MAKING MONEY MATTERS—and parents only disapprove of their children’s dreams for fear that they might end up a poor vagabond.

With music, as with anything else, if you don’t build a solid business structure around your passion, you won’t make money. You could’ve invented the computer, but without the right business plan, you’d still be renting a small room, instead of running a multibillion-dollar empire.

Here’s the truth: turning music into a business takes the same grit as starting a Ramly Burger stall.

Step One: Think Like A Business

Turn yourself into a legitimate business and you’ll start seeing music not just as a creative outlet, but a business operation. You’d be surprised at how effective you (and your bandmates) can become when you start treating it that way.

Let’s clear up a common misunderstanding: any management or agent cut is a commission—not a share. Shares are for investors, whether that’s real money or capital. For bandmates, that capital comes in the form of sweat equity—the hours spent rehearsing, recording or performing.

You put a value to it by assigning monetary value to your time. Let’s say every band member’s time is worth RM300 per hour—you may not have liquid cash yet, but now the entity (your company) owes each member money.

This debt is then paid in shares.

That’s why agents and managers (unless they’re part of the grind) should only earn commissions, not shares. You could even offer your crew sweat equity—shares in exchange for their effort, time and loyalty. Then, formalise your structure: file your paperwork with SSM.

As a collective company of shareholders, you should consider how to increase the value of your shares. These shareholders can cash in or pull out from ownership of the company (bandmates, shareholders, or if they fulfill two roles). I call them FFF (Friends, Family and Fools). It means that every company starts off as an idea that only friends, family and the one-in-a-million foolish dreamer who believes in your end goal without historical data would invest in. By the end of this stage, you should have already figured out how to increase the value of your shares and your FFF investors can get their money back (maybe even profits).

Step Two: Increase the Value of Your Shares

The music industry is actually made up of three distinct industries. Each plays a unique role in shaping the careers of artists and how music reaches audiences around the world.

First, there’s the publishing industry. It handles the rights to the songs—the melodies, lyrics and compositions created by songwriters and composers. Publishers ensure that when songs are played on the radio, streamed online, used in movies, covered by other artists or performed publicly, the songwriters get paid royalties. It is the invisible engine that protects and monetises the intellectual property behind every hit.

Next, is the record industry—this branch is all about the sound recordings (the actual tracks you listen to). Record labels invest in recording, producing, marketing and distributing music to turn an artist’s song into a polished product before reaching the ears of fans worldwide. This is also where the business side can get tricky with contracts, advances and royalties.

Lastly, the musical performance industry—often called the live music sector. This covers concerts, festivals, tours and live shows, where artists perform in front of audiences. It’s a huge revenue generator—not just for artists, but also for venues, promoters, booking agents and touring crews. Live music is also where many musicians earn the large proportion of their income, especially in the streaming era, where recorded music revenue has shifted.

Understanding how these three industries interact is key to navigating a successful path as an artist, songwriter or music entrepreneur.

The Money Trail

Each part of the music industry has its own royalty streams, and they’re paid out to different people depending on their role.

1. Publishing Royalties (Songwriters & Composers)

• Performance Royalties: Paid when a song is played on radio, TV, in public venues or streamed. In Malaysia, this is collected by the Music Authors’ Copyright Protection (MACP).

• Mechanical Royalties: Paid when a song is physically or digitally reproduced (CDs, downloads, streaming). In Malaysia, mechanical rights are handled by the Public Performance Malaysia (PPM) for sound recordings, but song reproduction rights also fall under MACP.

• Sync Fees: License for use in movies, TV shows, ads or video games. These are negotiated directly by publishers or rights holders in Malaysia.

2. Recording Royalties (Performing Artists & Labels)

• Artist Royalties: Paid to the performing artist based on record sales or streaming. Usually, local record labels in Malaysia manage this, such as those under the Recording Industry Association of Malaysia (RIM).

• Master Royalties: Paid to the owner of the recording (usually the label). Streaming platforms like Spotify and YouTube in Malaysia pay out to rights holders via distribution partners or labels.

• Neighbouring Rights: In Malaysia, these are collected by PPM, which represents recording companies when their recordings are played publicly (e.g. radio stations, cafés, malls).

