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.

1. Artist Income Sources:

a. Live Performance Fees
b. Record Label Recording Contract Royalties
c. Publishing Income Sources

(Don’t forget new Internet income sources such as Ringtones, Ringbacks, Streaming audio etc.)

* Mechanical Royalties
* Performance Royalties
* Synchronization Fees
* Sheet Music Sales
* Commercials/Jingles Income

d. Merchandising Royalties ( T-Shirts etc.)
e. Misc. Income Sources

* Investment Income
* Endorsements
* Book and Video Sales
* Multimedia Product Sales

 

2. Artist Expenses:

a. Recording fees: CD/Tape

* 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/Tape/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 (plus EPK) costs
* Flyers, Posters, Envelope Design costs
* Printing/Copying charges
* Photographer fees and duplication charges
* Internet Website costs (Design, maintenance, access fees, MySpace etc.)

e. Office Expenses

* Rent
* Stationary and office supplies/furniture
* Postage
* Phone (landlines and cell)  and other utilities bills
* Office equipment (computers, Internet connection, fax machines, 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 (laptops, pda’s etc.)
* Sound system
* Rehearsal space costs

h. Songwriting

* Copyright filing costs
* Performance Rights Organization Fees ( ASCAP-BMI-SESAC) also Soundexchange registration costs, etc.
* 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 at 206-282-6116 or by email at: Chris@Knab.com