This presentation gives a brief overview of how to make money as an independent musician. It is meant as a primer for new and struggling musicians to answer frequent misconceptions about the music industry and explain the process of success as a performing artist.

1. Making REAL Money in the
Independent Music Business
A users guide to making a living
doing what you love…making
music!
By Nate Sparks

2. Who am I?

3. Me
• 22 years as a working musician
• Making and performing music was my sole
source of income
• Live performance, studio musician, jingle
writer, songwriter, producer, publisher.
• Owned two homes, cars, trucks, a boat
• Average annual income of about 50k
• REAL money!

4. Thoughts
Music is intrinsically worth whatever
someone is willing to pay for it.
Writing a “hit song”
means nothing unless
others can hear it.
Not everyone is talented.
Talent applies to looks AND abilities.
Record labels have no shortage of
talented and good looking people.

5. Thoughts
• The “total package”
record executives
speak of are those
folks who can write,
sing, or play an
instrument, look
good doing it...and
have LOTS of
money to back
them!

6. Thoughts
“Every deal ever written in this town came
through a set of attorneys!”

7. Money in Music
• So what are the ways people make
REAL money in the music business?
– Live performances
– Jingle productions
– Writing and/or scoring videos
– Movie and television scores
– Producing or performing other peoples
music
– Ringtones
– Video games
– Arranging music for others
– Etc.

8. Performance
• Most musicians begin with live
performances as a means to generate
income.
• In today’s world, venues are fewer and
pay is limited.
• So, building and keeping a fan base is
crucial.
• Everything starts at home!

9. Get Honest Opinions
• Get honest opinions and trust them.
• Let strangers hear your music and offer
honest appraisals of your abilities.
• Look in the mirror and judge your looks,
marketability, etc.
• What statement does your look make?
• Are you offering something different and
original?

10. Know what you do well!
• Compare your abilities to others already
successful in the music business.
• Singing on key?
• Playing and performance equal?
• Can you write a catchy tune?
• Are you marketable?
• Are you a good person? (Toughest
question but one of the LEADING
indicators of success in this business!!)

11. Fans, fans, fans…
• Live performances begin and end with
drawing a crowd.
• How many of your friends and family
would come out and listen to you perform?
• How many would PAY to listen to you
perform?
• How do you get strangers to come listen?
• Who do your friends and family know that
could come, pay, and listen?

12. Truth about performance!
1. If you don’t have friends that will come
out and see your show, how do you
expect to draw strangers?
2. Friends and family are the core of
building a fanbase.
3. Use your friends to tell their friends,
Facebook, Twitter, MySpace, etc.
4. Offer incentives to fans that attend
shows! (free CDs, t-shirts, pictures, etc.)

13. Truth
• Club and venue owners will WANT to book
your band if they KNOW you draw a
crowd.
• But you have to PROVE you can draw the
crowd.
• Build the fanbase FIRST, then try and find
the gigs that will bring YOUR fans.

14. But…
• If I get a record deal, won’t they book me
into clubs and concerts?

15. Record Deals: 411
– Getting one!
– Advances
– Recording
– Edits
– Publishing
– Touring
– Final say

16. Getting One!
• Most record deals come from a lot of pre-
work on attorneys, labels, and others.
• Research into how well a group is doing
on their own, the look, material, right fit for
the label, EXISTING FANBASE,etc. etc.
etc.
• Interest from a label usually is followed by
a showcase to label executives, if the
material considered is good enough.

17. Advances
• IF your material is awesome and
• IF your showcase went well…
• The label MAY offer you a development
deal or an actual distribution deal.
• This will usually be accompanied by an
advance (if they REALLY like you) which
are monies LOANED to the act based on
recouping funds plus interest when the cut
sells.

18. Development Deal
• Development deals are where a label likes
the act but maybe not the material, the
look, the current press, etc.
• The label will sign the act and provide
producers, arrangers, other musicians, or
rework the act into something they want
and think will sell.
• Virtually NOBODY is getting development
deals anymore.

19. Distribution Deal
• The standard “deal” these days is for the
label to buy already finished musical
products and offer to distribute them to
radio, television, media, and retail in return
for a hefty percentage (around 90s).
• The artists keeps certain rights (publishing
and writers) and the label gets the lions
share of sales monies.

20. Distribution Deal
• In any case, the distribution deal is often
the most sought after and can truly have a
huge impact on the right artists.
• As the music industry has moved away
from physical sales and into online
downloads, it is even tougher for the label
to make money “90 cents at a time”.

