Making Money from Music
This page is under construction, but there should be enough here to get you started.
Introduction
So you want to make money from your music.
Can't say I blame you really, so I've put together this fact sheet to point in the direction of a few streams of income and to make sure you are not missing out on any money you are due.
As with all these articles this information is culled from a number of sources. If you feel you have something to add, please let me know and I'll include your ideas.
Music Performance Rights
You own the copyright on any music you have written - it does not have to be explicitly registered. (although this can come in hand to prove ownership). As the copyright holder you are due money on the live performance of your work either by yourself or by others covering your songs.
Key Contact: PRS
Everywhere that the public can hear music performance pays for a performing licence. This is true for 10,000 seater major music venues, but also for small pubs and clubs, and even shops with radios playing.
The Performing Right Society (PRS) are responsible for distributing money from these licences back to the songwriter/composer of the music.
So assuming that you are not playing covers, every performance you make in a licenced premises will accrue money that you are due. This counts as much for a couple of songs at an open-mic night as for a set supporting a major act at the O2.
What do have to do?
Register your songs with the PRS (£30 and a big form), and then submit a set list for each of your performances. (You are allowed to do this retrospectively for the last 6 months.) The PRS will send you your first cheque when you reach £200 due.
How much will I make?
This depends on the value of the music licence of the venue and how is payed on a per-song basis.
For playing at an open-mic night or small pub venue, you are likely to receive about £5 per song (rumoured to be increasing). Its not a fortune, but it soon mounts up and might pay for a recording every 6 months.
Music venues (or the Promoters using them) pay 3% of gate price to PRS - your share is based on the number of songs less an admin fee.
If a major act plays 20 songs and two supporting acts play 10 songs each, then as a support act you will be due 25% of the PRS money for that gig. So even if you are not being paid by the concert promotor this can be a real earner. Lets say you pay a 1/4 of the total songs on a support slot to a major band at, say, the S.E.C.C. 10,000 people pay £25 per ticket If the PRS took 3% of the gate and charged a 20% admin fee. Then the gig would yield you £1,500 in royalties.
So even if you are not being paid by the concert promotor this can be a real earner.
The PRS will send the money based on the claims of their members - if you don't do the paperwork, this is likely to mean 100% going to the main act. Funnily enough, the promoter of a large band is unlikely to remind you to submit your claim.
Music Recording Rights
Key Contact: MCPS
Membership is £50 to register for life.
If you are unpublished the MCPS pay you, if you are published the MCPS pay the publisher.
Collect 8.5% of the dealer price (what the shop pays for the CD etc) Approx 60p per CD This is collected from the label on CDs pressed.
Income is going down from making physical products due to the popularity of downloads etc
The Mechanical Copyright Protection Society do for recorded music what the PRS do for live performance. This includes radio and TV play of your recordings.
This copyright exists even if, for example, a radio station makes a recording of a live session. You will be due fees every time the program is aired. It also includes samples taken from your recordings.
Library Music / Licencing
TV production companies, film makers etc use music all the time and tend to source this from what are known as Sync libraries, which are essentially databases of music categories by style usage etc. Recently a Scottish band who are well-known locally but not chart-topping superstars have had a track of theirs used on the US Coke adverts - it really can happen. And of course Snow Patrol had been going for years befor being picked up by a hospital drama - which then launched them overnight into super-stardom.
There are no guarantees here - its like a free lottery ticket - you'd be daft not to at least make you music available.
Two of the more popular services are Emu Bands and Taxi.
Music for Media
You can of course write music specifically for a client and various companies will supply you with briefs.
The film bang is a directory of Scottish film and production companies - send showreel and follow up with phone call.
Digital Aggregator is a good search term.
Self-Publishing your music
The Boosey & Hawkes Site has as excellent guide to self-publishing which you can find at Guide to self-publishing music
Music Video Royalties
Surely you know an art student who wants to video you.
The VPL scheme distributes royalties based on plays of video on such channels as MTV.
There are a huge number of music video channels across europe with lots of hours of programming to fill. It can be considerably easier to get your video played on MTV than to get radio play.
Submissions can be made via the Talent and Music website.
Meta Cafe is like YouTube but pay per view MetaCafe
Radio Live Sessions
In Scotland, one of the best gigs is to play a Vic Galloway Session on Radio Scotland.
The radio station pays you about £200 for the session.
Royalties paid for the session are in the region of £1.25 per minute - so that's £7 - £8 per song, but this is due to double in the next few years as listener ratings shift are reflected in royalty payments.
Unclaimed Royalties
Yes its amazing, but a huge amount of royalties go unpaid due to poor record keeping.
Assuming you are registered with the PRS, you should regularly check on the site for your songs. Check variants of your songs names, and of course, check your ISRC codes.
Independant Online Distribution Alliance
These guys supply digital content to the likes of Spotify, iTunes etc and are definately worth checking out.
Cover Versions
All of the information so far has been based on you performing and recording your own music. However it is possible to make money from cover versions.
Copyright lasts for 50 years, which means that a lot of very popular music from the 1960s will soon be out of copyright - hence all the complaints from ex-Beatles and others who are trying to get the copyright period extended. If the piece of music is out of copyright, then the songwriter's fee is payable to the arranger. So assuming your cover is not an exact copy then this will be you. I would be very suprised if we don't see a large number fo Beatles covers being released in the next few years.
Other Advice
I can't do better to direct you to the Musicians Union. They can provide you with help and advice regarding managers contacts etc
Costs for the MU are as follows (correct as at 28/09/2009):
Did you earn more than £16,000 from music in the last 12 months? You can pay £22.50 per month or £67.50 per quarter or £270 pa by DD. Alternatively pay £275 per year by cheque or credit card
Did you earn less than £16,000 from music in the last 12 months? You can pay £12.50 per month or £37.50 per quarter or £150 pa by DD. Alternatively pay £155 per year by cheque or credit card
Are you a student in full-time education? The fee is now just £20 per year!