3. Live Performance Revenue (Performers &Touring Team)

• Ticket Sales: The biggest chunk goes to the artist (after paying venue fees, promoters and expenses). In Malaysia, there are live promoters such as PR Worldwide and Star Planet.

• Merchandise Sales: 100% profit minus production costs, but venues in Malaysia may take a small cut.

• Performance Fees: Paid upfront by promoters or venues, especially for festivals or corporate gigs.

• Touring Crew: Musicians, sound engineers, lighting technicians and crew are typically paid fixed wages per show or tour.

Malaysian musicians and songwriters can tap into these royalties by applying at any of the Malaysian or international bodies. They also can join foreign performing rights organisations (PROs) like the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc (BMI) or Performing Right Society (PRS). You don’t have to be a US or UK citizen to register with them. Many Malaysian artists who aim to reach audiences overseas, especially in markets like North America, Europe or Australia, take this step to collect royalties from those regions more effectively. Here’s why you should do it:

1. Better global royalty collection

If your songs are streaming well or get radio playin the US, UK or Europe, joining a foreign PRO can sometimes ensure faster and more accurate royalty payments. International PROs like ASCAP and PRS have extensive systems and quicker pipelines for collecting royalties globally.

2. More opportunities for sync licensing (Film/TV/Games)

Organisations like ASCAP, BMI and PRS often have stronger networks in the sync licensing world, helping your music get placed in Hollywood films, Netflix series, video games or big ad campaigns.

3. Industry events and networking

Get access to their workshops, showcases and conferences, as these can be golden networking opportunities for collaboration with international producers, songwriters or even land you a publishing deal.

4. Build credibility internationally

Adds credibility when negotiating with labels, publishers or sync agents abroad.

5. Direct payments in foreign currencies

Some artists prefer to get paid directly in USD (from ASCAP/BMI) or GBP (from PRS).

Step Three: Increasing Your “Market Share”

Nominate yourself in the running for a Grammy! You might not make the top nominees this year, but once you’re in the running, you’re officially playing on the same field as some of your favorite artists. The Grammys are run by the Recording Academy. To qualify as a member:

1. You need at least two commercially released songs (on Spotify, Apple Music, etc.)

2. If you’re a producer, songwriter or engineer, you need 6+ credits.

It costs about USD100 a year to become a voting member, and this actually gets you in front of Grammy voters. Apply directly at: recordingacademy.com/membership. Then, submit your music during Grammy season (which usually opens for submissions around July or August every year).

Plus, your music doesn’t need to have millions of streams. It just needs to meet their basic rules about release dates and quality standards. Every year, unknown names pop up on the ballots because they played this right.

After that, you can campaign for votes. Here’s the strategy:

1. Contact Academy members and ask them to consider your song.

2. Host listening parties (online works too) and invite Academy voters.

3. Network at Academy events (either in Los Angeles, New York or the virtual rooms).

As soon as your submission is accepted, you’re officially in the running. That makes you a Grammy-considered artist. And that title alone is powerful for marketing.

Step Four: Management and Agents

In my experience, getting through the door of a record label and securing a deal is often dependent on whether or not you have a manager or agent in the room. A label would rather talk to a business-minded manager or agent than with an artist because label execs have been burned by passionate musicians who often lack the business acumen to navigate the industry professionally.

The music industry is tough. It’s full of emotional highs and lows, and labels have learned over time that working with someone who understands the business side of things makes their lives easier. They don’t want to chase down an artist for payments or to discuss contract terms.

If you’re able to handle both sides—the creative and the business—you’re already ahead. When word gets out that you’re not just an artist but a business-minded musician, people will take you seriously. You won’t need someone else to speak for you.

Here’s the thing: knowing when to switch between business and creativity is a soft skill that could be worth millions. It makes you a rarity in a world where most artists fail to understand the power of negotiation, contracts and business development. The art and the hustle don’t have to be at odds with each other.

If you have the resources, bringing someone in with a proven track record can give you the extra leverage you need to secure deals and continue scaling—but you are still in control. The moment you become the one steering your ship, you’re no longer just another musician trying to be heard above the noise.