Strategies for a career as a composer & producer

Most of the people I talk to every day because of my work as a consultant dream of being a successful self-employed musician. The longing is big to escape the monotonous workday and to finally be able to concentrate on what the heart beats for. Unfortunately, very few people manage to build up a stable and, above all, reasonable salary for which it is worth taking the risk of self-employment and the associated stress. Before we can think about possible income strategies, we must first define our goal as precisely as possible. After all, how can you plan a trip if you‘re not even clear about where you want to go?

How much money should you earn as a self-employed person?

What many composers and music producers do not take into account in their calculations is that different rules apply to the self-employed than to an employee.

So what do people in Germany generally understand by the two terms „stable“ and „reasonable“ when it comes to income? Stable income is usually understood as a salary that is roughly the same month after month, just like in a normal employee relationship. But how much money does the average full-time employee earn each month in Germany? According to recently published statistics, the average monthly gross salary per employee in Germany in 2021 was 3,203 euros. After deducting monthly contributions for taxes and social security contributions, the average monthly net earnings per employee in Germany was 2,170 euros [1].

Plan for the fact that you already have to pay several hundred euros every month for pension, health and social care insurance in Germany. If you don‘t want to end up in old-age poverty later on, you shouldn‘t underestimate the importance of old-age provision and protect yourself appropriately. In addition, you have to pay monthly premiums for occupational disability and legal expenses insurance. The costs for a car amount to several hundred euros per month. You should also be able to pay for a tax advisor so that everything runs smoothly and you don‘t have to fear any nasty surprises from the tax office in the long term. Building up an iron reserve provides a feeling of security and the possibility to temporarily bridge emergencies and financial bottlenecks. As a reserve, you should put aside at least 1,000 euros every month. You will also have to make investments that will ensure that your business grows. If you are not in an upward spiral, you will be in a downward spiral. This includes training, marketing, branding efforts, software, hardware, office, and eventually your first employees. Once you can make a good living from your self-employment, you should be able to help your family