Make Money

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Money Out There

Do you have any idea how much money can be made with music? How much is made and where does it go? If you are a musician here's some news you might like:

WORLD'S LEADING PRO GROWS REVENUES BY 10%,
WHILE REDUCING OPERATING COSTS TO ALL-TIME LOW OF 11.9%

Intense Focus on Member Benefits and Development Contributes to Success

New York , NY , February 8, 2008 - Demonstrating clear leadership within the music industry, member-owned performing rights organization, ASCAP (American Society of Composers, Authors and Publishers) today reported record 2007 revenues of $863 million and royalty payments of $741 million, as well as an all-time low operating expense ratio of 11.9 percent.

Source:
http://www.ascap.com/press/2008/0208_financial.aspx
Active on 10/2/2008

Public performance rights (PPR) agency ASCAP (American Society of Composers, Authors and Publishers) helped musicians collect $741 million in income in 2007.

ASCAP is one of three major agencies in the United States (ASCAP, BMI, and SESAC) that collect money from bars, night clubs, and radio stations, for musicians whenever their song is played publicly. These royalties are called public performance royalties. This is one example of how musicians make money with their music.

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Busted

Industry giants understand the protection that copyright gives them. When individuals break those protections, they crack down on what they call their biggest threat: music piracy (Source: http://www.harryfox.com/docs/RateAgreement9-23-08.pdf).

August 6, 2007

NMPA Joins Copyright Lawsuit Against YouTube

“NMPA is very concerned about YouTube’s approach to copyright,” said Israelite. "We are joining the lawsuit to protect the interests of music publishers and songwriters, whose creative works are being used without permission or compensation by YouTube.”

Source:
http://www.nmpa.org/pressroom/showrelease.asp?id=137
Active on 10/2/2008

New agreements have settled how musicians are compensated for some types of streaming downloads, but the preceding example demonstrates the lengths copyright holders will go to in order to collect what they are owed. If you think they only go after the big guys, think again:

12-year-old settles music swap lawsuit

LOS ANGELES, California (CNN) -- A day after being sued for illegally sharing music files through the Internet, a 12-year-old girl has settled with the Recording Industry Association of America.

She's the first of 261 defendants to settle their lawsuits with the association.

Brianna LaHara agreed Tuesday to pay $2,000, or about $2 per song she allegedly shared.

"I am sorry for what I have done," LaHara said. "I love music and don't want to hurt the artists I love."

The suit claimed LaHara had been offering more than 1,000 songs on the Internet, using the Kazaa file-sharing service.

The RIAA said it was pleased with the settlement. There are 260 cases still pending.

"We're trying to send a strong message that you are not anonymous when you participate in peer-to-peer file-sharing and that the illegal distribution of copyrighted music has consequences," said Mitch Bainwol, RIAA chairman and chief executive officer. "And as this case illustrates, parents need to be aware of what their children are doing on their computers."

Source:
http://www.cnn.com/2003/TECH/internet/09/09/music.swap.settlement/
Active on 10/2/2008

Apparently action against copyright infringers is not without results:

RIAA music lawsuits chill online downloading

Whether or not you approve of the recent lawsuits filed by the Recording Industry Association of America (RIAA) against people who allegedly are guilty of copyright infringement for having downloaded music from the Internet, a recent survey indicates that the lawsuits have had a chilling effect on free music downloading.

Source:
http://www.usatoday.com/tech/columnist/ericjsinrod/2004-01-15-sinrod_x.htm
Active on 10/2/2008

The major industry players enforce their ownership rights through litigation. However, most musicians don't have the resources necessary for that kind of enforcement. Musicians should not let that discourage them, though. There are other steps you can take, besides litigation, to make sure you get paid for your music.

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"They're Playing My Song"

Music is everywhere. It follows us as we travel in our cars, it motivates our exercise, it influences our buying habits at retail stores, and it entertains us at clubs, on television and in movies.

