How Music Artists Earn Their Royalties

Working in the music industry, a common occurrence for me is that an artist comes in and says, “I got 50,000 plays on Spotify,” or “I got all these streams on Apple Music.” And I’ll say, “Great, so are you making money?” And they’ll say, “I don’t know, am I?” The answer is yes, they’re making money. But without properly knowing their revenue streams and knowing where the money comes from and where it’s going, they have no way to collect it.

Part of your practical music education involves making sure that your song has direction when it comes to the revenue that’s coming in. When you think about revenue streams in the music industry, think about where the money is earned. There’s an entity that collects that money for you and delivers it to you, or to a publisher, or to a label on your behalf. I call it the “armored car model.”

Who is that delivery system that’s collecting money from your song and delivering it to you? In the case of a traditional record deal, where an artist is signed to a label, the label collects the money from record sales for you and delivers it to you per your royalty agreement. That deal is the same for labels of all sizes, whether it be an independent label or a major one like Warner Brothers.

When a song or an album is duplicated, multiple copies are made to be sold. There’s a fee that’s generated called a mechanical royalty. That is the money that a record company must pay to duplicate, which dates back to the old publishing days when song sheets were duplicated. That’s how songwriters made their money, and it’s very similar today.

There’s a company called the Harry Fox Agency that collects those mechanical royalties, and they’re the armored car in the model mentioned above. And after they collect those mechanical royalties, they deliver them to a publisher, or if you’re self-published, to you directly. And currently, that rate is 9.1 cents per song. So, for example, if you have a platinum-selling album with 10 songs on it, you have 9.1 cents, times 10 songs, times a million dollars. That’s a nice chunk of change.

One of the other ways that songs generate money is through performance. When a song is on the radio — the traditional terrestrial radio we call a radio station — that song generates a royalty. That’s called a performance royalty. The armored car that collects that money is a PRO, or performance rights organization, like SESAC, BMI, or ASCAP. They collect that money, and they deliver it to your publisher, or if you’re self-published, to you.

The royalty rate does fluctuate, and it’s fractions of pennies. However, it does add up, especially with something like a big pop song on Top 40 radio that usually crosses over to other formats. A Beyoncé song, for example, could generate a million dollars just from being played on the radio. There’s a fact to motivate you as you continue your online music education!

How Musicians Can Attract More Attention From Journalists

In the music industry, when it comes to trying to get traditional press for what you’re working on, a lot of artists make one of two common mistakes. The first is to get an email list of all these music journalists, essentially spam them, and just hope that one of those emails gets their attention. Doing so isn’t a very good idea because it can give you a bad reputation. But more importantly, if you took the time to actually just learn a lot about a few specific journalists, you could be a lot more detailed. That’s a much smarter personal strategy.

The other mistake that a lot of us make is that we start out shooting a little bit too high. For example, if I’m a brand-new act, I don’t have a lot of fans yet, but I would love to be on Pitchfork or in The New York Times. That’s shooting really high, and it might not happen.

What you can do, though, before you start choosing who you want to reach out to, is to create a map of what you want to achieve and where you want to be at a certain point in time. For example, you might say to yourself, “In the next year, I’d like to be on Pitchfork.” Then, you can think about what sources are smaller and accessible to you, sources that Pitchfork is maybe getting story ideas from, and map your path to them. That could be a shortcut to getting to that top source, rather than trying to start there.

One way to do this is by looking at the digital breadcrumbs left on the internet. A really amazing tool is Google’s Timeline. Something I always recommend is that if you find an article in a big outlet like The New York Times or Pitchfork, that’s breaking an artist, you can look at the date when it came out, put that into your Google Timeline search, and search for that artist to see who was talking about them before the article came out. Nine times out of 10 you’ll find that there were other blogs, people on Twitter, people who were talking about them before the story went to that big outlet, even when the big outlet takes credit for discovering them.

So, I recommend that you take note of the smaller outlets that don’t have millions of readers but are showing up in those search results. Then, do it again with another article by the same writer. What you’ll start to see is that every time they’re breaking a new artist, there are these smaller sources that keep coming up shortly beforehand on the timeline search.

