Making Minimum Wage Through Music Sales

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bitflipper
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2010/04/21 01:08:51 (permalink)

Making Minimum Wage Through Music Sales

Found on Bobby Owsinski's blog: (thanks to Dave King for turning me on to that site)



To make the minimum wage for one month, or $1,160, you need to sell:

143 self pressed CD's (income $8 each)

155 CD's from cdbaby (income $7.50 each)

1,161 retail CDs with a high-end label royalty rate (income $1 each)

1,229 iTunes album downloads (income $.94 each)

1,562 MP3 downloads via cdbaby (income $.74 each)

2,044 MP3 downloads via cdbaby via iTunes (income $.57 each)

3,871 retail CDs, with a low-end label royalty rate (income $.30 each)

12,399 individual track downloads from iTunes or Amazon (income $.09 each)

849,817 plays per month on Rhapsoday (income $.0022 each)

1,546,667 plays per month on last.fm (income $.005 each)

4,549,020 plays per month on Spotify (income $.00043 each)

This makes working at McDonalds start to look like a wise career choice. Still want to try to make music for a living?
post edited by bitflipper - 2010/04/21 01:12:04


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    Mooch4056
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 01:34:02 (permalink)
    Still want to try to make music for a living?



    Does "making music for a living" include teaching music, either through a school district and or teaching private lessons ?

    Also, does playing gigs on weekends count toward that income?


    Essitaillay, that's how I make my living. Doing all those things combined, as well as trying to sell my own music.
    I would consider it waaaaaay better than flipping burgers.

    But I see your point.

    It is a job you have to love and it's as hard an any other.

    From Now On Call Me Conquistador! 
     
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    #2
    quantumeffect
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 01:59:32 (permalink)
    can always go to med school ... medicine is probably not a bad fall-back career / option

    and I hear medical doctors make more than min. wage

    min. wage was $3.35 when I was a teenager, what is it now?

    Dave

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    #3
    SongCraft
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 02:42:33 (permalink)
    I guess that's why nowadays major labels be more interested if the band is performing 'live' and already built-up a fairly good following.

    For an indie band? it's not so much just the CD sales that generate income for the band, it's getting the shows and selling CD's at the door, pooling those incomes (shows + CD's).

    In Australia at the time I was gigging, the manager submitted the band's PK/CD to either of two major agencies; Harbour and Premiere Agencies. And follow up calls/fax on an almost weekly basis.

    I'm not sure; but I think nowadays there is only one major agency in Australia.

    The deal was simple; door/fee, on average the band made $1,200 (after expenses; crew, lights, PA) then add on CD sales which averaged; 400 per month.   The venue/club made their money on drinks.

    If (that's a big IF) a band can average at least two shows per-week (earn in total: $2,400, after expenses) and sell on average 100 CD's ($8.ea) per-two-weekly (total: $800), than I guess that's not too bad but...

    Also considering income is divided equally to the band and of course the manager want's his cut.  There were 6 hungry mouths to feed in my band (including manger).

    Next time, I'm going lean (fewer band members, and PC/backing music), and self-managed.

    Honestly! Life ain't easy for the indie/unsigned bands, often members having second jobs to make up their income to pay for; mortgages and loans.

    Often no sleep after finishing a show at wee hours in the morning 3.am, then driving home, expecting to start work the next morning at 7.am. It's tough yakka!!

    Also, you can't predict what income the band is going to make from week-to-week, a band could go for several weeks without any shows. I guess the agency tries to spread the work out evenly; there are other bands they need to consider.

    Anyway! The bottomline is; don't be too dependent on making money on CD's alone.  You need to get out and gig, gig, gig, and selling those extra CD's at your gigs helps a lot.

    Also; have you noticed that most major (signed) artists are expected to be active on social network sites such as; MySpace, Facebook, YouTube?  they participate daily (activity/posts; their new CD, special offers, upcoming shows, oh it's back to the studio, more press/photos, whatever).  It's all part-n-parcel of being an artist nowadays.

     
     
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    Slugbaby
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 06:55:50 (permalink)
    That looks about right.  The hardest working musician I know plays at least 7 shows a week, from hosting open-mic nights to backing up Ben E. King and Smokey Robinson (and the like).  He's performed in front of stadiums (opening) for 20,000 people.
    And he's also one of the brokest people I know.  All the job satisfaction, all the talent and drive, none of the money...
     
