Home | Articles | Bookstore | Promote Your Music | Music is Your Business | Subscribe Twitter | Start a Record Label | Radio Promotion | CD Art Design | Music Career Help Typical Artist/Band Income & Expenses by Christopher Knab. Updated January 2011. Back to The Academy In case you ever forget that it takes money to make money with your music, here is a summary of some general income and expense categories that may factor into your business/budgeting forecasts... now you know why music industry professionals say that it costs MORE to market and promote music than it does to record it! 1. Artist Income Sources: a. Live Performance Fees b. Record Label Recording Contract Royalties c. Publishing Income Sources * Mechanical Royalties   (Sales of CDs/DVDs) * Performance Royalties   (Broadcasting: Radio, TV, Satellite Radio) * Synchronization Fees   (TV, Film)  * Sheet Music Sales * Commercials/Jingles Income   d. Merchandising Royalties ( T-Shirts etc.) e. Misc. Income Sources * Internet Streaming / Downloads * Investment Income * Endorsements * Book and Video Sales * Multimedia Product Sales   2. Artist Expenses: a. Recording fees: CD/DVD * Producer/Engineer * Studio Costs * Misc. tape and/or digital storage    costs, and other studio supplies * Equipment Rental charges * Guest Musician fees * Mastering fees   b. Graphic Artist/Cover Art Design costs c. CD/Vinyl Manufacturing/Duplication charges * Promotional Expenses   (Indie Radio Reps/Sales Reps,) * Marketing and Sales Plan costs   (One sheets, Coop dollars, Ad    money)   d. Publicity/Promotional Material Costs * Publicists Fees * Promo/Publicity Kit Design costs * Flyers, Posters, Envelope Design costs * Printing/Copying charges * Photographer fees and duplication   charges * Internet Website costs (Design,   maintenance, access fees, etc.) * Misc. online promotions, events.   e. Office Expenses * Rent * Stationary and office    supplies/furniture * Postage, phone and utilities bills * Office equipment (computers, fax,   phone, et al.)   f. Taxes * Local, State, and Federal taxes * Tax preparation costs/Bookkeeper    fees   g. Band Equipment Costs * Instrument purchases/rentals * Tour Luggage * Misc. equipment   repair/maintenance costs (strings,   drumsticks etc.) * CDs and MP3 players (for listening   and study purposes) * Misc. recording/playback   equipment (4 track recorder/mixer,   etc.) * Sound system * Rehearsal space costs   h. Songwriting * Copyright song registration /  filing    costs * Performance Rights Organization   Fees ( ASCAP-BMI-SESAC) * Lessons/Study/Research    expenses * Conferences/ Seminars budget   i. Artist Business Team Costs * Personal Manager/Consultant fees * Business Manager/Accountant    fees * Booking Agent fees * Publicist fees * Music Attorney fees   j. Transportation costs * Auto/ Van   purchase/rental/Insurance costs * Maintenance costs (gas, service,    repair) * Airline, bus, and/or train tickets * Highway/Ferry tolls   k. Touring expenses * Per Diem ( for food, lodging etc.) * Road Manager/Roadies salaries * Lighting/Sound equipment    purchase/rental costs   l. Merchandise (T-Shirts etc.) * Design costs * Manufacturing and shipping costs   m. Miscellaneous Expenses * Costumes/Stage clothing * Insurance (health, equipment, life    etc.) * Union dues * Trade magazine subscriptions * Video production and    manufacturing costs * Whatever else comes along that    you forgot about ----- Christopher Knab is an independent music business consultant based in Seattle, Washington. He is available for private consultations on promoting and marketing independent music, and can be reached by email at: chris@chrisknab.net Chris Knab's book, 'Music Is Your Business' is available from the Music Biz Academy bookstore. Visit the FourFront Media and Music website for more information on the business of music from Christopher Knab.   Submit An Article for Consideration! Would you like to submit an article for publication at MusicBizAcademy.com? If you have music-related expertise you'd like to share with other musicians including career tips, how to's, or general music business-related articles, please feel free to send them our way. We'll be glad to consider them. Submit your article! The Four Fronts... Artist/Product Development Promotion Publicity Performance   Get Educated... Master the Music Biz! Online Courses. Many Programs. Learn Day or Night. Details Here.   Christopher Knab Recommends... Music Is Your Business Christopher Knab and Bartley F. Day's expanded edition of "Music Is Your Business" is filled with more insights into the business side of being a successful musician or band. Included are chapters on both Internet and traditional music marketing methods. The essential legal issues you need to know are explained as are music contract tips, how to license your music, attract distributors, get radio airplay and create a demand for your music. More... How to Promote Your Music Successfully on the Internet Our in-depth guide to music promotion demonstrates how you can combine powerful internet marketing techniques to sell your music merchandise online! Learn what works, what doesn't, and what you shouldn't waste your time and money on. More.... Our Top 25 Articles How to Write an Artist Bio Performance Contracts Mastering Your Music How to Copyright Music 21 Songwriting Tips Tax Tips for Musicians Sell Your CDs Online What's a Record Deal About? Artist/Band Interview Form Inside Record Labels Internship Do's & Don'ts How to Make a Living w/ Music How to Write a Press Release Reasons Demos Are Rejected Facts About Music Licensing Trademark Your Band Name? Planning A Radio Campaign A Legal Checklist Industry Quotes to Live By Songwriting Techniques Guerrilla Marketing Tips Starting a Music Business Live Performance Music Marketing Plan Can U Afford Distribution? Lots More Articles... All Content © 1996-2013 Midnight Rain Productions. All Rights Reserved. Privacy Policy