dollars & sense forum
The Undercurrents Series of Music Business Educational Forums is
designed to assist musicians, songwriters, bands and music industry
professionals with continued growth and knowledge of the music /
entertainment industry. These forums and the information provided
is practical rather than legalistic in its approach and should not be
used as a substitute for legal advice in relation to any particular
matter. Undercurrents, Inc. accepts no liability for any
errors or omissions.
Ways to Make
Many creative people
ignore their need to invest for the future. Investing goes way beyond merely
saving money and depositing for growth in a bank, stock, bond, mutual fund,
etc. While investing is crucial to real success as a music professional, there
are a few other forms of investment to consider.
Run your career as a business. The first place to invest is in your business.
That doesn't mean running out and grabbing more gear. The best place to invest
in your business is making it grow. That probably means adding music products
and services and also spending resources to promote them. The next pace to
invest is in your relationships, both business and personal. Nobody achieves
success in a vacuum. You depend on people to help you achieve. Today is the
perfect day to start building those crucial relationships. Lastly, always invest
in yourself. Make yourself a better person by mastering new skills and savoring
new experiences. Making all these forms of investment a part of your daily life
is the true path to success in your life.
Now the real money stuff ...
Let's say your humble music business pays you $50 a month, $600 a year. You
would need $10,000 in the bank earning 6% interest to make the same $600 bucks
in one year. It can be hard to save $10,000. Even socking away $100 a month
takes 6.8 years. If your business nets you just $100 a month and you sweep it
into an investment paying 6% a year, you will have your $10,000 in 6.8 years.
That same $10,000 will now pay you $50 a month without further intervention on
your part. You've accumulated a capital base that pays you a dividend of $600
each year. Add that to your $100 from your business and in less than seven years
your business and investments make $150 each and every month.
Now nobody is going to get rich on $150 a month.
You are missing my point. It is the combination of earning, saving, and
investing that creates a moneymaking music machine for you. You just need to
make some money from your music, save it, invest regularly, and watch it grow.
Take the same figures from above and multiply them by 10. Can you use your music
career to make $1000 a month? Can you in turn save that amount? In the same 6.8
years you will have $100,000 paying you a whopping $6000 a year in interest.
That's $500 a month without touching the original 100-grand.
What choices do you have to
make right now to allow yourself to earn money from your music, save a sizable
chunk of it, invest it, and ultimately reap the benefits of all your hard work?
Spending some money can help you generate even more money. For example: Spend
$25 on the book "Moneymaking Music" . Use the information you learn in
the book to land gigs that pay you $750. You've earned a startlingly 30 times
return on your modest 25 buck investment. You'd have to sock a whopping $10,000
in an investment paying 7.5% to get the same cash return.
I firmly believe that intelligent investing in yourself in a careful,
controlled, and cohesive manner will often yield larger dividends than simply
plopping the same cash in your savings account. Make sure you keep your
perspective, though. Don't become either a miser or a spendthrift. Yet when an
expenditure helps you create more success (and more money), you might be better
off to write the check.
Paid live performances require that records are kept for
accountancy purposes. In most cases the agent, booker or venue who has arranged
the gig with the band or artist will provide an invoice or receipt, however, if
the act are booking their own gigs, have arranged for a support act or organized
a musical event, then they will also need to supply the appropriate paperwork.
Most computers software programs like 'Word' or 'Publisher' contain editable
templates of invoices, receipts and other standard business forms. You are
welcome to adapt and edit the examples below for your own use. Receipt books and
invoice pads can also be purchased from any stationary shop.
An invoice is a formal notice of
payments agreed/due between the booker and artist. It can be issued by either
party and should contain all relevant information including dates/times and
pricing. It can be issued as a confirmation of booking before the event date or
after the event when payment by check has been agreed. A copy is required for
Name or Logo
Tel:000 0000 0000
Provision of entertainment on: (Event Date)
A receipt is a formal acknowledgement
that monies have been paid to and received by the artist/band or agent/manager.
Receipts are issued when payment has been received. A copy is required for both
Name or Logo
Tel:000 0000 0000
Payment Received on (date):