21. Recording
• So…in order to get a terrific distribution
deal…you have to have a terrific record.
• Recording these days can be done
anywhere by anyone with an ear….
• But the ear is the key!
• Producers take original songs and turn
them into hits that have a “produced”
sound.
• Lets listen…

22. Edits
• Editing refers to the choice of songs,
arrangements, parts, and even band members.
• Don’t be afraid to edit things out and in to see
what they will do!
• Good recordings don’t slap you in the face, they
build through the length of the record.
• Don’t throw all your tricks out in the first fifteen
seconds.
• Edit the song to produce an emotional
movement in the listener.

23. Publishing
• Labels have publishing firms built in. When you
sign, they will assign you a publisher they have
worked with.
• If you are not on a label (as most of us aren’t)
you still need a legitimate publisher to ensure
your music remains yours and to add one more
person pushing your product.
• Publishers shop your music to others, promote it
to labels, and work to get your songs cut.
• They are NOT song pluggers, but work in the
same ways to make contacts and push your
material.

24. Songwriting
• But I WRITE songs that I want others to
sing…
• If you are a songwriter, and who isn’t, you
have virtually NO chance of getting your
song cut by someone if you stay where
you are!
• Songwriting occurs in several places
around the world, but here ain’t one of em!

25. Songwriting
• If you write country, MOVE TO
NASHVILLE!
• If you write pop or rock, MOVE TO L.A.
• If you write Broadway tunes, MOVE TO
NEW YORK.
• Get the picture?
• The truth is that labels, publishers,and
artists don’t even LISTEN to new material.

26. Thoughts
• To listen to songs submitted by literally
thousands of writers is not only time
consuming, but could cause legal issues
if they find or publish something similar in
the future to something someone had
submitted earlier. They could get SUED!
• So that is why when you send them a
song to listen to…they send it back
unopened with UNSOLICITED
MATERIAL on the front!

27. Songwriting Connections
• The ONLY songwriting deals I ever hear
about happen because a songwriter either
knows the artist, the artists friends, the
artists lawyers, the label, etc.,etc.,etc.
• In other words…through industry
connections!
• Talent is a given, connections are what
make or break songwriters.

28. Publishers
• Publishers should ONLY want a
percentage of publishing rights on your
material.
• NEVER pay for a publishers services
• Most publishers will rarely screen new
music or artists.
• Everyone wants to see some sort of track
record, even if its only filling up small clubs
back home!

29. Agents
• Agents and management companies are usually
paid for by percentages of sales or prearranged
contracts.
• Most reputable agents will work off of
commission which is about 15-20 percent,
depending on the agent and services given.
• Agents/management companies simply open
doors for your talent.
• They refer you to clubs, venues, publishers, etc.
• Yet another voice in your corner HELPING you
and not making money from you, but off of you!

30. Agents
• Agents can also function as, or hire, road
managers to address taking care of
transportation, lodging, food, etc while an
act is on tour.
• Again, these services cost money and are
usually recouped through some sort of
percentage of sales at the venues you are
playing.

31. Touring
• The truth about the music business is that
is involves endless travel and endless
performances across various regions.
• If you are wanting a job that keeps you in
one place…music ain’t for you!
• If, on the other hand, joining a circus has
always been a dream…
• …then jump on the bus!

32. Touring
• The life of even the most successful
musicians and singers is full of one night
stands in various cities.
• The reality of show business is that you
have to take your act to different locations
and people…or you would only be famous
in one place! DUH!
• So…travel, travel, travel is the key!

33. Touring
• Most labels, even small ones, will require
you to set up and live with a minimum
amount of touring.
• When you hit each city, you will promote
your CD on local radio, push the show you
are going to give, and then perform.
• It’s the nature of the business!

34. Final Say
• When and if you are lucky enough to have
ANYONE interested in helping you
because of your talent, whether it is a
label, attorney, publisher, whatever…you
no longer have final say!
• Your music now belongs, in part, to others!
• Welcome to democracy with your songs!

35. Scams
• Pay to play clubs and venues
• Placement services (paid)
• Contests with entry fees (paid)
• Showcases (paid)
• Song critiques (paid)
• Organizations that are not reputable (paid)
• Producers and/or publishers that charge
YOU for your abilities (paid)

36. Another Route
• So…you have heard the scams and heard
how the business can rape you of every
dime you make, even when you ain’t
makin one!
• How about another route?
• A simpler and more controlled path to
earning money from your music?

37. Make connections and DO IT
YOURSELF!
• LEARN about the music business.
• LEARN about commerce.
• UNDERSTAND what you do well.
• CREATE and MARKET your abilities
within the music business to those who will
buy what you do…
• …develop a fanbase!

