Is Owning A Studio Profitable?

You may own a home recording studio or thinking about building your own home recording studio. You may be wondering, “Is Owning A Studio Profitable?” Let’s take a look at today’s recording environment and the possibilities of making a profit doing what you love.

Is Owning A Studio Profitable?

Yes, owning a recording studio is profitable if you know what you are doing. First off, in order to make a profit you need to be able to mix well and know how to budget and run a business. If you have a home recording studio it will be much easier to keep your cost down. You will need to invest in some good gear like a nice computer, DAW software, microphones, acoustic treatment, audio interface, studio monitors, instruments, amplifiers, and a midi keyboard to get you started. Use what you have, invest in new gear if you must, and grow your studio a little at a time. Learn how to use the gear you already have.

The Key To A Successful Studio Is To Maximize Bookings

If you want your studio to grow and be profitable then you need to maximize bookings.

In other words, a studio with clients is making money. A recording studio without clients is just a studio that needs paid for.

Maximizing your workflow and client bookings will ensure your recording studio is making money.

How Do I Get More Clients?

If you know how to track, mix, and master tracks then you can grow your business.

• Word Of Mouth

Word of mouth is a powerful tool that can be used for you or against you.

This is why it is so important that you know what you are doing and know how to make your clients feel welcome and inspired.

• Online Collaboration Sites

You can also offer your services with online collaboration sites where people are looking for someone to mix and master their tracks.

Here are just a few places to look for online collaboration opportunities.

Landr

Upwork

Soundbetter

Splice

Vocalizr

Kompoz

Procollabs

SoundTrap

• Your Own Website

Having your own website is a great way to advertise your recording studio and gives people a place to go to learn all about you.

You can place your credits, reviews, testimonials from clients, and your “Reel” or Portfolio so people can listen to some of the mixing work you have done and learn more about you.

Your website can be used to let people know what services you and your studio provide like videography, photography, marketing, promotion, websites, vocal lessons, music lessons, etc.

You can also use your website as a place where people can book time with you, sell your merchandise like t-shirts, coffee mugs, and calendars. This is extra revenue for you.

Your website can provide useful and helpful information to the public. This builds interest and trust which leads to more clients.

You can also use your website to recommend products and services that you like and earn a commission when that product or services is purchased.

Relevant: If you want to learn more about how to build a website, get it listed in the search engines, and earn income with your website check out my Promote Page.

• Social Media

Social media is a great way to get the word out about your studio and is a great way to stay connected with the public.

Post your specials on social media, share educational information, share stories, and build interest.

Be active and present on a couple of social media platforms.

You Have To Invest Your Time And Money To Grow

You have to invest your time and money to grow.

You may already own a small home recording and have the basic equipment necessary to start earning and working with clients.

In fact, this is where I recommend you start.

Start small and learn the ropes. Learn how to make a good mix with just the basics and grow from there.

You could go out and spend $100,000.00 dollars on equipment and space very quick but if you do not know how to create a good mix then you have wasted your money and have too much overhead to just be learning how to mix.

Set yourself up a home recording studio if you are just getting started.

Learn the DAW software, learn how to mic instruments, learn how to mix and master.

You can get started for $2,000 – $5,000 dollars or maybe less and learn how to use the equipment.

Invest your time and a little money to get started and you can grow from there.

Home Recording Studios Are Growing

With the advancement of technology and the availability of affordable and very good equipment, it is now easier than ever to build a pro quality home recording studio.

A home recording studio has many advantages and affords engineers the luxury of working from the comfort of their own home studio.

Have you heard the term “Mix In The Box?”

This simply means that you do not need a large and very expensive mixing console to do your mixes on.

You can track, mix, and master all with your DAW (digital audio workstation) software.

Hence the term “Mix In The Box.”

This is a huge money saver and space saver.

Get yourself a decent computer with plenty of processing power, RAM, and SSD hard drives, DAW software of your choice, an audio interface, studio monitors, and some acoustic treatment and you’re in business.

You can take on the job of mixing and mastering other peoples tracks, do voice over work, create jingles, create beats, or anything else you like all from the comfort of your own home studio via the internet.

If you prefer to work with artist and musicians in person, you can do this as well.

You will need some good microphones, amps, and maybe some good instruments that artist and musicians can work with.

Often times they will bring their own instruments.

There has never been a better time, the equipment has never been as good and affordable, and the internet makes it possible to work with all kinds of artist and talent from anywhere in the world.

