All artists dream of getting rich in the music business while avoiding going broke. This dream drives many artists forward with hope and optimism. I've been there before, and you may just be starting your journey. However, If you want real insight into avoiding the financial pitfalls in the music business, read on!
Make your profits from music and invest elsewhere
After smart artists make their profits from records, songs, and shows, they invest in other opportunities, putting their money to work elsewhere. These artists understand that attention is fleeting, and the sacrifices required to remain in the spotlight are hefty—even if you've kept your soul. It's best to start saving early and reinvesting soon after success hits.
Resupply the music industry with product
The savvy artist will recognize that everyone around them gets paid first. They'll then strategize how to deliver a product back to the industry or negotiate lower prices from their music production suppliers—all while maintaining the highest possible quality. This approach allows artists to increase their revenue, profit margins, and gain more control over their creative output.
Use your notoriety for leverage
Really smart artists understand that they're talented influencers with musical abilities. They know that refining their talent, combined with great promotion and awareness campaigns, allows them to leverage their notoriety. This opens doors for selling products and obtaining brand partnerships that wouldn't otherwise be available. These opportunities enable them to gain more money and status, furthering their goals in the world.
Why do artists go broke?
Artists go broke when they think they can be sustained by music and shows alone. The truth is, they can't. After expenses (recording, marketing, promotional, manufacturing, advances) are fully recouped, many projects only break even, leaving straggling royalties as mere support. The same goes for shows—soon the price will go down, and people won't pay as much. Additionally, as an artist, you have to maintain your appearance, security, and lifestyle. This is all costly. At the end of the day, you'll have little left from your profits to save.
What should I do as a new artist?
Figure out why you decided to play the game in the first place and stay true to your vision. Start saving money as soon as you begin your career. Eventually, you'll invest in minor cash-growing opportunities (such as buying out publishing rights or stocks), use some funds to create products to offer back to the industry if you choose and set yourself up for a successful exit. Remember, at the end of the day, it's a game, and everything will go back in the box.
But I wan’t to make music for the rest of my life!
You can, but after reaching a certain level of success, you'll realize that you may not want to stand in the spotlight forever if you don't have to. It will cheapen your brand and catalog as your notoriety wanes. People will only remember you when your fame was at its peak and your music was at its hottest. Additionally, constantly being in the spotlight can be emotionally and physically draining. Taking a step back allows you to recharge, find new inspiration, and potentially evolve your artistic style, which can lead to a more sustainable and fulfilling career in the long run.
Here’s what you should do
Stay independent as long as possible to refine your music offerings—secure funding at the lowest cost to keep harsh middlemen out of the picture. Maintain control of your intellectual property and its administration in-house to prevent corruption.
Here’s how you can stay independent
If you're a music creative or executive looking to build your label or publishing company in 60 days or less, with a step-by-step foolproof process, Grab the 60 Day record label course and get it done today! You gain the ability to get real funding, prevent yourself from getting screwed contractually, and keep the middleman out of your pockets. Click the link below to get started right now! If you’re skeptical grab the free guide, "10 Ways to Increase Your Record Labels Profits," a free split sheet comes with the download!
If you heed these warnings
You won't feel so overwhelmed by the foolishness in the music business. It will make sense to you much quicker as you begin to rise in notoriety. Lastly, you'll learn to pivot and move faster than your enemies and leeches can catch you.
If you forget about these warnings
The music business will continue to be a confusing dreamland where all your wishes come true in horrifying ways. You'll grow to hate the industry for its foolishness, and you may just want to quit. However, your departure could devastate your true fans. Without your presence, some might feel lost.
Conclusion
If you wanted to get rich in this game you now have some serious game to make it happen.
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