The question I get asked more than any other question is ‘How Do I Make Money in the Music Industry?’
Whether you are a Band or an Artist or working behind the scenes as a Producer, Engineer, Mixer or Songwriter, the music industry has changed dramatically over the last 15 years.
Our incomes are all linked so we need to understand all of the ways this has changed and is continuing to evolve. Those of us in Music Production and Artists are Partnering more and more, we have common goals and this is the certainly a big part of the future of the Music Industry.
So how do you make money?
Is a Major Label Record Deal an option?
For many decades the Major Label Record Deal was the holy grail for almost every musician regardless of genre. Pop, Hip Hop, Rock, Metal, R&B, Country, Alternative Artists were represented strongly on every Major label. Artists honed their songs, their sound and their look to be cutting edge to garner the interest of a Major Label A&R. Record deals through the 90’s into the early 2000’s could typically be $500,000 for a band that the Label felt had the right sound and look, a following was not needed as the Label provided a huge Marketing budget to promote their new signings.
These days, bands, in particular are finding it increasingly hard to get signed, only Artists with the broadest appeal are getting signed by Major Labels. The majority of bands that do get signed have large followings in place and have revenue already generated from Film and TV placements, Touring and Merchandising sales and other revenue streams.
So what if you do want the Big record deal?
If your goal is world domination and you want it to be funded by a Major then you have to be prepared to play the game, be an artist with a broad appeal. To fulfill this you will need to write Radio ready songs and be prepared to co write songs or even cut songs by other writers. Despite the obvious increase in competition from platforms like Spotify, Pandora and many others, Radio does still have a place and it is still a big way that Major’s push their Artists songs.
What Do You Have Going On?
So let’s say you have the songs, you sound current and even cutting edge, great! Well yes, that is great, however the first question I hear every time I play a new Artist to an A&R guy is ‘What Do They Have Going On?’. They want to know that you are active on Social Media, that you post frequently, you create your own unique content regularly and you engage and cultivate your fan base. Even the biggest Artists like Taylor Swift post frequently on their Social Media Networks. No one (especially not a Label) is going to be able create interesting, behind the scenes content like you can! They will rely on you to do a huge amount of your Social Media, only themselves doing Show and Release Announcements and other basic information.
Social Media Promotion
Whether you are going to remain an Independent Artist or sign with a Major, working your Social Media, such as Facebook, Instagram, Snapchat or any of the other myriad of ways we can engage with our audiences is a hugely important way to grow your brand. Giving free away content rewards them and builds loyalty with your fan base.
Register Your Music With a P.R.O. and Sound Exchange
Performing Rights Organisations (or P.R.O’s) help songwriters and publishers get paid for the usage of their music by collecting a very important form of publishing revenue: Performance Royalties.
You as a songwriter, composer, or lyricist, will be owed what is called a “performance royalty” any time your music is played on radio stations (terrestrial, satellite, and internet), used in a TV show or a commercial, or performed in live in a Venue, whether it’s a coffee house or an Arena!
Performance royalties are paid by radio stations, venues, and TV networks to Performing Rights Organizations like ASCAP, BMI, SESAC, SOCAN (in Canada) and PRS (in the UK) they then distribute the money to their affiliated songwriters and publishers. Each country will have a P.R.O. associated with it and they will have agreements across the world to collect income for you, so be sure to register your songs!
Sound Exchange will collect money for you as both a performer and a Producer in the digital world. It is a huge thing for you to be involved in, as money is increasingly being generated in the digital domain, Sound Exchange is collecting that income for us as Artists and Producers. Here is a link to the main site where you can register as an Artist.
If you are a Producer here is a guide on how to create an L.O.D. and a pre-designed template. That is a Letter Of Direction, an agreement you make with the Artist that will enable you to collect monies as a producer.
Licensing Your Music for Film and TV
Being an Independent Artist is an advantage in Film and TV Licensing. Major label artists struggle with the increasingly smaller budgets TV and an Independent artist who doesn’t have a huge team of people to communicate with can move swiftly and say yes or no very quickly. Research heavily anyone who is offering you a ‘Licensing Deal’ wishing to represent your music, they often promise the heavens without any guarantees, so make sure if you do sign your catalog with someone that will work your songs and not just have them languish in a Library. They will have huge power by having a massive catalog, but your music could get easily lost.
