Show me the Money

As we know the Internet has changed the way a lot of business do business these days. The music industry is no different. The traditional way of getting your music is no longer the norm. You don’t make money from selling CD’s the traditional way or having your songs played on the radio anymore. So how do you make money in the music business these days? According to Billy Corgan “They have to think about it as art, do the art and then figure out these other ways to make the money. So they really have to become marketers musicians have to stop thinking about it as money.” You will have to learn how to work with the Internet and figure out a great marketing scheme in order to make money. With the age of social media you can promote your music through Twitter, Facebook and MySpace.

One of the key ways to make money is to build your fan base. Your fan base is your key to success. They will stand by your music no matter what. With the age of digital download, user no longer download entire albums they might be only interested in a single. Music Business Course Director Israel Vasquetelle, who also attended SXSW, agreed that building a fan base is critical to musicians. “Maybe they won’t buy a download or CD because that transaction isn’t valuable to them or possibly because that’s not how they choose to consume music, but if your music, message, and brand resonate with them, you now have direct access to any business that comes from that. Today, talented and business savvy artists of all ilk have a shot at varying levels of success.”

I found a fantastic website that list 42 different ways to earn money in the music business. Future of Music Coalition (FOMC) states this is a running list "Songwriter & Composer Revenue can range from Publisher advance, Mechanical Royalties, Commissions, Public Performance (PRO) Royalties, Composing Original Works for Broadcast, Synch Licenses, Sheet music Sales, Ringtones Revenue, ACAPlus Awards Program and Publisher Settlement. Performer & Recording Artist Revenue includes Salary as Member of Orchestra or Ensemble, Shows/Performance Fees, Record Label Advance, Record Label Support, Retail Sales, Digital Sales, Sales at Shows, Interactive Service Payments, Digital Performance Royalties, AARC Royalties, Neighboring Rights Royalties, AFM/Secondary Markets Fund, AFM/Sound Recording Special Payments, AFTRA Contingent Scale and Label Settlements. Session Musician Revenue includes Session Musician/Sideman Fees for Studio Work, Session Musician/Sideman Fees for Live Work and AFM/AFTRA Payments. Knowledge of Craft includes Teaching & Producing include Music Teacher, Producer, Honoraria or Speaker Fees. Brand-Related Revenue includes Merchandise Sales, Fan Club, YouTube Partner Program, Ad Revenue, Persona Licensing, Product Endorsements and Acting. Fan, Corporate, & Foundation Fund includes Fan Funding, Sponsorship and Grants. The last one is Other Sources of Revenue include Arts Administrator.

Some other interested facts were that revenue was up 13.5 percent for Spotify, Rhapsody, Rdio and others according to the Recording Industry Association of America’s (RIAA) year-end music shipment statistics for 2011. The stats also revealed that total-paying customers also rose by 18 percent and Digital performance royalties were up by 17 percent. The digital music has shown to be the new model of the music industry business.

The beauty of music is the creation of where it comes from, so be unique and different!

Sing, write, compose and produce from your heart!

Gary Vaynerchuk: Do what you love (no excuses!)

Every day we make excuses of why we cannot do something. What is stopping us from doing something that we have a passion for? This weeks post is about a speaker name Gary Vaynerchuk, who gave a speech called Do what you love (no excuses!). It does not hit home until someone tells me that there is nothing holding me back. What is stopping me from owning my own business, especially in today’s techno savvy world? It is money, time, motivation, or determination. I can honestly say fear is keeping me from stepping out and taking a chance. Fear is what is holding me back. After listening to the speech, I told myself that there is nothing holding me back other than fear. I know for a fact that I do not want to regret pursing a dream of owning my own business. I have had this dream for over 10 years now. I know for a fact I will never know if I can do it as long as I keep making excuses. I have taken the first of many steps to achieving this goal and listening to this speech has motivated me to continue my pursuit of my dream.

I got my first artist over 3 years ago, and then I started school 4 months ago. The more I learn the more motivated I will be able to pursue my goal. I did not say dream again, now I realize I am taking the necessary steps to succeed. I will work hard, be tired and become frustrated. Mr. Vaynerchuk stated, “I got to get my grind on and make it happen” and stop making excuses. It was quite ironic that the speaker I chose was talking about my course for this month, which is branding and creating a niche. He stated that because of computers, Internets and YouTube that it was too easy to get noticed and heard. This is how people to talk you up. This will not happen if I continue to make excuses. It is strange how things start to fall in order to help me pursue my goals.

For the past 3 years, I have been working with one of my artist. Johnathan Jones Jr aka Mistaga Production and Full Sail student produced a track called Party. He was able to collaborate with other artist from GTG ent Jerrod Gadson "G" and Danē Wyler and wrote and sung a song called I’m on my hmmm. The song, the artist, the speech, the class and my blog post are a perfect combination for success. 

The beauty of music is the creation of where it comes from, so be unique and different!

Sing, write, compose and produce from your heart!

Another Performance Rights Organization

My previous blog I talked about the other Performance Rights Organizations. SoundExchange is a non-profit performance rights organization. They collect royalties for independent artist who record their own masters for satellite radio, Internet radio, music channels and other streaming sound recordings.

Before 1995, Sound Recordings did not have any type of performance rights; that meant that monies due to did not get paid. The Digital Performance in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998 granted a performance right in sound recordings in some kinds of digital media.

SoundExchange is in charge of all statutory license fees or a compulsory license. SoundExchange is also working with the US Copyright Office on how statutory license are used. “According to SoundExchange they currently represent over 5,000 registered record labels and 43,000 registered artist; over 48,000 performer accounts, 20,000 Sound recording copyright owners and to date they have paid out over $900 million in royalties.”

I want to talk about several reason why you as a, performer or service provider should register with SoundExchange. This blog will focus on performers since my main interest is in Artist Management. My mission is to represent my artist to the fullest of my ability and keep them inform.

Registration and membership with SoundExchange is always 100% free, and now that is a word that we do not hear too often. You will receive the royalties that are due to you. You will not jeopardize your membership with the other performance rights organizations. They are in existents to pay songwriters and publisher; SoundExchange pays the performers and copyright owners. Each performer shall register if they are in a band or not. Do not assume just because one of the members of the band signed up that everyone signed up.

I will admit there are a lot of forms that you have to fill out. The forms can be confusing and if you do not understand them then seek help. We know most people will get to a certain point and abandoned the transaction all together, but doing so will only hurt you as a performer or copyright owner in the long wrong. You might now make a lot from it, but if you are due royalties then you need to register with SoundExchange and get what is rightfully yours every quarter. It does not matter if the performer had passed away they are still able to receive royalties to his or her estates or heirs.

The beauty of music is the creation of where it comes from, so be unique and different!

Sing, write, compose and produce from your heart!