04, 2011
by  Admin

But which ones are really producing serious revenues?  Here 32 different possible possible revenue streams for artists, as compiled by the Future of Music Coalition (FMC).   The group is currently conducting a survey of musicians to figure out which streams are working the best.              

 

A. If you are a composer or songwriter, here are possible revenue streams from your musical compositions...

1. Retail sales: Mechanical royalties from physical sales of recordings of your songs at stores, concerts or via mail order.

2. Digital sales: Mechanical royalties from digital sales via online services (CD Baby, iTunes, Amazon, eMusic, Rhapsody, MySpace Music)

3. Sheet music sales.

4. PRO Royalties: Royalties for the public performance of your work (airplay on radio, TV, movies, jukeboxes, live performance and foreign royalties, and home recording and foreign levy payments) as distributed to you by ASCAP/BMI/SESAC.

5. Advances from publishing companies during a publishing deal.

6. Payments from publishers for litigation settlements.

7. Commissions for works.

 

B. If you are a performer (think Patsy Cline), possible revenue from sound recordings...

8. Digital performance royalties: Royalties for the digital performance of your recordings — airplay on satellite radio, webcast stations, cable TV stations — distributed to you by SoundExchange.

9. Advances from record labels that are not just reimbursement of recording or touring expenses.

10. Label payments for tour support or recording expenses.

11. Payments from labels for litigation settlements.

12. AARC royalties: collected for digital recording of your songs, foreign private copying levies, and foreign record rental royalties, distributed to US artists by AARC.

13. AFM Payments (TV, Film): Payments from the Film Musicians Secondary Markets Fund to performers on recordings used in TV and other secondary uses.

14. AFM Payments (Recordings): Sound Recording Special Payments Fund to performers for the sales of recorded music

15. AFM/AFTRA Payments: Payments from the AFM/AFTRA Intellectual Property Rights Distribution Fund (distributes recording and performance royalties to the non-featured artists)

 

C. Possible revenue from licensing your musical composition or your sound recording...

16. Ringtone Sales: Mechanical revenue from ringtone sales

17. Synch Licenses: Synchronization royalties based on master rights licensing your song to TV/movies/video games/commercials

18. Sampling Licenses: Licensing fees from other musicians sampling your songs.

 

D. If you're a performer, possible revenue from live performances...

19. Touring and showscompensation for playing live shows or performances, including busking.

 

E. Revenue from a performer's brand...

20. Merchandise sales: t-shirts, posters, etc.

21. Sponsorship: of tour or of a band/artist.

22. Direct financial support from fans/patrons.

23. Ad revenue or other miscellaneous income from your website properties (click-throughs, commissions on Amazon sales, etc.)

24. Acting in television, movies, commercials.

25. Product endorsements.

26. Other licensing of your persona (to video games, comic books, etc.)

 

F. Revenue from an artist's knowledge of the craft...

27. Work for hire/hired as a studio or live musician or composer

28. Work as a music teacher.

29. AFM/AFTRA session payments: Session payments for recording sessions, TV appearances, and performances flowing from synch licenses

30. Producer: income from producing or music direction

 

G. Other ways a musicians' work can be funded:

31. Government grants.

32. Nonprofit/foundation grants.

 

    





  • Comments Closed
    Comments (34)

    Youareyou Friday, February 04, 2011

    *Yawn*


    Chris Rockett Monday, February 07, 2011

    I would add one more money maker to the list if I may...

    Just to simply build a mailing list and start selling your music right from your website as digital downloads.

    This option is great because you don't have to risk printing up hundreds of CD's that might not sell and you get to keep 100% of the revenue.

    Speak soon,

    - Chris 

    http://www.promoteyourmusic.net/


    Yves Villeneuve Saturday, February 05, 2011

    In the name of good or popular music being created while following the consumer trend, the biggest revenue-producer the 'recording artist' should solely rely on is item #2.

    Those who also like to perform live can add #19 as icing on the cake.

    A cherry on top might be selling videos.

    www.myspace.com/yvesvilleneuve

     


    i say good day Saturday, February 05, 2011

    mechanical royalties are paid to publishers of songs, not artists. though they may be the same person, it's probably important to differentiate them.


    annie Tuesday, February 08, 2011

    Mechanical and broadcast royalties actualy split between the publisher and the songwriter. (may be the same person, and if the artist has written the songs...as you say...may be the same person as the recording artist.)


    i say good day Saturday, February 05, 2011

    or maybe the remedy could be to not have the headline "32 ways ARTISTS can make more money," but rather, "ways publishers make money."


    @Auddyaward Sunday, February 06, 2011

    Auddy Award 
    We know this isn't why you make music in the first place, but at some point you've got to pay the bills...


    @zadokband Monday, February 07, 2011

    Chris Minnis 
    Listen Up.


    @taperec Monday, February 07, 2011

     daniel TAPE 
    ... thanks to Future Of Music Coalition.


    Aimee Ricca, 8 Ways To Sunday Monday, February 07, 2011

    What about fan club and premium/VIP experience revenue? Artists with a strong following can make signficant income from their fan club. Also, selling premium tickets and VIP experience packages for their live performances to fan club members.

    www.8waystosunday.com


    kthomson Monday, February 07, 2011

    Good point, Amy. We'd categorize income from fan club subscriptions and VIP experiences in the fan funding bucket (point #22). I'll add some language to our documents to make it clear what it includes.

    Kristin Thomson/Future of Music Coalition


    Darryl Ballantyne (LyricFind) Monday, February 07, 2011

    What, no mention of lyrics licensing revenue? We've paid out millions to publishers - and growing fast every year!