What this shows you is that these are probably places where those big outlets are getting story ideas. I recommend that you start your press path on a map where you’re only taking the time to reach out and connect with the outlets and journalists that could get you to those bigger ones.

By exploring the world of online music education, you can learn much more about getting recognized by outlets and journalists and building your career in the music industry. Don’t wait any longer to start getting the music education that you want and need.

How Producers Get Paid in the Music Industry

A question that’s asked often is, “How does a music producer get paid?” That answer has shifted dramatically in the music industry the last few years because, historically, record producers got paid based on album sales. They received a royalty anywhere between 3% and 5% based upon their stature and the number of sales that have been made on the record.

That model has changed because sales have decreased. Now, producers get paid a percentage of income. They get a percentage of licensing if they haven’t written the song. They may also get a percentage, in some instances, of any kind of endorsement deals that come out of the song and the success of that song.

That being said, because producers aren’t making the same money and have the same revenue streams, oftentimes, producers will ask for publishing on songs they didn’t write. If you’re in a situation where you’re not able to pay a producer or a producer is producing for you for free, that’s often a great tradeoff. You give a small percentage of the publishing where the producer gets a piece of the songs that they’ve worked on without accepting money. But if a producer hasn’t written those songs and the producer is being paid for their work, asking for publishing is a definite red flag. Make note of this as you continue your online music education.

How Record Producers Became Wizards of the Music Industry

The first records were essentially documents of performances. It was essentially just a matter of sticking a microphone in front of a singer or a band and recording that performance, then preserving it and playing it back.

However, as technology began to mature and get a little more sophisticated, some record producers began to use that technology to influence and shape the way that music sounded on a record. An early pioneer was Les Paul, who worked with record cutters, record lathes, and early tape machines to do things like sound-on-sound recording and overdubbing, as he did with Mary Ford’s “How High the Moon.” This was the beginning of a whole new era for the music industry.

About 10 years later, a young record producer by the name of Phil Spector literally used the acoustics and electronics in the studio to create what he called a wall of sound in the record “Be My Baby” by The Ronettes.

The mid-1960s were when the idea of the record producer really started to mature. George Martin, working with The Beatles, used all kinds of electronic trickery to make their recordings sound really, really interesting. Whether it was the use of tape loops, interesting new musical instruments, or placement of microphones, everything was used to shape the sound of music.

Currently, music education, including online music education, offer music producers even more ways to play with sound and create new and interesting effects for recordings.

How the Music Industry Gains From Stage Plot Advancement

As a professional in the industry, I’ve learned that whether they’re DJs, dramatics or bands, they need the ability to communicate with a production staff and tell them what’s going on, when it’s going on and where it’s going to happen. And the stage plot is an industry device that’s critical to that communication.

It’s the visual means of communicating between parties who will work together but aren’t with each other currently. Who in the performance is going to go where? How should their equipment be laid out? Essentially, the general use of space and the technology layout inside of that space.

Better Stage Plot Knowledge in Music Education Means Better Music Show Productions

The better those stage plots are, the more accurate they are, the more information they have about the performance, and the better the overall production will be. You’re allowing the artists and the production staff who make the show happen to communicate and meet each other’s expectations effectively.

As much as I’ve used all these pioneering technologies in very different ways and spaces they weren’t really intended, I’ve drawn from VR spatial capture, 3D modeling, and old-school architectural approaches and blend those together when I make my stage plots.

They enable me to have a top-down, 2D, floor-plan-based discussion with a technical team, then take that flat thing and look in three dimensions at scale before I have a production conversation with the artist. Visually, they can see that same space rendered in front of them in real-time.

Students in Online Music Education Would Benefit From Stage Plot Knowledge

I can drop in the staging, musicians, et cetera, and I’m having an active conversation over the visual space and place for which the artist is creating their work. It becomes a very powerful tool.

When all those ideas are out of their head, I’m able to weave that back into the stage plot, flatten that back down, and share the updates with the whole squad. Everything maintains its up-to-date-ness.

