How do recording artists make money today

Making money as an artist is not always as simple as negotiating a paycheck. Pay for musicians depends on the type of job, whether it's freelance or part of a deal. The following list outlines several methods in which musicians earn an income:. Some musicians find themselves in music management in which they handle the affairs of other musicians.

In this role, managers earn an agreed-upon percentage of the artist's income. The more the artist makes, the more the manager makes. In some cases, the manager receives a salary depending on the overall success of their artist client or if the client wants the manager to only work with them. Some musicians become promoters for other artists or venues, making money on ticket sales. Promoters either take a percentage of proceeds from the show or agree on a fixed payment with the musician.

All other money earned goes directly to the musician they promote. Agents work in a similar capacity to managers, earning an agreed-upon percentage of show income. Agents often negotiate a fee for themselves, specifying a number they want to receive for their efforts. Those who enjoy both music and advertising find themselves in music public relations PR roles in which they earn income on a campaign basis.

PR companies negotiate a flat fee for advertising a particular album release or music tour. Companies also receive bonuses for successful campaigns as they reach certain earnings milestones for the client. With the advent of downloading music online, watching music videos and social networks, the music industry has been turned upside down and record labels have had to get creative in how to market to this ever-evolving industry. When an artist is signed to a record label, the label gives loans to artists advances for costs that will be associated with producing a CD and for promotion.

Independent artists and bands will not spend even half of that. Many very successful artists never see a dime of their first and second albums, even if they are successful, because the label has to recoup the moneys spent before the artist gets their percentage of the profit. Add to all of the above royalties that have to be paid and sometimes you wonder how anyone can make any money in this business.

Two royalties have to be paid: first to the performing artist or band and the second is the mechanical royalties paid to the composers and the publisher. So how in the world with all this money being spent, do labels turn a profit? The two constants in music are the evolution of new music styles and the shifts in how music is monetized.

Record labels as we used to know them have changed dramatically. No longer are they the only game in town when it comes to music distribution.

A few years ago, streaming was a lucrative source of revenue. Today, the dominant income revenue stream for music comes from sync licensing. Tomorrow, it will likely be something else. This has opened the door for independent music labels and artists to record, promote, distribute and sell their own music—to, in effect, be their own record label.

As in any endeavor, there are both risks and rewards to doing so. Done right, an independent record label can be lucrative and maintain control of your own music. Done wrong, and you could be on the receiving end of legal woes. What has changed are the ways the tasks and duties of the record label are handled. Our advice is to set your record label up as an LLC.

The music business is extremely litigious. You want to have some protection against both frivolous and merit-based law suits. If you adhere to all the requirements of an LLC, you will be afforded as least some insolation from adverse legal findings. Artists and Their Music. Without music, a record label has nothing to sell. You can start out representing your own music, or sign up other artists and their music. The record label is responsible for clearing obtaining the rights to all samples, or in the case of a cover, the rights to perform that song.

One of the most important things a record label does is handle all the legal work that is involved in the music industry. This starts with forming the business structure of your record label and grows exponentially thereafter. You will need contracts with every artist you represent.

These types of synchronizations are highly coveted and competitive, and that makes them rare to come by. So, how do you get these types of syncs?

Many times, they happen organically. That means promoting your music like usual with the hopes that the right ear will hear them. You can also pitch directly to music supervisors, hire someone to help you with sync licensing placements, or sign to a publisher who thrives with these placements.

Musicians used to catch a lot of flack for accepting sponsorships, but nowadays your most dedicated fans will appreciate that sponsorships are a pivotal way for musicians to make money online in When you find those perfect sponsorships, you can incorporate those brands into your videos, mailing list , and your social media feeds. For example, you may be able to snag a coveted sponsorship with a boutique guitar pedal brand and feature them in videos showing exactly how you create your music.

Of course, growing your email list and social followings can make you more attractive to potential sponsors. With that in mind, focus on audience growth while pursuing these types of opportunities.

There are a lot of tools online to help musicians drive revenue , including email marketing. A strong email list can get you more streams, sales, sponsorships, and more. Click to learn more about ConvertKit for musicians. In , she moved to the Pacific Northwest where she writes SEO-driven copy during the day and works as guitarist, guitar podcaster and music gear demo artist for Get Offset at night. ConvertKit helps creators like you take their projects from idea to reality.

It's never been easier to build an audience and grow a business. And you can do it all for free. Emily Harris. Portsmouth Climate Festival — Portsmouth, Portsmouth. Edition: Available editions United Kingdom.

Become an author Sign up as a reader Sign in. Hayleigh Bosher , Brunel University London. So how did we get here?