Earning Potential: Major Label Artist vs Independent Artist

By RouteBotOctober 28, 20101 min read

I came across a very interesting image that outlines the earning difference between an artist signed by a major record label and independents.

2 replies

Bas says:

October 28, 2010 at 2:55 pm

I really wish this graph had any sources or methodology, so it would actually be usable when I need to make a point… :-\

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Farley says:

October 28, 2010 at 10:10 pm

I like this kind of stuff, but comparing the two graphs directly is misleading. It says that if a band releases via a label, a musician in the band gets $23.40 for every $1000 sold. But, with the same math, the same musician wouldn’t get $700 for every $1000 sold. If a musician takes an 18% cut of the band’s take home, he’d get 18% of the 13% cut, which is 2.34%, or $23.40 per $1000. That same member would get 18% of the 70% cut releasing strictly digitally and independently, which would be 12.6% or $126 per $1000. So, that same musician makes about $100 more per $1000, but nowhere near the $700 being touted. At least that compares apples to apples. Nevermind that bands on record labels have to actually account for repaying the label for fronting record production and promotion costs. Of course, that would be a relatively moot point if those bands decided to be independent and completely digital (otherwise, who uses a record label for a completely digital release?).

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