Profitability: Are you in the Red or Black?

[Jack Russell]

This thread goes out to all of you who actually have a usable recording studio at this moment (home or commercial), up and running, or if you are in the "under construction" phase.

Does your studio, after you honestly account for expences for gear, rent of studio space, electricity, etc. make a profit?

Good luck!

 

[mshilarious]

My studio is blue

 

[Jack Russell]

Mine is green! It runs on compost. Ha!

 

[mikeh]

I don't think I will ever be in the black. I have pretty much accepted that my studio is more of a hobby than a legitimate profitable business. I generate enough to pay for a new piece of gear here and there - but not enough to justify all the time and money I've committed.

When I first "built" my studio, the plan was to gradually build clients while supporting the studio through my day job. The long term goal was to retire early and use the studio income to supplement my retirement.

Over the years I've lost clients as they purchased recording gear and Lord knows the recording industry does not offer the opportunities it did at one time. Since my studio is in my home, I'm very careful about who I allow in - so I simply can't go after whatever business may be available.

So.....as a business my studio has not been successful - as money well spent for my own enjoyment, well.....I get more use out of it then most people get out of golf clubs, hunting gear, fishing gear, boats, RVs, etc. - so I guess it all works out

 

[mshilarious]

I have come to the conclusion that everyone wants to record themselves, and everyone has their own studio. For example, I just finished my studio buildout, among the dozen or so tradesmen I talked to, two of them have studios of some type in their house. I know of at least four home studios that market themselves in my area, and I don't get around much in the local scene, so I'm sure there are several more. This is in a county of 35,000 people!

So the opportunities lie in selling products and services to home studio owners: selling or renting gear, renting space, doing mixing or mastering, or teaching home recording lessons. I think that last aspect is entirely undermarketed.

Some of those options require higher-end gear or facilities, and it's tough to say if the return on investment would be worthwhile. But if you've already got it, then I say flaunt it

 

[mikeh]

mshilarious,

You mention some valid points. I probably have made almost as much renting out various pieces then I have billing studio hours

We have a couple of commercial studios in my area that charge a few thousand dollars for like a 14 week course - which 1) most people don't want to pay and 2) from what I can tell people are paying to be the assistant to the assistant engineer (I question how much legit skill and hands on they really get). I can't even imagine how much Full Sail and places like that charge.

We have a local guy that charges $40-$100 per hour and he'll come to your studio and teach you Pro-Tools. Sonar, etc. etc. He has tons of software applictions to teach frequencies, etc. He can build custom computer systems and load them with every sofware application you can ever wish for -and he knows how to use them.

He has a home studio, he engineers at a local commercial studio and he does freelance work for various radios stations, etc - I've heard some of his mixes and he kicks ass. But he makes at least half of his income providing private recording instruction

I've paid him a couple hundred bucks here and there to teach me certain things (and he's build my last two studio computers)

He has more work then he can even handle - so your point about home teaching is very valid!!!

 

[lbanks]

My studio sucks and so do I.

 

[XLR]

Black.

I use my recording studio as an integrated part of my guitar teaching and it's invaluable. Most of my students are very interested in recording. Half of them have their own home studios. I think it's a social/artistic dynamic growing out of the cocooning phenomenon. With many students, we talk as much about mike placement, editing and processing as we do about playing.

 

[Jack Russell]

There seems to be a trend toward home studios. There was an article about that recently in this neck of the woods (D.C.). For awhile people were putting in rec rooms in their basements or bars, or home entertainment rooms.

But now lots of people are getting that first strat, taking lessons, and building the studio to go with it. Guys in their 40s...

I mean people who suck and who have never played in public and never will. It is like a social thing now. Come over to my place this weekend and we'll lay down tracks on my new 'album'.

The gig is in the basement now, not in the clubs, it seems.

 

[FALKEN]

yeah,

in a way it sort of sucks for those of us who started out before the digital revolution............cuz now everyone and their mom has a home studio. when I made the choice to do it, it required some serious soul searching....it was a commitment. now its par for the course for anyone who plays an instrument or sings. and soon there wont be any pro studios left anymore, god forbid you ever wanted to record in one. and there wont be any pro studio albums left to compare your home recordings to. and there will be too much music, and all of it will still suck. it will just be less 'produced' suckyness so at least it will be more appropriate than guys in spandex

 

[TerraMortim]

I'm in the pink nearly every day, does that count? *snicker*

 

[Llarion]

In black ink... the equipment was financed by download revenues when MP3.com was paying 5 cents a pop... Got hugely lucky in catching the leading edge of that wave, nearly got to five figures! My first CD covered any recoupables within 4 months. It's all gravy now..

 

[VomitHatSteve]

yeah,

in a way it sort of sucks for those of us who started out before the digital revolution............cuz now everyone and their mom has a home studio. when I made the choice to do it, it required some serious soul searching....it was a commitment. now its par for the course for anyone who plays an instrument or sings. and soon there wont be any pro studios left anymore, god forbid you ever wanted to record in one. and there wont be any pro studio albums left to compare your home recordings to. and there will be too much music, and all of it will still suck. it will just be less 'produced' suckyness so at least it will be more appropriate than guys in spandex

As someone who started after the digital revolution, I like the ease of making home studios. I'd be sad to see all the pro studios disappear (if for nothing else than the people there represent a better composite of what we know about recording than any home studio will), but I think the prevalence of home studios is a good thing.

The ability to produce art shouldn't be limited to those who can afford to pay professionals to help them. Sure this means there's a lot more crap floating out there, but amidst that there will be some authentically good recordings that would never have been made in a professional studio.

You are right about the spandex thing though!

Basically my "studio" consists of my computer and two microphones, but I'm still in the red.

 

[gullyjewelz]

im just tryin to keep my dollar from turning into a dime and a nickel!

 

[bigwillz24]

im just tryin to keep my dollar from turning into a dime and a nickel!

Good Luck!

 

[drfringe]

so red it's frightening

 

[TerraMortim]

I'm as red as a ten year old's asshole after a visit with the king of pop.

 

[Mindset]

Fortunatly I'm in black.

 

[toobalicious]

my small studio is anything but pro, and though i have made a paltry sum recording a few local acts (more on-location live stuff than anything), i cant imagine i have even broken even--- particularly if i include my instruments and amps. luckily the semi-pro cover band i play with makes enough to at least keep me in pork 'n beans and cheap beer with the lights on. the wife definitely wears the financial pants around here, and ATM, i am quite cool with that........ retirement? what does that mean?

the plus side of that is i havent set an alarm clock in months .

a

 

[toobalicious]

double post