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Understand What The Top Revenue Streams Are In The Music Business

Israel Sebenzo

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Four Major Income Streams:

Performance Fees + Royalties

Publishing + Synchronization

Mechanical Royalties

Sheet Music

Purchased, streamed, covered, played on the radio, performed in public, heard on YouTube, sampled, sold as sheet music used as the soundtrack to a film, TV show, commercial, video game, or presentation.

Music publishing plays a large role in that equation, but it’s also one of the least understood aspects of the music industry.

These top four revenue makers in the music industry encompass a wide range of sub-topics, but it’s important you understand how you can make money from the three main sources.

Access doesn’t equal understanding; and just because an independent songwriter CAN make money from publishing these days doesn’t mean they know HOW to do it.

Performance Royalty

Every time a song is played on radio or an artist performs a song on television, there is a fee payable by the broadcaster to collection society. This fee is based on a percentage of their advertising income.

Live performances are currently affected with COVID-19. It’s now a digital world and time you jump in on YouTube, FB & Instagram Live getting the fans to your pages to stay relevant.

YouTube is the biggest bet, high time it is utilized to full potential.

Get as much people as you can to subscribe to your YouTube, the more you build your audience the more you can monetize.

Publishing

Here are some source of income available:

Physical Sales, Downloads, Streaming, Live performance, Television, Film, Advertising, Radio, Cover versions of writers’ song/s, Production Music, Print – (Physical & On-line)

Key Elements:

            (a) Registration

Ensure all your compositions copyrights with collection societies globally (ZIMURA, SAMRO, APRA etc.)

            (b) Exploitation

In Music Publishing “Exploitation” is a great word…

“Exploitation” in publishing means working to get your musical composition USED. Getting an artist to record your song or placing it in a broadcast media (known as synchronisation in TV/Film/ Advertising) is considered exploitation. If your publisher is not “exploiting” your works they aren’t doing their job!

Mechanical Royalties

Is the process of getting the songwriter paid from the collection of copyright/ royalties’ income globally both physical & digital formats?

You can think of a music-streaming service as a radio station that you can program by genre, artist or mood. That said, not all services are made equal.

Most offer you the ability to stream unlimited music, but some also have provisions for streaming via mobile, offline caching for listening without an internet connection and streaming to other devices through the home.

Every time a song you’ve written is manufactured to be sold in a physical form, downloaded on a digital music retail site, or streamed through services like Spotify, iTunes etc you are owed a mechanical royalty.

NB* Writing and recording original music can ensure you own both your master rights and your performance/mechanical rights, giving you the ability to publish and control your own works

Synchronization Royalties

To pair a licensed musical composition with audio visual images in a moving picture.

There are 3 Synch income streams from a composition/recording.

1. The Negotiated Fee to use the recording (master).

2. Negotiated fee for the composition (referred to as a Front-end Fee)

3. Performance royalty for its broadcast use. (Referred to as a Back-end Royalty)

NB: not applicable for TV & Radio commercials

Israel SEBENZO® is a Singer, Songwriter and Artist & Repertoire (A&R) Executive

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Connections2Communities (C2C) is pleased to welcome the Royal India Restaurant to the Mall of Things.

Mutumwa Mawere

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Mutumwa Mawere, 24/12/2020

The Royal India Restaurant, a paid up member of C2C Business, was yesterday inducted into the Mall of Things, a wholesale e-commerce platform for members to promote and sell their products and other solutions.

C2C is an initiative of the members of the 1873 Network which is meant to provide a borderless and convenient bridge between the supply side and demand side of human transactions,

At any transaction point, there are always two parties i.e. a buyer and a seller.

Through the C2C corporate literacy initiative, we learn that commerce involves an exchange of value that intrinsically means a meeting place for holders of goods and services of value who voluntarily are willing and able to give up something to gain something of value.

The Mall of Things, is the digital version of a physical shopping mall that bridges sellers who are housed as a community being the second C to the C2C idea that speaks to the imperative of building community power that informs the initiative.

