Why you should think twice before you sign with a label or publisher
Royalties are one of the most discussed subjects in the music industry, yet no one really understands what they are and how they work. Especially for young, starting artists and producers, this is a real swamp that seems almost impossible to navigate and get through.
With the coming of the digital age, many new opportunities for music distribution and publishing have appeared, making it easier and safer for young artists to make a living from their art. Whether you’re signed at a label and/or publisher or if you’re an independent artist, the trickiest business of the music industry arguably is concerned with royalties. Before we get into that however, we’d like to start with some basics about the ownership of music and how all of that works.
Copyright of music
There are two sides to the copyright of a piece of music. One is the Composition Rights and the other is the Master Rights.
The Composition Rights includes the notes, melodies, chords, rhythm, lyrics of a song and belong to the owner of the actual composition, which is usually 50% songwriter and 50% publisher. As an independent artist, you could be both songwriter and publisher.
Then there’s the Master Rights, which is the official recording of a song used for reproduction and distribution. These belong to either the artist(s) or their record label. Again, as an independent artist, you could be both.
Licensing of music
There’s a difference between selling licenses and collecting royalties. You, or your publisher, can sell a license to any customer, like radio + tv stations, filmmakers and YouTubers, which states that they can use your music in their own projects. Once these projects, including your music, go public however, you’ll receive public performance royalties for every time your song is played.
In order to receive royalties however, you must be registered to an organization or society that collects royalties and pays those who are due. So here we are, we’ve arrived at the tricky part: the royalties.
The five types of royalties in the music industry
Mechanical Royalties are the income generated from the physical and digital reproduction and distribution of your copyrighted music. It applies to music reproduced on CD, vinyl and cassette, and music made available for digital download and streaming services.
This only applies to interactive streaming services. An interactive-streaming service is a streaming service where the consumer chooses which song is played, forcing a digital reproduction of the song. Examples of interactive streaming services are Spotify, Tidal, Deezer, Apple Music, etc. Interactive streaming services generate both mechanical and public performance royalties.
A non-interactive streaming service is a streaming service that does not let the consumer decide which song is streamed. Examples of this are Pandora Radio, webcast services and really any other digital streaming service that does not allow its users to skip or rewind songs, skip forward or see what songs are ahead in the playlist.
The royalties generated from these non-interactive streams are public performance royalties (second in the list) and go to the copyright holders of the sound recording, which is either the artist or their label, and to the copyright owners of the composition, which are the publishers and the songwriters.
In order to receive these royalties, you must be the copyright owner of the intellectual property. If you’re signed to a label, there’s a fairly big chance you’re no longer the full copyright owner of your music, which means that a percentage of the royalties earned from your music go to your label. This all depends on the agreements you made with your label.
Secondly, we’ve got the Public Performance Royalties. Remember that there were two sides to a copyright, the composition rights and the master rights. For the owner of the composition right, this is the payment you receive when your music is performed, recorded, played or streamed in public.
These royalties are collected by Performance Rights Organizations (PROs). When you register with a PRO, they’ll sell licenses for your music to be played in public and then monitor whenever it gets played in public, so they know how many royalties you are due.
Now, every time your music is played on TV, radio, in clubs, bars, concerts, on streaming services or anywhere else in public, your PRO will collect the royalties and distribute them to the composition right holders of your song.
Beware, PROs make a clear distinction between songwriters and publishers and they split the royalties 50/50. So, if you’ve made a song entirely by yourself (you hold the composition copyright and the master copyright) and you haven’t signed a publishing deal, make sure you register to your PRO as BOTH the songwriter and the publisher to receive the full 100% of royalties on the Composition side you are owed.
Next, we have the Neighbouring Royalties. These are basically the same as the Public Performance Royalties, except these royalties go to the copyright holder of the sound recording, the master right, instead of the copyright holder of the composition. These royalties are collected and paid by the same PRO that collects and pays your public performance royalties.
So, the only real difference between public performance royalties and neighboring royalties is the person who’s getting paid. Public performance royalties are for the composition right holders, whereas neighboring royalties go to the master right holders.
