Over the past decade and more, the old fashioned way of making money in the music business has been selling recorded albums. Many pop stars have switched their focus to selling concert tickets, but its gotten trickier now that everyone else is having the same idea.
Now they have to be more creative and here are the ways they do this:
1. Touring artists
They sell their products like caps and shirts. Artists like One direction have had a pay day of $225,000 per show for these sales.
2. Licensing fees from movies, commercials & TV shows
It says it all, imagine all the movies, commercials and TV shows that musicians have featured in or their songs have been themes. Artists like Wahu have ventured this way with the Rexona advert, am sure she has gotten a huge pay.
3. Marketing your name as a brand
Artists have made money by marketing products with their names. Example is Jessica Simpson, she has a collection of hats and jeggings named Jessica Simpson Collection. The downside to this venture is going to fashion shows, sitting in meetings and evaluating new products, which has proved to be time consuming.
Want to smell like Justin Beiber, Beyonce, Britney Spears or J Lo, well you can always buy their fragrances at any beauty shop. Artists have licensed their names to fragrances, like the Beibs “Someday” which netted $3 million in its first 3 weeks on sale.
5. Investing in Tech companies
Imagine investing in facebook and Twitter, with the profits that they earn. If the local artists can invest in the local companies, it will be a good payday for both parties. The only downside to this is that its a risky venture as it varies wildly.