How to Start a Jingle Company

Part 1 - How to start a Jingle Company business - Background

Jingles are short songs that usually contain a memorable line that serves as a slogan to help popularize a brand, product, or company. The power of music is used to create familiarity that leads to brand loyalty among consumers.

Our guide is in 3 parts:

• Part 1 - How to start a Jingle Company business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a jingle company?

Frequent communication is essential, so providing clients with a number of channels to accommodate their personal preferences, such as telephone, text, and email is important. You’ll also need a powerful computer with enough storage space for large files and dependable internet access. Many invest in relevant software programs as well. As an alternative to renting a sound studio with equipment, you can purchase sound mixing equipment, musical instruments and microphones and create a music studio in your home. Depending on the price of real estate where you live, the savings can be substantial.

What are the ongoing expenses for a jingle company?

Ongoing expenses include utilities, equipment maintenance, and salaries for freelance musicians, sound engineers, and singers. (Many larger companies require the use of union workers.) Since calculating fees and royalties can be complex, having a good tax accountant on retainer is a wise investment as well.

Who is the target market?

Preferred clients are individuals or companies who wish to purchase original music, usually for promotional purposes.

How does a jingle company make money?

Depending on the terms of the contract, jingle company owners can make money by earning royalties on original music that is used on television shows or during other theatrical performances. The amount of the royalties depends on factors such as the length of the piece and how it is used. Some writers share their royalties with publishing companies, while others publish their own work. Works can also be sold for a one-time fee. This method is most typical with lesser known jingle writers, as the hiring agencies usually have more leverage.

How much can you charge customers?

Professional jingle writers have been known to earn over $20,000 for writing and arranging a single project. How much you can charge depends largely on the size of your client’s budget, your reputation as a jingle writer, how the music will be used, and how often. Earned royalties can be substantial over time. However, most new jingle company owners charge very little and even provide free demos of their work until they have a substantial list of credits. $500 to $1500 is considered a reasonable fee for an original song for a commercial. The fee for writing a simple jingle for a small company website can be as little as $250.

How much profit can a jingle company make?

Musical composers make an average of $44,000 per year, while writers make an average of $60,000. Jingle writers usually combine both talents and work closely with advertising agencies. Digital advertising for smartphones has become a lucrative new market. In 2011, one digital advertising company sold for $62.5 million.

How can you make your business more profitable?

Registering your work with the copyright office can make your business more profitable by giving you legal recourse in the event that there is any unauthorized use of your work. In addition to television commercials, movies, and radio ads, there are other types of businesses that require original music—the composition of which is a skill most jingle writers have. One example is the video game industry. Most video games have musical accompaniment or a soundtrack. Smartphone companies also offer hundreds of musical ringtones, many of which have become wildly popular. Even small businesses that can’t afford to purchase television or radio ads can have the benefit of an original jingle on their websites to help build their unique brand. In this business, increasing the success of others increases your own as well.

Day-to-Day and Growth

What happens during a typical day at a jingle company?

The daily activities of a jingle company owner are varied and can include:

• Musical composition and lyric writing

• Networking with industry professionals

• Brainstorming and project collaboration

• Interviewing musicians, composers, and sound studio personnel

• Contract negotiations

• Obtaining a copyright for original musical works

What are some skills and experiences that will help you build a successful jingle company?

Some of the skills it is most important to have in this business include:

• The ability to read music and play an instrument

• Extensive knowledge of music history for reference

• Sound studio experience to mix and enhance music

• Effective listening and communication skills for understanding the specific needs of clients

• Negotiation skills for creating contracts

• Knowledge of copyrighting and licensing requirements

What is the growth potential for a jingle company?

The growth potential for a jingle company varies according to the size of the team. Some have composers and musicians on retainer to be better able to meet multiple deadlines for multiple clients simultaneously.

What are some insider tips for jump starting a jingle company?

Industry experts suggest providing advertising agencies with a wide variety of musical styles to choose from to increase your chances of landing a contract. That means collaborating with a number of freelancers with different styles and talents. Conducting research on the history and the needs of potential clients is crucial, especially for preparing relevant short demos for their consideration. The importance of persistence cannot be overstated since this is a highly competitive business and it takes time to build a following.

How and when to build a team

This business can typically be started with one member. If you find it manageable to handle the creative process (including the writing and performing and recording of all instrumental parts), the marketing, and the client interaction, then a team may not be necessary just yet.

It may, however, be important to build a team even before beginning the business. There are a lot of moving parts in such a business and having dedicated members to help with the process can ensure your focus is on the parts that matter most. Initial team members might include professional organizations such as ASCAP, (American Society of Composers, Authors, and Publishers) and BMI. Professional unions like SAG (Screen Actors Guild), AFTRA (American Federation of Television and Radio Artists, and AFM, (American Federation of Musicians) can be great sources for locating talent for projects. They also help ensure fair compensation.

Part 2 - Is a Jingle Company business the right fit for you?

Part 3 - Action plan to launch your Jingle Company business in 90 days