Monday, February 22, 2010

List of Typical Band/Artist Income and Expenses

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 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/or Video Sales
* Multimedia Product Sales


2. Artist Expenses:

a. Recording fees: CD/Tape
* Producer/Engineer
* Studio Costs
* Misc.Tape 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 bill
* Office equipment ( computers, fax machines, phones 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 Tapes ( for listening and study purposes)
* Misc. recording/playback equipment (4 track recorder/mixer etc.)
* Sound system
* Rehearsal space costs
h. Songwriting
* Copyrighted songs 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

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