Start Making Music Now – Don’t Let Lack of Equipment hold you back
My journey has been a long one and since I started as a kid 30 years ago I’ve collected a huge amount of recording equipment over those years. A few years ago most of this gear was a huge necessity to make an incredible sounding album. But that was the past and now these days, unless I’m recording live drums, I find myself recording 99% of the time with one mic, one mic pre and a compressor. I rarely need more than one or two inputs at any time and increasingly great mixers such as Neal Avron and Andrew Scheps are mixing entirely in-the-box. Plug ins are becoming cheaper and every manufacturer is offering a subscription service where you can access everything they offer for a monthly fee. Now vintage recording equipment is becoming something so highly emulated that people reach for the originals purely for the tactile experience of twisting a knob, playing the equipment like an instrument itself!
Multi-Tasking is a huge advantage
Being multi talented, having the ability to not only record, edit and mix music is huge. Throw in being a multi instrumentalist and a songwriter you increase not only your chances of making great music, but also your chances of getting the gig in the first place. Of course you don’t have to play an instrument, but I can tell you my experience is Artists and labels gravitate towards people that play and can co write. I love to learn, so after a multiple occasions when I couldn’t get a Drummer down to a session when I need one, I decided to learn. I have a kit set up here in a small live room, about the size of a kids bedroom, it has mics on it ready to go and if I need to do something on the fly I just step in there and try ideas, it’s both fun and liberating being able to record any time I need to.
Getting Paid to Produce
If you have a good skill set you can get a lot of work with local artists helping to develop them. There are many young up and coming artists who want to showcase themselves, so being a great vocal Producer is an extremely important skill. Know your tools. Whatever DAW you choose to use, know it well, learn the quick keys so you are listening to the music not looking down at the keyboard or staring at the screen. Developing young artists will help you hone your skills and you may find a great young artist or band that you can take to the next level and introduce to a Label, this is a great way to get yourself in front of people so they can hear your work.
Composing For Film and TV
Writing specifically for Film and TV is a dream job for many of us. I just talked to C.J Vanston and hearing him talk about the amazing creative relationship he has with Christopher Guest and Harry Shearer making music for movies such as ‘Best In Show’; and ‘Waiting for Guffman’ is truly inspiring! While no one can guarantee that you will get into the same kind of creative team the odds are still that you will be paid very well and get a large residual (passive) income from a show if it goes into many seasons and eventually syndication. It’s a highly competitive business and the ability to play instruments is of course a must.
Teaching
Teaching is a really rewarding way to make extra income. I also love the benefit that it brings by increasing my focus, as I am continually reminded of areas that need to be improved in my own learning process. Another massive benefit is the reward you get from helping people, for me being a part of a community like we have here at Produce Like A Pro is wonderfully satisfying! Watching people’s growth and development, being part of their process as they overcome hurdles is truly incredible!
The New Music Industry – Think Outside the Box
These are exciting times! We have the opportunity to the break rules every day!
I’ve created a Youtube video discussing this topic in even greater detail, you can watch it here:
Please leave a bunch of questions and comments below. Have a marvellous time making music!
Many Thanks,
Warren
Hi ! I guess now I am the first one (before Arthur) to comment. I can tell this is one of the best video and passionated presenting of really helpful focused information and thoughts about business and work on it. Warren, you did it so well and I was looking right now for such answers, infos and truth of the change from the 90s to now.
I see that with all my knowledge and skills as a musician and mixer / audio guy it is possible to engage people or bands, can teach and learn from others to improve my presentation plus sound and experience. It is very passionated to be inside that process, join this channel and academy with all of you and Warren, great help.
Thanks
Ralf
Thanks ever so much @plap-disqus-dfd7468ac613286cdbb40872c8ef3b06:disqus! You Rock Ralf! I’m extremely glad to be able to help! This is a huge subject that I really want us to talk about and really help educate everyone! Please share! I really appreciate it! Have a marvellous time recording and mixing, many thanks Warren
I live in the UK and want to be a song writer trying to do everything my self should I copy write my songs or just put them out. and if copy write who with. love the video you have helped me a with basic recording thank you
Hi @stevenjohnwardley:disqus! Great question! Register your songs with the PRO and get them registered with Sound Exchange! Have a marvellous time recording and mixing, many thanks Warren
This is nice
This is amazingly helpful my bro, I could hug u. Thanks man Godbless.
