There are a number of words for money.
You can also find a lot of methods of musicians to receive cash today.
Independent artists now have accessibility to more revenue-generating opportunities than previously before.
I am not saying it's EASY to generate income as being a musician, but it does mean you've more choices to explore, alternative ideas of aligning your talents with earnings stream, and alternative ideas of putting your recordings, songs, performances, and merch to work.
A list of common revenue sources for musicians:
1. Streaming revenue from your sound recordings
What is it?That is money you're owed once your recordings — whether you are the label, the artist, or both — are streamed on platforms like Spotify, Apple Music, or Deezer. This royalty may also be known as the “streaming license fee.”
2. Download revenue
What is it?For anyone who is a painter or perhaps a label, you are most probably owed money if you sell a download (on iTunes, Amazon, 7Digital, etc.).
[If you wrote/composed the song, you're also owed publishing royalties, but we'll enter into that more in depth later.]
At the moment, we're referring to the royalty you're owed for the digital sale of a sound recording.
3. Social video monetization on YouTube, Facebook, Instagram, Oculus, and more
What is it?You're owed money for the usage of your music in video content that appears on popular platforms like YouTube, Facebook, and Instagram. Those platforms create a “sonic fingerprint” of this recording, as well as any time your music appears in their ecosystem, it's monetized on your own behalf.
4. YouTube Partner Program revenue
What is it?YouTube gives eligible channels methods to earn ad revenue for their videos using the Partner Program.
How to collect?First, can you entitled to the YouTube Partner Program? If you meet those channel requirements, sweet! YouTube will probably pay ya.
5. Physical sales
What are they?Money earned by selling physical music media formats such as:
- USB flash drive
- and more
6. Mechanical royalties
What are they?Mechanical royalties are a type of publishing royalty (money owed to publishers and songwriters for the usage of a composition, rather than particular recording).
If you're an songwriter, composer, or producer who creates original music, you're owed an analog royalty to the “reproduction” of this composition. From the physical world, this meant mechanical reproduction by means of CDs or vinyl. In the digital world, both downloads and streams are considered virtual mechanical reproductions. You're owed money its it!
7. Performance royalties
What are they?Performance royalties are another way of publishing royalty, owed to publishers and songwriters when their compositions are played about the radio, performed in public places, and more.
8. Non-interactive streaming royalties (a form of Neighboring Rights)
What are they?From the USA, these are royalties generated from non-interactive streaming on internet and satellite radio services. Non-interactive streams are passive plays that happen when a user is NOT choosing what precisely to merely hear — like on Pandora Radio. Unlike publishing royalties, which have been owed to publishers and songwriters for the usage of a composition, these royalties are covered the usage of a sound recording. They're owed towards the featured artist(s), the session players, as well as label that helped create the recording.
Internationally, these royalties to the reproduction of a sound recording tend to be broad, including not just for non-interactive streaming, and also TV and terrestrial radio royalties. From the USA, radio play in the airwaves only generates money for songwriters and publishers, NOT artists and labels.
9. Fees for session, production, arranging, or remixing work
What are they?Like a musician, you almost certainly do OTHER work outside of your personal music-making. You use on a friend's record. You help arrange or build a track for an individual in the scene. You remix a song by a painter halfway throughout the world. Sometimes you'll work for nothing or as a favor for somebody, and sometimes — most times — you need paid for these efforts.
How to collect?This region is a little more nebulous, as terms are generally negotiable (for instance, should a producer get songwriting credit or just get points?).
A very important factor is for certain: Get a agreement in some before you decide to collaborate. Determine should this be a work-for-hire situation where you're contributing your talents for the upfront fee ONLY, or maybe if you deserve some ownership stake or ongoing royalty split.
10. Live performance income
What is it?The bucks you earn from playing live! Might be the door charge. May be ticket sales. Might be a guarantee. Minus house expenses, “catering” (cheap beer and chips), and “promotion” (your name in tiny font at the foot of a monthly calendar in the local rag). ; )
How to collect?With live revenue, there is no one answer. You could get paid from the talent buyer prior to a gig, from the bartender or bouncer at the conclusion of the night time, by way of a promoter stuffing a bloody envelope with crumpled bills weeks afterwards, or with an instant transfer of funds originating from a ticketing platform.
However the money is born, enjoy!
And, please remember to file for your setlists using your Performing Rights Organization if you are playing original material, as that starts up additional royalties beyond the venue or promoter initially pays you.
11. Sync licensing revenue
What is it?“Synchronization” is the action of pairing audio with moving images — video, film, TV, commercials, games, corporate presentations, etc.
Any time a song is employed in this way, the songwriter(s), publisher(s), and label must all be paid! Not only this, those rights holders find set the terms for any sync usage, set the monetary amount on the license, and constantly can say “No, pay a visit to hell.”
How to collect?You may handle your own personal sync licensing, negotiating with music supervisors yourself, or use a sync licensing service.
Remember, 50% on the sync fee is owed towards the label plus the other 50% goes towards the publisher(s)/songwriter(s).