“It doesn’t matter what skin color you belong to because value is what drives human ecosystems. I believe that value-centricity must be celebrated because it best secured economic fairness in commerce.

I joined C2C simply because I am in the peoples’ business and the first lesson I have learned as member is that volume matters and economies of scale delivers least cost solutions.

Accordingly, the decision to be part of the community of suppliers on the Mall of Things e-mart platform was an easy one informed by self-interest.

We as The Royal India Restaurant have our own online e-commerce presence but we have also recognized that the C2C idea provides us with a better mechanism to extend our reach and impact.

You can reach us through a shared client acquisition that is inclusive and speaks to group-based ideal which accelerates, optimizes and aggregates people that share the belief that working together as suppliers is not prejudicial to the customer in whose interests business exists.

Customer sovereignty is a key consideration to us as suppliers in the value chain involving multiple partners who are independent business correspondents (IBC) to serve a buyer,” said Mr. JJ Singh, a member of the C2C initiative and CEO of the Royal India Restaurant.

Mr. Mawere, Chairman of the 1873 Network said: “I am pleased to welcome the The Royal India Restaurant which is based in Sandton, Johannesburg, South Africa to this initiative meant to build a shared home where suppliers and customers can intersect digitally to deliver an efficient and least cost ecosystem.

Now people can build a shop in a community with a shared gateway in terms of payments as independent members just like gated communities in respect of human settlements and shopping malls.

The Mall of Things is a consolidator and the impact of consolidation on cost, convenience and efficiency cannot be overstated.

I am pleased on behalf of the Banking on Africa’s Future (BOAF) – 10000 Points of Light (POL) Initiative to build a pilot home of 10000 suppliers in the first year of existence of The Mall of Things that knows no physical borders.

We are connected digitally and the Covid 19 pandemic has opened our eyes to the imperative of converting connections to communities (C2C).

All that is required is for a vendor of tomatoes, for example, who is connected and a digital citizen and who wishes to be known faster, is to register on the portal www.mallofthings.com.

When you do this, you will be part of this growing community of people who are forward leaning and share a belief that the best days are yet to come when choices to belong are made voluntarily out of self-interest.”

Mr. Lovemore Chanegeta, also a paid up member of C2C who is the founder and developer of The Mall of Things and other related internet of things (IOT) said: “Innovation aimed at problem solving in a community-centric manner is the best expression of our belief that connected people need the tools and solutions that support the exchange of value in loops of actors on a mutually beneficial basis.

I am pleased that we are the drivers of this important addition and active players in the War Against COVID (COD) that we are leading as part of the 1873 Network which promotes the idea that we can think globally and yet compelled to efficiently solve problems in a community.

We have many jockeys that are in our control and have been tried and tested that are in operation that speak to our motto that life offers space and time to connect, share and inspire.” For more information on The Royal India Restaurant please visit: https://mallofthings.com/home/vendor_profile/26/The-Royal-India

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How to Succeed in the Music Industry Part 1

Israel Sebenzo

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Israel Sebenzo, 21/12/2020

In the previous articles, we have paid a great deal of attention and detail on how to actually get into the music game.

We also touched on understanding aspects that matter as well as aiming for the top and actually sustaining yourself at the top.

Now, it is equally important to look at the qualities that are necessary to guarantee success in the business.

Possessing these skills is not by far enough to ensure success, but it is important to constantly work towards enhancing these qualities in order to meet the needs of the different markets.

I’ve been reiterating how talent alone is never enough since most musicians who try to succeed will fail.

As such, it is important to note that what brings success is your ability to utilize a set of skills, thought processes and values that I will be continually breaking down and clarifying on this platform.

Work Smart

Working hard is important, but the importance of working smart cannot be overemphasized. You can work a lot yes, but you must concentrate on the right things that will actually move your craft and brand forward.

Work hard on the things that will help you meet your set-out objectives and goals as a creative – This speaks to working in the most effective and productive manner as possible.