Stage plots are certainly supercritical to creative, professional work. I think the new technologies and tools that are available are not usually exploited to make them as multi-dimensional and as rich as they could be. But I love doing it all the time.

How the Music Industry Works and Evolves

One interesting piece of music industry history is the start of the phonograph. The phonograph started as a cylindrical piece of wax, and then it became a shellac disk, and then later on a vinyl disk, and so on. This was a way, by using acoustic and electric technology, to have somebody perform in front of a microphone, and get that recording onto a piece of material that could be played back in anybody’s home, using a phonograph record machine.

The principle of the record business is the same principle as the publishing business. If I were to just give you a piece of vinyl with no grooves on it, it wouldn’t be worth anything to you. What makes it worthwhile is the information that’s on it. The idea is what’s valuable. However, it’s not just the idea that’s on the record—it’s the performance of an idea.

To outline the difference, there is the idea that’s fixed in form with paper and ink, and then there is the actual performance of that idea, which is then fixed on the vinyl record. So, the two parts of the music business become the idea and the performance of the idea. And in the record business, you’re not only paying the performer who’s on the record, but you’re also paying the author of the idea that’s being performed.

Sometimes, when we talk about the music industry and say that there are two sides to a record, we aren’t literally talking about the two sides of a record. We’re talking about the publishing side, which is the initial idea, and we’re talking about the master side, which is the actual performance of the idea and the person or people behind it.

Just as it is with sheet music, a performer is not necessarily going to know where to buy vinyl, where to press it, where to create the little pieces of paper that go inside of it, or the names of all the stores that sell records across the country. Because of this, we need record executives, who are able to take care of those things. So, the record business, just like the sheet music business before it, becomes a partnership between musicians and entrepreneurs—between artists and business people.

A record producer has two entities to pay. The first is the publisher and songwriter, who are the owners of that song. The second entity is the performing artist, who usually gets a royalty per record for the distribution of the performance. That’s how the music business operates; you either own the song, or you can own the performance of that song in fixed form.

The music industry today operates on those same principles. The only main difference is that today, in many cases, the performance of the song is not fixed in physical form, but instead available digitally.

Performances started in much the same way that songs did: in the oral tradition. A performance wasn’t something to be bought and sold. But then came the idea of modern theater, and the modern venue. The idea behind it was very simple: there’s a performer in a room. People are outside the room, and there’s a person at the door who’s going to take $5 from you. If you pay the $5, you gain entry to the room, and you’re going to hear the performance.

That is essentially the core of the business of being a performing artist. Of course, that artist can also record things on vinyl, or a CD, or on a digital file, and that’s worth something as well.

If you’re interested in learning more about how performing artists monetize themselves and their performances, as well as many other concepts regarding the music industry, think about exploring online music education. It is by far the most accessible and convenient way to access the lessons that come with a solid music education.

How Thomas Edison Invented Early Music Recording

“A few decades after the start of Tin Pan Alley and the sheet music business, an entrepreneur comes along with another invention — essentially another way to fix a musical idea in form,” explains Dan Charnas. “And that entrepreneur was Thomas Edison. And in addition to inventing the light bulb, he also invented the phonograph or gramophone.”

John Carlin adds, “Thomas Edison was a true genius, maybe one of the greatest geniuses of the 20th century. He invented a way to record music and commercialize it, and that’s really the key. Now, the interesting thing about Thomas Edison is that he was deaf when he was a young man. Someone had cuffed him on the ears, and he had lost his hearing. And not only did he have bad hearing, but he also was thought to have very bad taste in music. However, he was a mechanical engineering genius, the equivalent Bill Gates or Steve Wozniak in our world.

“Edison created this machine, the phonograph, which utilized a wax cylinder. It was a round device, and a needle would etch the sound into the wax. To use it for recording, people would push their heads or their instruments into a big horn, and the horn would record on the wax. Then, when you played it back through the machine, the sound was amplified through the horn.”

