Are Musicians Wasting Their Money on Paying for Music Distribution?

Success in You Music Career is Dependent on Your Streaming Success

In today's digital age, it's easier than ever for musicians to distribute their music to a wide audience. However, with so many different distribution services available, it can be difficult to know which one is right for you. And with some services charging monthly or yearly fees, it's natural to wonder if paying for music distribution is really worth it.

If you have not heard, record labels, radio stations even advertizers look at performance stats on sites like Spotify, Tidal and iTunes before working with an artist. You can say you have a huge following and maybe you do, but before they spend money they want to know how many fans in what socio-economic groups, education background, device usage and more. This is all so they can generate reports that determine ticket prices for your show to the popularity of a song in 35 years all in effort to calculate if they invest $1, how much will they make back. Spotify tools include an algorithm that has accurately predicted every billboard 100 chart song. Yes, they have a tool that will predict if you tunes and lyrics will be popular. So, your music has to be distributed to these sites if you even are thinking about a music career. And you need to focus on growing those play counts.

In this article, we'll take a look at the pros and cons of paying for music distribution and help you decide if it's the right choice for you.

The Pros of Paying for Music Distribution

There are several advantages to paying for music distribution. First, it can save you a lot of time and hassle. When you use a distribution service, they take care of all the hard work of getting your music on all the major streaming platforms. This includes things like submitting your music, negotiating royalties, and collecting payments.

Second, paying for music distribution can give you access to more features and services. Some distribution services offer things like analytics, marketing tools, and social media integration. These features can help you promote your music and connect with your fans.

Third, paying for music distribution can give you peace of mind. When you use a reputable distribution service, you can be confident that your music is in good hands. They have a team of experts who will work hard to get your music heard by as many people as possible.

The Cons of Paying for Music Distribution

Of course, there are also some disadvantages to paying for music distribution. First, it can be expensive. Some distribution services charge monthly or yearly fees, which can add up over time when not offset by royalty payments.
Second, paying for music distribution doesn't guarantee success. Just because you distribute your music through a popular service doesn't mean people are going to listen to it. On Spotify about 80% of artists receive only 50 plays a month for their music. You still need to promote your music and build a following.

Third, paying for music distribution doesn't give you complete control over your music. When you use a distribution service, they own the rights to your music and can do things like sell it to other companies or use it in commercials without your permission.

Commission-Based Music Distribution

In recent years, there has been a trend towards commission-based music distribution. With this model, the distributor only takes a cut of the royalties that your music generates. This can be a good option for musicians who are just starting out, as it allows you to get your music out there without having to make a large upfront investment.

However, there are some downsides to commission-based distribution. First, the more royalties you earn, the more in commissions you will have to pay. The percentage may not change but the amount of money will. Typically commissions run between 10-30%, which is standard for a record label.

If a music distributor takes a commission on royalties, they only make money if your music is generating income. So, commission is actually the better way to go. If they want to make money, they need to help promote your music. However, with so many artists, there is a limit to what they will do to market you, so you do end up investing in promoting your music as well. But which would you rather pay for? Distributing your music so that it can be heard, or promoting your music so that you can get press, playlists, interviews, and more of what you want?

Second, with commission-based distribution, you may have less control over your music. The distributor may exclusively license your music, which would limit what you would be able to agree to if someone approached you saying they want to use your music in a commercial. However, record labels usually establish exclusive licenses because they are going to pitch your music for commercials, TV, movies, video games, and other uses. So unless you're lucky, you might make more money by having the record label promote your music in every way they can.

Exclusive Licenses

An exclusive license is a type of license that gives the licensee the sole right to use the copyrighted material for a specific purpose. In the context of music distribution, an exclusive license would mean that the distributor is the only one who can license your music for use in commercials, TV, movies, video games, and other uses.

Control Over Your Music

When you sign a commission-based distribution deal, you are essentially giving the distributor control over your music. This means that they have the right to license your music for any purpose they see fit, without your permission. If you are not comfortable with this level of control, then you may want to consider a different type of distribution deal.

Record Labels

Record labels are companies that sign artists to exclusive contracts. In exchange for a percentage of the artist's earnings, the record label provides the artist with a variety of services, including promotion, marketing, and distribution. But music promotion is what artists should be doing to get a record label. This is why record labels are going out of fashion, by the time you grow your music business to attract a record label you should have the contacts and marketing systems in place to do without a label. You make more money without one, just ask Taylor Swift.

Yet for many the benefits of signing with a record label is that they will promote your music for you. This includes pitching your music to music supervisors for commercials, TV shows, movies, and video games. It also includes getting your music played on the radio and in clubs.

Conclusion: Its About Making More Money

Ultimately, the decision of whether to sign with a record label or a music distribution service is up to you. If you are confident in your ability to promote your music yourself, then you may not need a record label. However, if you want the best possible chance of success, then signing with a reputable record label is a good option.

Paying for music distribution is not a waste of money if you're serious about making a career in music. It can save you time and hassle, give you access to more features and services, and give you peace of mind. And commission-based music distribution can be a good option for musicians who are just starting out. It can be a great way to get your music out there without having to make a large upfront investment. However, it's important to choose a distribution service that's right for you and to be aware of the potential downsides. Not all music distributors and record labels are the same. Some focus on specific types of music or markets. Do your homework and figure out what's best for you and your career. 


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