Why making and owning your own music is a smart financial investment
To the professional, forward thinking artists: Did you know the music you create is worth considerable money? Royalties mean more than you may think. As you create and own the rights to your master recordings, release and promote your music, over time the financial worth of your catalog increases. There are companies such as www.royaltyexchange.com that buy and sell royalty catalogs making as low as 2K a year. Now while you may not want to sell your catalog of music ( I know wouldn’t) It shows the value of your created work and how there is a demand for a well kept, professionally licensed catalog of original music (Mixtapes created over industry beats don’t count because you don’t have the proper licenses to actually earn royalties from your content).
How do you earn Royalties?
Now with all this talk about royalties, you may ask yourself: Well Makaih, how do I actually earn royalties? Ok, so there are 4 different types of royalties which I will list below
(1) Mechanical royalties: paid for record sold basically albums and singles - Also online streaming like spotify, tidal, and youtube fall partly into this and the next category
(2) Public performance royalties: paid by music users for songs in the operation of their businesses and broadcasts based on the exclusive right to perform publicly copyrighted works. (
(3) Synchronization fees: paid by music users for synchronizing music with their visual images based on the exclusive right to reproduce and distribute copyrighted works and to prepare derivative works of copyrighted material. (You get paid this for getting your music into a movie or TV show
(4) Print music income: paid by music printers for sheet music and folios based on the exclusive right to distribute copies of copyrighted material.
So by distributing music online, legally owning the rights, performing shows, and growing your fanbase, you are building up an asset that will benefit you for life. Royalties are a safer investment than even the stock market and can result in huge income spikes when your music gets used in TV show or as you overall get bigger as a artist.