5 Common Reasons Why Musicians Are Broke And How To Make More Money As A Musician
EARN A LOT MORE MONEY
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If you’d like to make more money as a musician and become very successful in the music industry...
... this music career article will show you how.
We begin by exploring the 5 common (but surprising) reasons why musicians are broke, including musicians who are quite famous...
Hint:
These reasons have nothing to do with where you live, what your background is or whether you have a music degree.
Next...
... I’ll show you proven ways to (easily) make more money as a musician and build a very secure livelihood in the music industry.
EARN A LOT MORE MONEY
PLAYING LIVE
EMAIL TO GET ACCESS
By submitting your info, you agree to send it to Tom Hess Music Corporation who will process and use it according to their privacy policy.
And as you’ll see...
Making serious money in the music business is a lot easier than most people think.
(You just have to build your music career much differently from how most musicians do it.)
Here are the 5 common reasons why most musicians are broke and struggle to make money in their music careers:
Reason #1 Why Musicians Are Broke: Not Thinking Like An Entrepreneur.
Most musicians don’t think beyond playing music and don’t have other skills outside of playing their instrument and performing at gigs.
And this is how, even semi-famous musicians (who have played gigs, have toured and have done the hard work to build a fanbase) continue to stay broke.
They lack the business (i.e. entrepreneurial) skills to leverage their name and music career fame to make real money.
Meanwhile, entrepreneurial look at their audience and ask:
- What else would my most loyal fans (who already bought my album) buy from me? (Besides a low-priced concert ticket or another single.)
- In what ways can I make each gig I play more profitable?
- What parts of my music career can be monetized, scaled or automated?
- How do I earn income that isn’t tied directly to my time?
- What new merch items could I introduce that my fans would be more likely to buy?
- How can I make money in my music career when I’m unable to tour (COVID-19 anyone)?
Pondering such questions makes it easy to:
- Come up with new ideas to earn money unrelated to playing gigs or selling your album (e.g. creating instrument sound libraries if your music fans include producers and musicians).
- Think of ways to earn passive income in your music career (e.g. by becoming more involved in writing songs for your band).
… as well as take action to help your band earn more money at gigs (by negotiating for better terms, drawing a bigger crowd and/or selling more merch).
Reason #2 Why Musicians Are Broke: They Don’t Realize What Their “Product” Is (Hint: It’s Not The Music!).
Musicians pour their heart and soul into their music. They write, record, mix, release... and then wonder why almost no one buys it.
They think:
“If I just put out better music, people will pay for it.”
“If I release more singles, I’ll make more money.”
“If I keep promoting the album, the sales will eventually take off.”
That’s how most musicians approach their music career.
And that’s also why musicians are broke.
The reality is: music alone isn’t what your fans are eager to pay for. Especially now that it’s available everywhere - for free.
Even semi-famous musicians with decent streaming numbers and sold-out local shows are often broke because they’re still trying to sell the wrong thing.
They assume their “product” is the album, the sound, or the technical skill.
But that’s not what builds a thriving music business.
Think about it:
When fans go to a live show, they’re not paying just to hear songs (because they can hear the same music online.)
They want something more.
And that’s where the real opportunity is hiding in your music career.
Smart musicians who understand this do more than simply write and play songs... they focus on creating more value around the music, such as:
- Behind-the-scenes videos and content their fans can’t find anywhere else
- Special merch drops available only to mailing list subscribers
- Intimate live streams, fan-only Q&As, or listening parties
- Signed, personalized items that make fans feel special...
... and other higher-ticket items that fans go crazy for.
Musicians who understand how to create and deliver such offers have a much easier time making money in the music industry.
Reason #3 Why Musicians Are Broke: They Copy What Other (Broke) Musicians Do.
Many musicians who are just starting out in the music industry look at others who are more successful than they are and copy what they see them do.
The assumption is: if someone has visibility, they must be making money.
The problem?
Their assumption is almost always wrong.
There are plenty of semi-famous musicians who play in well-known bands that have thousands of monthly listeners, appear in viral videos, or have played packed club shows…
... who can barely cover their expenses and are still working day jobs between tours.
That’s because fame and financial success are two completely different things in the music industry.
Being famous means people know your name.
Being ‘financially successful’ means you know how to monetize your name.
Most musicians never make this distinction. They assume that copying what a famous musician does will help them make more money as a musician.
And when it doesn’t?
Then, they themselves become a semi-famous musician who is struggling financially...
Aka: a role model for another young up and coming musician who confuses ‘fame’ with ‘financial success’ in the music industry.
