Income and Expenses Surrounding Your Music

As you look over the income sources remember that outside of some live performance fees, and sales of your music and merchandise (like T-shirts, etc) most of the income sources take years to develop. I get questions all the time about where will the money come from to start up a label, or your own business? The answer is this. From wherever you can get it loans, sugar daddies, lottery winningswhatever. Raising the funds to start your own business is your own business. Perhaps now you understand why so many musicians and bands want those record deals. Record labels front the money to develop, market, and promote their artists. Record labels are businesses that understand it costs a lot of money to sell an artists recordings, and the successful labels are well funded so that they can go out there and fight the good fight, marketing the records they have released.

Read this and weep, or better yet read this and PLAN!

1) A Musician or Bands Source of Income:
a) Live Performance Fees
b) Sales of your own recording OR
c) Record Label Recording Contract Royalties
d) Songwriter/Publishing Income Sources

* Mechanical Royalties
* Performance Royalties
* Synchronization Fees
* Sheet Music Sales
* Commercials/Jingles Income
* Internet Streaming Fees (pending)

e) Merchandising Royalties ( T-Shirts etc.)
f) Misc. Income Sources

* Investment Income
* Endorsements
* Songbook and Video Sales
* Multimedia Product Sales


2. Expenses for a Musician or Band (Putting out their own record):

a) Recording fees:CD/Tape

* Producer/Engineer
* Studio Costs ( From Pro Tools to 24 Track)
* Tape and other studio supplies
* Equipment Rental charges
* Guest Musician fees
* Mixing and Mastering fees

b) Graphic Artist/Cover Art Design costs
c) CD/Tape/Vinyl Manufacturing/Duplication charges
d) Promotional Expenses (Independent Radio Promo Reps/Independent Sales Reps,)
e) Marketing and Sales Plan costs (One sheets, Co-op advertising dollars, Ad money)
f) Publicity/Promotional Material Costs

* Publicists Fees
* Promo/Publicity Kit Design costs
* Flyers, Posters, Envelope Design costs
* Printing/Copying charges
* Photographer fees and duplication charges

g) Office Expenses

* Rent
* Stationary and office supplies/furniture
* Postage
* Phone and utilities bill
* Office equipment ( computers, fax machines, phones et al.)

h) Taxes

* Local, State, and Federal taxes
* Tax preparation costs/Bookkeeper fees

i) Band Equipment Costs

* Instrument purchases/rentals
* Tour Luggage
* Misc. equipment repair/maintenance costs (strings, drumsticks etc.)
* CDs and Tapes ( for listening and study purposes)
* Misc. recording/playback equipment (4 track recorder/mixer etc.)
* Sound system
* Rehearsal space costs

j) Songwriting

* Copyright registration filing costs
* Performance Rights Organization Fees ( ASCAP-BMI-SESAC)
* Talent Lessons ( vocals, instrument instructions, etc)
* Conferences/ Seminars budget

k) Artist Business Team Costs

* Personal Manager/Consultant fees
* Business Manager/Accountant fees
* Booking Agent fees
* Publicist fees
* Music Attorney fees

l) Transportation costs

* Auto/ Van purchase/rental/Insurance costs
* Maintenance costs (gas, service, repair)
* Airline, bus, and/or train tickets
* Highway/Ferry tolls

m) Touring expenses

* Per Diem ( for food, lodging etc.)
* Road Manager/Roadies salaries
* Lighting/Sound equipment purchase/rental costs

n) Merchandise (T-Shirts etc.)

* Design costs
* Manufacturing and shipping costs

o) Website and Internet Fees

* Website design, maintenance, connection fees etc.)
* E-commerce setup and processing fees
* Email setup and processing fees

p) Miscellaneous Expenses

* Costumes/Stage clothing
* Insurance (health, equipment, life etc.)
* Union dues
* Video production and manufacturing costs
* Whatever else comes along that you forgot about