This work ethic also calls for patience and commitment in understanding that a lot of hard work goes in before returns can be realized.

To develop the right work ethic mindset, work to clearly understand your long-term music career goals and as I have indicated before, find a mentor who will help you determine the steps you must take moving forward.

Don’t Burn Your Bridges

Teamwork goes a long way in ensuring success since no artist has ever reached high levels of success alone.

Music companies, musicians, promoters, managers and other music industry personnel will all act as your business partners at one point or another in your career.

Relations will be built as you work with these different experts and as a result, loyalty will be expected from both parties, they will be expected to be loyal to you and likewise, it will be expected of you.

Loyalty in this music business context refers to not pursuing opportunities that are selectively beneficial, everyone you are working with should benefit. It is however important to be wary of being taken advantage of.

There is a balance here that you must learn as you work in the music industry. Without this balance, you will struggle to sustain your success.

Inevitably, as relations are built, there will be some fall outs. As this happens, never burn your bridges, instead look for amicable ways to come up with solutions that will maintain relations and this will take you far as you may never know who you will need tomorrow.

Create Value Outside Your Talent

Become a multi-dimensional musician by learning new skills.

There is a great deal to be benefited from learning skills such as knowing how to negotiate, book shows, building a fan base, organizing a tour, communicating effectively, strategic thinking in profit generation and many others.

As you work with different experts in different fields, make it a habit to always learn from them.

Of course, learning these skills will pay off. When you can do these things for yourself, you become capable of adding a lot of value to any situation and this will help in reducing the money spent hiring others.

As tempting as it sounds to do everything on your own, I do not advise that you tackle everything on your own as this will result in averagely done work whereas you could have enlisted expert help and achieved great things instead.

In essence, be aware of your strengths and weaknesses as an individual and seek the services of others to complement where you may be lacking.\

A Positive “Everyone Wins” Mindset

Again, here the importance of teamwork is highlighted. Musicians who become the most successful are those that also find ways to create a great outcome for everyone involved.

The gratification that comes with the realization that everyone in the team is unmatched. Don’t be a selfish creative and remember, no one truly wins until we all win.

Israel SEBENZO® is a Singer, Songwriter and Artist & Repertoire (A&R) Executive

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Some Interim Measures to Revamp the Manufacturing Sector: My Advice to the Current Government of Zimbabwe:

Professor Chinomona

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Professor Chinomona, 20/12/2020

1. Give a 5 years tax holiday to all new small manufacturing companies e.g. employing at least 10 people.

2. Create equipment and modernization fund administered by the banks for manufacturing firms to borrow as soft loans.

3. Adopt an “Entrepreneurship Programme”. Transforming struggling small businesses and grow them to large businesses using tried and tested business models for replication purposes. I will explain further in the future this new concept of “Entrepreneurship model”

3. Give 2 – 3 years tax holiday for all small businesses developing to large businesses on certain conditions e.g. should employ more than 20 people and modernize its operations.

4. Establish clusters of downstream exporting companies in all provinces that specializes on marketing, branding and exporting Zimbabwe manufactured products.

5. Adopt a deliberate government program aimed at attracting more foreign investors to patner with local manufacturers for technological transfer purposes.

6. Ensure that the manufacturing sector obstacles and challenges e.g. access to power (electricity) and finance are eradicated urgently

7. Adopt a deliberate government policy to train more artisans, technicians, engineers etc and up skill the existing ones through inter-government skills transfer programmes with developed friendly countries at a mass scale.

I will share more strategies to revamp our Manufacturing sector in the near future!

Professor Richard Chinomona – Master of Business Administration Degree (Zimbabwe Open University). Master of Public Administration Degree (University Of Fort Hare-South Africa). Bachelor of Science (Honors) in Politics & Administration Degree (University Of Zimbabwe). Bachelor of Science (Special Honors) In Economics Degree (University Of Zimbabwe). Diploma in Project Planning & Management (University Of Zimbabwe). Certificate in Entrepreneurial Development Programme (University Of Zimbabwe)

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