What Type Of Jobs Can A Home Recording Studio Do?

You may be wondering, what type of jobs can a home recording studio do?

Here is a list of some of the different jobs you can perform in your home recording studio.

• Tracking – Tracking is the art of recording instruments and vocals to create a mix.
• Mixing – Mixing is the art of blending all the tracks to form a complete mix.
• Mastering – Mastering is taking the final mix and tweeking it to make sure it is perfect and radio / TV ready.
• Beatmaker – A beatmaker is someone who creates original beats that can be used by others in their music productions.
• Voice Over – Voice overs is recording and mastering voice talent for narration and commercials.
• Jingles – Creating jingles for ad agencies and radio stations.
• Write Songs For Music Libraries – Write music for music libraries that can be used in other people’s productions for TV and Film.
• Demos – Many artist and bands are looking to create their own demo that they can use to get gigs.
• Music For Video Games – Create original music that can be used for video games.
• Education – You can offer educational classes to teach others how to track, mix, master, and produce music.

These are just some ideas you can use to start earning an income with your home recording studio.

How To Grow Your Recording Studio

The number one way to grow your recording studio is to do great work.

This may sound super simplified but really, if you do great work word will spread that your studio is the place to go.

There are some other things you can do to help put the odds in your favor.

• Do Great Work – It will be very important that you do your very best work at a fair price.

Feel free to make a good profit. This is the name of the game but you will also need to offer great value for the money you are charging.

Word will get out if you are good at what you do.

• Your Own Website – Create your own website.

Your website makes it possible for people to find you, learn more about your home recording studio, listen to your portfolio, book time with you, and learn more about you and your studio.

You can also use your website to create a blog, share products and services you like and recommend, show up in the search engines, and a way to earn extra income.

Don’t underestimate the power of having your own website. It is a great tool.

Relevant Article: If you want to learn more about how to build a website that shows up in the search engines and ways to earn an income with a website check out my Promote Page.

• Network – Get to know other people in the music business.

Meet with other studio owners, go to local shows and venues and get to know artist, musicians, engineers, and venue owners.

You can also visit online collaboration sites where artist and musicians are looking for someone to help them with their mixing, producing, and writing.

Let people know who you are, what you do, and be available to them.

Build relationships by being upfront and honest.

• Social Media – Social media is great way to share your stories and recording studio with the public.

You can run specials on your social media pages, meet and interact with people who are interested in you and your studio.

How Much Money Can A Recording Studio Make?

There are people with small home recording studios earning a modest income and are able to support themself by doing what they love to do.

As your skills develop your client base will grow and you can start earning more.

There are also people running home recording studios and they are making very good money. I guess you could say they are thriving.

If you have mixing and mastering talent, if you know how to treat your clients, and you consistently do great work you will grow your reputation as someone that people want to work with.

This won’t happen overnight but, there are plenty of great places to get started making money with your home recording studio.

The Business Of Running A Recording Studio

Running a recording studio has different expenses you need to be aware of.

Don’t let this list discourage you.

Start small and build your business.

What Cost Are Associated With Owning A Studio?

• Equipment

The equipment you need for your studio is probably obvious to you.

You need a computer, DAW software, audio interface or mixer, studio monitors, microphones, headphones, acoustic treatment, and the list goes on depending on what you plan on doing with your studio.

• Rent

If you are going to set up a studio you will need a place to put it.

You can spend a lot of money renting or purchasing a space for your recording studio.

This is why I recommend starting with a home studio. You are already paying rent or a mortgage so why put yourself in more debt?

Start with a home studio and save yourself some money.

As you start making money you can decide if you want to or need to expand to a larger space.

There are many jobs you can do from your home recording studio and earn good income.

• Advertising

Yes, you need to advertise.

The old saying, “If You Build It, They Will Come.” is a poor strategy.

You need to get the word out. You have skill and are open for business.

You can advertise online with ads, social media, your own website, online collaboration site fees, networking expenses, and so on.

You will be spending money to get the word out and you need to consider the expense of getting the word out.

• Utilities

This goes without saying. If you have a home studio your utilities are already part of your budget for your home.

If you rent a separate space, then you will have extra utility payments.

Electric, water, and trash will be an added expense.

• Your Skills

Your skills are an investment that you probably started out of enjoyment and are now looking to earn an income with your skill set.

