Music Industry Or Music Business: Which One Are You In?
There is a big difference between being in the Music Industry and being in the Music Biz. Knowing the difference will help you make better decisions as you Step Into the Music Biz.
The Music Industry is mainly made up of Musicians and DJ's- people who love to sing, play and perform.
Some Musicians, in the music industry, will play for little or no money. You'll find people in the Music Industry singing in your Church Choir, on a street corner for tips, or playing the local College Bar. For a Musician, a paid gig is usually icing on the cake.
There is nothing wrong with playing music for the love of playing. There is noting wrong with wanting to play your favorite records in front of crowds for little or no payment. But don't get it confused with being in the Music Biz. The Music Biz is all about business.
Being in the Music Biz means developing marketable assets and preventing them from becoming liabilities.
An asset is anything that can generate money for your business (CD's, videos, merchandise, concerts etc.) and marketing those assets to prevent them from becoming liabilities.
A liability is anything that loses money. To effectively market your assets and limit liabilities, you'll need to have some sort of business structure or music company established.
A Record Label is a business created by companies that specialize in recording, producing, manufacturing, distributing and promoting audio and video recordings on various formats including CD's, LP's, DVD's. The Record Label name derives from the paper label at the center of a "phonograph record".
If you plan on being in the music biz, you are planning on making money. If you plan on making money, I suggest that you have your administrative game on point. There will be lots of paperwork (Incorporation, Taxes etc.) and details that you'll need to have in order to succeed in the Music Biz.