     
    Even playing Wii Rockband the other day with wife-to-be (her game), after completing "a show," the stats told us that we had gained 6000 fans and earned $300.  I just thought the money represented the Canadian music scene! hahaha
    post edited by Slugbaby - 2010/04/21 06:58:36

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    #5
    SongCraft
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 07:16:45 (permalink)
    Hey Bit, that Bobby Owsinski's blog: is excellent :-)

     
     
    #6
    auto_da_fe
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 07:33:22 (permalink)
    Don't forget t-shirts.

    I knew some guys years ago (skate-punk band with pretty strong indie/underground following)....they made most of their money off t-shirts (no CD sales...only cassettes at that time)

    JR

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    Guitarhacker
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 08:01:59 (permalink)
    JR... back in the day when I played music for a living ....aka my only source of income was the band (for 3 years) I ran a T-shirt booth in the clubs we played. It was not uncommon for me to make more money from T-shirt, pictures, and buttons than from my share of the gig. We didn't have any recordings so we didn't offer them.

    We worked steady, and made enough to pay our rent, gas and eat...... and mostly had fun but stayed broke.

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    #8
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 10:43:28 (permalink)
    These numbers do point out the folly of trying to make a living selling music over the internet. It still takes a monster hit to be profitable. Who gets 4 million plays a month on Spotify? My guess is no one.

    Selling CDs off the bandstand is still the most viable way to make money from your recordings. 143 copies a month isn't really that difficult if you gig regularly. A good friend of mine does that, and nearly always makes as much or more from CD sales than from the gig itself. Eight bucks per unit is a pretty good margin. It would almost justify playing for free.




    All else is in doubt, so this is the truth I cling to. 

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    #9
    bdickens
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 12:14:38 (permalink)
    quantumeffect


    can always go to med school ... medicine is probably not a bad fall-back career / option

    and I hear medical doctors make more than min. wage

    min. wage was $3.35 when I was a teenager, what is it now?

    Aaaaaand.....
     
    We'll be needing a bunch more doctors after they all quit when Obamacare kicks in.

    Byron Dickens
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    jimmyman
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 14:59:28 (permalink)

       This subject for me brings to mind so many different
    aspects on the subject of making money and music.

      In my local area about 50 bucks a night per member
    to perform about 30 years ago was the norm and still
    is today. In my 35 years of being a player (I'm 55)
    how much have I spent? I'd guess (only a guess)
    probably (on gear and things) 100,000 dollars.

      How much have I made? I don't know, but
    suffice it to say my lose was huge. I did one day
    though do some figuring and found that I was
    working for about half the minimum wage.

      So what happened to that 100,000 dollar
    investment? Gone is the simple word. Buy
    for example a (on just guitar rig alone)
    a 1500 dollar preamp. A year later it's
    worth 150 dollars (if you can get that for it).

      Then the studio subject. I've got closets full
    of gear that is almost useless. If the stuff
    had names like Manley, Neve, Studer,
    Soundcraft or something at least I could
    say something but Peavey or Behringer
    is not something that one can brag about.
    (Actually cry would be a better word).

      I look at music (making money at it) now
    in a whole new light. I still enjoy it. Maybe
    more than ever, but lots of things have
    changed, most of which is my awareness.

     
    #11
    Dave King
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 15:20:21 (permalink)
    Found on Bobby Owsinski's blog: (thanks to Dave King for turning me on to that site)

     
    Glad to oblige!

    Dave King
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    #12
    Slow Marching Band
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 16:56:29 (permalink)
    bitflipper


    Found on Bobby Owsinski's blog: (thanks to Dave King for turning me on to that site)



    "This makes working at McDonalds start to look like a wise career choice. Still want to try to make music for a living? "
     
     
    That's why it's important to ask if your customer wants fries or a hot apple pie with each cd order!!
     
    Larry


    post edited by Slow Marching Band - 2010/04/21 16:58:37
    #13
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/21 23:16:00 (permalink)
    Maybe the next generation of DAW user interfaces will be modeled after McDonald's point of sale terminals.

    If you want a piano, you just press a button with a picture of a piano on it. Of course, it then plays a generic piano part for you and records it.

    This approach kills two birds: it dumbs down the software for those who think learning how it works is too much work, while at the same time providing vocational training for their next career.


    All else is in doubt, so this is the truth I cling to. 

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    The Maillard Reaction
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 07:33:09 (permalink)
    Abelton Live

    With the dedicated controller.


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    spacey
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 10:48:39 (permalink)
    Bit there was a time when one could.

    My dad use to take me to nightclubs when I was 8 ('63) and he'd get the band to tell me stories and sometimes I'd set-in. I'd been playing only a couple of years but I remember it being fun.
    Many of the bands played "circuits" so I got to see or play with them when they came back.

