What do you think about this business model?

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This topic contains 4 replies, has 4 voices, and was last updated by  Music1234 1 month, 2 weeks ago.

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  • #31125 Reply

    Sebanovoa
    Participant

    Hi People!

    So, I’ve been doing some research and I’m thinking about finding investors who might be interested on putting some money for the production of a set of tracks/albums for later distribution on Music Libraries (exclusive). After distribution, the investor would take a % of the earnings.

    According to this SOS article:

    https://www.soundonsound.com/music-business/all-about-library-music-part-1

    A properly produced and distributed album can make around 5000 pounds per year during a ten year period. Of course everyone experience is probably different but this is the only information I got so far regarding to numbers.

    So far, my plan is to ask to the investor for about 2k pounds for a 10 track album and they would get back around 20% of the total earnings (licencing + PRO). This means that after 10 years, the investor would get around 10k (20% of 5k pounds during 10 years).

    What do you think about this plan? The numbers? Have you ever done something similar? Or maybe know someone who did? How viable does this model looks?

    I would really appreciate your advice! Thank you.

    All the best.

    #31131 Reply

    Paolo

    @sebanovoa Speaking only about the numbers (not promotion, staff etc) I imagine an investor would want to know things like: how have your previous 10 track albums performed over a ten year period? Something for you to consider – is a 20% ROI incentive enough for an investor?

    Best of luck.

    #31136 Reply

    LAwriter
    Participant

    I think that model is risky for your investor.

    A properly produced and distributed album can make around 5000 pounds per year during a ten year period.

    That is the most speculatively insane thing I’ve heard. I’ve had albums that were fought over by the top majors that have ended up doing nothing. And yes, by nothing I mean $0 so far. (3+ years now) In addition, the strengthening of streaming vs. broadcast is also killing off royalties.

    A risky time to be entering this biz.

    But one thing makes me curious. Why do you even need an investor? That’s the job of the library to fund expensive projects. I didn’t read the article. I’ll try and do that now, but IMO, it’s full of pipe dreams if it’s telling you that every properly produced album makes 5000 pounds a year.

    #31137 Reply

    LAwriter
    Participant

    <<sigh>>….

    I’ll comment no more other than to say you’d better hedge your bets and rely on your own personal experience over puff piece articles in a magazine.

    #31141 Reply

    Music1234
    Participant

    I do think that if you produce four 15 cut albums (60 tracks produced in 1 year) with genres currently in demand, and distribute them to 6 to 10 different licensing platforms you can make $5000 to $10,000 in year 1. If you continue to do exactly that for 10 straight years, you can build your business into 6 figures. But, and this is a big “but” your music has to be really, really good and you need more than one licensing platform bringing in the business.
    That article kind of mis-leads people into thinking that aligning with one “major publisher” and writing four 12 track albums a year will do the trick for eventually hitting 6 figs.
    I can make a case for writing 100 a year for 5 to 10 years before that really happens and it will take more than 1 major publisher moving your music to get there. Unless of course you are as talented as John Williams or Thomas Newman.

    No investor needed. Just put in the time yourself and control 100% of the assets you create to license on platforms you are comfortable with.

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