Published on March 10th, 2011 | by Hugh Hession7
How do I make money from my songs – Part 1
Are you a songwriter who is searching for the different ways you can make money from your songs? Don’t go anywhere! This two part series will give you the answers you need.
For starters, I want to define the two types of income as it relates to you as a songwriter. One is active income, the other is passive.
1. Active Income
Active income is performance-based pay or more specifically, the money you get in exchange for your services. The majority of people make their money this way. You go to work for 40 hours, you get paid at the end of the week. Done deal. As a songwriter, active income is money that you will earn on what I term “one-shot” deals, where you get paid once for the use of your song or songs in a work for hire, film, television or whatever the project may be.
2. Passive Income
Passive income is money you get for not lifting a finger! This is when it gets good, because passive income is ongoing! For a songwriter, this would be specifically defined as residual income in the form of song royalties. Bands like Journey and Bon Jovi are still getting checks in the mail for their older hits. (Yeah I know, nowadays they are electronically wired but getting a check in the mail sounds more enticing!) Journey’s “Don’t Stop Believing” is the best selling catalog track on Itunes, with downloads in excess of 2 million and the only catalog track in history to garner double platinum status. And this doesn’t include what they make from getting played on the radio and television! By the way, a catalog track is a song that has already been previously released. You often see older artists on these catalog charts, such as The Eagles, Pink Floyd and James Taylor.