38. Fans
• Starts with friends and family…
• Move to those seeing live shows…
• Word of mouth for certain genres…
• Direct and associative marketing…
– Direct marketing involves newsletters, fan e-
mails, live shows, talking and social networks
– Associative marketing involves placement
beside and with similar acts, products, music,
word of mouth (sounds like…)

39. Fan Inquiry
• Find out what songs THEY like that you do
live.
• Make recordings of those and sell them to
the people who TOLD you they would buy.
• Market and build your act to meet the
demands of your fans.
• Keep close and regular contact with your
fanbase.

40. Stay Legal
• USE copyright office and publishers who
are reputable to license and record your
music
• Don’t record other’s materials without
permission.
• Join a royalties paying union to cover
you IF your music explodes
• Join songwriters associations that
represent your interests.

41. Stay Legal
• Find reputable music attorneys to
represent you and your material
• Find reputable song pluggers to
represent you and your music
• You should only pay for initial
consultations, everything else should be
fee free and based on percentages.

42. Avoiding the…
…inevitable sea of mediocrity!

43. Production
• Reaper
• Audacity
• Wax Debug Mode
• Media Coder

44. Production
• Musicians
• Loops
• Production Companies
• Demo Producers
• Canned Music

45. Marketing
• Facebook
• MySpace
• OurStage
• Live Shows
• Word of Mouth
• College Networking
– Webkins
– Second Life

46. Distribution
• Amazon
– Borders
– Target
• CD Baby
– Target
– Overseas and Europe
– I Tunes
– Rhapsody

47. Doing the Math
• So…you record an entire CD on Reaper and mix
it down to a nice finished product!
• So…you get that product to a mass replication
plant (Oasis, CopyCat, etc.) and they make you
5000 copies of your CD.
• The cost of replication and CD cover and
artwork will be around a buck each.
• Figure in the cost of your studio time and
musicans and keep these costs below a dollar
each CD (five grand for a project of this size)

48. Doing the Math
• So…you have invested close to 10000
dollars into a CD and have 5000 copies of
that CD in boxes in your living room!
• Now what?
• Well…dude….

49. Doing the Math
• The whole point here is that if you are…
– Playing live every now and then
– Have built a fanbase that likes what you do
– Have kept in contact with your fans, regularly
– You will sell product!

50. Doing the Math
• Each CD should sell for between ten to
twelve bucks, depending on the number of
tracks.
• If you have included songs your fans have
said they love, selling these to your fans
should be pretty easy!!
• 5000 CDs sold to 5000 fans at ten bucks
each is…

51. Doing the Math

52. Doing the Math
• So, you invested ten grand, sold fifty
grand, and profited forty grand!
• That is what I call success in the music
business.
• AND…the more you cut production costs
and replication costs, the more you profit
on top of THAT!

53. Doing the Math
• On a more conservative line…which I
suggest you do with your first release:
• Only press 1000 CDs
• This will up your initial cost per CD to
about 1.90 each.
• BUT…if you sell all 1000 CDs, your net
profit will be $8100.00
• This is a good way to gauge whether your
fanbase is strong enough to support your
music.

54. Doing the Math
• If not, play out more…
• Make more contacts through social
networking…
• Develop more fans that want and will buy
your music.

55. One of my friends said…
• “I hate these music competitions online
because sometimes its just about who has
the most friends to vote their song better
than mine.”
• DUH! EXACTLY!
• The MORE fans you have, the more
successful you are in the music business!

56. • This applies to everyone…even the big
acts!
• Don’t you think Kelly Clarkson would want
to have the same number of fans as
Taylor Swift!
• More fans = More sales = More MONEY!

57. Options
• It’s the same thing for YOU only on a
limited scale!
• The beauty of the business NOW is that
big labels don’t dictate play lists as much
to radio stations!
• Internet stations are all over the place!
• Satellite radio now offers opportunities.

58. Airplay is NOT the goal!
$4.46 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$4.46 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$4.46 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$1.91 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$1.91 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$1.27 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$1.27 for DIGITAL DISTRIBUTION SALES through Apple iTunes
$0.64 for DIGITAL DISTRIBUTION SALES through Amazon MP3
$0.64 for DIGITAL DISTRIBUTION SALES through Amazon MP3
$0.64 for DIGITAL DISTRIBUTION SALES through Tradebit
$0.64 for DIGITAL DISTRIBUTION SALES through Amazon MP3
$0.59 for DIGITAL DISTRIBUTION SALES through Napster
$0.03 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.02 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Spotify
$0.01 for DIGITAL DISTRIBUTION SALES through Napster
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
$0.01 for DIGITAL DISTRIBUTION SALES through Rhapsody - Mechanical Royalties
A Whopping 23.09 for this month!
WOW!
Let’s look at ONE month of my digital sales and royalties…

59. Getting airplay only…
• Gets your name out there,
• Promotes any live shows you might be
doing,
• Sells some product,
• And may give you “a break” from someone
higher in the industry.