    From what I recall it was but a few years later and things changed.
    I know by the time I was 15 it was no longer like it was. I took the place of a good friend in a local nightclub band when he went on the road. He wound up playing with Kenny Rodgers and Dottie West but his stories getting there didn't sound good. And for whatever reason he wasn't real happy doing their gig. He went down from there. Snowblind.

    He was always trying to get me to hit the road but the things I knew from the bands 7 years earlier and the things he told me....no way.
    One gig was in Vegas, four on, four off, four on, four off...geeze what kinda life is that?
    Seemed like a cruise ship gig would easily beat that.

    So the way I see it, from 1963 thru 1970 the idea of an average to very good band making a living playing circuits was no longer a good idea.
    That left close sit-down gigs. Good pay with little travel and equipment moving and a supplimentary income at that.

    Of course that's just a little view from my past. Been years since I've heard of motel/nightclub circuits so I don't know if they still exist. But I know at one time it was a very cool way to make a living making music.

    Geeze..an old guy story..! sure doesn't seem that long ago.

    #16
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 11:47:04 (permalink)
    I moved to Seattle from Europe in 1972. At that time, nearly every bar, tavern and restaurant featured live music. Compared to the meager work prospects I was accustomed to in England and Germany, it was a cornucopia of income potential.

    While only a few bands went on to the big leagues (Heart did pretty well for themselves, for example), any hard-working band could make a decent middle-class wage.

    I wrote to my best friend in Germany and encouraged him to come over because it was a musician's paradise here in Seattle. He did so, and has lived here ever since - but ironically today he has to spend half the year in Europe touring to pay the bills because work is now scarce in Seattle.

    What killed the music scene in Seattle? Mainly, the musician's union and BMI/ASCAP. It wasn't that the demand for live music evaporated, it was that these organizations made the cost of entry too high for potential venues. The musician's union collapsed as a result (duh!), but not before doing as much damage as possible before imploding.



    All else is in doubt, so this is the truth I cling to. 

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    #17
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 13:06:30 (permalink)
    Another smart career choice, from an income-potential standpoint, is to go into Country music. That's where the CD sales are. Michael Jackson aside (who was his own industry), the biggest-selling artists of the past decade were Shania Twain, George Strait, Taylor Swift, Garth Brooks and the Eagles. (Notable exceptions: Usher and Beyonce. I guess the key there is to adopt a one-name stage name.)

    Whatever you do, avoid the metal genres. Metal bands are a dime a dozen. Metal bands that make good money, now that's an exclusive club.
    post edited by bitflipper - 2010/04/22 13:10:01


    All else is in doubt, so this is the truth I cling to. 

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    julibee
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 13:22:19 (permalink)
    I could be a one-named country star....   I wouldn't like it... but I could DO it...

    C'mon coach!  Put me in!

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    bapu
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 14:28:35 (permalink)
    Jules?
    Sounds like your Jewel's twin?

    #20
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 15:32:13 (permalink)
    Another interesting tidbit from Bobby's site. An analysis of records released in 2008 shows that:

    - there were 105,575 titles released
    - only 225 of them exceeded 10,000 units sold
    - only 12 of them were unsigned acts

    So if a "hit" is defined as sales of 10,000 units or more, then in 2008 only 0.01% of them were not affiliated with a label. Indie bands with dreams of DIY internet-based record sales are deluding themselves. The odds are still better than a lottery ticket, though.



    All else is in doubt, so this is the truth I cling to. 

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    #21
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 15:54:28 (permalink)
    More fascinating info from the site, this time about who's making money in live performances.

    I have long found comfort in one aspect of the failing music industry, and that is that live music may make a comeback because it's the one product no one can steal. Here are the big winners:

    1. Celine Dion - $748 mill
    2. Kenny Chesney - $742 mill
    3, Dave Mathews Band - $738 mill
    4. The Beatles - $627 mill (including Paul McCartney's and Ringo's ticket sales)
    5. U2 - $610 mill
    6. Toby Keith - $592 mill
    7. Bruce Springsteen - $588 mill
    8. The Rolling Stones - $570 mill
    9. Tim McGraw - $551 mill
    10. Britney Spears - $495 mill

    To me, this also suggests that appealing to the over-40 demographic may not be the huge marketing mistake that it's traditionally been thought to be. Only one of the top 10 concert moneymakers has a primarily teenage following.