Perhaps because music is so common it is sometimes taken for granted. After all, most of the music we hear seems to be free. Music on television and radio is supported by advertising. Other music costs are typically built into other charges, which means we might not know we are paying them. For example, a movie ticket or club cover charge helps pay for music. You might be surprised to know that even background music at retail stores is paid for by the retailer.

So, as the following quote points out, we can easily become attached to music we hear all the time, and expect not to have to pay for it:

ASCAP says

“We often use the expression “they’re playing my song,” not always remembering that while we may have emotionally adopted the song, it still legally belongs to the songwriter who created it, and the music publisher who markets it. When you use other people’s property, you need to ask permission.”

Source:
http://www.ascap.com/licensing/licensingfaq.html
Active on 10/2/2008

It's not fun to hear that you need to pay for something you expect should be free. Musicians understand why they need to be paid for their music, though; Musicians understand that otherwise their intangible creation is lost to the wind and there's no incentive for them to keep making music. Remember musicians, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

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Ways Musicians Make Money

Big musicians make headlines when they sell a million albums in only a couple weeks. For the typical musician, making money is not quite so glamorous. Still, creative musicians, with a pure love of music, have found several ways to make money with their craft:

Skill of the musician	How the musician makes money	Applicable Copyright Protection (The Musician's Exclusive Right)	What the musician should know
Teaching Music	Collect payment	None apply, but it's important to educate your students about their protections.	A basic understanding of the protections available to your students. How to say “I don’t know but I’ll look it up.”
Performing Music	Collect payment	To perform the music in public.	How to quickly replace broken strings! Public Performance rights
Writing Music	- Sell print music. - Charge others for the right to record themselves playing your song. - Charge others for the right to play your song in public. -	- To sell printed copies of the music. - To distribute recordings of the music. - To perform the music in public.	Print music rights Mechanical rights Synchronization rights Public Performance rights
Recording Music	- Sell recorded music. - - Charge others for the right to use your recording.	- To reproduce in phonorecords (CDs). - To transmit recordings over the air. - To reproduce in phonorecords (CDs).	Master rights Mechanical rights Public Performance Rights.
Critiquing Music	Collect a fee for expertise	None apply.	That it’s easier to cut down than to create.
Selling musical equipment	Collect a margin on sales.	None apply.	Business and music.

No matter how you make money with your music, you can benefit from a basic understanding of the Copyright law. The protections it grants offer you various ways to boost your musical income. Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

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The Copyright Law

There is no question; At a glance The United States Copyright Law is boring. Upon closer inspection, you will discover that a law that makes you money becomes more interesting. The government has a quality, informative web site about The Copyright Law at copyright.gov. But it's a lot to sort through; It covers copyright law for all sorts of artists, not just musicians. Below are answers to the most common questions about the law. Our clarification of how it applies specifically to musicians is in italics.

FAQ from Copyright.gov

Highlights added. Our explanation in green italics

What is copyright?
Copyright is a form of protection grounded in the U.S. Constitution and granted by law for original works of authorship fixed in a tangible medium of expression. Copyright covers both published and unpublished works.

This means that only you have certain rights regarding your creation.

When is my work protected?
Your work is under copyright protection the moment it is created and fixed in a tangible form that it is perceptible either directly or with the aid of a machine or device. Your work is automatically copyrighted as soon as you write it down, or record it.

You don't have to register your work with the copyright office to be protected. This is a common misconception. Still, you have to write it down. No matter how original a melody, if it's only in your head it is not copyrighted. If you sing it publicly, the first person to write it down will own it.

Do I have to register with your office to be protected?
No. In general, registration is voluntary. Copyright exists from the moment the work is created. You will have to register, however, if you wish to bring a lawsuit for infringement of a U.S. work.

Your work is copyrighted as soon as you write it down. But what good is that if you can't sue an infringer for damages? If ever you need to sue for damages, you'll need to register your work. For this reason, you should register as soon as you complete your creation. That way you will have "prima facie" evidence that you were the first to create the work. "Prima facie" is a legal term. It means that the other side bears the burden of proof to prove that the work is not yours. Registration is affordable. As of this writing, registration costs $45. We recommend registering your works soon after you create them.

