Maximizing Profits for Musicians

Continuing the series discussed here. 

Time was, it wasn’t cool for musical artists to talk about business. In fact, “business” was seen as a universal evil, synonymous with selling out, a lack of talent and street cred, and a whole other slew of negative traits nobody wanted associated with their act.

Hip-Hop changed all that.

From P. Diddy to Jay-Z, 50 Cent to Drake, the hip-hop artist-as-mogul is an enviable image; a symbol of power, independence, and savvy. But even if you’re not in the hip-hop scene, remaining willfully ignorant of how your music makes money doesn’t make you a rebel; it just makes you ignorant.

With that in mind, here are some tips to make sure the business side of your artistic career is holding up its end of the bargain.

Make it Easy to Pay You

Not just for your merch table, but for promoters, venues, etc. Take cash, sure. But if you’ve got a smartphone or tablet (I’m assuming you do), getting a card reader of some kind (Square, Paypal, etc.) is super-affordable, and stupidly easy. And that’s not even getting into online pay options, like Paypal¹.

On that note; Venmo

Whether it stays hot or not, Venmo is blowing up right now; probably because it’s super-easy to send money with.  On the west coast, it’s fast becoming a verb; “Venmo me" is in common parlance. Makes sense; once you're set up, sending funds is basically as easy as sending a text. Not only is this a great way to get paid for merch, gigs, etc., but if you let people know that you accept tips via Venmo, you’d be surprised how much extra cash shows up after each concert.

Up Your Merch Game

Really? This again?

Yep.

If it seems like we talk a lot about merch here, it’s because it’s the least-understood revenue stream for indie artists, and one of the most potentially profitable². According to merch inventory/POS tracking platform AtVenu, for 500-1,000 capacity venues, the average merch dollar per-head is $3.65. And while those numbers don’t scale perfectly, if you’ve got 100 people at your show, and you’re not making at least $365, you’ve probably got room for improvement.

Have a big, well-lit, attractive display; Christmas lights are great for this. Have someone at your booth as often as possible – not just after your show. Take care of your merch, and it’ll take care of you.

Live Streaming

Not just for concerts; consider live-streaming the occasional rehearsal. In 2016, Brent Morgan was making over $10k/month streaming acoustic performances from his bedroom.

Streaming is a big thing now. YouTube, Twitch, Facebook; pick a format, and get in on it. If nothing else, it's a great way to reach out to your fans, and make new ones.

Above All, Stay in the Game

For those of us in the business, music isn’t just something we do; it’s a massive part of who we are. It’s not a hobby, or a “creative outlet” – it’s our heart and soul, shared with other people. Nothing stings like seeing another talented artist get out of the game because they’re not making any money.

Spend the time to get your business aspects right, and ironically, you’ll have more time and energy to focus on making music.

Which was always the point.

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1 - This also leaves a legal paper trail, which is more important than people realize. Not only can you show "yeah, this is our usual take from a show," but it makes it harder for the other side to try and pull a fast one. "Of course we paid them their full guarantee, I don't know what they're talking about!" Call people on their BS with evidence.

2 - If I could go back in time, this is what I'd be shoving down my bands' throats. The ones I was in, the ones that I managed; it was absolutely neglected by pretty much all my clients.