Indie music is becoming one of the biggest music genres of the century, with the “do-it-yourself” style of sound and that raw musician talent that isn’t warped into what a record label thinks should be popular with people who are tired of hearing the same style of music.
Rooted in the 1970s punk movement, it’s definitely one of the most diverse genres with pure artistic freedom (until they get taken on by a record label and make millions). And even then, a lot of indie artists stay authentic, but as they become more popular, they naturally get sucked into the business side of music.
When it gets to that stage, indie musicians can definitely learn a lot from entrepreneurs. Read on to find out how.
The Business Side of the Music Industry
Indie music is definitely creative on the outside, but it soon starts to resemble a small business on the inside, as an artist’s following grows.
And like with running a business, there’s just so much competition, and it takes so much to get noticed. Doing gigs in bars doesn’t really gather the attraction it once did, and musicians are instead turning to TikTok and Reels to try to find the following they need to make it big. And once they do, the business side of music really comes into it. They have to manage:
- Label negotiations
- Find a manager
- Find a booking agent
- Think about merchandise
- Sign contracts
- Handle money flows
- Maybe hire employees
But if they can do all of that, they’re typically getting income streams from:
- Streaming and downloads
- Live shows (ticket fees)
- Merch (often highest-margin)
- Sync and licensing
- Patreon and memberships
- Brand deals and UGC work
Managing all of that, and especially hiring employees, really does go into the area of entrepreneurship. All of it equals higher exposure and higher risk to common issues within the industry, such as contract disputes, copyright infringement, payment disputes, etc.
What Entrepreneurs Know About Business Protection
Setbacks will happen, and entrepreneurs assume they’re going to happen and plan for them. Not all indie artists will do the same, especially in the beginning, when they’re only really thinking about making music and money.
The difference is that entrepreneurs build systems so that issues and setbacks aren’t business-ending, focusing more on structure than on passions, like indie artists are more likely to do.
Entrepreneurs formalize the basics from the beginning:
- Business bank account
- Bookkeeping cadence
- Tax planning
- Contracts for everything
And in terms of business ending, a thought in their mind is definitely “What could shut us down?”
The answer is almost everything, but it is more common to face these risks:
- Liability claims
- Theft and damage
- Cancellation and interruptions
- Legal disputes
- Cyber incidents
Entrepreneurs have all of those potential risks in common with indie artists, and one of the ways businesses protect themselves is with business insurance, which is also relevant to indie artists and their managers. Their name is the business, and insurance can cover copyright issues, professional liability, property and equipment damage, etc.
If an indie artist can treat their image as a business and insure it in the same way entrepreneurs do, they’re at least a little bit more financially protected.
How Indie Musicians and Businesses Share Similar Protection Needs
The risks might be slightly different if we get into the ins and outs of it, but the protection needs are pretty similar:
- Liability risks
- Property and equipment risks
- Business interruption risks
- Legal and contract risks
- Intellectual property risks
- Cyber and data risks
- Reputation risks
And, again, the insurance won’t stop the risks, but it will provide that essential financial fallback that growing indie artists need when the cash flow isn’t exactly there.
It’s easy to see how much indie artists can learn from entrepreneurs—it’s not that far of a stretch to link the two. Indie musicians definitely aren’t immune to the risks of the music industry.
