Business Idea

Become A Music Producer

About

Becoming a music producer requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell music, or selling music online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to become a music producer ➜

Key stats

market size
$24.8B
starting costs
$16.9K
gross margin
80%
avg product price
$1750
time to build
7 months
work from home?
Yes

About

Becoming a music producer requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell music, or selling music online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to become a music producer ➜

Key stats

market size
$24.8B
starting costs
$16.9K
gross margin
80%

 

avg product price
$1750
time to build
7 months
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $600 $5,400
Software Expenses $150 $2,769
Advertising & Marketing Costs $0 $2,300
Other Expenses $0 $800
Total Startup Costs $2,517 $31,036

Successful Businesses

Business URL Rank
Sound On Sound soundonsound.com #30,166
MusicTech musictech.net #50,375
Universal Production Music universalproductionmusic.com #114,907
Production Music Library firstcom.com #219,827
APM Music apmmusic.com #227,642
The Producer's Plug theproducersplug.com #387,703
Black Ghost Audio blackghostaudio.com #429,541
Digital Media Academy digitalmediaacademy.org #745,278
Warner Chappell Production Music warnerchappellpm.com #839,287
The Music Producers Guild mpg.org.uk #933,188
FREEDOM SOUNDWORKS freedomsoundworks.org #1,024,474

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a music producer. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your music producer are typically around 80%, which is considerably high and allows you to grow your business and manage costs easily.
Cons Description
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With becoming a music producer, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Difficult to build trust with your customer With becoming a music producer, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.
You might struggle financially (at first)! If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
Learning Curve When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.