Lesson 16 / 24 · 40 min · preparation time

Build the budget and release calendar

Cash coming in and profit are different. Revenue is income; profit is what remains after costs. Payments can arrive later than the bills, so note both amounts and timing. Use a budget you can afford even if the release earns little at first.

Deeper explanation · Recoupment

If an offer includes recoupment, ask which share of income repays which costs. For illustration only: a £1,000 recoverable balance reduced by £250 of eligible artist royalties leaves £750 unrecouped. The calculation depends on the actual contract; personal repayment obligations are a separate question.

Work backwards from release day

1 · Approve
Rights, credits, audio and artwork
2 · Deliver
Distributor checks and platform access
3 · Prepare
Pitch deadlines and announcements
4 · Release & review
Check links, connect and follow up

No fixed timetable: use your provider’s current guidance and leave time for replies. Pitching does not guarantee placement.

Terms in this lesson

Distributor

A service that delivers recordings to music services and accounts for income under its terms.

Revenue / profit

Revenue is income. Profit is income minus costs. Cash timing is a separate planning question.

Recoupment

Recovery of agreed costs from specified income under a contract. Check what can be recouped and from which earnings.

Work through it

1
List costs for audio, artwork, photography, distribution, musicians, rehearsals and promotion. Separate one-off expenses from subscriptions. Add a reserve appropriate to your budget.
2
Record secured funds separately from hoped-for income. Write each due date, the person paying and any amount still unconfirmed. Do not treat a possible grant or playlist placement as money available.
3
Work backwards from release day: approvals, distributor delivery, platform access, any pitch deadlines, announcements and follow-up. Confirm live guidance rather than assuming one timetable works everywhere.
4
Set a maximum spend and a final readiness check before you commit. If using Spotify pitching, leave generous delivery time and follow its current instructions. Pitching does not guarantee placement.

You are ready to move on when…

My costs, funding and payment dates are visible.My schedule includes delivery and a final readiness check.

You can leave an application or outside reply pending. Record the next step before moving on.

Your working notes

Cost / amount / due date / payer / confirmed funds / spending ceiling / delivery date / release date / review date

Resources for this task

GOV.UK: keep business records Official UK guidance · free
Spotify: prepare a new release Platform guide · some tools have eligibility limits
Spotify: pitch unreleased music Official guide · artist-team access needed to pitch

Further reading · Passman chapter references

Optional reading · Passman, 11th edition. Chapter 8: advances and recoupment; Chapter 23: live-work economics.

Optional reading from the 11th edition (2023). No purchase needed. US legal context: use current UK sources for local procedures.

Keep practising. Update costs and dates when a commitment changes.

Lesson complete — I have done the work or recorded my next step.

Next: Prepare a small set of useful messages.

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