Why should I register my work if copyright protection is automatic?
Registration is recommended for a number of reasons. Many choose to register their works because they wish to have the facts of their copyright on the public record and have a certificate of registration. Registered works may be eligible for statutory damages and attorney's fees in successful litigation. Finally, if registration occurs within 5 years of publication, it is considered prima facie evidence in a court of law.

We recommend registering your works soon after you create them for the reasons mentioned above.

I’ve heard about a “poor man’s copyright.” What is it?
The practice of sending a copy of your own work to yourself is sometimes called a “poor man’s copyright.” There is no provision in the copyright law regarding any such type of protection, and it is not a substitute for registration.

The idea here is that a federal postmark on a sealed envelope with your creation inside validates the date of creation. This is a fine idea. But again, you will eventually need to register your work if ever you have to sue for damages. To play it safe, we recommend registering your works soon after you create them.

Source:
http://www.copyright.gov/help/faq/faq-general.html#what
Active on 10/2/2008

The Copyright Law protects all sorts of artistic creations. Five protections apply specifically to musicians. They are covered in the next section of this article.

Although not necessary for protection, we recommend registering your work with the copyright office so that you have solid evidence of your creation and ownership of a work as of a particular date. That way, if ever you have to sue for infringement, you will be ready. Registration costs only $45 as of this writing. You can register your work through a service, such as easySongLicensing.com, or you can register yourself at the Copyright.gov web site:

Hire easySongLicensing.com to register your work ($120)

Do it yourself ($45): Register your work with the United States Copyright Office
http://www.copyright.gov/eco/index.html

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The Five Protections of the Copyright Law

For musicians, the copyright law provides five protections that help them make money with their music. These protections give the musician the exclusive right to use their music in a variety of ways. Smart musicians understand the key to turning these exclusive rights into dollars. Let's have a look at these protections. Later we'll tell you the big secret of how to use them to your advantage to make money with your music.

Copyright Law

Protection for Musicians

Our explanation in green italics

“Subject to sections 107 through 122, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:

Only the copyright holder
or someone they give permission to can...

1) to reproduce the copyrighted work in copies or phonorecords;

Make copies of their music

2) to prepare derivative works based on the copyrighted work

Make new arrangements of their music

3) to distributed copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;

Sell copies of their music in print or in recordings

4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly;

Perform their music in public

5) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; and

Play a recording of their music in public

6) in the case of sound recordings, to perform the copyrighted work publicly by means of digital audio transmission."

Play a recording of their music on the radio or web.

These protections mean that only you, the creator of your music, get to decide how it is used. Some musicians are generous with their music, sharing it freely with their friends, their church, or even the public. Other musicians keep a vice grip on their music. Some are even afraid to share their music for fear it will be stolen or abused. You will have to decide how miserly or generous you will be with your music. Your decisions on how you will share your music will directly affect how much money you make from it. Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

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The Big Secret

SHHHHHH!

The BIG Secret

of how musicians get paid...

Musicians make money when they give permission.

Giving Permission

Charlie, a snappy dog with street smarts from the movie All Dogs Go to Heaven, taught his pups, "the more you give, the more you get. The more you share, the more you're 'gonna get." There are intensive needs for music in movies, music (yes, music. accompaniments and background tracks), video games, advertising, television, radio, schools, churches, bars, clubs, retail, and theme parks. Lots of people out there are interested in using your music. They will want permission.

Giving Permission

How Musicians Get Paid

Please can I…

Sing
Record
Photocopy
Play
Perform
Arrange
Copy
Sell

your song?

Do you see how popular musicians make money in more ways than just CD sales?

It's not easy to give away something that could be exclusively yours. But with your music, if you do not share it, you will not be paid. Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

Giving Permission and The Five Protections

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Now think back to your exclusive rights as a musician. These give you at least five different ways to make money with your music. All you have to do is give permission in exchange for royalty payments. Permission is given through licenses.

