How The Music Industry Works

In Rock Star Romance, book three in The Rock Star’s Wife series, Nat tours almost constantly with his band Dramatic Sneezer to make a living.  He experiences periods of loneliness, jetlag and not knowing what day it is.  These, and other details in the series, were taken from reality and the countless rock star interviews I watched before and during the writing process.  I learned quite a bit and found many similarities between the music industry and the publishing industry.  Here’s a primer on how the music industry works:

It’s a Business

For every musician performing, there are countless people working in the background

Running a band is like running a business.  Musicians must work with a number of people to promote songs and albums.  Here are some examples.

A artist manager develops a musician’s (called an “artist” in the industry) career by serving as an adviser for business decisions.  He or she also promotes the musician.  Artist managers are paid between 10 percent and 25 percent of a musician’s income with 15 percent to 20 percent being is the most common.

A business manager oversees the income, expenses, and investments.  He or she is paid 2 percent to 5 percent of a musician’s income.

A talent agent (booking agent) finds musicians work.  He or she is paid 10 percent to 15 percent of a musician’s income.

Bands and solo artists also must pay their road crews.

Public relations agents employed to promote new music charge between $3,000 and $5,000.

DJ record pools, used to promote music before it’s released, charge between $200 to $2,000.

Contracts and Getting Paid

Musicians sign contracts with record labels.  These contracts are legally binding and stipulate how much money the label will invest in a musician.  The musician then owes the label a percentage of the income generated from record sales.  Bands generate income through touring, record/streaming sales and merchandise sales.

Musicians are paid an advance on new singles and albums.  Generally, the advance is deducted from future royalties.

While many musicians complain about their terrible contracts, it is nearly impossible to achieve any level of fame without a label’s marketing and mass distribution.  That being said, the internet has begun to change this.

Royalties are paid for the right to use intellectual property.  There are four types of royalties:

1. Those paid for physical or digital reproduction and distribution of copyrighted works such as streaming services, digital downloads and CDs.
2. Those paid when a musician’s live performance is performed, recorded, played, or streamed in public.
3. Those paid when songs are played on television, in movies, in commercials, etc.
4. Those paid when sheet music is sold.

Royalties are paid to songwriters, publishers, record labels, digital music distributors, and musicians.

Touring

Bands make most of their money touring

When and where to tour is far from straight forward.  Tours take months to plan and often there are last-minute changes.

Jameson Roper, manager for The Band Camino, explained the process on Twitter in June 2023.

Step one is to decide where to play.  Bands must examine the market to see how well or poorly they performed previously in specific cities.  Bands also look at social media and streaming services to see if they are “hotter” in some markets than others.  There also are restrictions on where a band can play if it has played (or is about to play) in a market recently with a festival.

In addition, bands want to avoid playing in a market on the same night as bands that have similar or overlapping fanbases.

Step two is to examine venues.  Is a venue too small or large for a band’s expected sales?  Bands that did well in a market in a past often look to book a venue with a larger capacity. Sometimes a venue is perfect but it’s already booked, so the band must move on to another market.

Step three is to decide where the tour will begin and end.  This is a matter of logistics and trying to make the drive as short as possible for the band members and the crew.

Becoming Famous?

For every band that seemingly becomes famous overnight, there are hundreds struggling to get by.

“Becoming recognized and noticed for musical talent has become considerably harder since the birth of the digital age. In this modern era, everyone has equal opportunities, so moving with the trends of forever-evolving technology and platforms is essential to succeeding,” MusicMissile says.

As a band grows, so do the complications, the website says, and it becomes more important to hire and work with reputable individuals.

Here’s the 4-1-1

This blog is a companion piece to Rock Star Romance available in eBook, paperback and hardcover.  A college grad still reeling from an amicable breakup falls for a rock star who’s given up on love in this contemporary, second-chance romance.  Buy now.

To listen to the songs mentioned in Rock Star Romance, follow The Rock Star’s Wife on Spotify.

For more information on the licenses mentioned on this page, visit https://creativecommons.org/about/cclicenses/.