3 Ways to Make Money Producing Hip Hop & R&B Beats

There's almost too much information out there about the technical aspects of creating music. No matter what sound you're after, there's a book or magazine article somewhere that will tell you how to do it. There's also a gap when it comes to how to earn money from that music once you've created it. Unless you're creating music simply for the fun of it, you've probably done a Google search about how sell beats or submit beats to major labels and come up short. I'll fill that gap right now.

There are three primary income sources that can be pursued as you build your catalog.

1. Direct to artist sales.

This is exactly as it sounds. You connect with artists through networking, marketing, or advertising of some sort and sell or license beats directly. They pay you based on an agreement (hopefully written) and you keep it moving to the next client.

2. Licensing.

This method has you license your music to a third party for use in their work, usually video of some sort. Get your music placed in a TV commercial, film, corporate video, video game, etc, that's all music placement. Connecting with these opportunities takes either serious networking to develop relationships or you pay for access. With these deals, you can receive a license fee up front ranging from $0 to $100,000 depending on the placement. On top of that, you receive royalties based on the range of the broadcast. Movies pay more than TV generally, networks more than cable and so on.

The payments in this area can be all over the map. The big key is to have your music registered with a performing rights organization like ASCAP, BMI, SESAC, etc because they are the ones who collect and pay royalties. If they don't know it's your work in that commercial, they can't pay you.

3. Major Label Placements.

This is considered the big time for most aspiring producers and songwriters. How you get there is the tricky part. Similar to licensing, you either build your own relationships or pay for access to opportunities with this one. A third option is to build your own buzz and have them come to you. Whatever you do, don't think you can just send in a demo and hope to be discovered. You can't. This is the hardest sector to break into, but the potential reward is the greatest. You can see huge paydays from a radio hit and build a celebrity brand that can create income streams beyond music. A number of successful music producers have gone on to create clothing lines and reality TV shows among other ventures to earn far more than they could with music alone.

Payment in this area usually comes in the form of an up front production fee, producers royalty points (if you negotiate them), and songwriters royalties if you take part in the songwriting. An unproven producer with no major label credits can earn $1500 just on the production fee for a low end deal. On the other end of the spectrum, there have been reports of proven hit making producers earning $30,000 - $250,000 from major labels producing major artists. Think Mariah Carey or 50 Cent.

Now You Know

Each of these three major areas have the potential to earn you enough income to live very comfortably. Work at your craft, learn the details of the music business, and above all, work on your relationships within the business and you'll be well on your way to selling beats and making money from your music.

A. Zar is a producer, songwriter, and author of How To Sell Beats: The Underground Beat Sellers Report.
For more business tips, opportunities, and resources for beat makers, visit http://www.theBeatBusiness.com