Thanks ever so much @dweenomusicsdwaynemighty:disqus!! You Rock! So glad to be able to help! I’ll take the virtual hug! haha Have a marvellous time recording and mixing, many thanks Warren
Haha thanks bro
Hey Warren, great informative video! I can totally agree about Spotify and the younger generation. As a high school music teacher with 287 students per week not one of them owned or had ever purchased a CD. I have embraced streaming as the future. Mick Gordon is amazing! Incidentally he is from the same town as me Mackay, here in Queensland Australia…. I have a feeling my brother went to school with him. Cheers
Hi @plap-disqus-7c82fab8c8f89124e2ce92984e04fb40:disqus! That’s fantastic to hear! I know, my son will never have to buy a CD, he’s know every band and has access to everything he wants and I’m glad he does! Have a marvellous time recording and mixing, many thanks Warren
Hey Warren. Great video. You talk about schedules and working your A$$ off. My schedule is usually Monday – Friday, computer programming job 8:00 am to 5:00pm. Monday – Thursday my studio starts around 6:30pm and we go until around 11 or 11:30. Friday, if I’m not playing a venue, it’s usually more studio time. Usually though (this weekend for example) I play a duo gig Friday, a Duo gig Saturday afternoon and a Band gig Saturday night. Sunday, I will be back here in my studio mixing more tracks. And that’s my schedule, week after week… as well as trying to do family stuff as well! As I watched this video tonight, I was taking a break from editing drum parts in a country song, to which the guy just texted me now to see how it’s going! So I better get back to work.
Once again Warren, I want to thank you for doing what you do… I don’t have as much “free” time anymore to watch videos, but if I’m eating lunch or taking a break and I look for a video to watch, I always hit up “Produce like a Pro”… I listen to every word… and there is not a day goes by I don’t learn something!
PS: You should do a road trip sometime, visit some home studios, and head east! We’d love to have you for a visit, a chance to pick your brain and show you that some of us are making some great music! Cheers!!!
The attached image speaks for itself, you’re taking over my mixing screen… lol https://uploads.disquscdn.com/images/c85a0ab5070e06fe09fd6dc6e095bab2f3fc616de5d63ef99c35aed6f3264174.jpg
Great photo @dannymacnevin:disqus! Haha Thanks ever so much for your extremely kind words! I am so glad to be able to help and yes, I know those very long hours indeed!! I understand and appreciate your work ethic! Next time I’m back East I’m definitely going to film at Studios out there! Have a marvellous time recording and mixing, many thanks Warren
This video is pure gold, Warren, not to mention well-timed for me. I was unaware of Sound Exchange and will be releasing a new album in May. I’ll definitely look into it. I thoroughly enjoyed the brief history of pay structure in the industry to put things in perspective. You’ve given me food for thought and I very much appreciate the work you’re doing. Cheers!
Matthew Fox
Thanks very much @disqus_YHbKc1NaYo:disqus!! I am glad to be able to help! Yes, Sound Exchange is great! Have a marvellous time recording and mixing, many thanks Warren
Hi Warren. Having followed your videos for quite some time now and have benefited in so many ways, this was one that was truly inspiring as well as bringing home the many ways the industry has changed over the last several years. I’ve been creating, playing and recording music for many, many years (actually started recording layers over cassette tracks before there were affordable 4 tracks) but have always resigned myself to the fact that it was just a sideline passion. You have shown me that it is possible fir even someone like me to get my music out there for maybe others to enjoy. Now days it really is all about being creative and using social media to share with anyone who cares to listen. Thanks for what you do!
Thanks very much @Grumpy1956:disqus! I am glad to be able to help! Yes, the industry is changing faster than the old guard can handle to, we need to be able adjust for it ourselves and embrace everything that benefit us! Have a marvellous time recording and mixing, many thanks Warren
Hey Warren, give thanks for sharing all those videos and valuable information as well as the insights from your own personal experience! I need some help/advice. I am in a negotiation with a label planning to release a song i’ve produced the music for. My mainly craft is instrumental beats and i am selling or leasing instrumental tracks to the artists and labels. Now we are at the point of discussing royalty splits. The label is licensing exclusively the music i wrote and my question is: what should the royalty split be if i am only the writer of the music, not the lyrics? Is it 50/50 or? I really need to figure it out as soon as possible. If you or any other community guy could share some experience will help me a lot. Thanks in advance! Stay Blessed!
