Finance 101 for musicians
Second of 3 parts
HERE are some key options for Filipino musicians to consider:
Live performances
Musicians can generate income by performing live at events, concerts, bars and other venues. They can negotiate performance fees, sell merchandise, or even receive a percentage of ticket sales. However, getting paid only through gate receipts and/or ticket sales is a money trap — instead of focusing on rehearsing and refining your act, you are forced to market, promote and sell these tickets to ensure getting paid.
Music streaming platforms
Filipino musicians can distribute their music on popular streaming platforms such as Spotify, Apple Music and Deezer. These platforms offer a way for musicians to earn royalties based on the number of streams their music receives. Another less tedious way is to sign up with a “content aggregator” which facilitates the release of your music works (audio and video) to these streaming platforms for a certain percentage of your earnings from the viewership, following or subscription, as the case may be.
YouTube monetization
Musicians can create and monetize their own YouTube channels by sharing music videos, cover songs, vlogs and other content. They can earn revenue through ads, sponsorships and viewer donations. This is the most popular form of digital monetization today. Add the cross-platform (Facebook, YouTube, Instagram, TikTok, etc.) formats where you post in one platform and it gets viewed in the other platforms as well.
Music licensing and sync deals
Musicians can license their music for use in films, TV shows, commercials and other media. Sync deals can provide a substantial source of income for Filipino musicians. Just make sure you are knowledgeable with contracts, or you have a legal consultant.
Online concerts and virtual events
With the rise of virtual events, musicians can offer online concerts, workshops and master classes to audiences worldwide. Platforms like StageIt and Zoom provide opportunities for monetizing virtual performances. However, connectivity issues may affect the quality of your work that is streamed (poor audio sync with video, poor sound quality, video freezes, etc.).
Crowdfunding and fan support
Filipino musicians can engage with their fan base through crowdfunding platforms like Patreon, Kickstarter or GoFundMe. Fans can directly support their favorite artists through recurring contributions or onetime donations. It’s all a matter of mixing your digital awareness with creativity and imagination.
Music instruction and workshops
Musically inclined individuals can offer music lessons, workshops and masterclasses both in-person and online. This provides an additional stream of income for musicians with instructional skills.
Merchandise sales
Musicians can create and sell branded merchandise such as T-shirts, caps, posters and other items to fans. Online platforms like Shopify and Etsy enable artists to set up their own online stores.
Composing and arranging
Musicians with composition and arranging skills can take on projects for film scores, jingles, musical theater, online video projects and other commissioned work, providing a steady source of income.
Music production services
Musicians can offer their expertise in music production, recording, mixing and mastering to other artists and bands, generating income through studio sessions and production work.
Collaborative projects and partnerships
Musicians can engage in collaborative projects with brands, fellow musicians and organizations, leading to sponsorship deals, endorsement opportunities and co-branded initiatives. Think of the multi-performer fundraiser “USA for Africa” in a digital field where each musician plays their parts in their respective countries, and these are stitched together to form an entire song. Once it goes viral, you have succeeded!
Royalties and performance rights organizations
Filipino musicians can register with performance rights organizations such as Filscap for royalty collection, ensuring that they receive compensation for public performances of their music. Most prolific and popular composer-musicians are members, including some national artists.
In the more advanced economies, you can convert the potential income from your popular songs into bonds worth multimillion dollars. David Pullman, a banker, created and sold the first Bowie bonds (named after musician David Bowie). The Bowie bond was a unique type of asset-backed security which used the royalty streams for the current and future album sales and live performances by David Bowie, who raised $55 million from the issuance. He then used this money to buy the rights to his music from his former manager which would in turn generate more royalties to bondholders. Be careful though, because with the advent of online streaming and file-sharing, this type of debt instrument became very risky.
Filipino musicians have a range of financial alternatives available to them, from live performances and streaming royalties to virtual events, music instruction and collaborative partnerships. By exploring these diverse avenues, musicians can build sustainable careers and secure their finances while pursuing their passion for music.
What counts is the mastery of the digital world, knowing which available digital platforms are best suited for your tastes and a determined willingness to learn. To be continued next Friday, March 29, 2024