Examples of Why You Should Know Music Business
If you're serious about making the most of your music, understanding the business side is important.

Music is your passion without a doubt. Music is the love of your life. Music is a form of therapy for you. Music is many things to many people. Above all, however, music is a business. If you’re a regular reader of this blog, you know how much I emphasize this fact. Too many young indie artists don’t understand this, and they continue to suffer the consequences. Consider this.

A young talented artist breaks into the limelight and is the subject of offers from several labels and potential partners. Suddenly, the artist who might’ve thought music was all about the music is faced with decisions to make. These decisions, as basic as they might be to an agent or other music professional, are completely foreign to this artist. Unless he has the right people around him, what do you think happens then?

Now, I can’t teach you the music business in one article. So why am I writing this? I’ve prepared a list of artist examples who’ve understood the business side of music and gone on to achieve great things. Before that, here are some reasons why you should take the business side of music seriously.

Why You Should Know Music Business

Contracts and negotiation

If you understand how music works, navigating contracts and negotiation will be a walk in the park for you. All too often, artists sign deals without understanding the implications, then they later start to regret them. So many needless court battles have been fought just because young artists had no idea what they were signing. This shouldn’t be happening.

If you understand the business side of music, it gives you a decent idea of what the terminologies are and their implications. I’m not saying you should get a law degree, but understand it to the level that you’re not lost when a negotiation is taking place.

Record labels

If you’re tired of running after different labels, major or indie, you can build one yourself. That said, building a record label is easier said than done. It’s impossible if you do not know the music business. Many of our favorite artists have grown big enough to leave their parent labels and start their own labels. With no knowledge of the business side, you won’t know what to do.

Starting a label of your own is a massive project that requires an understanding of the industry so deep that you can guide people coming behind you to success. To run a record label, you’ll need plenty of music business knowledge.

Scaling your career

When you understand that music is a business, it changes how you view your career. You start to think of ways to build yourself that you never used to before. The way you approach shows, relate with fellow artists, and even design song covers will change. If it used to be about getting better sound, now you understand you also need to bond with fans.

Then many things you see big artists do will start to make sense. For example, why are hooks and choruses easy to learn and repetitive? Artists just want something fans can sing along to. The business side changes your perspective.

Examples

Now let’s talk about some examples you may want to emulate. Here are five artists who’ve built a massive career thanks to their understanding of the business side of music.

Jay Z

Perhaps the biggest businessman in the music industry, Shawn Carter (Jay Z) had to make this list. He’s third on the list of most hip-hop records sold, only behind Eminem and Tupac. He has never been the best on stage or had the crispest lyrics, but he’s one of the biggest names in hip-hop history. Why? He understands the business side of music.

He didn’t just remain an artist, he rose to become the label president, and then he quit and formed his own label called Roc-A-Fella Records. He has also ventured into other music-related businesses such as the purchase of the streaming platform Tidal. If you need a reason to learn the business side, look at Jay Z.

50 Cent

50 Cent was, at some point, the hottest name in hip-hop. Today, he has grown into one of the biggest names the music industry has ever seen. In an industry full of competition and ruthless deals, 50 Cent rose to the very top. At the very height of his fame, he decided to diversify. Now he has fingers in almost every entertainment sector and has dabbled into completely different industries such as real estate.

If you want to know the merits of being a music entrepreneur, 50 Cent is the right person.

Dr. Dre

When we speak of hip-hop royalty, there’s no table Dr. Dre can’t sit at. He’s largely responsible for the musical success of hip-hop legends including Eminem and 50 Cent. That alone qualifies him to be on this list. Like Jay Z, he isn’t known for his stage performances or mind-blowing lyricism. But there’s no hip-hop discussion without his name.

He has also gone on to launch several business projects most notably Beats Electronics, which Apple would later buy for $3.4 billion. Yes, that’s billion with a “B”.

Beyonce

In terms of musical ability, not many can lace Beyonce’s boots. In terms of legacy, the list shrinks even more. Nobody has won more Grammys than Beyonce in history, so she must be doing something right. Together with her husband, Jay Z, Beyonce has pushed herself to giddy heights. She has earned her title, the queen of music.

Simon Cowell

He’s not even an artist, but Simon Cowell understands the business side of music more than most people. His name has become nearly synonymous with talent shows and he has lived up to the billing. He’s a music executive with a good eye for talent. He was able to bring together different youngsters to form bands such as One Direction and Fifth Harmony.

Final Thoughts

Understanding the business side of music is imperative for you especially. As an indie artist, you’ve decided to ignore the labels and focus on building your career independently. Technically, you’re starting your label. So you don’t have a choice. Music is a business. You must treat it as such to enjoy a fulfilling career.