For many emerging music artists, passion and talent come first—but without treating your music like a business, it’s hard to turn that talent into sustainable income. If you’re earning under $10K a year from your music, this guide will give you the foundation to start thinking like an entrepreneur while keeping your costs low.
1. Understand Your Business Structure
Even as an indie artist, how you structure your business matters. Most new artists start as sole proprietors, which is simple and requires no formal setup. But as your earnings grow, you might consider forming an LLC (Limited Liability Company).
Why it matters:
- Protects personal assets if legal issues arise.
- Makes taxes cleaner and more professional.
- Adds credibility with venues, collaborators, and brands.
Tip: Many states allow you to start an LLC for under $200. For solo artists on a budget, a sole proprietorship is fine until your income justifies the upgrade.
2. Track Your Money Like a Pro
If you don’t know how much you’re earning and spending, you can’t grow. Start by tracking:
- Income: Streaming, live shows, merchandise, lessons, sync licensing.
- Expenses: Studio time, distribution, marketing, merch production, instruments.
Tools to use:
- Free: Google Sheets, Wave Accounting
- Low-cost: QuickBooks Self-Employed ($15/month), FreshBooks ($15/month)
Even a simple spreadsheet that records every dollar in and out will give you a huge advantage over artists who just “wing it.”
3. Set a Budget and Stick to It
When you’re earning under $10K, every dollar counts. A good rule of thumb is:
- 50% of income: Necessities (food, rent, essentials)
- 30% of income: Music business expenses (gear, marketing, recording)
- 20% of income: Savings or reinvestment (future projects, touring, legal protection)
This prevents overspending on unnecessary items and ensures you always have a runway to keep creating.
4. Time Management = Money Management
Treating music like a business isn’t just about dollars; it’s also about hours. Track how much time you spend on:
- Creating music
- Marketing
- Networking
- Admin tasks (booking, accounting, legal, social media)
Tip: Even 5–10 hours per week spent deliberately on business tasks can multiply your earning potential faster than adding a few more recording hours.
5. Learn the Basics of Contracts and Copyrights
You don’t need a lawyer for everything, but basic knowledge is crucial:
- Copyright: Register your songs with the U.S. Copyright Office to protect your work.
- Agreements: Understand contracts for live gigs, distribution, collaborations, and sync licensing.
- Publishing: If you write your own music, ensure you collect publishing royalties through a PRO (ASCAP, BMI, SESAC).
Even a free consultation with a music attorney can save you thousands down the road.
6. Start Small, Scale Smart
You don’t need a six-figure budget to start a music business. Focus on:
- Consistent content releases
- Building a small but engaged fan base
- Selling merch or digital products
- Playing local shows and networking
Every small win compounds. Track your results, reinvest smartly, and gradually increase your budget as your revenue grows.
Final Thoughts
Treating your music like a business is not about losing creativity—it’s about empowering your art to sustain you. Even if you’re earning under $10K today, applying business principles early sets you up to scale and protect your career. Remember: talent gets your foot in the door, but smart business practices keep the door open.
