Last week the Gigstarter team had the opportunity to attend another webinar from Music Motion. This time tour and product managers from the music industry discussed tour and release costings.
Juliette Poulisse from Cornelis Music
During this webinar Juliette Poulisse of Cornelis music gave us an insight to the basic costs of a single without all publishing costs. The costs are divided over 3 sections: production, promotion I and promotion II.
Production
First we took a look at the production costs of a single, this means renting a studio, hiring a producer and a mix/master. For the production of a single you will spend between €1250 and €4400 excluding all the extras. These prices are based on the most simple and cheapest options, but of course you can make it as luxurious as you want!
Promotion I: Visuals
After the production, you will have to promote your single and the first thing that you will need to look at is the visuals. For the visuals, you will need someone to take care of the artwork of your single. Press photos are important as well. This often includes the costs of a location, makeup artist, equipment and other supplies. Last but not least, we have the video and content for social media. For this part of the promotion it will cost you around € 3050 / € 3150. Remember: a very well-known artist means higher prices!
Promotie II: Marketing
The second part of promotion is about positioning your single in the market. It’s recommended to hire a radio plugger, a PR manager and to place ads on social media. The expenses for this would be between €1325 and €3250. You can also advertise your single on Spotify starting from €25 but keep in mind this can add up quickly to a couple hundred or thousand. Social media is very important for promotion but make sure to balance your expenses!
Conclusion
Altogether the production, looks and marketing costs around €5625, this is the bare minimum for a single. Fortunately, if you want to release an album, you don't have to multiply the total amount of a single by 10. It is often possible to negotiate a certain price or make a deal with a studio. The same goes for people you want to hire for your project. Besides the exposure, you earn some income through streams, (YouTube) views, royalties, funds and any live performances. Live performances often generate the biggest income, so this is your best shot at earning those release costs back!
Professionals Juliette Poulisse and Jaco van der Waal
Jaco van der Waal
Jaco is the founder and owner of Dune Management and jhe manages Rondé and Son Mieux. He has a broad experience in touring and the financial aspect of it. Jaco gave some examples of a budget from a tour in Switzerland for the Dutch pop band Son Mieux. Please note that the fees statement varies between whether you’re touring abroad or in your own country. Jaco's tip: "Think about the amount of money you want to earn from it before hitting the road.”
Expenses of a tour
The accommodation and 3 meals per day per person are by far the biggest expenses you will make. Some venues, or organizations, have arrangements with hotels which can save you a lot of money. With a deal like this, you can sometimes stay at hotel rooms for a discounted price or maybe even for free.
Transportation costs are important, but they also depend on several things. The size of your act and the location of the performance can have a lot of influence. Perhaps the gig is so close by that you can get there by yourself or a with a private car. Are you a band and do you need to bring a lot of equipment with you? Then you may need to rent a van. Determine what applies to you and put these costs in your budget.
Salary. Of course, you want to get something out of it as well. If your act consists of several people, make sure to calculate the expenses beforehand for each person participating and put it in your overview.
Income
Your income is generated by the fee you receive for every performance. Besides that you can sell merchandise, for example a t-shirt with your logo or name on it. There are also additional funds that can help you out to cover expenses.
It’s not that easy to give you a specific amount because of all the factors that are part of it. Hopefully these tips have helped you and made you more aware of what to think of when you’re planning to go on a tour.
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