Fourth is the Synchronization Royalties. Every time your copyrighted music is ‘synchronized’ or paired with visual media, e.g. when someone uses your music for their YouTube video, the synchronization royalties generate income for the right holders. To be allowed to use someone’s copyrighted music for audiovisual media, you’ll need to purchase a synchronization license and a master use license. The sync license allows you to use the composition of a song for an audiovisual project. A master use license allows you to use the master recording of a song for an audiovisual project.
To obtain a master license, you’ll need the permission of the master recording owner, which is either the artist that made the music or the label that signed the artist. For a sync license, you’ll need to contact the composition right holder of the song, which is either the songwriter(s) or the company that published the song. However, nowadays there are Sync Libraries where artists can submit their music to be licensed to an end user, and end users can easily purchase all the licenses needed to use music in their projects.
Last, but not least, there’s the Print Music Royalties. These are the least common nowadays but can definitely make for a decent revenue stream. Print Music Royalties generate income when copyrighted music gets printed to sheet music and distributed. Note: these royalties only go to the composition right holders of the song, which are the songwriters and the publishers.
Many artists and producers believe that they need to sign with a label or publisher, regardless of the quality of those companies, but as you can see from the way this industry works, it doesn’t always pay off (that much) to sign with a publisher and/or label.
Now, labels and publishers can definitely help you grow as an artist, but if you dive a bit deeper into how the music industry works, you’ll see that signing to a label and/or publisher might not necessarily always be the best move for you to make in your career right now.
So what do you do, once you decide not to sign a contract with a label or publisher?
That’s the big question, right? How can you, an (aspiring) independent artist collect royalties over your music?
The first thing that needs to be absolutely clear is: Who holds the rights to your music? Have you signed a deal with a publisher and/or label? Then it’s very likely that you own even less than 50% of your music, meaning you don’t get all the royalties your music generates. If you do, however, own the full copyright to your music, congrats! You’re on the winning side of this game.
Now of course, your music needs to be heard and for that, it needs to be sent to music stores and streaming services, which you don’t need to do yourself. Here’s a list of distributors that can get your music in stores and to streaming services. Make sure you pick one that’s best suited for you and don’t forget to check how these distributors handle copyrights. Some of these may not let you keep 100% of your rights, which would be a complete rip-off if they didn’t compensate you fairly.
Be aware that most streaming services only pay royalties for the sound recording (side B), which means that the royalties you are due for the composition (side A) will be lost if you don’t register your music with a performance rights organization and a collection society that focusses on mechanical royalties!
In the Netherlands there’s an organization that houses two collection societies under one name: Buma/Stemra. Buma collects and pays public performances royalties for songwriters and publishers (side A) and Stemra collects mechanical and synchronization royalties for songwriters and publishers (also side A).
So if you’re a Dutchy like us, we advise you to register to Buma/Stemra as BOTH the songwriter and the publisher, to ensure you receive the full 100% of side A, and then find a suitable distributor to distribute your music and collect your mechanical and public performance royalties of side B.
There’s also sena.nl, a royalty collection society focused on neighboring rights (side B), but this might not be necessary if your distributor already pays these royalties.
Finally, we have www.stichtingnorma.nl, they focus on what’s on TV. If your music has ever been or will ever be played in a live television show, Norma is the one you need to contact.
Beatstars and Airbit are popular for producers and musicians to sell their music to artists or fans in general. These platforms are very easy to use, and both have a huge client base for you to sell your music to. It’s not just beats that you can sell here, even complete songs and albums if you like.
This is probably the fastest way to make money with your music right now. You can choose to sell your music under different types of licenses: exclusive and non-exclusive. An exclusive license usually sells a at a higher rate than a non-exclusive license, since an exclusive license can only be sold to one person, group or label. A non-exclusive licensed track, however, can be sold to an unlimited number of people.
Note: before you start using Beatstars or Airbit, watch these tutorial videos on YouTube, just to make sure you don’t miss any important steps.