Here are the five protections straight out of the copyright law again, this time with the avenues for giving permission in order to collect money.

The Five Protections
and
Avenues for Giving Permission

Our explanation in green italics

Avenues for giving permission (making money) in blue

“Subject to sections 107 through 122, the owner of copyright under this title has the exclusive rights to do and to authorize any of the following:

Only the copyright holder
or someone they give permission to can...

1) to reproduce the copyrighted work in copies or phonorecords;

Make copies of their music

Print Rights

2) to prepare derivative works based on the copyrighted work

Make new arrangements of their music

Print Rights

3) to distributed copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending;

Sell copies of their music in print or in recordings

Print Rights, Mechanical Rights, Master Rights,

Synchronization Rights

4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly;

Perform their music in public

Public Performance Rights

Play a recording of their music in public

Public Performance Rights

6) in the case of sound recordings, to perform the copyrighted work publicly by means of digital audio transmission."

Play a recording of their music on the radio or web.

Public Performance Rights

Here's another explanation of the avenues for giving permission, this time from the buyer's perspective:

Avenues for Giving Permission

Mechanical Rights

The right to record yourself on a CD playing a song that someone else wrote.

Synchronization Rights

The right to record and put to video yourself playing a song that someone else wrote.

Master Rights

The right to use a recording that someone else made.

Public Performance Rights

The right to play in public a song that someone else wrote. The right to play a CD recording of someone else’s song in public.

Print Rights

The right to print the sheet music for a song that someone else wrote.

These avenues for giving permission are explained in detail in the law and we will discuss them further in this article.

There's a lot to know. For that reason, without help, giving AND asking permission can be complicated and frustrating for the laymen. Because giving permission is complicated, many musicians never make money doing it. Because asking permission is difficult, buyers sometimes give up and decide to either not use your music, or to use it illegally. Either way, you don't get paid.

You can make it easier for your "customers" to get permission by making sure you are "There to Collect". If you do, you will improve your chances of getting paid for your music.

In the next section we'll introduce some industry players that can help you give permission and collect payments. We'll also discuss the possibility of doing it yourself. Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

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How to Give Permission

You can make money by giving permission yourself, or you can hire a service to help you do it. Publishers, record labels, public performance rights agencies, and music licensing services handle the licensing process, which involves giving permission and collecting royalties. Some musicians choose to do it on their own.

Do it yourself

If you choose to give permission yourself, you will issue licenses and collect royalty payments when others use your music. Musicians that do this are "self-published". This has advantages and disadvantages:

Some musicians choose this route so that they can intimately control how their music is used. They are aware every time permission is given, and they can say "no" to a project they don't approve of. In addition, they can avoid the skimming/fees of the publishers and labels.

Publisher fees aren't all bad, though. Musicians who handle permissions themselves miss out on services the publishers provide. Licensing requires legal knowledge, paperwork, and recordkeeping. Big publishers and labels also enforce payments through auditing and legal action (such as litigation). Finally, the big players provide valuable promotion and distribution services that individual musicians have difficulty matching.

Getting Help

Publishers, record labels, public performance rights agencies, and music licensing services help musicians give permission and collect royalty payments, for a fee.

They each have limitations, strengths, and weaknesses. Most do not handle all avenues of permission. For example, most record labels do not handle mechanical rights, and most publishers do not handle master use rights. But some musicians might be self-published and be own their own record label; these musicians would handle both.

What it all comes down to is who owns what you are asking permission for. If it's a musical recording (such as a CD), the record label probably owns it because they recorded it. If it's a composition, the publisher probably owns it because they deal with composers. If you ask a record label for print rights, they will tell you they can't give permission because they don't own those rights. You'll have to go to the publisher.

This is one reason that laymen who ask permission get frustrated. They feel they are getting the runaround. In many ways, they are right. The complications are rooted in the fact that, commonly, musical works are owned by multiple copyright holders. Often the five protections of the copyright law are sold and divided to the point of craziness!

