Typical Artist/Band Income & Expenses

Christopher Knab

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 a retired music business consultant based in Seattle, Washington. He can be reached by email at: chris@chrisknab.net

9 views0 comments

Recent Posts

See All