The Financial Implications of Becoming a Producer
Forget about collaboration for a second. Forget about division of labor within the music industry. Forget about feeling like you need someone else to help you hone in on your sound. Today, we’re talking about why you should become a producer….well, specifically from a financial standpoint.
If you’re an artist, become a producer can save you money on the front and back end. Most artist’s biggest out-of-pocket expenses when they’re independent happen to be paying their producers to finish their tracks. Circumventing this reality will mean that you can put more money toward rent, living expenses, or even marketing for your songs. Negotiations with producers usually involves giving up points on the master as well in order to make up for not being able to pay full fees. This means that - if a song blows up - they’ll earn money that you can earn yourself. If you’re self-produced you are in complete control of what to do with the master and any incomes associated with it (unless you’re signed of course).
The financial benefits do not stop here however! Most musicians collaborate often. And, due to industry standards, producers are able to command fees that writers just can’t (though we hope that changes soon). If you’re able to develop your skills to a certain degree, you’ll be able to turn more of your sessions with independent acts into money making ventures. Artists are used to paying production fees and you might even be able to make enough here to quit any of your other side hustles. Producers, as previously discussed, tend to get master points as well giving you yet another revenue stream option.
Becoming a producer is indeed hard work. How many producers do we know who spending hours, days, nights, and years hunched over their computers learning how to comp the best take or engineer the best sound. This isn’t an easy task by any means. But for those of you who have it in you, I highly recommend learning this skill. The numbers regarding master points and fees should speak for themselves.
