The Economics of Music Production
For both emerging and established producers, understanding the various ways you can earn and extend your career should always be top of mind. There are several ways you can do this, but each is unique and has its own set of rules. This is a guide to help you identify the different ways you can earn as a producer, and the information you need to do it successfully.
What To Know About Selling Beats
One of the most popular ways for new and experienced producers to make money is selling or leasing beats. This revenue stream is attractive because you can determine your own destiny. The amount of money you can make depends on the quality of your beats, your frequency of publishing beats, and the effort you put into marketing your beats to buyers. If you’re a producer uploading 5-10 new beats per week and actively marketing those beats for artists to license, you can expect to make anywhere from $500-$2,000 per week.
In the beginning, however, do not expect to get rich from selling a single beat. Remember that revenue from your beats will likely increase over time as you hone your production skills and style. It will take time and perseverance to build an audience for your beats, so be competitively reasonable with pricing as you progress through your career.
Once a beat is published, you should promote it far and wide. The best place to start is to share a web link to your latest beat or your Producer profile on the Beat Exchange. This way potential buyers can see and hear your content even if they don't yet have the UnitedMasters mobile app installed on their smartphone.
Consider sharing beats directly with people in your network like past customers, artists you’d like to work with in the future, or music industry connections you’ve made along the way. You should also promote your beats on social media channels to reach new fans.
UnitedMasters makes it easy for producers to sell beats to over 1.5 million independent artists in the Beat Exchange. Just create a producer profile and upload a beat to get started.
What To Know About Music Royalties
Another way to generate revenue from beats is through royalties. When leasing or licensing a beat to artists through UnitedMasters, you have an option to include a royalty split in your license contracts. This means that if an artist distributes a track to streaming services using your beat, you can collect a percentage of the income generated by the royalties from their record. Note that UnitedMasters has no contractual obligation in these agreements and does not enforce royalty splits. Payment is entirely the responsibility of the buyer who purchases each license agreement.
Distributed artists make only thousandths of a penny every time someone listens to their song on a digital streaming service. Once you factor in royalty splits with producers at a fraction of the total revenue, the likelihood of a substantial payout for producers is low. This means your royalty split might only turn into meaningful money for you if the track becomes extremely successful.
However, you never know who might license your beat and where it might end up. You should feel comfortable requesting a percentage of future royalties as it shows you feel confident in the value of the time, care, and attention you put into making your beats as strong as they can possibly be.
What To Know About Sync Placements
A less common but more lucrative way for producers to generate revenue is through sync opportunities. Getting “synced” means that producers are paid for the right to use their music in TV, film, and video games. When you watch shows like Insecure or play NBA2K, the songs that you hear have been contracted for use, and that means money has been paid to the featured artists and producers.
Depending on where your music is used, a sync placement can also generate performance and publishing royalties. These are paid through your Public Performance Rights Organization (PRO).
Some sync opportunities can pay producers at a much higher rate than selling beats and royalties, but they’re difficult to come by. Many new producers who are establishing connections in the music industry don’t know where to submit music for these types of sync opportunities. Luckily, UnitedMasters has an entire team dedicated to promoting the music from our independent artists and producers to brands, TV, film, and video games. Watch this video to learn how one sync placement can change the game for music creators on the UnitedMasters label. You can also check out our blog to learn more.
What To Know About Brand Deals
Perhaps the most sought after revenue source for any producer is exclusive brand deals. Why? Because this revenue stream gives producers the highest potential payout. Payouts are solely based on the type of producer brand you’ve built, but could be anywhere from a couple hundred dollars with local brands to a few hundred thousand with huge brand deals like McDonald’s.
The best way to get a brand to work with you is to show how much value you can provide. The key is consistent content creation and social posting to build a following. Brands will take notice if your lifestyle or aesthetic matches theirs, and if your fanbase matches their target demographic.
It’s important to remember that securing brand deals takes time. As you continue to develop your sound and build your career, think critically about how you can build your brand and leverage it for new opportunities. This could mean creating a recognizable producer tag or making an album showcasing a variety of artist collaborations. Take notes from veterans like Murda Beatz’s manager, Cory Litwin, for more branding tips.
Not everyone may secure a brand deal, but everyone gets a fair shot at building their brand the way they see fit. SELECT producers at UnitedMasters can leverage our deep relationships with brands to be featured in campaigns and expand their fan base. Just visit our Exclusives page and submit your music for consideration.
