Income and Expenses of Touring!

When we look at music artists these days, we assume that every single ticket we buy, goes straight into their pocket.

Wrong.

The list of typical expenses to your music artist are more than you think, and the amount of work that has to be put behind all of the shows you attend is amazing. And something a lot of people never think about.

So below is a small list of each, both income, and expenses of touring. You will be surprised by which list is the longest!

 

INCOME

• Live Performance Fees- Some TV shows may pay the band in order to have them appear on the show to increase ratings.
• Record Label Recording Contract Royalties- The band get  paid a percentage of each album sold.
• Publishing Income Sources- The primary sources of income of a song include performance rights, mechanical licenses, synchronization licenses and print rights.  These sources can be exploited through film, television, videos, records, CDs, tapes, MP3 downloads, sheet music, commercials, broadcasting, internet distributions, as well as other forms of exploitation. For example, when a Bon Jovi song was used on Glee. They would of needed to get rights to use that song.
• Mechanical Royalties (Sales of CDs, DVDs)
• Performance Royalties (Such as Broadcasting, Radio, TV, Satellite radio)
• Synchronization Fees (TV, Film)
• Sheet Music Sales- If any of you have books from a band with various sheet music to help you learn an instrument.
• Commercial Jingles- Some companies wish to use a song within their commercials. This way the band will get something back from the company using their song, whilst the song gets more publicity, and helps the company to promote their item/service.
• Merchandising Royalties- All the merchandise we buy, t-shirts, key ring’s,  hoodies, photos, various merchandise, again only a percentage of this goes directly to the band, the rest will go to other companies.
• Internet streaming/ downloads-  Single’s coming out, album downloads, single downloads. This is why when you don’t buy the artist’s music and rip it from you-tube, it does hurt your favorite artist. You haven’t downloaded the song from them. You have stolen the song.
•  Book/ DVD Sales- When a band releases a DVD of their tour or book (Such as When we Were Beautiful) again a percentage will go to the band, the rest to the crew/publishers who helped in order to create it.

EXPENSES

•  Equipment Rental charges- In-case the band require certain lighting within a stadium or a certain instrument for a song, the extra pieces may be hired in either that or paid for fully.
• Guest Musician fees- Have you been to a show where a special guest has appeared onstage? Usually they will want something for doing it. Unless they are very good friends with the artist, then they may just do it out of pure musical love 😉
• Recording within a studio, costs will be on: Producer, Engineer, Studio Hire, Audio Supplies, Mastering Fees, Graphics artist, Photographer, Cover Art Costs, CD/Vinyl Manufacturing and duplication Charges, along with Marketing, Sales plans.
• Publicists Fees
•  Promotion for the tour- Flyers/Billboards/Posters/TV Commercials/Radio Ads
• Photographer fees and duplication charges- At one stage a few of us have had a look into having a photographer for an event, and we all know some of the charges!
• Internet Website costs (Design, maintenance, access fees etc. Your artist will need to pay someone to run the website, keep the designs up to date, keep the information up to date. This all costs)
• Misc. online promotions- Free MP3’s, Free downloading. Something artist’s can do to get their music out there.
• Band Equipment Costs- For example, Richie Sambora requires several pedals, talk box effect.
• Instrument purchases/rentals – New guitars/ Drums/ Bass/ Vocals
• Tour Luggage- Transporting equipment to each venue, each country, each city.
• Misc. equipment repair/maintenance costs (drumsticks, strings, tuners etc)
• Tour Equipment- Lighting Desks, Sound Desks, FOH, Stage Monitors, IEM In Ear Monitors, Mics, Drum mics, keyboard mics, acoustic mics.
• Rehearsal space costs- Using the arena/stadium days earlier in order to practice, halls and studios to practise.
• Office Expenses- Taxes
• Songwriting – Copyrighted songs registration/ filing costs if a band was to use other artists songs live. Or re-record the song in their own way, they would need to do this.
• Performance Rights Organization Fees ( ASCAP-BMI-SESAC)
•  Conferences between tour team- budget
• Artist Business Team Costs such as a Personal Manager, accountant, booking agents, publicist, music attorney
•  Transportation costs- Trucks to carry the equipment, getting them on ships. Planes, air fair. Highway and ferry tolls. Gas expenses, service and repairs to the trucks. Cars to take the band to and from venues, and interviews.
• Merchandise (T-Shirts, Hoodies, Bags, etc) Expenses such as designing costs, manufacturing and shipping costs, how much it will cost them to send to us, to some countries items can be hefty in cost, so free shipping is a BIG advantage when they offer it!
• Costumes/Stage clothing- What the band wear on stage, someone will often be in charge of getting together a wardrobe which is comfortable for the band, you wouldn’t expect to see Jon Bon Jovi on stage during a tour wearing a suit, yet maybe at an event for the White House you will. But for an artist, they would rather be comfortable on stage in something they can move around in and give you a good show.
•  Insurance- Needed on health, equipment, instruments, life cover. If any accidents or incidents where to occur. We all know this.
•  Unions
• Video production and manufacturing costs of CD’s and DVD’s. Recording events. You will see camera’s at Bon Jovi show’s, Tony Bongiovi will be backstage, recording some, and making sure that you get a good view up on the screens! Equipment such as cameras and all of the equipment in order to make that work is also required.
• Road Manager/Band Manager/Accountant/Roadies salaries. All of us roadies need paying its a hard job!

To all of the above, there is probably many things I have even MISSED! But that is the average income and outgoings of a touring and musical artist. Some of the things as consumers, we never thought about.

Before going on to you tube and downloading your favorite artists new song or an artists song, remember. The amount they have spent making sure you get it and enjoy it as a fan! 😉

A promoter might take over some of  the work on tour, to ensure the tickets, advertising and sales are covered. But remember, just as an EXAMPLE Say a band were to tour for 12 months, the promoter puts in $5 million into making sure everything was sorted. If over that 12 months, the total income was to be exactly $5 million. The band would receive nothing. Only the other incomes they have in place.

xoxoxox