Music streaming is currently the financial engine of the industry. Since the late 1990s, the music business has undergone massive changes as things have moved from consumers buying physical CDs to purchasing and downloading MP3s to now having music and videos available on as many music streaming sites as possible. Yes, we’ve had years of Napster, BitTorrent sites, and every kind of piracy online. And yes, there has been an unexpected comeback in popularity of vinyl discs in some genres. Some musicians and bands still sell CDs at shows, and the sale of MP3s has not ended. There is even a (small) market for audiophile hi-resolution downloads and 5.1 surround sound discs and downloads. That said, the overwhelming trend is that listeners in North America and Europe are moving almost exclusively to streaming platforms to find and share their favorite music.
So are you collecting any money from streaming? Most independent artists I know say: “No, nothing. Not a dime,” or “very little.” At the same time, the major labels [Warner Music Group (WMG), Universal Music Group (UMG), Sony] are making more money now than ever. Why? Because they’ve been optimizing their ability to collect from streaming for years, and their costs to create the content they are collecting on is lower than it’s been — ever. On November 1, Sony’s recorded music division reported that its Q2 revenue jumped 21.6% over last year, to nearly $1 billion. Meanwhile, its operating income nearly doubled. By the year 2030, the music industry is estimated to be valued at about $41 billion driven by (you guessed it) — streaming.
Here’s another news item: hip-hop music is now the most popular genre. Did you know that? Just look at the Grammy Award nominations for the 60th annual awards ceremony coming up in January 2018. Rock, singer/songwriter, and even many kinds of pop aren’t as popular as they’ve been. Tastes have changed. The market has changed, and how money is made, collected, and distributed has radically changed.
There has been much talk about how things are unfair and stacked against the artist in our current streaming environment. Many have said that the streaming platforms are “corrupt” and there’s “no point” getting involved with them because they are out to “steal” from you. I can’t speak for the labels. However, as an artist, I am making more money now and more consistently than ever because I work on optimizing my ability to monetize my music.
So not knowing where or how you are with your music, I am giving you seven things you must do to get your music monetized. It’s really simple: if your aggregator [CD Baby, TuneCore, The Orchard, etc.], performing rights organization (PRO) [Broadcast Music Inc. (BMI); American Society of Composers, Authors, and Publishers (ASCAP); SESAC], label, publishers, and other stakeholders don’t know what they need to know as your music starts going onto streaming platforms, then your ability to be paid is zero. You and they are flying blind.
1. Be 100% Sure You Have the Right to Monetize Your Music
I know. You think this is obvious. Actually, no, it’s not obvious — that’s why it is first. If you’re in a band or group and you’ve been creating music together, then you probably haven’t dealt with splits. The term “splits” refers to the percentage of writer’s share and publisher’s share each writer has on a song. People are weird about getting this essential part of music creation dealt with. Don’t be awkward. Be straight.
For example, if you wrote a song by yourself, you have 100% of both the writer’s share and the publisher’s share. If you cowrote it, most people go 50/50. Three or more writers gets interesting. Stories of writers, producers, and bandmates fighting to the death over misunderstandings on splits are well documented and legendary (Google search Beyoncé’s first solo album). These conflicts are also an issue that can prevent you from collecting any money. If one of the parties files a formal complaint, the money collected may be held in escrow by the PRO, SoundExchange, your label, your publisher, or more.
Here’s the solution: sign a collaboration agreement. Simple. Your name. Their name. Addresses. Last four digits of your Social Security numbers. Date. Working title of song/composition. Agreed-to splits. Do it!
2. Fill In All Required Metadata for Every Song That You Release
Simply, metadata is information that provides information about other data. The “data” in this case is your song/recording. You know, that page on your CD Baby or TuneCore account where you’re supposed to list the song name, writers, publishing information, PRO affiliation, length of song, and more. Recently, aggregators have made filling out these pages completely required before they let you release anything. However, you would be amazed at people who skip sections and put inaccurate information on their own material. Why? Some people are lazy and that laziness might be costing them (and you) money. Some people don’t understand what the different fields mean, and they’re too proud to ask for help. That’s silly too.
Metadata information helps direct licensees and your aggregator who to pay. So it’s essential that the information is correct, complete, and double and triple checked before you click done.
3. Register for SoundExchange
SoundExchange is a highly misunderstood organization, and amazingly too many independent artists don’t spend the minutes to sign up. From Wikipedia: “SoundExchange is a non-profit performance rights organization that collects and distributes royalties on the behalf of sound recording copyright owners (SRCOs — record labels, generally) and featured artists for non-interactive digital transmissions, including satellite, Internet radio, and cable television music channels. In addition to music, SoundExchange also collects royalties for comedy and spoken word recordings.”
That said, why in the world wouldn’t you sign up for it? Do it. Now. It’s free!
4. Opt in for Everything with Your Aggregator. Seriously.
Let your aggregator administrate everything. Too many artists think they are “smart” and are trying to game the system by opting out of certain platforms and services. Unless you have a contract directly with those companies (like a direct-source license), let your aggregator manage this. No, really.
5. Playlists. Playlists. Did I Mention Playlists?
The name of the game at the current moment is to get your music on curated playlists. How? That’s the trick. Frankly, getting on Spotify curated playlists will require a combination of PR, plays/likes on other platforms, and real momentum for the track or artist where they can justify giving up a spot on a playlist. Having it played on terrestrial radio and YouTube helps a lot. It is much easier to get on curated playlists of bloggers and tastemakers because very often they will pick your song because they like it. But beware people asking you to pay to be on their playlists. Another idea is to make playlists yourself of your material and material from artists similar to you. They could be local, regional, national — what you want is a killer playlist that gets shared by the people who follow you on social media. That brings me to #6…
6. Social Media Is the Jet Fuel for Everything
I could write books and books on how to use social media in the service of monetizing your music. Here is a simple philosophy for posting anything having to do with YOU or YOUR music: before you post — answer the question, “Why should your fans care?” If you can make your postings relevant and create a context around the post that has your people “like,” engage, and ultimately convert (into fans who are willing to obtain what you’re offering) — you’re good. Social media is a conversation with your fans that moves in two directions — not a soapbox.
7. YouTube Thumbnails, Descriptions, and Keywords
Again, I could fill books on how to use YouTube effectively. Here are some basics: Update your YouTube videos with new, engaging thumbnail pictures (taken from the videos that they are supposed to go with), descriptions that are engaging that have KEYWORDS in them, and add keywords to your videos so they’ll be found organically. Creating and sharing playlists on YouTube is very important (like Spotify).
More ideas:
- Do virtual shows online (Stageit, Facebook Live, YouTube)
- Perform live shows in offices, homes, hospitals, or community centers
- License your music for film and TV, advertising, or A/V
I hope these thoughts help you start moving toward making money consistently and watching it grow month by month!
This article was written by guest author Michael Whalen. Michael Whalen is an Emmy® Award winning composer, music supervisor, consultant, internationally known recording artist, and author. He owns and operates www.michaelwhalen.com