Most of us do not get the luxury of earning an income while we learn to mix and master.

However, you will be investing your time always.

If you have already invested the time to learn your skill it may be time to start earning an income with the skills, you have learned.

• Payroll

It may be, you are working for yourself, or you may have other employees.

You will need to pay yourself and those working for you.

Everyone wants to get paid and earning an income will be a very important part to the longevity of your recording studio.

• Taxes

Taxes go along with payroll.

It doesn’t matter where you live, the government is going to want their cut of the action.

Make sure you are withholding taxes on your payroll.

No, it’s not fun but is necessary to keep you out of serious financial turmoil.

• Insurance

Insurance should be a part of your equation.

You have all this expensive gear, and you should protect your investment.

If you have a home studio you will need renters or homeowners’ insurance.

Talk with your agent and make sure your gear is covered.

Make sure your guest are covered if you have live clients coming in and out of your recording studio.

The name of the game here is to protect your investments.

These are just some costs associated with running a recording studio. There may be other expenses I have not mentioned here or there could be less depending on what you are doing.

What Others Are Saying

Direct Quote	Source
“A recording studio can potentially exceed $100,000 per year in profit after wages, expenses and taxes.”	https://www.entrepreneur.com/ businessideas/recordingstudio#:~:text=A%20recording%20studio%20can%20potentially, after%20wages%2C%20expenses%20and%20taxes.
“It’s rare for a studio to make a good income on music recording alone without a solid reputation and great gear. However, implementing additional revenue streams can make a studio very profitable. Consider producing, audio post-production for film or TV ads, or renting the room on down times to bands for rehearsal or other engineers you trust or can have supervised. If you can bill regular clients like producers who work with many artists, or special FX creators, etc, it can help a lot”	https://www.quora.com/How-profitable-is-the-recording-studio-business
“Owning a recording studio is a good investment depending on several factors, including where you’re located, how much business savvy you have, and how familiar you are with the music industry. Startup costs can be expensive, but if everything falls into place, long-term profits can be immense.”	https://homestudioexpert.com/is-a-recording-studio-a-good-investment/
“You won’t become a millionaire overnight but you can earn some extra cash if the music scene is huge in your town or city. Advancements in the home music studio space have negatively impacted the ordinary run of the mill big recording studios because they are easy to set up and almost anyone can start one up.”	https://www.homemusicproducer.com/is-a-recording-studio-a-good-investment/
“Plenty of singers and rappers need beats and backing tracks.”	https://www.musicindustryhowto.com/17-ways-to-make-money-with-a-recording-studio/
“The investment required to start a sound recording studio is gigantic. However, the profits that the business can potentially generate are even larger. … A recording studio can potentially exceed $100,000 per year in profit after wages, expenses and taxes.”	https://famuse.co/is-owning-a-recording-studio-profitable/
“If you run a home studio, chances are you’re producing music, either for yourself or for other artists. Production projects are most often the primary revenue stream for home studio owners.”	https://recordingtec.com/is-owning-a-home-studio-profitable/
“Most full time freelancers will have an unstable monthly income, and that makes it important to budget your income so that you have plenty of cash for those slow months.”	https://www.thesixfigurehomestudio.com/home-studio-income/
“For music recording, the clients are musicians. For animation voice-overs, the clients are television and film production houses. For translation dubs, the client is any commercial enterprise with videos online that wants to expand marketing efforts to include foreign languages. This is an excellent niche for a freelance worker with a home recording studio because jobs are readily available and posted on freelance systems online.”	https://howtostartanllc.com/business-ideas/recording-studio
“I’ve been a recording studio owner for 8 years. I have studios in New York and Austin TX. If you love the job, and you’re the type to do the footwork you need to do to get business in, this is a great business. It’s very important that you do a lean start-up. Don’t spend a lot of money until you build your clientele.”	https://www.reddit.com/r/audioengineering/comments/3m3nmw/opening_a_recording_studio_a_good_or_bad/

Final Thoughts

So, Is owning a studio profitable? I think at the end of the day yes, a studio can be profitable.

This important thing is to start small with something like a home recording studio setup and build your clientele.

As your clientele grows you can start expanding on your studio.

Every new venture takes a good amount of work to bring success.

If you like writing, recording, and producing music then you are in the right place.

Take a minute and have a look around my website. There are lots of great articles that you will find helpful and will get you moving in the right direction.

Feel free to leave your questions, stories, and helpful comments below.