The cycle continues… and that is why for most people it feels hard to make money in the music business.
The (far) better way to actually make more money as a musician?
Get a mentor (who has helped other musicians become successful) to show you the proven ways to make more money as a musician and thrive in the music industry.
(Yes, I have a music business mentoring program for musicians… and I realize it sounds self-serving as heck of me to make that last point. But what I’m saying still holds true, whether I had a music business mentoring program to sell or not.)
Reason #4 Why Musicians Are Broke: Poor Money Management Habits.
Most musicians think the key to growing a music career is “earning more money.”
But that’s only half the equation.
Even when they do make more money as a musician (from touring, merch, teaching, or streaming), they often lose it just as fast.
Why?
Because they have no plan for managing their music income.
This is one of the most overlooked reasons why musicians are broke.
It explains why even semi-famous musicians with growing fanbases and regular gigs still struggle to pay their bills.
If you want to succeed in the music industry, you don’t just need to earn more money...
You need a system for managing your money like a professional.
Facts & Myths Of The Music Business Learn how 3 big lies about the music industry can kill your music career.
How Secure Is Your Music Career?Test the effectiveness of your path
to being financially secure in music.
Why Only Few Ever Make It In MusicLearn why so few musicians make it
in music & how to do it for yourself.
Here’s how to do it:
1. Separate personal and music business finances
Use a dedicated bank account for all your music career income and expenses.
That means: ticket sales, merch sales, royalty payments, studio work, session gigs, etc. all goes through that account.
Don’t use your band’s money to pay your rent or buy groceries.
2. Use a simple budgeting system for your music career income
Every time you earn money in the music business, divide it up like this:
A % to pay yourself
A % for savings or emergencies
A % for reinvestment into your band (more merch, marketing, gear, touring)
A % for fixed expenses (studio, rehearsal space, software, etc.)
This is how you stabilize your income and build real momentum in your music career.
3. Track every music business expense
This includes things like:
Gas to get to shows
Advertising
Web hosting
Rehearsal space fees
Merch printing
This shows you where you’re bleeding money-and what’s actually helping you make more money as a musician.
4. Reinvest into the growth of your music career
Every dollar that goes back into the business has the potential to bring in 2, 5 or 10 more later.
5. Build an emergency fund for yourself and for your music career
This is how you stop the feast-or-famine cycle in your music career.
Set aside a percentage of your music income to build 3–6 months of runway.
This keeps you stable during off-seasons, unexpected expenses, or when gigs get canceled.
Pro tip: invest money into your music career growth (and an emergency fund) even if it’s just a dollar every time you get paid.
The key is to build a habit of managing your money like a pro. And as your income grows, you’ll be able to invest more.
Reason #5 Why Musicians Are Broke: Not Having Multiple Streams Of Income
When you have only one way to make money, it makes your music career income far less secure and stable.
This is common for up-and-coming and semi-famous musicians alike.
Here are some of the ways you can diversify your income streams and grow your music career income.
1. Play gigs (bars/clubs, wedding gigs, corporate gigs and other events).
2. Be a studio musician.
3. License your music. This way you can make money through royalties by doing work only once.
4. Teach music lessons. This can be really lucrative. (I'm talking 6-figures per year.)
5. Sell products. For example: CDs (yes, people still buy those), mp3 downloads, instructional books or transcriptions of your music.
6. Sell merchandise: T-shirts, coffee mugs, posters and anything else you can think of that has your logo on it. (Extra tip: all merch is worth more when you sign it.)
7. Sell Subscriptions (for example: fan club memberships). Your fans get special privileges (like discounted concert tickets & merch). While you squeal in delight, watching recurring monthly payments show up in your bank account. Yay for capitalism!
8. Sell backstage passes. Many fans will (gladly) pay to have special access to their favorite band.
9. Sell special meet ups with your band.
10. Sell VIP tickets that give your fans special experiences at the show everyone else does not get.
11. Get endorsement deals, so you can make money every time someone buys a signature model of a product you use.
12. Get into affiliate marketing – this way you get paid when someone makes a purchase through your referral (even if you don't use the product yourself).
My advice is:
Pick 1-2 areas from this list… then add more income streams as your career grows. Do that and you all but guarantee yourself a stable career many 9-5er’s would envy.
Now that you know the common reasons why musicians are broke, I want to show you simple ways to get more gigs, so you can make money as a musician much more easily than most. I show you how in my free eGuide: How To Get More Gigs And Earn More Money Playing Live. Download it today and discover the music industry success secrets most musicians will never know.
Discover how to become successful working in the music business.
