The Guitar Player's Resource
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.
a. Live Performance Fees
b. Record Label Recording Contract Royalties
c. Publishing Income Sources
* 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
a. Recording fees: CD/Tape
* Producer/Engineer
* Studio Costs
* Misc.Tape 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 costs
* Flyers, Posters, Envelope Design costs
* Printing/Copying charges
* Photographer fees and duplication charges
* Internet Website costs (Design, maintenance, access fees etc.)
e. Office Expenses
* Rent
* Stationary and office supplies/furniture
* Postage
* Phone and utilities bill
* Office equipment (computers, fax machines, phones 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 Tapes ( for listening and study purposes)
* Misc. recording/playback equipment (4 track recorder/mixer etc.)
* Sound system
* Rehearsal space costs
h. Songwriting
* Copyright 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
Throughout his fprty year career in the music business, FourFront Media & Music's Christopher Knab has shared his experience at many industry conventions and conferences, including the New Music Seminar and the Northwest Area Music Business Conference.
Knab was owner of a San Francisco music store, co-owner of the 415 Records label, and station manager at KCMU Radio in Seattle.
He currently provides a unique consultation and education service for independent musicians and record labels. His new book is entitled "Music Is Your Business".