Carlin describes Edison’s early efforts as “somewhat of a niche business. He would sell the wax cylinders, but he was mainly interested in selling the machines to people. So, in the early days of the recording industry, the music was essentially given away to sell the machines to musicians and get them into people’s homes.”

With music education, you can learn more about the music industry’s roots and many other useful and interesting concepts. With online music education, you can learn all these things without having to leave home.

How to Be Fully Engaged With Your Own Music on Stage

One of the catchphrases I use with students in many of my classes is “Make sure you’re possessed by your music every time you step on stage.” I kind of coined that term while watching “Stop Making Sense” by the Talking Heads, which is a 1984 live music performance film that features The Talking Heads.

David Byrne from the very first song is really just possessed by the music. You can see it in his body movements, facial expressions, voice performance and instrumentation. Every part of his performance reveals a person who is completely embedded in their music and their process.

Music Education

I use that film as a teaching tool in not only the persona class but in classes throughout the semester because it really focuses well on stage setup, instrumentation, sequencing and collaboration. The film displays literally every aspect of the music industry and associated careers that we cover in classes. An online music education can reveal to you more about opportunities in the music industry beyond this topic. A formal education can help you narrow down your career choice and consider everything required of you to achieve success.

How To Build a Brand and Story That Represents You

My point of view is always going to be that of a talent manager. That’s my background. That’s what I came up in, and that’s who really nurtured my thinking. As a result, everything that I do is always going to be from the perspective of finding a way to evolve a vision. I want to be able to know how to achieve this, who a partner should work with, and how to share the vision with its intended audience.

The advice I would give, to any artist who is looking to understand their brand and what they want to say, is to find a point of view. What do you care about? Do you care about how you look, or fashion? Do you care about types of music and telling people what influences you? Find your point of view, and start there.

Keep in mind that this is not an exact science. This is not some miraculous thing where you can snap your fingers and suddenly you have 30,000 followers. It doesn’t really work like that. It takes time, dedication, and putting your effort into the right areas.

If you’re looking to build your personal brand on social media, I would challenge you to ask yourself: What are my values? What do I care about? What do I want people to know about me? Also, ask yourself what you want people to know about your music, your story, and where you’re going. As an example, if you’re a hip-hop artist, you might love hip-hop but decide that you’re not going to have any raps with curse words in them. And that’s going to be your MO.

Figuring out these things — what you care about, what you want to share with others through your music, and what you want to achieve — are crucial when it comes to building your brand and creating your story in the music industry.

Exploring music education is an excellent way to learn more about these concepts, and building your personal brand and viewpoint in the world of music. With online music education, all you need is an internet connection and a desire to learn.

How to Craft the Music and Story of Your Stage Performance

As many of you may be aware, when you perform on stage, you’ll sometimes have a music director. The music director chooses the best way to implement musicians around the song that you’ve chosen to perform. This could be an electronic track played in the background, a symphony orchestra or an acoustic guitar. It could be an electric guitar accompanied by a drummer. All of these instrumentations are different types of music direction.

If you don’t have a music director, then you’ll either be doing it all on your own or in collaboration with your bandmates. Because there are so many options, what we like to do is choose the instrumentation that works the best with our story. So, after we’ve chosen our story, we’re able to see which instruments should also be characters in the story that we’re telling.

For example, is it an introspective, intimate performance that we’re trying to create? If so, maybe an acoustic guitar and some hand percussion would work. Is it more of a wild and crazy party? If it is, maybe a track and a live drummer would be best. These are the questions that we need to consider and understand when we choose the new characters that we’ll take along with us on our story.

So, the structure of a show, and sometimes, the sequence of a show, is how we lay out all of the different songs and speaking moments, as well as any poetry we might be reading, opening acts, or DJs after the show. We ask ourselves, what is the best way for us to tell the story that we’ve written? How do we get the audience amped up for the show, and in the right place emotionally to receive the story that we want to tell them? And finally, what is the best way to relay that story and exchange energy with them throughout the show?

To learn more about the music industry and telling your story on stage, many people explore the opportunities of music education. With online music education, you can even learn about these concepts from the comfort of your own home.