May 19, 2012

42 Different Ways That Artists Can Earn Money

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42 Different Ways That Artists Can Earn Money

By Paul Resnikoff

Songwriter & Composer Revenue

  1. Publisher advance
    Bulk payment to songwriter/composer as part of a publishing deal.
    Paid to: songwriter composer by publishing company.
    Rate: varies according to deal.
  2. Mechanical Royalties
    Royalties generated through the licensed reproduction of recordings of your songs — either physical or digital.
    Paid to: songwriter/composer by publisher, label, Harry Fox, or digital aggregator like CD Baby. Rate: 9.1 cents per manufactured copy of song/composition.
  3. Commissions
    Typically a request from an ensemble, presenter, orchestra or other entity for a composer to create an original work for them.
  4. Public Performance (PRO) Royalties
    Revenue generated when your songs are played on radio, TV, in clubs and restaurants. Paid to songwriter/composer/publisher by ASCAP/BMI/SESAC.
  5. Composing Original Works for Broadcast
    Typically a commercial request to compose an original jingle, soundtrack, score, or other musical work for a film, TV or cable show, or an ad agency.
  6. Synch Licenses
    Typically involves licensing an existing work for use in a movie, documentary, TV, video games, internet, or a commercial. Paid to songwriters/composers either via publisher or record label, or via a direct licensing deal with the licensee (movie studio, ad agency, etc) if you are self-published..
  7. Sheet Music Sales
    Revenue generated by the sale of songs/compositions as sheet music. Paid to songwriter/composer by publisher, or directly from purchasers if you are selling it on your website or at performances..
  8. Ringtones Revenue
    Generated from licensing your songs/compositions for use as ringtones. Paid to songwriter/composer via your publisher, your label or Harry Fox..
  9. ASCAPlus Awards Program
    Awarded by ASCAP to writer members of any genre whose performances are primarily in venues outside of broadcast media.
  10. Publisher Settlement
    Payment from publishers to writers for litigation settlements.

Performer & Recording Artist Revenue

  1. Salary as Member of Orchestra or Ensemble
    Income earned as a salaried member of an orchestra or ensemble.
  2. Shows/Performance Fees
    Revenue generated from playing in a live setting (for non-salaried players).
  3. Record Label Advance
    Paid to artist as part of signing a deal.
  4. Record Label Support
    Money from label for recording or tour support.
  5. Retail Sales
    Revenue generated from selling physical music in retail stores or via mailorder. Paid to artist/performer by your label, or digital aggregator like CD Baby.
  6. Digital Sales
    Revenue generated from selling music digitally/online. Paid to artist/performer by your label, or digital aggregator like CD Baby or Tunecore.
  7. Sales at Shows
    Revenue generated from selling recordings of music at shows/live performances. Paid to artist/performer directly by fans.
  8. Interactive Service Payments
    Revenue generated when your music is streamed on on-demand services (Rhapsody, Spotify, Rdio). Paid to artist/performer by your label, or digital aggregator like CD Baby or Tunecore.
  9. Digital Performance Royalties
    Revenue generated when your sound recordings are played on internet radio, Sirius XM, Pandora. Paid to performers by SoundExchange.
  10. AARC Royalties
    Collected for digital recording of your songs, foreign private copying levies, and foreign record rental royalties, distributed to US artists by AARC.
  11. Neighboring Rights Royalties
    Collected for the foreign performance of your recordings.
  12. AFM/Secondary Markets Fund
    Paid to performers on recordings used in TV and other secondary uses.
  13. AFM/Sound Recording Special Payments
    Paid to performers for the sales of recorded music.
  14. AFTRA Contingent Scale
    Payments paid to performers when a recording hits certain sales plateaus.
  15. Label Settlements
    Payments from labels to recording artists for litigation settlements (MP3.com, Limewire).

Session Musician Revenue

  1. Session Musician/Sideman Fees for Studio Work
    Revenue paid to you for playing in a studio. Paid by label, producer or artist, depending on situation.
  2. Session Musician/Sideman Fees for Live Work
    Revenue paid to you for playing in a live setting. Paid by label, producer or artist, depending on situation..
  3. AFM/AFTRA Payments
    Payments from the AFM/AFTRA Intellectual Property Rights Distribution Fund, which distributes recording and performance royalties to non-featured artists.

