If you possess the talent and have the ability to create wonderful music that people love and want, then you can monetize your creations and earn money through them. Artists make a huge amount of income from their music and you can too if you follow the right steps and process. As a beginner, it might seem like a pretty daunting task, but in reality, you don’t even have to do much as your music makes money for you by itself. So we’re going to give you some tips and advice on how to generate income from your music and enjoy the benefits of creating wonderful melodies. So let’s get started!
- Register your Business/Company
The first step in generating money from your music is to register yourself as an entity with the government so that you can open a bank account in your business name and start earning through it. It is necessary to register your business or company as in the future it will benefit you and save a lot of time. When you register as a business you receive a business tax ID that will help you open a bank account. You can register your business as a sole proprietorship if you are a single owner or you can register as a partnership if there are multiple people who own the business. This is a fairly easy process and there are a lot of websites online that can help you with this process.
- Open a Bank Account
Now after you have registered your business and have received the business tax ID, the next step is to open a bank account for your business to receive the money you generate through your music. Having a business bank account that is separate from your personal bank account is very helpful when you need to manage and organize your funds, and especially when you file your taxes. Ensure that you keep proper records and receipts for the money that you spend and receive, to have a hassle-free experience.
- Setting up your Income Sources
Now after you are done with the above two steps, you can start receiving the money from your music. When you release a new song, you are entitled to various music royalties that generate income for you. Royalties are of different types ranging from streaming royalties, performance royalties, mechanical royalties, synchronization, and print music royalties. These royalties will pay you money accordingly. The collection process for your royalties is pretty easy as you have to register yourself with the particular organizations that manage the collection and overall process of music royalties. There are various organizations that manage the entire process on your behalf. And whenever your music is streamed or downloaded online, you receive money through it. There are several ways to monetize your music and this entire process becomes smooth when you have everything planned and organized beforehand.
Now with this knowledge and information, you are ready to go ahead and start making income from your musical creations. However, we advise that you consult your legal and financial advisor as financial matters are subjects that require proper due diligence and careful planning. So go ahead and start your amazing musical journey and take the first step to success!