    Note the conspicuous absence of hip-hop and modern R&B artists. One might assume, based on their saturation levels in popular culture and radio, that those are the only genres anyone cares about. Apparently, although those genres may sell soda pop they aren't as reliable for selling concert tickets. Meanwhile, Celine Dion, one of the most un-hip entertainers around, earned 748 million dollars (!).



    All else is in doubt, so this is the truth I cling to. 

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    Dave King
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 21:34:23 (permalink)
    I have long found comfort in one aspect of the failing music industry, and that is that live music may make a comeback because it's the one product no one can steal.

     
    That's right.
     
    It's time to unplug our DAW's and hit the road!

    Dave King
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    #23
    Dave King
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 21:36:41 (permalink)
    Only one of the top 10 concert moneymakers has a primarily teenage following.

     
    Most teens probably can't afford the ticket prices to see the majority of these acts.

    Dave King
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    #24
    bapu
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    Re:Making Minimum Wage Through Music Sales 2010/04/22 21:39:35 (permalink)
    one of the most un-hip entertainers around



    Celine = un-hip
    Bapu = un-funny


    We're in the un-crowd for sure (at opposite ends of the earnings scale, to boot).


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    Philip
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    Re:Making Minimum Wage Through Music Sales 2010/04/23 09:49:25 (permalink)
     

    There's something to be said about living life as a minimalist: 'just an artist': Playing your heart out ... not getting too rich.  Early Retirement from the day job and all.

    I envy those of you that do that.

    Philip  
    (Isa 5:12 And the harp, and the viol, the tabret, and pipe, and wine, are in their feasts: but they regard not the work of the LORD)

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    Ham N Egz
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    Re:Making Minimum Wage Through Music Sales 2010/04/23 12:03:43 (permalink)
    Dave King



    I have long found comfort in one aspect of the failing music industry, and that is that live music may make a comeback because it's the one product no one can steal.

     
    That's right.
     
    It's time to unplug our DAW's and hit the road!




       NO need to , the new Orange Amp has a DAW built in .....


    Green Acres is the place to be
     I dont twitter, facebook, snapchat, instagram,linkedin,tumble,pinterest,flick, blah blah,lets have an old fashioned conversation!
     
    #27
    bitflipper
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    Re:Making Minimum Wage Through Music Sales 2010/04/23 21:03:42 (permalink)

    It's time to unplug our DAW's and hit the road!

    Well, it probably wouldn't hurt anyone to get out and play once in a while. My chops wouldn't be so rusty if I did that more often.

    But I am definitely never going on the road again, ever. That was a great adventure when I was 21. But at 58 I have to have my Lay-Z-Boy to melt into every evening. And eating Red Hot Beef Burritos at a truck stop at 4:00 AM would probably kill me nowadays.

    The leading music retailer is now Starbucks. Maybe they'd consider featuring live music next. Then we could all have a gig and not have to travel more than 6 blocks to get to it.




    All else is in doubt, so this is the truth I cling to. 

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    #28
    Dave King
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    Re:Making Minimum Wage Through Music Sales 2010/04/23 21:08:44 (permalink)
    The leading music retailer is now Starbucks. Maybe they'd consider featuring live music next. Then we could all have a gig and not have to travel more than 6 blocks to get to it.

     
    I have friends who played at the local Starbucks.   ...for tips only.  That's a tough way to go.

    Dave King
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    #29
    Crg
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    Re:Making Minimum Wage Through Music Sales 2010/04/24 08:00:51 (permalink)
    bitflipper


    Found on Bobby Owsinski's blog: (thanks to Dave King for turning me on to that site)



    To make the minimum wage for one month, or $1,160, you need to sell:

    143 self pressed CD's (income $8 each)

    155 CD's from cdbaby (income $7.50 each)

    1,161 retail CDs with a high-end label royalty rate (income $1 each)

    1,229 iTunes album downloads (income $.94 each)

    1,562 MP3 downloads via cdbaby (income $.74 each)

    2,044 MP3 downloads via cdbaby via iTunes (income $.57 each)

    3,871 retail CDs, with a low-end label royalty rate (income $.30 each)

    12,399 individual track downloads from iTunes or Amazon (income $.09 each)

    849,817 plays per month on Rhapsoday (income $.0022 each)

    1,546,667 plays per month on last.fm (income $.005 each)

    4,549,020 plays per month on Spotify (income $.00043 each)

    This makes working at McDonalds start to look like a wise career choice. Still want to try to make music for a living?


    Depressing isn't it. I'd like to see where the rest of the money goes. You want fries with that Sir?

    Craig DuBuc
    #30
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