Hi @buzzbeats:disqus great question! If you are writing the music to a song and someone else is doing the lyric, typically that is a 50/50 Split. As far as what a label would want as a Royalty, the old standards don’t really apply unfortunately. All independent labels have different business models and you should negotiate based on what you feel comfortable with versus what kind of promotion etc they are offering. I hope that helps? Have a marvellous time recording and mixing, many thanks Warren
Thank you for the replay Warren! I am backed up with some knowledge on doing music business but an opinion from industry veteran aways helps! I’ll start the negotiation with 50/50 Split to be able to see how they feel about it and helpfully to get an idea of their business model by analyzing their reaction to my propose. Some strategies need to apply. Much love! BuzzBeats
Great video Warren! Thank you for this great overview of the entire “current music industry” from the “us” perspective.
Would love to have you dig down more on production rates and current LA rate structure for everything.
-Production rate/ song – what is the going rate ranges in LA right now per song. What do you charge per song? What does your competition charge (range) per song.
-Session musician per song (Tim Pierce, Guitar, Bass Players, Drummers) – what does it cost to get players on your tracks
– Also, who are your goto session musicians for the major instruments – Keys, Guitar, Bass, Drums? How much do they charge? Can most of these guys record their tracks remotely (in their own project studios) and send you tracks to drop in?
A PLAP directory would be a cool idea and resource.
Thank you for all that you do!
Hi DavidHenderson great questions! Yes, we shall do more live Q&A’s here in the Academy and cover these points in more detail! Have a marvellous time recording and mixing, many thanks Warren
Registering with a P.R.O depends on what market you’re pitching to. The publishers in Nashville want all open, unencumbered publisher rights. If they sign your content they will do the registration on your behalf, provided everything checks out with your attorney. They shy away from having to do a lot of legwork tracing down the copyright info.
I know this from signing exclusivity rights for one song contracts that I’ve written.
It’s a great idea to register if you are selling your material myself. If you’re pitching to artists or labels talk to publishers and other writers in that market.
Hi @plap-disqus-15de21c670ae7c3f6f3f1f37029303c9:disqus thanks for the comment! I would always register the songs, you can always change them afterwards if someone offers you a Publishing Deal or another deal that would be worth giving up your publishing. If YOU are the person registering them, then you can change it. If you’d like to talk to me about this directly, please feel free to message me! Have a marvellous time recording and mixing, many thanks Warren
Thanks Warren. I’ll take you up on messaging you. In the meantime, I’m getting ready to sign a song exclusivity deal with a major publisher in Nashville. I give them 100% publishing for 1 year and keep 100% of my writer’s share. The reversion clause is one year. They’ve landed cuts with Miranda Lambert, Jana Kramer and Kellsea Ballerini last year to name a few. Those are doors I would not be have access to otherwise.
My co-writers and NSAI say it’s a great deal.
Hi @plap-disqus-15de21c670ae7c3f6f3f1f37029303c9:disqus, I wish you all the best! Have a marvellous time recording and mixing, many thanks Warren
Thanks Warren. You always get me revved up about music. You’re a great battery recharger. Thanks for all you do
Hi @johnnyfuller:disqus, thank you very much!! I am so glad to be able to help! Have a marvellous time recording and mixing, many thanks Warren
Hey Warren, since I’m already with ASCAP, is there benefit to also registering with Sound Exchange as well?
Thanks as usual for your great tips/info!
Hi @Brian for President:disqus yes indeed! You should register your songs with Sound Exchange, make sure they are your songs you own them 100%. You will need Artists express permission and a properly filled out LOD in order to register other peoples work. Have a marvellous time recording and mixing, many thanks Warren
Cool, thanks Warren, will do!
Warren super informative and well presented as always. After looking at sound exchange the question that is asked on their site is are you the copyright owner. So my question is do you and should you copyright your music before registering it. I have assumed this is the true gold standard for protection. It usually cost me around $50 to copyright through the library of congress. I am able to copyright multiple songs for that price but if your writing frequently you do find yourself spending $50 more times than you would like to.
