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The advantage of actually working a job for your income is that it keeps music pure and spiritual – the way it should be.
Some people would say that’s naive, that it’s a business and you should just be a “pro” and crank it out. At the end of the day, do they create something more than product that anyone would actually care about or want to listen to?
This is where we venture into discussions about art vs commerce, a topic for another day.
There are easier ways to make money and better ways to make music!
So true! Since starting in this end of the business about 11 years ago I have often said there are so many easier ways to make money! Having outside sources of income has always been my mantra, even in those years when I’m doing well.
So, tip for all you youngsters. The biggest source of wealth growth, for me, has been the stock market. At age 50 (I’m now 77) I finally understood. Invest in the broad market and don’t freak out on the downturns. As you age 40% stocks 60% cash and bonds. Reverse that when you are 50. If in 30s at least 80% in stocks. YMMV 🙂
Art, I actually like investing the “Stock Music Market!” I agree with stock market investing but do it slowly…a little bit each month over 3 to 4 decades (I would not bet the house on it today because I sense a massive tumble coming soon). I also STRONGLY agree with other sources of income.
If you have the chops to write and mix at a very high level in many styles, I do think and hope it’s possible for a new youngster to make a living solely at production music. Perhaps some of you know about the 18 year old aussie who entered a site most are aware of and proceeded to sell about 1000 licenses a month. I think the youngster was pulling down 20K a month for a few months. Obviously a rare event. If you believe you are super talented, are willing to grind it out for 7 to 10 years and write 1000 high quality cues, you may have a shot at making a living where you can actually support a family.
That’s just the writing part. You better also be ready to do all the grunt admin work like endlessly prep spreadsheets, submit, make some cold calls, get on planes and possibly meet some folks in the big cities like NYC, London, and LA, send lots of emails, and really have a savvy business strategy overall.
I agree with stock market investing but do it slowly…a little bit each month over 3 to 4 decades.
Actually dollar cost averaging (a little bit each month over 3 to 4 decades) has been studied and is not necessarily any better then any other plan and you may earn less.
I would not bet the house on it today because I sense a massive tumble coming soon
I agree but for folks with a long time line (3-4 decades) it will not make that much difference.
Anyway, this is probably for another thread and I’m not recommending anyone take my advice. Just my opinion and what I have learned.
I’m playing catch up on the market. I’m aware that I may lose big. It’s a gamble I need to – and am willing to – take, as I”m nearing retirement.
I’m going with Vanguard Index funds. Index funds have outperformed the vast majority of “managed” funds the last 50 years. Fingers crossed and eyes open…..
PS – Investing in MYSELF was the best investment I’ve ever made. Gear, Mics, Consoles, Studio(s), Backline. Hundreds of thousands over the years. It made for a good career, although I don’t know if it would work again….
PPS – investing in a house in LA was the 2nd best investment. Thanks to the Chinese I made a killing…. Again, don’t think that would work again starting in 2018 – but who knows.
I’m playing catch up on the market. I’m aware that I may lose big. It’s a gamble I need to – and am willing to – take, as I”m nearing retirement.
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You only lose if you sell!
Bear markets, since the 1930s, have an average duration of only 18 months and an average loss in value of about 40 percent.
The average recession lasted 22 months, and the average expansion 27. From 1919 to 1945, there were six cycles; recessions lasted an average 18 months and expansions for 35. From 1945 to 2001, and 10 cycles, recessions lasted an average 10 months and expansions an average of 57 months.
I’ve lived through at least four severe downturns in the market in the last 30 years. Remember the Dow at 6000 only a few short years ago? The key is not to panic and to build enough cash reserves to be able to ride out the downturns. And finally, one should never invest in the market if they are not optimistic about the future. I’m optimistic by nature so I’m in!
The stock market is the best way to go, but nearing retirement all the so called experts say if you need the money to live on you better be prepared for a five year cycle (downturn and recovery) to get back to where you were at the start of the downturn.
Best of luck to everyone!
I can wait!! Willing to take the risk. Royalties are the actual retirement that I’m planning on…..
That’s probably dicier than the stock market. LOL
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