💡✍️ADN #082: Mailbox Money

“Mailbox Money” refers to passive income, AKA earning money without active involvement.

Creating passive income in music can be vital to your success and longevity.

Here are 8 ways you can earn passive income in the music business:

1. Performance Royalties:

Earned when your music is played on radio, TV, public places, or live performances.

Organizations like ASCAP, BMI, and SESAC collect these royalties on behalf of artists.

2. Mechanical Royalties:

Earned from physical music sales (like CDs and vinyl) and digital downloads/streams on platforms such as Spotify, Apple Music, and Amazon Music.

3. Synchronization (Sync) Royalties:

Earned when your music is used in movies, TV shows, commercials, video games, or visual media.

This often involves upfront fees and ongoing royalties.

For more coming soon on all things sync, follow -

Fit Out Media

4. Stock Music Libraries:

By placing your music in stock libraries like AudioJungle, Pond5, or Epidemic Sound, you can earn money every time someone licenses your tracks for their projects.

5. Direct Licensing:

Licensing your music directly to content creators, businesses, or media companies can provide a steady income stream.

6. Publishing Deals:

Signing a publishing deal means a music publisher helps promote your songs, find licensing opportunities, and collect royalties on your behalf.

In return, they take a percentage of the royalties.

Their industry connections and marketing efforts can significantly boost your passive income.

7. YouTube Content ID:

Registering your music with YouTube’s Content ID system allows you to earn ad revenue from videos using your music.

Whenever someone uses your music in their YouTube video, you can claim a portion of the ad revenue generated from that video.

8. Merchandising:

Selling branded merchandise (like t-shirts, hats, posters) with your logo or album artwork through platforms like Bandcamp or your website can provide a steady income stream.

Partnering with print-on-demand services means you don’t need to manage inventory, which makes it a more passive income source.

These strategies can help you earn a steady stream of passive income, allowing you to focus more on creating music while benefiting financially from your previous work.

Consider booking an Artist Development Hour if you’d like to discuss a personal strategy for these passive revenue streams for your career.

See you next Sunday!

Neil

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