Today’s post is all about cash and band money management.
I know it’s not the most enjoyable topic for many a artists, but it’s necessary if you’re seriously thinking about making music as a living. As a new band who’s serious, one of your first “career” goals should not be to get signed. It should be to make the band financially sustainable.
What do I mean??
Basically, you want to quickly (as possible) get to a point where all the money you earn as a band (shows, merch/music sales, etc..) covers all band expenses (recording, buying merch inventory, etc..)
The individual band members aren’t making any money off the band yet, but they aren’t paying for band stuff out of their own pocket anymore.
So how do you do this?
We go into more detail in the New Rockstar Philosophy book (free download), but here’s a list to get you started.
1. Once you’ve made some money as a band, start a bank account (it could be personal account that everyone has access to).
2. Set up an excel sheet or google sheet which tracks all band money coming in and going out. Make sure you list where the money came from (Live show, cd sales, etc..). This will help you keep a handle on your cash and know where you’re at in terms of your goals.
3. Have financial goals (how much you need to record, how much you need to buy merch, how much you need to make a van down payment, etc). This will keep you focused and get you thinking of ways to raise/make that money.
4. Don’t overextend yourself cash wise. If you’ve only played 5 or 6 shows, don’t go into the studio to make a full length album that’s going to put you a few thousand in the hole. Instead make a 3p and build an audience. Album can come later.[youtube=http://www.youtube.com/watch?v=sor9GzivGbk]
Take Control of Your Music