2. Distribute your music to online streaming services
Luckily today, online music distribution is easier than ever! A few decades ago, you would have to go to a label, hoping your music would be good enough to get signed. Then you’d be offered a deal, which usually meant giving up more than 50% of profits made by your music.
Nowadays, all you need to do is go online, find a distributor, like Distrokid.com, Amuse.io or CDBaby, and upload your music through their platforms. They will send your music to stores like Spotify and Apple Music who, in turn, will pay you for the number of streams your music gets. Also, most of these platforms let you keep 100% of your rights, meaning you receive 100% of the money earned with your music.
3. Become an (online) music teacher for others
You might give teaching a shot. You can use your experience and skills to train other musicians and artists. This can range from instruments to music theory or a combination of the two. It’s a fun way to earn money, since you get to talk about something you love doing and you get the chance to inspire and help young artists and musicians. It’s pretty easy to start teaching. You can choose to teach people online or have them come to another place. You can use your instruments to play on, students can bring their own instruments, or perhaps you can borrow them from schools or friends.
4. Start performing at (small) venues
Of course, this is where you get to show people what you’ve got. It’s fantastic way to make money as a musician and lots of fun to do. Just don’t expect to become a millionaire after one show, that’s not how this works. If you don’t have a great track record on pulling in audiences, you won’t be able to demand large fees. You’ll have to start small and build yourself up to the point where you can fill entire clubs and venues just by dropping your name on the invite. Everybody has their own way of building their name up, so get creative and do as much as you can to build your audience and reputation. After some time, you might even be able drive ticket sales through your own website, eliminating the commission that’s usually charged by booking agencies.
5. Become a music producer for others
Making music can be more than just a hobby. As a producer you can find tons of clients. Use Instagram to brand yourself and your music, so people will be able to find your name and your style as a producer. Beware that it’s a bit of a saturated market, so you’ll have to stand to attract attention. Luckily, we have platforms like Beatstars and Airbit today, making it easier to present yourself and your product online. But that’s not the only way to make music for others. Many producers prefer working with artists in a studio, so they can get to know the artist and figure out what works best for them. A producer’s job is not just to make the beats, it’s the whole process of translating an idea into a song and helping artists to find the best way to represent themselves in their songs.
If you can find artists who are willing to collaborate, you might just find yourself with a whole new stream of income.
6. Work as a DJ
DJ’ing is a very popular way to make money in the music business. If you look at some of the popular guys like Armin van Buuren, Afrojack, Martin Garrix, you’ll see there’s serious money to be made. Again, just like these guys, you’d have to start at the beginning. You’ll have to be talented, dedicated and work yourself up in the business. This way you’ll build a network, increase your amount of shows and you might just reach the stars in 5 years!
DJ’ing is not only a great way to make money, it’s also a great way to get exposure for your own music. Since you’re the one deciding what music gets played, you might as well throw in some of your own songs and see how the crowd reacts. This learns you how people respond to your music. Maybe you want to drop a mixtape in the future, but you’re not sure which songs you want on there. This way you can test your songs with a live audience and decide what would work best for your mixtape.
7. Sell your music services on Fiverr.com
Fiverr is an online marketplace where anyone can basically sell everything to anyone. As a musician, this is the place where you can offer your specialty, whether it’s playing bass guitar, mastering a track or experienced vocals.
The key to maintaining a sustainable business on Fiverr is to start by offering your service for a low price. Once you’ve got positive reviews from clients and have built a reputation for yourself, Fiverr will recommend you to more people on the platform, meaning you get more potential clients to sell your service to. Once you have a steady client base, you can increase your rates gradually and start making real money for yourself!
8. Get your music played on TV or Radio
You can get your music on TV or Radio by sending it to Sync Catalogs. They will make it possible to get your music added to films, tv shows and radio. They don’t take ownership of your music though, so usually there’s no upfront money or production budgets. You only receive money once your music is used. To get into a Sync Catalog, you need to send an introductory email, telling a bit about yourself and the songs you worked on. This should also include a link to 3 of your best tracks. Sync Catalogs are looking for high quality only, so your tracks will need to consist out of a solid production!
