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!
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