Music Publishing business

Starting a music publishing company can be accomplished with relative ease, but the real work
begins in compiling and selling music. Music publishers make money when music products are sold
or broadcast in the form of royalties. Royalties are sales percentages of music products or property,
which can include physical and digital recordings or the broadcast or use of music in radio, television,
movies and video games. The publishing company may own exclusive selling or licensing rights to
music they have created or purchased or share royalties with a contracted copyright owner.

Set up Your Publishing Business

Step 1
Contact local and state authorities and obtain a business license. There are no special licensing
requirements for music publishers.

Step 2
Set up an office with a dedicated business telephone line away from barking dogs and other
household distractions if working from home and procure professionally printed business cards,
stationery and brochures. Avoid printing your own business materials as they will appear
unprofessional.

Step 3
Apply for membership in one of the three primary performing rights organizations by filling out an
application and paying a modest one-time fee. ASCAP (American Society of Composers, Authors and
Publishers), BMI (Broadcast Music, Inc.) and SESAC (Society of European Stage Authors &
Composers) handle the collection and distribution of royalties to copyright owners and publishers from
music retailers, licensees and radio stations. All that is required for membership is that you are in the
music business and have a valid Social Security or Business Identification Number from the IRS for
tax purposes.

Step 4
Prepare standard contracts for use with music artists, composers, licensees and other potential
sellers, buyers and owners of music products. Some sample contracts can be found on performing
rights organization websites, but it is recommended that you hire an entertainment lawyer to draft the
necessary contracts.

Start Marketing and Publishing

Step 1
Contact music artists and copyright owners of music you wish to publish and interest them in your
services. Artists and copyright holders may be found through performing rights organizations, online
or in performance venues.

Step 2
Prepare and execute a contract with the artist or copyright owner which states that you will sell their
music for a fee or percentage and in turn pay them the balance of the sale. If the artist or copyright
holder has a deal with another publishing company, you may have to contact the company and sub-
contract with them for a smaller percentage.

Step 3
 Prepare a music catalog, which is a list of the songs and music products you have contracted to sell
or license.

Step 4
Market your services and make contact with retailers, musicians, radio stations, film makers, video
game manufacturers and other buyers of music or licenses to use music. When you find an interested
party, prepare a contract with them that states that they will pay a fee or percentage for the use of
music you are authorized to publish. As a publishing company, you derive income from licensing fees
paid by the buyer and royalties paid through the performing rights organization.

Things Needed
 Business license
 Contracts
Tips & Warnings
 The production or distribution of CDs or digital recordings is handled by the artist or record company
and not the publisher. The publisher acts as a seller of licenses and intellectual property owned by the
artist it represents.
 Music publishing is a complicated business with many types of contracts and agreements between
multiple parties. Read as many books as you can find on the subject and attend seminars or courses
in music publishing.
 Most small publishers specialize in one of several transaction types. One publisher may only sell
sheet music and songbooks, while another specializes in sales of licenses for television shows, films
and TV commercials. Investigate the different types of publishing and consider specializing.
 Music publishing is highly competitive and you will be competing against successful and high-
powered publishers. Be prepared for legal negotiations and rejections.
 You will be conducting most of your business via telephone and online. A reliable Internet connection
and land-line phone service is required.
 Many types of music publishing contracts require advanced contract drafting and negotiating skills.
Keeping an entertainment lawyer on retainer to draft contracts and provide advice when making
negotiations will protect you, your products, artists and buyers from bad deals and potential lawsuits.
 Understand that you will not make money right away. It takes time to sign artists, build a music
catalog and find buyers. Investing a lot of money and time without another income while you build
your business can cause serious financial hardship and possible bankruptcy.