9. Launch a YouTube channel
It’s also possible to record videos and post them on a YouTube channel, this includes your own music videos or videos that teach others whatever you’d like to teach. You’ll have to be consistent in uploading these videos to build up a strong audience, but once you attract enough people to watch your videos, you can make some nice bucks from this, either through ads or premium content.
If a video contains ads, YouTube will pay a small percentage of the advertisement money to you, the person that hold the rights of the content. Also, there’s this thing called YouTube Content ID, which is like a digital fingerprint that identifies you as the creator and copyright owner of the content you provide. So, if your song plays in the background of someone else’s video, and you hold the rights to that song, YouTube will have to pay you as well!
10. Sell your music on Bandcamp.com
Bandcamp is a marketplace where musicians can sell their music and merchandise. It has a great recommendation system and makes use of daily selections, meaning you might just be on the frontpage one day.
As a musician, you can sell CDs, Vinyls, posters, tickets, merchandise and whatever else you have in store for us. You also get to set the price yourself, so you are the true owner of your own business here.
Instagram is the social media platform that is indispensable nowadays. Influencers, Artists, enjoyers of life and companies are all over on Instagram. Creating an account is easy, but how do you ensure that you, as a DJ / Producer, have a strong and powerful profile? Stardom is giving you some tips so that you can make your artist profile even better!
1. Your profileis your business card
The first step in creating a powerful account is making sure your profile is complete and clear. This means that it is important to choose a good profile picture, one that is professional and clear.
The next step is your bio, which can actually be compared with a business card. When someone comes to your Instagram profile, it must be clear who you are and what you do. Think of a location, description of your work /study, possibly a website and a way to get in touch with you.
2. It’s not all about business
Now that your profile is complete, you will come to the next step, which is sharing content. This can be done by placing a photo in your story or on your feed. As a DJ / Producer you immediately think of sharing photos of bookings or collaborations. Of course, this is good content to post, just make sure you make it personal.
Your followers want to see more than just the professional content of your successes. For example, it is important to also show them the process of such a success. For instance, your time in the studio, behind the scenes, collaborations, lessons, name it. That is step 1 of adding personal elements.
Another very important step is to share private photos. By this, we mean content that is not related to your work, such as photos of friends, partner, family, passions or hobbies. This way your followers get a better picture of you and see humanity on your profile.
3. Before you hit ‘post’ Before we talk about posting the content itself, think about the overarching theme you want to stick to. Use the same filter or color combination for your photos. That is nice and clear when people come to your Instagram account. You also have to think for yourself what you want to convey to your followers, as an artist.
When you post a photo on your feed, it is important to add some elements. For example, a caption under your photo is a must. This can be an explanation, quote or storytelling. Keep in mind that your text should not be long-winded. Furthermore, it is a benefit to add emojis, this makes it more playful, creative and cheerful.
In addition to the caption, two more elements should not be forgotten. These are the location and the tags. The first one isn’t that hard, simply add a location to your photo. A location is featured, and this way more people come to your Instagram account. When you post a photo with another DJ / Producer, family, friends, you name it. Don’t forget to tag that person! This person can then share the photo on his / her account, and this ensures more engagement to your account as an artist.
4. Engage and interact with your fans
We all want more followers on Instagram, now the question is how do we get them? Interacting with your followers helps to gain even more followers. For example, you can use the caption of a photo to ask questions to your target group. Then people respond underneath your photo with answers, now it’s up to you to do something with it. Take your time to go through these responses and answer them. A network is essential in the DJ / Producer industry, so try to work on this and invest time and effort.
5. If you master consistency, you’re halfway there
After applying all the previously given tips, it is important to apply consistency. You are already doing great, but you have to hold on to this! Make a schedule for yourself how often you want to post per week and when.
You can use a content calendar and schedule a moment at the beginning of the week to complete it. To make it even easier for yourself, you can determine set times to share your content on Instagram.
Please note! Take a look at the statistics -> target audience -> Followers, here you can see which days and times the most followers are active on Instagram.
