As a music artist, you want to get paid fairly for your creative work. But how do you ensure that you receive the compensation you deserve in a complex and changing industry? In this article, we will explore some of the best ways to protect your rights, negotiate your deals, and leverage your platforms to earn more from your music.
The first step to getting fair compensation is to understand your rights as a music artist. Depending on your role, you may have different types of rights, such as copyrights, performance rights, mechanical rights, and synchronization rights. These rights determine how you can control, distribute, and monetize your music. You should also be aware of the various entities that collect and distribute royalties on your behalf, such as performing rights organizations (PROs), mechanical rights organizations (MROs), and digital service providers (DSPs). You need to register with these entities and keep track of your earnings and statements.
Make sure you register with PROs like ASCAP and BMI to collect public performance royalties, as well as MROs like HFA for mechanical royalties. Stay organized by keeping track of all your registrations, recordings, and compositions so you can monitor where your music is being used.
Consider forming your own publishing company to retain income; however, you can hire a third-party service publishing administrator to manage your publishing administration.
The second step to getting fair compensation is to negotiate your deals with the parties that want to use your music. Whether you are signing a record deal, a publishing deal, a licensing deal, or a sponsorship deal, you should always read the contract carefully and seek legal advice if needed. You should also know your value and be prepared to walk away if the terms are not favorable. Some of the key aspects to negotiate are the advance, the royalty rate, the recoupment, the duration, the exclusivity, and the creative control.
When negotiating deals, be prepared & know your worth. Carefully review contracts, consult a lawyer, and counteroffer where you want improvements. Stand firm on dealbreakers and don't be pressured into signing right away.
The third step to getting fair compensation is to leverage your platforms to reach and engage your fans. In the digital age, you have more opportunities to build your brand and generate income from multiple sources. You can use social media, streaming services, websites, newsletters, podcasts, and blogs to promote your music, grow your audience, and create a loyal fan base. You can also use these platforms to sell your merchandise, tickets, subscriptions, memberships, and donations. You can also collaborate with other artists, influencers, and brands to expand your network and exposure.
Start by finding your niche and levelling up your social media with content tailored to your target audience. As you build a fan community and your brand it will make it easier to advocate for fair compensation when opportunities come knocking.
The fourth step to getting fair compensation is to diversify your income and explore new revenue streams. As a music artist, you should not rely on one source of income, as it may fluctuate or disappear over time. You should always look for ways to diversify your portfolio and create passive income. Some of the options you can consider are sync licensing, royalty splits, sample clearance, music production, songwriting, teaching, coaching, consulting, and speaking.
Your music is your most valuable asset and income generator. Which also means everything relies on the success of your music without other sources of income. Diversifying your income and investments will ensure you can stay the course during volatile periods of time. Remember COVID?
The fifth step to getting fair compensation is to track your finances and manage your expenses. As a music artist, you should treat your career as a business and keep track of your income and expenses. You should also set a budget, save for emergencies, pay your taxes, and invest in your future. You should also use tools and apps that can help you monitor and optimize your financial performance, such as accounting software, royalty trackers, payment processors, and financial advisors.
Knowledge is power. Take the time to either look through bank statements or connect your accounts through an online budgeting software to see where income flows in and where expenses flow out. Once you have a sense of your recurring living expenses you can save up an adequate emergency fund to make sure you can withstand potential income losses. Knowing your estimated tax obligation will tell you how much to set aside to pay your taxes. A CPA can help you with the details. A financial planner can help you plan for cashflow management, debt, investments, taxes, retirement, estate planning over your lifetime to ensure you are on track to reach artistic freedom.
The sixth step to getting fair compensation is to advocate for change and support the music community. As a music artist, you should be aware of the challenges and issues that affect your industry, such as unfair practices, outdated laws, piracy, and inequality. You should also join forces with other artists, organizations, and movements that are fighting for a more fair and sustainable music ecosystem. You should also educate yourself and others about the value of music and the rights of music creators.
Find your unique selling point - what is it that you do that others don't. It can be repertoire you perform, it can be the way you perform and many other factors. Keep learning new things, soft skills, local regulations and study the market. Take note of trends but don't blindly follow them - create trends instead.