#muscHow Famous Musicians are Struggling Financially and How You Can Prevent It
Music is a beautiful art that brings people together. It’s made it possible for musicians to earn money from something that they love doing. For such people, making music isn’t just about having fun. It’s also a livelihood.
For centuries, musicians have become famous for their music — and that goes for several genres, from classical to rock to pop to just about any kind of music. Everyone has heard of musicians like Beethoven, Jon Bon Jovi, the Eagles, Elvis Presley, Michael Jackson, Madonna, Elton John, Celine Dion, Stevie Wonder, Eric Clapton, Frank Sinatra, and so many others who gained celebrity status in their respective genres.
It’s sad, however, that while many musicians made it big and are now enjoying their success with millions of dollars in the bank, others became famous but later struggled financially and even became broke again. There were also many musicians who created good music but never really made it.
Struggles Faced by Musicians
One might think that musicians have more options to earn money in this modern era, yet many remain obscure and are only known to their own family and friends despite being so talented. A number have found their big break in talent shows and reality TV contests, yet those who aren’t as lucky struggle to put food on the table and pay their rents.
Today, competition to become famous is fierce. Some musicians get their chance after becoming a viral hit, yet their fame might only be short-lived. Sometimes, views and likes on social media don’t translate into concert ticket sales.
Music streaming has gained popularity in recent years. It seems like a great venue for artists to earn good money, but the reality is that record labels are often the ones getting a big cut of the profits.
The “big three” labels in the music industry, namely Warner, Sony, and Universal, reportedly make as much as $19 million a day. Yet artists aren’t getting rich despite these labels earning such high profits.
And although end-users often pay a premium for streaming services, artists make only an average of $0.012 (£0.009) per stream. What’s shocking is that as many as eight out of 10 streaming music creators earn less than $275 (£200) a year, a discovery that’s angered The Ivors Academy and Musicians’ Union.
Apparently, streaming platforms such as Spotify and Apple Music keep 30% of the streaming revenue while 15% goes to the music publisher. The biggest chunk, worth 55%, goes to the record label who then pays the artist the percentage stipulated in their contract. However, the label deducts their investment in the artists so that only a small portion is left to the musician, reports The Conversation.
Calls to raise artists’ cut from streaming sites have gained widespread support.
Famous Musicians Who Became Poor
Many musicians who do become famous enjoy earnings that could amount to millions. For example, Madonna has a net worth of $590 million, Celine Dion is worth $800 million, Jay-Z is worth $1 billion, and Sir Paul McCartney has a net worth of $1.2 billion!
Yet despite earning millions, there were also famous musicians who eventually became poor or deeply entangled in debts. At the time of his death, Michael Jackson was estimated to be in debt by at least $400 million.
MC Hammer earned at least $30 million after “U Can’t Touch This” became a big hit, but due to overspending on luxury items, buying a mansion with 200 staff, and other bad decisions, he would soon be in debt to the tune of at least $13 million and had to file for bankruptcy in 1996.
Rapper, 50 Cent, used to have millions of dollars in the bank as one of the most famous rappers in the ’90s, but he squandered everything and was left with a debt of over $32.5 million. He subsequently filed for bankruptcy in 2015.
Mick Fleetwood founded Fleetwood Mac, which was known as “one of the most financially successful rock bands ever,” but as the drummer who wasn’t directly involved in writing the songs, he didn’t earn as much as the other band members. Moreover, his love for luxury cars and grand mansions made him lose a lot of money. He admitted to having filed for bankruptcy so many times that he had lost count of the exact figures.
Preventing Financial Struggles as a Musician
Aside from overspending their millions and facing lawsuits, many musicians experienced financial struggles because they were unable to adapt to the ever-changing times.
A lot of them became entrenched in the old ways of earning money as a musician. That often means spending heaps of money on marketing, publicity, road tours, and concerts while hoping they could earn back the overhead expenses plus some tidy profits.
Also, many just relied on their talent and believed that because they were good, talent scouts would come along and help them become famous. Sadly, that’s not the case for most musicians.
Leverage social media
To earn a sustainable career as a musician, don’t wait for opportunities to just come along. You must find ways to keep going by adapting to new technologies at your fingertips.
Take advantage of social media by growing your fanbase with regular updates and new videos. Engage your fans by replying to their messages or comments on your posts. An engaging, well-managed social media account can help launch your music career!
Sell merch
Raise revenue by selling merch. A lot of artists these days are earning more money by selling merch than from streaming their music. Despite living in today’s digital world, many fans still support their favorite musicians by buying hoodies, T-shirts, phone cases, or posters.
But you can also try digital fashion! Using digital technology, you can offer merch that your fans can buy to support you and your music. It would certainly be a good idea to work with a talented digital artist to create your brand.
Capitalize on diverse income streams
Today, there are plenty of opportunities for musicians to earn a steady stream of income even if they can’t do concerts or road tours or even release new music. You don’t have to rely on just making and selling music. You can also try to find a day job teaching music education in schools.
Indeed, there are many great ways for musicians to keep their finances in order. It’s always a good idea to find other sources of income, so you don’t have to struggle financially.
