Almost everyone entering this business has incorrect preconceived notions about how this game works, which is why you feel like you're going to fail at any minute. Even though I don't know everything, I've been in it for 20 years and been around the block enough times to understand why it seems hard for many. If you want to ease some of your concerns about the difficult hidden corners of the music game, tune in to today's episode of the Music Money Makeover Show!
Artist don’t make money in the music industry their influence does.
Most artists don't realize that their influence alone can generate enough income to sustain them. While artists only make direct money from their music if they own the entire production and manufacturing operation, most can't afford this setup or lack the expertise to run it. That's why many turn to record deals. But they're overlooking their most valuable asset—their influence. The real goldmine lies in using that influence to promote other brands and products. Though this might challenge your preconceptions about the music business, embracing influencer marketing will make the industry much clearer to understand. If you choose not to leverage your influence, you'll need to learn how to control your entire creative operation from start to finish. Otherwise, you risk ending up broke and beaten down by the industry.
Most lawyers bait with contracts and switch with transactions.
The truth about most lawyers is that they always bait you with contracts because they know you need it. However, many lawyers specialize in making deals rather than just drafting contracts. It's best to work with a lawyer when you're ready to negotiate better offers, as that's their expertise. They're called transactional lawyers for good reason. While they may seem expensive, they're typically willing to work on commission. Without legal representation, scaling your business becomes extremely difficult—nearly impossible—due to legal complexities. Start by working with them on individual cases before moving to a retainer and commission arrangement. This approach will help you find the right lawyer for your needs.
The key to publishing is duplication.
The biggest misunderstanding about music publishing is that you should only make and record your song once. In reality, music publishing thrives on duplication. The system is designed to create multiple masters of the original composition. Blocking this process prevents the natural power of music publishing from working. While you should use this strategy thoughtfully, creating several versions of the same composition can increase both exposure and revenue for your original works. Failing to do this leaves significant money on the table. When you get this sequence right, your music publishing revenue can grow exponentially.
If you know how to sell you can place songs anywhere.
The reason why music producers and writers cannot place their songs successfully is because they don't know the art of sales. While artists excel at creating, they often need someone else to handle the selling. The person selling the songs must thoroughly understand three things: the product itself, the associated rights, and the customer's needs. For many writers and producers, managing these aspects while focusing on creation is overwhelming. If you can master the art of sales as a producer or writer, that's fantastic—but if not, you need to find someone who can make these sales happen. Otherwise, your great creations risk remaining forever trapped on your hard drive.
You calculate how much the record label makes off your deal like this!
The secret to knowing how much you're in debt to the record labels is by using one simple formula. Take the total expenses (including recording, marketing, and royalty costs) and divide it by your artist royalty rate—this gives you the final amount needed to pay the record label back in full. As an artist, not knowing this number could land you in serious trouble. For independent record label owners, failing to track this number is grounds for deal termination since it prevents proper auditing. This situation hurts everyone involved: artists lose their deals, labels lose money, and both parties face legal costs. That's why it's crucial for both sides to understand and use this formula. The label must maintain accurate books, and artists must monitor these numbers to track their debt obligations.
What if I don’t wanna sell other stuff?
Not wanting to sell merchandise or other products isn't really the problem - fear of diluting your artistic brand is. However, that's not a good reason to avoid exploring additional revenue streams. Many successful artists have proven that merchandise and brand partnerships can enhance their artistic identity rather than compromise it. Get around this resistance by starting small - choose products that authentically align with your music and brand. Begin with basic merchandise like t-shirts or limited edition vinyl, then expand based on fan response. If you avoid merchandise and alternative revenue streams, you'll likely struggle financially and depend entirely on streaming revenue, which rarely provides sustainable income for most artists. If you embrace strategic merchandising and partnerships, you can create multiple income streams while building stronger connections with your fans, ultimately giving you more creative freedom and financial stability.
If no one knows you why would you create multiple versions of your song?
Having a small audience is not the problem - fear of wasting time and resources on multiple versions is. However, that's not a good reason to avoid creating variations of your songs. Multiple versions can actually help you reach different audiences and maximize your song's potential. Get around this hesitation by starting strategically - create versions that serve different purposes, like a radio edit, an acoustic version, or remixes featuring other artists. If you avoid making multiple versions, you limit your song's reach and miss opportunities to connect with new listeners through different styles and collaborations. If you embrace creating multiple versions thoughtfully, you can expand your audience, increase streaming numbers, and create more opportunities for sync licensing and playlist placement.
What is a healthy artist royalty to aim for?
For new artists, I recommend aiming for a 30% artist royalty rate, though I won't go above 35% unless they're already generating significant revenue or are willing to invest their own capital into the project. This rate balances fair compensation with the label's need to recoup investments in marketing, production, and promotion. Higher rates might seem attractive, but they can make it harder for labels to invest properly in artist development and marketing, which ultimately hurts both parties. The key is finding a sustainable rate that allows both the artist and label to grow together.
Here’s what you can do!
If you’re ready to take control of your music career and understand the industry better? Here's what you need to do:
Grab the "60 Day Record Label Course" to master the business side of music. Learn everything from contracts to revenue calculations, and start building your sustainable music business.
Download our free guide "10 Ways to Increase Your Record Labels Profits" to get started with essential industry knowledge. Plus, receive a free split sheet template!
Join the music money makers community today.
Don't let the complex music industry hold you back any longer. Whether you're an artist, producer, or aspiring label owner, these resources will give you the knowledge and tools you need to succeed.
The Powerful Payoff
If you dig into what i’ve discussed in this video today…
You'll understand how to leverage your influence for sustainable income, so you can finally build a stable music career without relying solely on record sales
You'll master the legal and business aspects of music publishing, so you can maximize your earnings through strategic duplication and proper rights management
You'll develop the sales skills needed to place your music effectively, so you can turn your creative work into consistent revenue streams
You'll gain complete clarity on record label economics, so you can make informed decisions about deals and maintain control of your financial future
Without proper knowledge of the industry
you'll lose thousands in potential revenue and opportunities
your artistic vision and creative freedom will be compromised by bad deals and exploitative contracts
and you'll face the difficult choice between staying independent or signing away your rights for quick money
At the End of the Day
Transform yourself from someone who feels overwhelmed by complex music industry mechanics, struggling to create sustainable income from music. You'll understand how to leverage your influence and artistic value for sustainable income, while confidently making informed decisions about contracts, publishing, and business partnerships.
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