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Understand and plan the seven main revenue streams that will sustain your record label business long-term.
Revenue Stream Overview
Record labels don't make money from just one source. Successful labels develop multiple revenue streams that work together to create sustainable income. Here are the primary ways labels generate revenue:
1. Digital Music Sales & Streaming
Spotify, Apple Music, Amazon Music, YouTube Music, Bandcamp
Potential: $0.003-$0.05 per stream • $0.70-$0.90 per download
Timeline: Immediate • Ongoing monthly payments
2. Physical Product Sales
Vinyl records, CDs, cassettes, merchandise bundles
Potential: $10-$30 per vinyl • $8-$15 per CD • 50-70% profit margins
Timeline: 6-8 weeks production • Event sales immediate
3. Licensing & Synchronization
TV shows, movies, commercials, video games, YouTube content
Potential: $500-$50,000+ per placement depending on usage
Timeline: 6-18 months to establish relationships
4. Live Performance Revenue
Concert booking, venue partnerships, festival slots, touring support
Potential: 10-15% of artist gross • Booking fee revenue
Timeline: 3-6 months to book first shows
5. Artist Development & Management
Artist management fees, development deals, career guidance
Potential: 10-20% of artist income • Monthly retainers
Timeline: Ongoing • Long-term relationships
6. Production & Studio Services
Recording, mixing, mastering, production for other artists
Potential: $50-$200/hour • $500-$5000 per song
Timeline: Immediate with proper equipment
7. Brand Partnerships & Sponsorships
Equipment sponsors, brand collaborations, promotional partnerships
Potential: $500-$10,000+ per partnership
Timeline: 12+ months to build credibility
Revenue Calculator
Use this calculator to estimate potential monthly revenue based on different scenarios:
Monthly Revenue Projection
× $0.004 avg
× $15 avg profit
× $2000 avg
Your percentage
Monthly service revenue
Projected Monthly Revenue: $0
Annual Projection: $0
12-Month Revenue Milestones
Realistic timeline for building revenue streams:
Months 1-3: Foundation
• Set up distribution for streaming revenue
• Launch first physical product run
• Begin building sync licensing contacts
Target: $200-500/month
• Set up distribution for streaming revenue
• Launch first physical product run
• Begin building sync licensing contacts
Target: $200-500/month
Months 4-6: Growth
• Secure first live performance deals
• Launch studio services to local market
• Build streaming audience consistently
Target: $500-1,500/month
• Secure first live performance deals
• Launch studio services to local market
• Build streaming audience consistently
Target: $500-1,500/month
Months 7-9: Expansion
• Land first sync placement
• Develop artist management relationships
• Expand physical distribution
Target: $1,500-3,000/month
• Land first sync placement
• Develop artist management relationships
• Expand physical distribution
Target: $1,500-3,000/month
Months 10-12: Sustainability
• Multiple revenue streams active
• Brand partnerships established
• Consistent monthly growth
Target: $3,000-5,000+/month
• Multiple revenue streams active
• Brand partnerships established
• Consistent monthly growth
Target: $3,000-5,000+/month
Revenue Strategy Planning
Choose your primary focus areas based on your strengths and market opportunities:
If You're Strong in Production:
Focus on studio services + streaming + physical sales. Your production skills can drive multiple revenue streams simultaneously.
Focus on studio services + streaming + physical sales. Your production skills can drive multiple revenue streams simultaneously.
If You're Strong in Marketing:
Focus on streaming + sync licensing + brand partnerships. Your promotional abilities will maximize placement opportunities.
Focus on streaming + sync licensing + brand partnerships. Your promotional abilities will maximize placement opportunities.
If You're Strong in Networking:
Focus on live performance + artist management + brand partnerships. Relationships drive these revenue streams.
Focus on live performance + artist management + brand partnerships. Relationships drive these revenue streams.
Common Mistake: Trying to launch all revenue streams simultaneously. Start with 2-3 streams you can execute well, then expand once those are profitable.