For musicians, the complications of divisions of ownership are reason enough to hire services to handle all their busy work so that they can focus on their music. Whether you decide to handle your own permissions or to hire help, you will benefit by understanding the process.

Here's an explanation of the permissions each service handles:

Help giving permission and collecting payment

Publishers

Traditionally, publishers have helped musicians issue licenses and collect royalties for mechanical, synchronization, and print rights.

Record Labels

Traditionally, record labels have helped musicians issue licenses and collect royalties for master rights and CD sales.

Public Performance Rights Agencies

Public performance rights agencies ASCAP, BMI, and SESAC help musicians issue licenses and collect royalties for public performance rights.

Music Licensing Services

Music licensing services such as easySongLicensing.com and The Harry Fox Agency (HFA) help publishers and independent musicians issue licenses and collect royalties for mechanical rights.

Publishers and record labels offer valuable promotion and distribution services. However, now that the internet allows individuals to easily distribute their music worldwide and collect royalty payments, many musicians successfully self-publish, and self-distribute their music through their own web sites, or through other online distributors such as iTunes or CDBaby.

1) How Mechanical Licenses Make You Money

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By giving permission to record a song you wrote, you make money. How much money? You get the statutory rate that is determined by a federal committee. As of this writing, that amounts to $.091 per song per unit produced, or $91 for 1000 units. Royalties from mechanical licensing go to the composer of the song. Sometimes publishers take a little for their services.

Mechanical Licenses:

May I record myself playing your song on my CD?

Please	To ask permission: · easySongLicensing.com · Publishers · Compulsory
Pay The Statutory Mechanical Rate .091 per song per unit produced \| \| V
	Who gives permission and what they make: · Money goes to composer · May split with publisher or agent · $91 one song for 1000 CDs.

When you think of Mechanical Licensing think of the composition that is being covered...

...and remember the money pays
the composer of the song.

How Much Can You Make:
Mechanical Licensing?

1 song
1000 CDs           $91
10,000 CDs        $910
100,000 CDs      $9,100

15 songs
1000 CDs           $1,365
10,000 CDs        $13,650
100,000 CDs      $136,500

100 songs
1000 CDs           $9,100
10,000 CDs        $91,000
100,000 CDs      $910,000

Q) How much do you think Guns n' Roses made
when Sheryl Crow covered their song "Sweet Child o' Mine"?

A) That depends how many albums she sold.
Perhaps 200,000 x .091 = $18,200

Q) How many songs does Paul McCartney
have listed in the ASCAP database?

Paul McCartney

A) 621

Popular songs are covered every day in the United States. Smart musicians make sure that they are prepared to collect their mechanical royalties every time that happens. Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

2) How Synchronization Licenses Make You Money

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By giving permission to record a song you wrote, and synchronize it with video, you make money. How much money? That depends on how the song is used. Because you have exclusive rights to your song, as the copyright holder you get to decide the amount you will ask. Industry norms range from a hundred dollars to several thousand. Royalties from synchronization licensing go to the composer of the song. Sometimes publishers take a little for their services.

Synchronization Licensing:

May I record your song and put it in my video?

Please	To ask permission: · Publisher · Copyright holder (composer) · NO compulsory.
Pay Custom-Negotiated $1-250,000 per use \| \| V
	Who gives permission and what they make: · Money goes to composer · May split with publisher or agent · Typically $100-$5,000 per use

When you think of Synchronization Licensing think of the composition that is being covered...

played with video...

...and remember the money pays
the composer of the song.

How Much Can You Make:
Synchronization Licensing?

Typically $100-$5,000

Up to $250,000

How Much Can You Make from Synchronization Licensing?

$100-$5,000

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"I have synched quite a few thousand songs into productions over the years," states Peter Jansson of Janssongs, Inc., "and have charged anywhere between US$1.00 and US$250,000 for each one."

"Having said that," Jansson adds, "I think an average fee is usually between US$4,000 - $6,000 per side (i.e. Master & Synch)."