Knowledge of Craft: Teaching & Producing

  1. Music Teacher
    Revenue generated from teaching your musical craft.
  2. Producer
    Money from producing another artists’ work in the studio or in a live setting.
  3. Honoraria or Speakers Fees

Brand-Related Revenue

  1. Merchandise Sales
    Revenue generated from selling branded merchandise (t-shirts, hoodies, posters, etc.). Paid to artist/performer by fans.
  2. Fan Club
    Money directly from fans who are subscribing to your fan club
  3. YouTube Partner Program
    Shared advertising revenue, paid to partners by YouTube
  4. Ad Revenue
    Or other miscellaneous income from your website properties (click-thrus, commissions on Amazon sales, etc.)
  5. Persona Licensing
    Payments from a brand that is licensing your name or likeness (video games, comic books, etc)
  6. Product Endorsements
    Payments from a brand for you endorsing or using their product
  7. Acting
    In television, movies, commercials

Fan, Corporate, & Foundation Funding

  1. Fan Funding
    Money directly from fans to support an upcoming recording project or tour (Kickstarter, Pledge Music)
  2. Sponsorship
    Corporate support for a tour, or for your band/ensemble
  3. Grants
    From foundations, state or federal agencies

Other Sources of Revenue

  1. Arts Administrator Money paid to you specifically for managing the administrative aspects of a group that you are a member of.

Dropbox – Store Files on the Cloud!

dropbox_logo_home

I use Dropbox daily as a tool to manage and share files from multiple locations and coordinate them. Every computer I have has Dropbox installed so I can save a document from any computer and access it from any computer as well. When paired with the iPhone app or Blackberry application the tool becomes infinitely more effective.  I can send a document anytime from my iPhone with just basic cell service through standard email. The app automatically makes a link that is viewable by the recepient but the file stays on your cloud.  Also, for artists working on beats or songs, they can use the phone to play the song over the internet easily and go through a whole catalog, or transfer a catalog to a studio, etc.

Overall Dropbox is a very effective tool for many uses, we even use it to automate our radio station shows, where our DJs can just upload the most recent show to the shared Dropbox folder and it is uploaded into the automation system.

ASK AN EXPERT – Publishing 101 Part 5 Synchronization Royalties

Synchronization Example

Synchronization ExampleSynchronization royalties (‘synch licenses’) are paid for the use of copyrighted music in audiovisual productions, such as in DVDs, television, movies, commercial, and advertisements. Music used in news tracks are also synch licenses. Synchronization can extend to live media performances, such as plays and live theatre. They become extremely important for new media – the usage of music in the form of mp3, wav, flac files and for usage in webcasts, embedded media in microchips (e.g. karaoke), etc but the legal conventions are yet to be drawn.

A synchronization license is needed for a song to be reproduced onto a television program, film, video, commercial, radio, or even an 800 number phone message. It is called this because you are “synchronizing” the composition, as it is performed on the audio recording, to a film, TV commercial, or spoken voice-over. If a specific recorded version of a composition is used, you must also get permission from the record company in the form of a “master use” license. The synchronization royalty is paid to songwriters and publishers for use of a song used as background music for a movie, TV show, or commercial.

Synchronization royalties are due to the composer/song-writer or her publisher. They are strictly contractual in nature and vary greatly in amount depending on the subjective importance of the music, the mode of production and the media used. The royalty payable is that of mutual acceptance but is conditioned by industry practice.

Fees for song usage range from $500-$15,000, with superstar tracks reaching up to $20,000-$250,000. That amount usually includes master rights for broadcast and most other media rights, with a time frame ranging from three years to perpetuity. An additional home video fee is equal to or greater than those quoted. Synchronization rights are negotiated separately, with master and sync rights usually split 50/50, unless the song is a cover — a situation that favors the publisher ?

The price tag for iconic, well-known tunes can be staggering: Tracks by the Who and the O’Jays, used in the opening credits of CBS’ “CSI: Crime Scene Investigation” and NBC’s “The Apprentice,” respectively, generate six-figure deals annually.

