Making money in the music industry isn't always as simple as
negotiating a salary and waiting for your paycheck to come in. The pay
structure of many music industry jobs is based on percentages for
one-off deals and freelance-style work, but different music industry
careers are paid in different ways
.
For this reason, the
music career you choose will have a big impact on how you
make money in the music business.
Here, you'll find a look at how several common music industry jobs are
paid—but remember, as always, that this information is general, and the
deal you agree to will dictate your circumstances.
Managers
Managers receive an agreed-upon percentage of the income from the
artists they work with. Sometimes, musicians may pay managers a salary
as well; this often works like a retainer, ensuring that the manager
doesn't work with any other bands. However, this latter scenario really
only comes into play when the artists are making a sufficient enough
income to support themselves comfortably and legitimately have a need to
make sure their manager focuses only on them.
For this reason, the
music career you choose will have a big impact on how you
make money in the music business.
Here, you'll find a look at how several common music industry jobs are
paid—but remember, as always, that this information is general, and the
deal you agree to will dictate your circumstances.
Managers
Managers receive an agreed-upon percentage of the income from the
artists they work with. Sometimes, musicians may pay managers a salary
as well; this often works like a retainer, ensuring that the manager
doesn't work with any other bands. However, this latter scenario really
only comes into play when the artists are making a sufficient enough
income to support themselves comfortably and legitimately have a need to
make sure their manager focuses only on them.
Music Promoters
Promoters make money on ticket sales for the gigs they promote. There are two ways this can happen:
The promoter takes a percentage of the proceeds from the show after
recouping their costs, giving the remaining money to the artists. This
is known as a
door split deal.
The promoter may agree on a fixed payment with the musicians for
their performance, and then any money left after costs is theirs to
keep.
Music Agents
Agents take an agreed-upon percentage of the fees for the shows they
arrange for musicians. In other words, an agent who negotiates a fee for
a band to be paid $500 for a show takes a cut of that $500.
Record Labels
At a very basic level, record labels make money by selling records.
Your job at the record label and what type of label you work for will
determine what this means for you. If you have your own record label,
then you make money by selling enough records to cover your costs and
make a profit. If you work for someone else's
record label,
you will likely get a salary or hourly wage. The size of the label and
your role there determines how big that salary/wage will be.
Music PR
Whether radio plugging or conducting press campaigns,
music PR companies are
paid on a campaign basis. They negotiate a flat fee for working a
release or tour, and that fee usually covers a set amount of time for
the company to promote the product/tour. Music PR companies may also get
bonuses for successful campaigns and reaching certain thresholds—for
instance, a bonus if the album sells a certain number of copies. These
agreements are made before the campaign begins.
Music Journalists
Music journalists who work freelance are paid on a per project or
contract basis. If they work for a specific publication, they likely
receive a salary or hourly wage.
Music Producers
Record producers may receive a salary if they are tied to a specific
studio or be paid on a per-project basis if they freelance. Another
important part of music producer pay can be points, which allow
producers to share in the royalties from the music they produce. Not all
producers get points on every project.
Sound Engineers
Sound engineers
who work independently get paid on a per-project basis—which can be a
one-night deal or they may go on the road and do sound for a whole tour,
in which case they will be paid for the tour and may also receive per
diems (
P.D.s). Engineers who work with a particular venue exclusively are likely to receive an hourly wage.
Musicians
What about the musicians themselves? Musicians make money from royalties, advances, playing live, selling merchandise, and
licensing
fees for their music. Sounds like a lot of revenue streams, but don't
forget they often have to share the money with the people listed above.
Obviously, there are lots of different ways to make money in the
music business, and many of them come down to percentages and contracts.
For this reason, everyone needs to be on the same page about the how
payments will take place. Also, you should always get it in writing.
For this reason, the
music career you choose will have a big impact on how you
make money in the music business.
Here, you'll find a look at how several common music industry jobs are
paid—but remember, as always, that this information is general, and the
deal you agree to will dictate your circumstances.
Managers
Managers receive an agreed-upon percentage of the income from the
artists they work with. Sometimes, musicians may pay managers a salary
as well; this often works like a retainer, ensuring that the manager
doesn't work with any other bands. However, this latter scenario really
only comes into play when the artists are making a sufficient enough
income to support themselves comfortably and legitimately have a need to
make sure their manager focuses only on them.
Music Promoters
Promoters make money on ticket sales for the gigs they promote. There are two ways this can happen:
The promoter takes a percentage of the proceeds from the show after
recouping their costs, giving the remaining money to the artists. This
is known as a
door split deal.
The promoter may agree on a fixed payment with the musicians for
their performance, and then any money left after costs is theirs to
keep.
Music Agents
Agents take an agreed-upon percentage of the fees for the shows they
arrange for musicians. In other words, an agent who negotiates a fee for
a band to be paid $500 for a show takes a cut of that $500.
Record Labels
At a very basic level, record labels make money by selling records.
Your job at the record label and what type of label you work for will
determine what this means for you. If you have your own record label,
then you make money by selling enough records to cover your costs and
make a profit. If you work for someone else's
record label,
you will likely get a salary or hourly wage. The size of the label and
your role there determines how big that salary/wage will be.
Music PR
Whether radio plugging or conducting press campaigns,
music PR companies are
paid on a campaign basis. They negotiate a flat fee for working a
release or tour, and that fee usually covers a set amount of time for
the company to promote the product/tour. Music PR companies may also get
bonuses for successful campaigns and reaching certain thresholds—for
instance, a bonus if the album sells a certain number of copies. These
agreements are made before the campaign begins.
Music Journalists
Music journalists who work freelance are paid on a per project or
contract basis. If they work for a specific publication, they likely
receive a salary or hourly wage.
Music Producers
Record producers may receive a salary if they are tied to a specific
studio or be paid on a per-project basis if they freelance. Another
important part of music producer pay can be points, which allow
producers to share in the royalties from the music they produce. Not all
producers get points on every project.
Sound Engineers
Sound engineers
who work independently get paid on a per-project basis—which can be a
one-night deal or they may go on the road and do sound for a whole tour,
in which case they will be paid for the tour and may also receive per
diems (
P.D.s). Engineers who work with a particular venue exclusively are likely to receive an hourly wage.
Musicians
What about the musicians themselves? Musicians make money from royalties, advances, playing live, selling merchandise, and
licensing
fees for their music. Sounds like a lot of revenue streams, but don't
forget they often have to share the money with the people listed above.
Obviously, there are lots of different ways to make money in the
music business, and many of them come down to percentages and contracts.
For this reason, everyone needs to be on the same page about the how
payments will take place. Also, you should always get it in writing.
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