Source:
Money for Your Music
The Cold Hard Facts
About Music Licensing
by The G-Man - NARIP.com and Immedia Wire Service, Posted Nov. 2003
http://www.musicbizacademy.com/articles/gman_money.htm
Active on 10/2/2008

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How much money can a writer make through TV placements?

Let's say that you have a song in a show on NBC that is a one-hour drama. Generally speaking, the up-front fees for an independent artist on such a show are going to range anywhere from $1,000 on the low end up to $4, 000 on the high end. There are a whole lot of factors to determine where it falls in that range. That is the up-front fee - the synchronization fee. That allows the piece of music to be synchronized to that scene.

From the Article
Michael Eames: President, PEN Music Group, Inc.
How Much Money Can You Really Make from Film and TV Placements?
Interview by Doug Minnick
http://www.bmusic.com.au/links/industry/archives/ararchiv/meames.htm
Active on 10/2/2008

Still no compulsory sync?!?

In the 1970s and '80s, video was a special medium reserved for big film studios and cable providers. Today, regular consumers easily produce video in their homes. We record video with our video cameras and cell phones. We edit video on computers. Then we share it on DVD or online. It's simple to make a video. It's hard to legally use copyrighted audio with it.

That's because there is still no compulsory synchronization licensing law. This gives musicians total control of their synchronization rights. They can try to negotiate for any royalty rate and ultimately they can just say "no" to permission requests. This might seem like a good thing for musicians. In reality, it stifles an enormous opportunity for income. Custom negotiations take a lot of time and are wildly unpredictable, as evidenced by actual licensing fees ranging from $100 - $250,000 for sync licenses. This turns off small-time users from even bothering to ask permission. It also prevents companies like ours from offering synchronization licensing services. How do you offer services that have no predictable timeline, cost, or outcome?

The result is that small-time licensees get frustrated and give up. They either decide not to use the music, or to use it illegally. Either way, musicians lose money. A compulsory synchronization provision would make it easier for music users to ask permission, and it would improve musicians' chances of collecting their due sync royalty.

Composers and their publishers can claim big synchronization royalties for big-budget commercial projects, or TV, and film placements. Smart musicians will also consider small-timers that should be paying royalties for DVD and YouTube projects. Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

3) How Master Licenses Make You Money

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By giving permission to record a recording you made, you make money. How much money? That depends on how the song is used. Because you have exclusive rights to your recording, as the copyright holder you get to decide the amount you will ask. Industry norms range from a hundred dollars to several thousand. Royalties from master licensing go to the artist that recorded the song. Sometimes the record label takes a little for its services.

Master Licensing:

May I record a recording you made? May I record a recording you made?

Please	To ask permission: · Record Label · Copyright holder (recording artist) · NO compulsory.
Pay Custom-Negotiated $1-250,000 per use \| \| V
	Who gives permission and what they make: · Money goes to recording artist · May split with record label · Typically $100-$5,000 per use

When you think of Master Licensing think of an audio recording...

...and remember the money pays
the artist that recorded the music.

How Much Can You Make: Master Licensing?

Typically $100-$5,000

Up to $250,000

Musicians and their record labels can claim big master royalties for big-budget commercial projects, or TV and film placements. Smart musicians will also consider small-timers that should be paying royalties for DVD and YouTube projects.

Musicians can be protective of their music. But you only make money when you give permission and share your music. Still, prudence with your master rights is perhaps more warranted than with any of your other permissions because abuse of master rights can damage CD sales and your reputation.

Clarification

Mechanical
(Audio)

Synchronization
(Video)

Use a composition

|
|
|
V

Pay the composer

Master

Audio and Video

Use an audio recording

|
|
|
V

Pay the recording artist

When you make a CD or a DVD, it can be hard to understand which rights you need. Basically, remember that no matter what medium you record on, you'll always have to pay the composer for the right to use their composition. For the composer, the mechanical license is for audio only recordings (CDs and digital downloads), and the synchronization license is for video. In addition to what you pay the composer of the song, if you use a recording someone else made you'll need to get their permission as well. For that, you'll need a master license.