60. WAIT A MINUTE!??!
• Do you mean I spent all that time
recording songs and can’t make much
money having them played on radio?
• EXACTLY!!!!
• Radio should help you FILL your live
performances!
• Think of your record as an advertisement
for your live shows!

61. Huh?
• That is EXACTLY what major artists have
done for years.
• The labels have always made the lion’s
share of money off the CD and song sales,
the artist makes his or her money at live
shows!
• So…again…if you want to be a
performer…PERFORM!

62. Songs
• In today’s market, it almost makes sense
to simply GIVE AWAY your recorded
music to any fans that will have it.
• THEN…make sure those fans know when
you are coming to town to perform a show.
• Make and KEEP contact with your fanbase
and solicit their attendance at your live
shows.

63. Money
• Since the cost of actually MAKING music
on your computer is almost FREE, you
really have nothing to lose by giving away
your music as free downloads to your
fans.
• Sure, you can press CDs and sell them,
but sell them to who?

64. Money
• You may sell five or six at live shows, but
what if you could PACK the live show with
people who already like your songs?
• Hmmmm
• Sounds like a better plan to me!

65. Airplay
• Getting airplay today is EASIER than ever!
• There are more radio stations now playing
independent music.
• It has to as GOOD as the big boys, but
having a good song that is produced well
will actually get you played!!

66. Resources
• My book contains over 500 radio stations
that WILL play independent music if they
like it!
• College radio is friendly to EVERYONE!
• College radio has YOUR buying
demographic (female, 16-22)
• Make and KEEP college radio friends.

67. Resources
• If you can begin to offer on-air interviews,
station IDs, or jingles to college radio, you
will start friendships with DJs and program
directors.
• THEY will then spin your songs more on
college radio airplay lists.
• This generates fans which in turn opens
up performance opportunities at those
colleges!

68. Thought
• While American college radio remained
R.E.M.'s core support, the band was
beginning to chart hits on mainstream rock
formats; however, the music still
encountered resistance from Top 40 radio!
• R.E.M. BUILT their careers off of college
radio across the country!
• Other success stories include Nirvana,
Sheryl Crow, Deathcab for Cutie, Santana,
Dave Mathews, etc.

69. Jingle Production
• Advertising companies
• Radio stations
• Business owners YOU might know!
• Find avenues that might need or want
jingles.
• Produce them yourself or write them for
others.
• Typically about 200-500 for a local jingle.
• KEEP the rights to your royalties!

70. Thought
• The truth about songwriter royalties is that
they AIN’T MUCH!
• Even with a million selling hit song, the
writer will net somewhere around 35
thousand dollars. NOT MUCH!
• Most royalties are only paid quarterly and
amount to very small monies for most of
us!

71. Royalties
• Don’t spend it all at once!

72. With that said…
• Even though royalty checks can be small,
they do keep coming.
• Even from commercial production!
• So…when writing jingles, music scores,
beds, promotional videos, etc…
• KEEP YOUR ROYALTIES!

73. Music Scores
• Television and Movies use a lot of music.
• Start small
• Find people who NEED music for some
projects
• Colleges, Universities, small businesses,
etc.
• Market backing music to people that need
it!

74. Corporate Videos
• Corporations often need music behind
corporate training videos.
• They would rather pay you 200 bucks for
music than have to pay licensing for
already canned music.
• PLUS you can make it personal!

75. Specialty Music
• Find videographers and wedding
photographers and offer to music beds
behind their videos.
• These fees can be offered to the new
bride and groom as part of a video
package with CUSTOM music.
• Write custom songs for people and their
special occasions.

76. Specialty Music
• Birthday songs, anniversary songs,
divorce songs, birth songs, etc.
• People LOVE hearing songs written about
themselves and the specifics of THEIR
special occasions.
• Video game designers need music.
• YouTube video producers need music.

77. Specialty Music
• Expand your own thinking and find places
in life that use or want music…
• Then place your self as the person who
can provide that music!

78. Thoughts
• Breaks are made, not found.
• If you work hard, stay focused, and be
creative; music can offer a myriad of ways
to make money.
• REAL money, not promised money.
• There are no short cuts!

79. So…buy my book and get
going!
http://www.amazon.com/Making-
Money-Independent-Music-
Business/dp/1257877836