Example sync licenses fee’s from the NBC television:

CELEBRITY APPRENTICE

“For the Love of Money” – O’Jays – ($6000/week)

CHOPPING BLOCK

“Ring of Fire” – Johnny Cash – ($11,000/week)

ER

“Shadows and Regrets” – Yellowcard – ($6000/week)

HEROES

“Together” – Krystal Meyers – ($5000/week)

THE JAY LENO SHOW

“Hold On, I’m Comin’” – Sam & Dave – ($8000/week)

“Life Is a Highway” – Tom Cochrane – ($2000/day – $8000/week)

“Mess Around” - Ray Charles - ($6000/week)

See attached Sync License for: Synchronization Example

Marc Smilow

Thanks for taking a minute to read my Blog and I hope you found it helpful.  If you have any questions or comments please feel free to contact me anytime at expert@newindustrytips.com

ASK AN EXPERT – Publishing 101 – Part 1 Intro to Publishing

EMI PublishingSo I was recently asked by an artist/friend how does publishing work? My response is do you have a couple of hours to site down and we can go through everything and you can buy me lunch. I think I got the short end of the deal.

Now onto publishing 101…..Successful songwriters (Lyrics) and composers (Producers) have a relationship with a publishing company defined by a publishing contract or can become there own publishing company. You can do a publishing agreement with a major publishing company such as EMI Music Publishing, Universal Music Publishing Group, Sony/ATV Music Publishing, Warner/Chappell Music and/or a smaller publishing company like Bug Music Publishing, The Royalty Network, Spirit Music Group or Kobalt Music Publishing or even a sub publishing company of one of the majors.

The publisher agrees to see to it that the composers receive royalties from various uses of their compositions. Generally they also provide an advance against future income. In return, the publishing company receives a percentage, which can be as high as 75% and varies for different kinds of royalties, or the current trend an administration deal. An administration deal is when a publisher just collects the above mentioned royalties for a smaller advance and a smaller percentage generally between 10% to 20%.

There are several types of royalties: Mechanical Royalties derive from the sale of recorded music, such as CDs or digital downloads. These royalties are paid to publishers by record companies (through the Harry Fox Agency as well as through American Mechanical Rights Agency in the U.S.) or can be directly collected through the record labels publishing royalties departments. Performance Royalties are collected by performance rights organizations such as SESAC, BMI or ASCAP and are paid by radio stations and others who broadcast recorded music. Synchronization Royalties are required when a composition is used in a film or television soundtrack. These royalties typically pass through the hands of a music publisher before they reach the composer.

A publisher will typically also handle copyright registration and “ownership” matters for the composer. Music print publishers also supervise the issue of songbooks and sheet music by their artists.

Thanks for taking a minute to read my Blog if you have any questions or comments please feel free to contact me anytime at expert@newindustrytips.com

Marc Smilow

To become your own expert on publishing be sure to see the post on the industry handbook, Music, Money & Success


Publishing Companies Contact Information:

EMI MUSIC PUBLISHING

http://www.emimusicpub.com/

UNIVERSAL MUSIC PUBLISHING

http://www.umusicpub.com/

SONY/ATV MUSIC PUBLISHING

http://www.sonyatv.com/

WARNER CHAPPELL MUSIC

http://www.warnerchappell.com/

BUG MUSIC/WINDSWEPT

http://www.bugmusic.com/

ROYALTY NETWORK PUBLISHING

http://www.roynet.com/


SPIRIT MUSIC GROUP

http://www.spiritmusicgroup.com/

KOBALT MUSIC PUBLISHING

http://www.kobaltmusic.com/

HARRY FOX AGENCY

www.harryfox.com

AMERICA’S MECHANICAL RIGHTS SOCIETY

www.amermechrights.com

ASCAP (American Society of Composers, Authors and Publishers)

www.ascap.com

BMI (Broadcast Music, Inc)

www.bmi.com

SESAC

www.sesac.com

Online Music Licensing

Many artists know that licensing their tracks is a great way to make money from your master recordings from the use of them in Film, TV, Online and more. But not many artists actually know how to go about doing it. There are many online “Licensing Marketplaces” now that simplify the process using Web 2.0 type sites to aid in the sale of your master recordings. I have links to a few of the best websites that I have found but there are many more emerging everyday! Most of these sites just allow you to upload music and hook up your PayPal and take care of the rest for you!

The one downfall to this is these sites do not act as a typical Publisher, all the licenses that they negotiate are typically fractions of what a large publishing company could potentially secure. The problem it is nearly impossible to get a publisher until you have proven success with your music. So until then, enjoy the fruits of the New Music Industry and Web 2.0 technology!!

The sites we are listing here include www.YouLicense.com, www.Rumblefish.com and www.PumpAudio.com. Each of these sites grant non-exclusive rights to license your music, so join all 3 by clicking their logos below!!

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