4) How Public Performance Licenses Make You Money

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By giving permission for others to publicly perform, or play a recording of a song you wrote, you make money. How much money? That depends on how often the song is played. Three public performance rights agencies monitor song plays. They issue licenses to bars, clubs, restaurants, and radio stations. They collect royalties and pay the composer. They charge a modest fee, just enough to cover their operating expenses.

Public Performance Licensing:

May I play your song in my club, in my bar, or on my radio station?

Please	To ask permission One of the three public performance rights agencies in the USA · ASCAP · BMI · SESAC
Pay Custom-Negotiated annual license. Report play lists. \| \| V
	Who gives permission and what they make: · Money goes to PPR agency · Agency disperses money to composers.

When you think of Public Performance Licensing
think of public performances and broadcasts..

...and remember the money pays
the composer of the song.

How Much Can You Make:
Public Performance Licensing?

"BMI will distribute more than $732 million in royalties for its 2006-2007 fiscal year to the songwriters, composers and copyright owners it represents, an eight percent increase over the prior fiscal year."

Source:
http://findarticles.com/
p/articles/mi_pwwi/is_/ai_n19497912
Active on 10/2/2008

For public performance, musicians get paid a percentage of the fees licensees pay. This amount is determined by the public performance rights agencies. They split the income based upon the number of times each song is played. If you have further questions about public performance rights, you should contact one of the three agencies.

5) How Print Licenses Make You Money

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By giving permission for others to use or photocopy the printed sheet music of your composition, you make money. How much money? If you have a publisher, they'll pay you roughly ten cents per copy of sheet music sold. They collect your royalties and pay, you, the composer. They charge a fee for their promotion and distribution services.

Print Licensing:

May I buy the sheet music of your song? May I make a photocopy of your song?

Please	To ask permission · Publisher · Copyright holder (composer) · No Compulsory
Pay $3-5 per sheet music copy of a song. About $.07-.12 per sheet music goes to the composer. \| \| V
	Who gives permission and what they make: · Money goes to publisher · The publisher disperses money to composer.

When you think of Print Licensing
think of sheet music and the publishers and retailers that sell it...

...and remember the money pays
the composer of the song.

How Much Can You Make:
Print Licensing?

20% of the retail price
($3.95 per single) goes to the publisher.

About $.07-.12 per sheet music goes to the composer.

Sell 1000: $70
Sell 10,000: $700
Sell 100,000: $7,000

For print music, the composer gets paid every time a copy of the sheet music is sold. In most deals with publishers, this amounts to only a few cents per copy sold.

*Bonus* How CD Sales Make You Money

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By selling recordings of your music for the enjoyment of the listener, you make money. How much money? The recording artist makes roughly $2 - $8 per CD sold. Typically their record label will collect the income from CD sales and then pay the artist. They charge a fee, just enough to cover their promotion and distribution services.

CD Sales:

May I buy a CD or digital download of your musical recording?

Please	To buy a CD · The recording artist · A music retailer · legacyfundraiser.com
Pay $5-$20 per CD sold, to the artist or their label. Artist keeps roughly $2.40 - $8 per CD sold. \| \| V
	Who gives permission and what they make: · Money goes to the retailer and to the artist · Retailers disperse CD sale income to the artist. · Artists sometimes distribute their own album.

When you think of CD sales, think of Legacy Productions...

...and remember the money pays
the recording artist.

How Much Can You Make:
CD Sales?

Typical album deals:

13-20% of Published Price to Dealers (PPD)

Current PPDs around
$12

Artist cut per CD:
$2.40

Sell 1,000     $2,400
Sell 10,000     $24,000
Sell 100,000     $240,000

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Legacy Productions:
40% of profits
or roughly $8 per CD sold.

Sell 1,000     $7,400
Sell 500        $3,400
Sell 250        $1,400
Sell 100        $200

For CD sales, the recording artist gets paid every time a copy of their recording is sold. In most deals with record labels, this amounts to a small percentage of each copy sold.