Hi @plap-disqus-2bcab9d935d219641434683dd9d18a03:disqus, great question! I personally have never paid to Copyright a song and I’m not aware of any of my colleagues who done that. If you are the owner of the song and you have not assigned the Copyright to anyone then you own the Copyright 100%! I hope that clarifies? Have a marvellous time recording and mixing, many thanks Warren
“Young up coming can buy a $300 package and start making music”….Let’s hope that will hold true for us “old” “coming back” music makers. Ha ha ha…Thank you Warren. This old bassist will be done with the day job world soon and getting his Focusrite and DAW and pulling out all those bar napkins and odd envelopes with all those years of lyric writing. 🙂 Pete Z aka deepfrequency
Hi @peterzabriskie:disqus haha yes it is! I honestly only use one mic pre and compressor 99% of the time!! Have a marvellous time recording and mixing, many thanks Warren
Warren one more question if you have time? A fellow member at SBL told me about Zoom H4n Pro and it comes with Cubase LE. I need a DAW so it looks like a good little unit. Today Phil Mann also referenced Zoom. Question: What is your view of Cubase vs Protools. I use a PC not Apple and this will be my first DAW.
Great video Warren! I have learned so much from this video. Thank you!!
Thanks very much @disqus_fwHbkmhpib:disqus! I’m really glad you enjoyed the video!! Have a marvellous time recording and mixing, many thanks Warren
Hi Warren, brilliant info. What’s the route these days if you just want to write songs,E g: lets say you have 5 killer songs what do you do with them, or is there anything you can do?
Cheers .Dave.
Thank you so much for this wonderful information, Warren. One question I haven’t been able to directly find the answer to: how do you license covers you’ve made to TV or film? I’ve obtained the mechanical license for covers, but I’m not sure how licensing would work when you want to license the cover.
Again, thank you for this great info!
– Rico
I truly dislike all P.R.O. and they way they run things.
They are anti-marvellous.
Here in Norway the P.R.O. require you when you register/become a member to report any use of your own music on your own website. And here’s the kicker. If you sell your own music on your own website you have to pay royalties to the P.R.O. that will take a cut of that before returning the money back several months later.
If you join a P.R.O. you are no longer a independent, the P.R.O. is basically your “label”.
And depending on how the P.R.O. collect the royalties they may actual fraud you intentionally. For example, for many smaller radio stations they do not bother with processing the lists (too much work/cost in doing so), and in some cases really small stations or internet broadcasters or business locations have a blanket agreement.
The way the P.R.O. pay out these royalties are by basically looking at the Top whatever hitlists are in their region/country and pay out accordingly.
So how do you feel like an artist when some Top 20 artist (that complain services like Spotify pay too little in royalties) yet they have no issues by taking YOUR royalties as their own. Most of those artists are probably clueless as the labels/publishers obviously don’t tell them this.
There are very few royalty collectors out there that actually track and properly report how many plays and listeners a song has had. If you are a member of a P.R.O. then ask them if you can get a list of all the plays of your tracks and how many listeners each track has had. If the P.R.O. can’t get you that info then they can’t get you the royalties you deserve and they are basically scamming you. Do not that such a list may not be perfect as often the info is in the form of Total Listening Hours, but the numbers should still be in the ballpark correct on average.
Remember, if the P.R.O. has no stats on the play of you songs then they have no clue how much royalties you are owned either.
Services like Spotify or iTunes pay to the distributor, and with distributor services you can distribute directly yourself and get paid directly (no label/publish to gobble things up).
Just to re-iterate. If the P.R.O. (or label for that matter) can’t provide you with a spreadsheet of how many plays/hours/listeners each of you tracks have on internet radio or similar then they are scamming you. Find a different P.R.O. or turn your back on P.R.O.s in general. Remember to actually tell them you are leaving them, otherwise they’ll still keep collecting in your name.
And in theory, un-registered artists royalties should be returned to the radio stations, but AFAIK that money just “vanish” in the system somewhere or are used for other purposes. The P.R.O. in some countries are nicer than others in how they use that money though.
The whole thing is extremely corrupt though. If a proper audit was done I’d dare guess that 99% of them all would fail.
It’s a real shame too as it’s usually the smallest artists that are hurt from this, the biggest artists are already raking in millions.