How to finance your music licensing efforts – guest post from Aaron Davison of


How To Finance Your Music Licensing Business 

Guest post #2 from music licensing specialist Aaron Davison of

As they say, it takes money to make money.  The music licensing business is certainly no exception to this rule.  Due to the nature of the way the business works, there is a considerable lag time between the time you license one of your tracks and the time you get paid.  And of course before you can even begin to attempt to license your tracks you’ll need to have quality recordings, which takes money.

But don’t let this fact discourage you.  If you’re resourceful, there are ways to get your tracks recorded for little or no upfront money of your own.  

A great way to record tracks on the cheap is by colloborating with other musicians and producers, in exchange for a percentage of any of your future earnings.  It of course helps if you have a track record to bring to the table when negotiating with potential colloborators.  

These are tough times for a lot of people and many people are open to creative ways of getting things done. I’ve been doing these types of deals long before the recession.  So don’t be afraid to think outside the box and come up with arrangements that are unorthodox.

A typical deal for me has been offering producers 25% of any earnings I make in exchange for free studio time.  But there are no rules!  Another possibility is paying someone a reduced rate on the front end in exchange for a smaller back end percentage.  The bottom line is not to let a lack of funds deter you from pursuing your passion.  Think outside the box and get things done!

Peer To Peer Financing!

Another way to get money for your recordings, gear, etc is something I’m particularly excited about.  It’s something  called “Peer To Peer” Lending.  

The way Peer To Peer Lending works is really simple.  It’s similiar in getting a loan from a traditional bank in that you borrow money now and make payments in the future with added interest to repay your loan.  But with Peer To Peer financing, instead of paying your interest to a traditional bank, your loan payments go to individual investors!  People like you and I who have agreed to finance projects they believe in.

Peer to Peer lending is an exciting concept to me and it’s a very timely idea, in light of what’s unfolding with our economic system.  I’m trying really hard to not get political, but I’ll just say this, the idea of borrowing money from individuals, as opposed to borrowing money from traditional banks, really excites me.  It shifts some of the power away from large corporations and puts it back in the hands of “ordinary” citizens.

If you need money to get your music licensing business going, Peer to Peer lending might be the way to go!

A great website that faciliates peer to peer loans is called, “Prosper”.  

Borrow With Prosper!

Happy Songwriting!
Aaron Davison

How To License Your

We’re very proud to be able to feature this regular guest post by Berklee College of Music Alumnus and songwriter Aaron Davison from How To License Your Aaron is extremely knowledgeable in the field of music licensing – an ever-increasingly important way to make money for independent musicians. Aaron has licensed his own music in a variety of tv shows, new media outlets, websites and more. Aaron has also helped dozens of other artists get their music placed in a variety of films and tv networks including, MTV, VHI, Oxygen Network, Fuse TV and the list goes on.