With Legacy Productions, musicians can record for free. They must commit to sell a minimum number of CDs and split money from CD sales with Legacy Productions. Click here for more information about how Legacy Productions can help you.

Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

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How to Learn and Expect

Some musicians think that album sales are the only way to make money with their music. If you read this article, you have learned five additional ways to make money with your music. You can learn more by studying the copyright law, and the various resources readily available on the web. To learn even more, you can check out the following music licensing resources.

Study this article, these further resources, and our music licensing definitions,
all available at easySongLicensing.com

Once you know the law, make sure you expect to be paid. Some musicians choose to give their music away freely. That's fine for some, but if you choose to make a career with your music you will be most successful if you expect the income you deserve for your work.

How to Register Your Work with the United States Copyright Office

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How to Preserve and Protect

Until you have fixed your music in a tangible medium, it is not copyrighted. That means it can be easily lost to the wind or worse, stolen. When you have that great melody in your head, it's crucial to record it on paper and in an audio recording. When you do, you gain immediate protection under the United States Copyright Law, opening five avenues to make money with your creation.

In order to have legal proof of ownership of your work, you should register it with the Copyright Office. This doesn't cost much; we will help you easily register your work for $120 total. It is worth every penny if you plan to make money from your creation.

We can help you register your musical composition with the United States Copyright Office for $120 total. Call 1-800-360-5192. We will ask you a few simple questions about your work, ask you to send us your composition, and then we'll handle your Copyright submission on your behalf.

To write your music, you can use a software program such as Finale, Sibelius or one of the dozen other choices available to you when you Google "music composition software". Or you can write your music by hand on staff paper available at your music store.

To record your music you can buy studio time. That can add up, though, and become expensive. If you do pay for studio time, make sure you are well rehearsed to minimize time in the studio. Also, ask your studio to guide you to stick to a time budget you can afford. Alternatively, hire a service such as Legacy Productions to record you much more affordably at your location or at their studio, and split profits from your album sales. Click here for more information about how Legacy Productions can help you.

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How to Be There to Collect

Even if your music is protected under copyright, and even if you know all the ways you can make money, that does you no good unless those who want to use your music can find you to ask permission.

For that reason it's crucial that you are visible. You should register your music with a public performance rights agency and publish a web site with your contact information.

For more information on registering with a public performance rights agency, contact ASCAP, BMI or SESAC. Once you register, people who want to use your music will be able to search for you in the PPR databases.

Also, no matter your budget, we recommend that you build a web site right away. You can hire someone to build a web site for you, or you can build a free web site at geocities.com. It can be bare bones basic, but must include complete copyright information (title, composer, copyright date) for each composition you wrote and complete contact information. Your web site doesn't have to look fancy. Even a basic site will ensure that anyone who wants to use your music will be able to easily find you with a Google search.

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Conclusion

There is a lot of money to be made with music. Last year, public performance agencies paid musicians more than a billion dollars for use of their songs on radio and in public places.

From the early 20th century until the 1970s, big industry players controlled music distribution because they alone held the manufacturing technologies used to replicate the media. Today, home technologies have made music so easy to copy that it has become almost intangible.

Music users become emotionally attached to music and sometimes forget that someone else actually owns it. Even musicians sometimes don't understand the extent of their ownership.

In order to earn all you are owed for your music, you need to learn and expect, preserve and protect, and be there to collect. You need to learn about your copyright protections and how to use them to make money. If you want to make money, you need to expect the royalties you deserve. Your music is only protected if it is copyrighted. For that reason, you need to fix your music in a tangible form and protect it by registering it with the United States Copyright Office. When people want to ask you permission to use your music legally, you need to make sure they can find you. Being there to collect means being visible so that your customers can find you to get you paid when they use your music.

Remember, if you want to be paid all you are owed for your music, you need to

1) Learn and expect,

2) Preserve and protect,

3) Be there to collect.

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