In every industry, there is need to continue growing for a better future with financial freedom. Investing is typically forgoing consumption now in the expectation of realizing more returns in the future. It is basically sacrificing current savings hoping for more returns in the future. The following article shows how artists can make investments within their specific knowledge.
Life can be quiet entertaining and it does not matter you are an artist or celeb, one needs to start planning for his/her future. The first investment strategy l recommend to artists is deploying a passive investment strategy. This is regarded as a safe investment option available and is subject to lesser risks. It is also known as a strategic investment option and due to its safer qualities, the only drawback is its returns are low as compared to other investment options. Despite its low return over a given time, this option guarantees future for artists as they may be planning for their retirement. As we know that artists will eventually retire at some time and when the time comes, they better be prepared. The following describe strategic investment options l have for artists to look at.
1. Savings accounts.
Amounts that are not consumed are referred to as savings. Traditional budgeting emphasizes on the importance of saving at least 20% of total income. Savings are crucial as they are mostly for investment purposes, they are not the only source of capital but trust me, its easier that way and one needs to know or learn how to save. Saving can be hard that is why banks came in the picture to assist and support one when saving. Bank savings accounts accrue interests of a certain amount depending on agreed terms and over time, the amounts in the bank grow larger and larger. The terms can be more favorable when interest accrues on a compound term than on a simple basis, you better contact your financial advisory for more knowledge and insight into this matter.
2. Investing in real estate or land
Land in accounting terms have a zero depreciation because it is an infinite asset and is less likely to reduce in value. The recommendation l give to artists as a form of investment is buying land and develop it either by infrastructural purposes or agricultural purposes. Deciding on the option will greatly rely on individual terms, some prefer housing and would collect rentals others prefer agricultural and will produce a variety of products to sell, either way, land development will go a long way in preparing one’s future.
3. Invest in commodities
Investing in commodities like gold, platinum and oil is a lucrative investment option which can also be incorporated by artists. These commodities have proved to appreciate in value with time hence buying one of these commodities and holding it for a specific time period will guarantee you returns. Zimbabwean artists can benefit especially from investments in gold as the government have introduced more investments in the shiny metal such as gold coins, gold tokens and recently, the local currency backed by gold itself, ZiG. However, there is need for some trading qualities when dealing with commodities, they do appreciate however, there are series or periods when the commodity de-value and for some this can be a disaster which is not the case, holding on to the commodity can be beneficial as it will eventually appreciate again. Some do market timing selling the commodity upon the expectation that it will decline and prepare to buy upon expectation of a reduction in value.
However…
One sided investment is not enough and there is need to diversify one’s portfolio to spread risk and possibly realize a better return. Artists can also jointly invest in active or tactical investment option which is of high risk, however there are benefits with it- high risk means high returns. These investments are characterized by rapidly flexibility and one can enter fast and leave fast too depending on the business performance as a result, there is need for a certain liquid amount to finance certain projects whenever the opportunity arises however there is need to prepare rapid exit before one runs into loss. Lets take a look at the following tactical investment options for artists.
1. Brand Ambassadorship
Brand ambassador is someone engaged by an organization to represent its brand in a positive manner helping increase brand awareness. This is considered an investment through the process of becoming the ambassador as one needs to invest more of his/her time and money working in a specific field that could be music, entertainment and even football. Clearly brand ambassadors are persons that have established themselves and once you are selected to represent a certain brand, you can “milk your fame”.
There are some brands which require a short hit song or performance given within a short time period could be towards the launch of a certain service or products, artists need to be ready for these invites to perform for a certain brand and show up their creative sides. One could make a lot of money by being a brand ambassador, some are paid on an hourly basis others enter into a contract such as the likes of Christiano Ronaldo who acquired a deal worth $1 Billion with Nike and Beyonce’s $50 Million contract with Adidas.
2. Selling Merchandise
Musicians can generate income by selling their own branded merchandise through various channels. They can sell merchandise at concerts and live performances, offering items like t-shirts, hoodies, posters, and CDs. Online stores and e-commerce platforms provide a global reach, allowing direct sales to fans. Collaborations with visual artists result in unique designs, while limited editions and merchandise bundles create exclusivity and encourage larger purchases. Fan subscriptions offer exclusive content and early releases, establishing a recurring revenue stream. Leveraging online streaming platforms, such as Bandcamp, allows musicians to sell digital music alongside physical merchandise. Partnering with brands and securing sponsorships can provide additional exposure and financial support, while social media marketing and influencer collaborations help reach a broader audience.
Successfully monetizing branded merchandise as a musician requires building a strong and engaged fan base. Effective promotion of merchandise through social media, email newsletters, and live shows is crucial. Providing high-quality products that align with the artist’s brand and aesthetic is essential for driving sales. Creating a sense of exclusivity through limited editions and collaborations can generate demand and fan engagement. Offering merchandise bundles and fan subscriptions adds value and encourages fans to make larger purchases. It’s important to maintain a consistent presence on online platforms, interact with fans, and regularly update merchandise offerings to keep the momentum going. By implementing these strategies, musicians can generate revenue while strengthening their connection with fans and expanding their reach in the music industry.
3. Instrument Training
When the demand and opportunity arises, artists can take on classes of individuals who need to be trained how to play instruments of their choice. There are highly talented artists out there that can play any instrument and can make money from sharing their gifts and skills. It is believed many people have the desire to learn guitar as it is mostly included in many genres, artists that can pay a certain instrument can arrange lessons and obtain a good return. Learning a new skill is backed by a desire and clients will definitely show up at all times. Online lessons is also important especially in this modern time where people are getting busy and busy and may not have much free time. Hence teaching instruments such as piano, guitar and saxophone and many more will generate returns for artists that can play any instrument, for singers only, they may train vocals and teach how to sing.
3. Selling Musical Books
Artists that can write books make money by selling musical books which contains variety of topics, my suggestions include musical full biographies, how they rise up and faced different obstacles to their musical careers. They can make divisions on musical booklets for children probably comprising manuals of playing instruments, adults booklets describing the musical journey and booklets for upcoming artists giving advices on music life and what to expect from it. Writing may not provide one with immediate return however once you establish yourself you can make money.
Having a talent is a blessing, artists have a different talent and through their popularity, they can “milk their fame”. Artists need to be aware of different investment options that improves their value and better prepare themselves for the future. In this article, we looked at how artists can invest in their fame and make more money by being business minded.
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About The Author
Aspiring financial coach Frank Mhlanga is a passionate writer of essays in the art and entertainment, as well as the finance and investing sectors. He also wants to pursue an agricultural company. Currently, he holds a bachelor’s degree in finance and Banking.