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Click to email ChrisTypical Artist/Band
Income & Expenses
by Christopher Knab. Updated January 2011.


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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 forecasts... now 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 Video Sales
* Multimedia Product Sales

 

2. Artist Expenses:

a. Recording fees: CD/DVD

* Producer/Engineer
* Studio Costs
* Misc. tape and/or digital storage    costs, 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 bills
* Office equipment (computers, fax,   phone, 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 MP3 players (for listening   and study purposes)
* Misc. recording/playback   equipment (4 track recorder/mixer,   etc.)
* Sound system
* Rehearsal space costs
 

h. Songwriting

* Copyright song 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

-----

Christopher Knab is an independent music business consultant based in Seattle, Washington. He is available for private consultations on promoting and marketing independent music, and can be reached by email at: chris@chrisknab.net

Chris Knab's book,
'Music Is Your Business' is available from the Music Biz Academy bookstore.

Visit the
FourFront Media and Music website for more information on the business of music from Christopher Knab.
 


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