Understanding the revenue streams

Question 1

what is the fundamental component of the music industry?

Answer 1

It is not the marketing, or the visuals etc. (that comes after)
IT IS THE SONG (a great hook, a great melody, good product, great lyrics) without it there is no music industry.

Question 2

How does the revenue stream work?

Answer 2

There is always an intermediary (armored car model) who collects the money earned from each stream and then delivers it to you either directly or via a publisher or a label on your behalf.

Gives you the money based on the Royalty agreement

Question 3

what is intermediary called when you are getting your revenue?

Answer 3

the armored car

Question 4

royalty agreement

Answer 4

a legal agreement between two parties where one party agrees to pay the other royalty fees based on the use of music

Question 5

mechanical royalty

Answer 5

is paid to a songwriter whenever a copy of one of their songs is made.
(just like how they used to pay to sell copies of sheets of music)

Question 6

what is the rate for a mechanical royalty?

Answer 6

it usually depends on the market rate but usually 9.1 cents per song.

Question 7

Performance royalty

Answer 7

Money that is generated from any public performance like music playing in bars or restaurants, playing live shows, or when your music is broadcasted on radio, tv or on programmed internet channels.

Question 8

give 3 examples of performance rights organizations (PRO)

Answer 8

SESAC, BMI or ASCAP

Question 9

what are the 2 different categories of money

Answer 9

linear royalty and non linear royalty

Question 10

Non Linear royalty

Answer 10

• most likely through streaming services because you will have a playlist or a set of downloads that are in a certain order. You are choosing the order.

Question 11

Linear royalty

Answer 11

through radio stations that play music without you knowing which order it is going in. you are not choosing the order of your songs.
Is paid to a songwriter whenever a copy of one of their songs is played.

Question 12

where are royalties collected (linear royalty method)

Answer 12

SoundExchanage

Question 13

what is the name of the sheet that you must fill out prior to registering your song?

Answer 13

song split sheet

Question 14

what is a song split sheet

Answer 14

is a legal document between collaborators on a song. When more than 1 songwriter has created a song or when you have sampled the song from somewhere else, or when you have a beat from someone else

Question 15

What do you do after you have filled out the song split sheet

Answer 15

Take the song and register it online with soundexchange (collects all the digital royalties for me) on every platform

Question 16

Terrestrial radio

Answer 16

= any radio signal that travels along the land, is broadcast from a land based station.

Question 17

should you rely only on streaming services to make a living?

Answer 17

No. Relying solely on streaming services and social media as a means to generate income and build your audience might not be able to sustain you.
A lot of the money comes from the touring, the merch, the physical items. It also allows you to create an experience which will convert them into loyal customers to then stream your music constantly.

Question 18

what is the general rate at which streaming services give you money?

Answer 18

generally given in the $/million streams.

Question 19

how long could it take for you to become a successful music artist

Answer 19

10 years

Question 20

how should you distribute the royalties among others?

Answer 20

It is best to tell the distributor to automatically distribute the checks in the terms and agreements of the royalty.

Question 21

A&R

Answer 21

are responsible for the artist and repertoire = for the artist’s sound and songs that are compiled together.

Question 22

reed flags from an A&R

Answer 22

You know an A&R is a team of unqualified people who only got their jobs through connections because when you listen to an artist’s album, and it isn’t a cohesive sound, it is because they are only pushing 2 songs within that album.

Question 23

are albums important?

Answer 23

not as important as they were before

Question 24

when will fans truly be a loyal and long lasting customer?

Answer 24

Fans will only feel attached to an artist until they buy all of the artist’s merchandise.

Question 25

who are the 7 ppl in the artists orbit?

Answer 25

1. publicist
2. lawyer
3. label
   4.agent
4. publisher
5. manager
6. business manager

Question 26

A manager

Answer 26

= negotiates contract and fees, books events and venues that match the artists career strategy, advises on career decisions, publicity and promotion.

Question 27

who is the most important aspect of your music career

Answer 27

the manager

Question 28

when should you get a manager?

Answer 28

When you literally have no time to manage anymore. aka : when you have multiple streams of income, shows to do, events to be at (things to actually manage).

Question 29

how do you know when you have the right manager?

Answer 29

He has to believe in you 100%. If he isn’t passionate about your music and doesn’t see you being a star then he is just in it for the money. He has to believe you have 10x the potential you have right now.

Question 30

what is the role of the manager in detail

Answer 30

You deal with all aspects for the artist (promotion, pr, tours, events, everything)

When the manager works with labels it is important for them to stay in contact and have consistent meetings with them so that they do not begin to lose their vision for the artist.

The closest and most important business relationship

Question 31

management commissions rate

Answer 31

15% - 20% of the artists gross

Question 32

extreemly important tips to remember:

Answer 32

Contracts and deals are usually not in the artist’s benefit.
You always need to read the contract before you sign.
Focus on the long term vision and growth rather than short term fame and popularity or for the quick buck.
Fame does not = a career
Don’t think about how many followers you can get today (followers doesn’t mean excitement and interest and passion for you).
You wanna know how many people are talking about you.

Question 33

publicist

Answer 33

Publicist = the press agent for an artist, band, or musical group

Question 34

examples of traditional publicists

Answer 34

(radio, TV, magazine, etc)

Question 35

can record companies provide the same services as traditional record companies?

Answer 35

yes.
they do have publicists, business development and digital media entities as well.

Question 36

Publisher

Answer 36

collecting revenue and income from sync so that they can be paid to the songwriters and composers.

Question 37

does a publisher help you develop as a writer?

Answer 37

yes

Question 38

who else are publishers for?

Answer 38

→ they are an asset for performers who perhaps no longer want to perform or tour but still possess a great skill for songwriting.

Question 38

when should you begin looking for a publishing deal?

Answer 38

it is well suited for artists who are showing a lot of potential,
already have a lot of things bubbling up,
or have been placed with a number of artists that are being released to.

Question 38

Do publishers pay in advance and collect on your behalf?

Answer 38

yes

Question 39

Attorney

Answer 39

= negotiates deals on behalf of the artists and often serves as a mentor to the artist.

Question 40

who does the attorney work closely with?

Answer 40

the manager

Question 41

how much does the attorney get paid

Answer 41

5% of the deals they negotiate.

Question 42

Agents

Answer 42

= responsible for developing the musicians or artists career with regard to their live performance. (both domestically and internationally)

Question 43

how much do agents collect from your live shows?

Answer 43

10%

Question 44

Business manager

Answer 44

= handles all personal and business related financial needs of music business clients.

Question 45

how much does your business manager make?

Answer 45

5%

Question 46

how does the business manager comparably act as? How does he do this?

Answer 46

the accountant
(oftentimes handle your business entities (coordinates with publishing entity, label entity, a touring entity and payroll for your crew etc)
→ files taxes on your behalf )

Question 47

Digital marketing managers

Answer 47

= develops, implements and manages marketing campaigns that promote an artist and their products and/or services

Question 48

what type of companies have digital marketing managers?

Answer 48

record companies