    NathanJE Monday, February 07, 2011

    how do you make this lyrics money?  I have no idea where to begin.


    @revista69 Monday, February 07, 2011

     69 
    Aquí tienes 32 maneras de hacer dinero con tu música sin tener que escribir canciones para campañas políticas...


    kthomson Monday, February 07, 2011

    Thanks for the reminder about lyric licensing. We'll add it to the list.

    This list, which was originally posted on FMC's website in October 2009, is actually part of a multi-pronged research project that FMC is currently conducting regarding musicians' revenue streams.

    Clearly, there have been changes in the music distribution landscape in the past decade. Many observers have characterized these structural changes as positive improvements for musicians, particularly when compared with the music industry of yore. While it’s true that musicians access to the marketplace has greatly improved, there has been no systematic attempt to understand if and how artists’ ability to generate revenue based on their creative work has changed in this new environment.

    This is why we have launched the Artist Revenue Streams project, a multi-method research initiative to assess if and how musicians' revenue streams are changing in this new music landscape.

    You can learn more about the research components and methodology on the project's page here.

    http://futureofmusic.org/article/research/artist-revenue-streams

    or on a recent blog post on the FMC site

    http://futureofmusic.org/blog/2011/01/31/fmc-launches-artist-revenue-streams-project

     Kristin Thomson/Future of Music Coalition


    presnikoff Monday, February 07, 2011

    Kristen, 

    I just asked Darryl Ballantyne @Lyricfind if he'd share more on the best ways for artists, labels, etc. to capture lyrics revenue streams.  He's agreed to guest post, so perhaps we can add that to the knowledge pool.

    /pr

     


    Visitor Monday, February 07, 2011

    Umm seriously?

    Absurd and outdated don't even begin to cover these ideas...

    this pre-historic thought process is exactly why the industry has crumbled.

    Aimee R. had more relevant thoughts in her comments...

    like any other business you have to transform your model and embrace the consumer's wants & needs, you have to adapt to the economic climate of the present, not use worn out ideas from the past.

     

     


    @Sonicbids Monday, February 07, 2011

     Sonicbids 
    Check out this great post...


    @b1ward Monday, February 07, 2011

     Byron Ward 
    Good stuff


    @nimbit Monday, February 07, 2011

     nimbit 
    How many of these have you had success with?


    jeffb@chrysalismusic.com Monday, February 07, 2011

    To be successful, you have to concentrate on both new media and so called traditional media sources of income combined.

     

    It is not an "either or world"; it is not a "digital vs. non digital world"...It is a world of both.

     

    All are essential for a career and all make up the all important royalty stream needed by artists and writers.

     

    Whether it's licensing for motion pictures, television, commercials, the Internet, Broadway, downloads (both permanent and limited), streaming (both interactive and non interactive), karaoke (Internet vs physical), performances, video games, lyrics on jeans, singing toys, pre-programmed smart phones, subscription services, etc,. etc., etc.,....the list of potential income producing areas is literally endless and expanding everyday.

     

    You had better know the rules and how things work though...as things in the world of music are getting more and more complicated....But the money is there and it continues to be a world and business of unlimited opportunities for both income and artistic satisfaction.


    @POLOBIG Tuesday, February 08, 2011

     POLO BIG™ 
    THIS IS GOOD INFO..


    Koloni Monday, February 21, 2011

    for thanks..

     

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    @jeff_makemoney Tuesday, February 08, 2011

     Jeff Smith 
    Make$Video, cool -


    @BerkleeLeigh Tuesday, February 08, 2011

     Leigh McLaren 
    make money, make money!


    paddlebro Tuesday, February 08, 2011

    Thanks for posting this great info.

    One little known niche addition to #29 is music preparation (copying, orchestrating) for TV/Film. If done under AFM contract, copyists and orchestrators can participate in back-end profit sharing. However, this is changing too. More and more TV/Film music work is being done non-union.

    Eric Jensen

    www.ericjensenmusic.com


    @RockstarMindset Tuesday, February 08, 2011

     Rockstar Mindset 
    I consider this the short list, incl comments. I esp like what jeffb@chrysalismusic had to say.


    @theDS3group Tuesday, February 08, 2011

     DS3 Entertainment 
    Music peeps: Pls follow @ & Read this article!


    @fanaticfm Tuesday, February 08, 2011

    fanatic.fm 
    Please include fanatic.fm in a list :) 


    @BTSForScales Wednesday, February 09, 2011

     Allan Haapalainen 
    @ 
    great article! Thanks for sharing!


    @wizwow Wednesday, February 09, 2011

     Don GIannatti 

     hmmm.... lawncare, drive a cab, work at Kinko's, be a manager...


    James Chatman Monday, February 14, 2011

    22. Direct financial support from fans/patrons.

    Extremely underrated income stream. Many unknown artists are making a full-time living out of their music through premium subscription services. A great case study for this is Matthew Ebel. Ariel Hyatt wrote an article about him on Music Think Tank:

    http://www.musicthinktank.com/blog/in-defense-of-1000-true-fans-part-ii-matthew-ebel.html 

    ALSO

    If you get the chance, please check out my personal blog at http://jameschatman.wordpress.com/

     


    nikos Thursday, February 17, 2011

    nice tips to make money! i wish i could too.. rhodes


    @luisermusica Monday, February 21, 2011

     luiser 
    Al menos 75% de ellas son inaplicables en Venezuela...
    At least 75% of these aren't applicable in Venezuela ...


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