Cash Advance Starting a Music Publishing Business

A music publishing business?

The Internet is growing vastly. It is to store-front profits what a cash advance is to getting behind in the rent; you know which one is the wisest choice. Now, more than the closed corporate days of the music business in the 1960s through the 1990’s, the music industry is wide open for independent music publishers. With a focused music publishing mind-set, you can startup, build growth and make big profits in the process. With a minimum financial investment, some training on music software, and the fortunate drop in price on hardware and software, you could operate a successful independent music publishing business yourself. Here are a few facts and bits of information to get you started:

Your Music and Catalog

The first question that you should ask yourself is what type of music your company will produce. The music you market or produce is called a “catalog.” Are you representing yourself of other people’s music, such as composers, arrangers, lyricists — or all three? Does your company specialize in Classical, Rhythm and Blues, Rock, Pop, or Jazz catalogs? It’s best to start off with a major catalog, such as Pop music. Try and scan what other companies are offering and study them. You can easily break into other markets or cross-reference the music catalog later. You’ll need to be sure that you have a sufficient number of pieces to fill out a certain catalog.

Contracts and Copyrights:

In just the past three decades, legal issues have had exponential growth in the music business. Businesses are planning extra carefully in regards to copyrights and contracts to avoid legal issues in the future. There are a few questions that you need to ask yourself in order to better organize and market your business:

A Few Questions to Ask Yourself

• Will the company retain the rights for the music, lyrics, arrangement, or mix?
• Will the artist retain the rights with your company simply marketing the piece?
• Will your company consider sharing rights? If so, what will be the profit split?
• How much money would you offer for your company to buy a piece outright?
• If an artist writes the music and lyrics, and your company purchases these rights, what will happen if an advertising agency uses the song in a multi-million dollar ad campaign? Will the artist share in any of the profits?
• Will payment to the artist be made on a percentage of the sales or rentals?

The Bigger Picture

If there are any issues in the contract that worry or confuse you, read it again and then get legal advice, if you can. Think big. You never know what the future might hold for any piece of music, so don’t be lazy or cheap in this department. If you plan to resell music, the contract must firmly address it. Confirmed reports show that lots of pieces from the McCartney and Lennon catalog have been resold many times and, in some cases, for millions of dollars.

Attorneys and Joining Professional Organizations

I added information about attorney selection and joining professional organizations together, because the lawyer issue is simple to resolve. Just select an attorney who specializes in music industry contract law, though having a legal representative at all is extremely helpful.

Potential artists will see potential and merit in your organization if you join one of the professional organizations, also known as PROs, to show that your music company is professional and understands the market it’s operating in. The PROs are essentially clearinghouses for licensing the performances of a song as opposed to licensing the physical copies and downloads, and synchronization of the song to pictures in film and on TV, and other uses. Music Publisher’s Association (MPA), The American Society of Composers, Authors and Publishers (ASCAP), and the Songwriters Guild of America (SGA) are the three largest nonprofits. If you visit their websites, you’ll be provided with information about contract law and copyright and you’ll also be given an indication of the payments that are standard for the industry. What makes these particular PROs so vital is that most lyrics, music, and arranging earn little money for one-time use, while the repeated use of one piece can turn into millions, depending on the number of stations playing a single song over the course of a month or the sale of albums that the song is on. The money quickly adds up.

Questions to ask About Marketing

• How will potential buyers find your company?
• Who do you think will play the music your company represents?
• Where are they located? How will you reach them?

It is important that your company develops an easily identifiable logo and name. A logo or symbol associated with the company will help customers remember the name. Once you open for business, avoid changes: you want customers to remember you and be able to find you quickly.

Advertising your Music Company

You could secure that cash advance for marketing purposes, or create a new company that represents solid artists and has a razor-sharp, user-friendly website, that can do as much business as the larger companies have been doing for decades. Most individuals forget that advertising is an important element to a successful business. Up until recently, the music industry determined the type of advertising your company could select. Today, regardless of the type of music, all advertising uses both online and print outlets.

A Few Suggestions

Try to market your music catalog to places and events that relate to your artists or music. For example, if you offer choral, orchestral original compositions, band, or arrangements then target high schools, community colleges, and universities. If your company tends to represent more composers and lyricists, you will need to develop a very aggressive way of contacting record companies and music promotional groups. You could also advertise in musical trade magazines or visit local venues on talent nights to scout and to network. Also, remember that unsigned talent is a major asset to expanding your musical offerings and boosting your future profits.

Profits

A successful music publishing business requires not just creativity, but a high degree of organization. With careful, diligent planning of copyrights, contracts, advertising, and marketing, your business will continue to grow year after year from royalties and not just an occasional fast cash advance to keep you afloat.