Money is one of the top reasons bands break up.
Whether you’re splitting gig payouts, paying for gear, or investing in recordings, money issues can build resentment fast if they’re not handled clearly and fairly. The good news? With some upfront conversations, shared expectations, and a little organization, your band can avoid the drama and stay focused on the music.
Here’s how to manage band finances the smart way.
1. Talk About It Early
Don’t wait until your first paid gig to talk money. The best time to have the conversation is before it’s even an issue. Sit down as a band and discuss:
- How you’ll split income
- What expenses are shared
- Who fronts money (and how/when they get paid back)
- What happens if someone leaves the band
It might feel awkward, but this upfront clarity will save you from major tension later.
2. Decide How Income Will Be Split
There’s no one-size-fits-all model, but here are common approaches:
- Equal split among all members (most common)
- Weighted split based on contribution (e.g., main songwriter gets more)
- Band fund: all income goes into a shared pot for expenses before personal payouts
Whatever you choose, agree on it together and document it.
3. Create a Band Fund
A shared band account (or even a labeled envelope if you’re old-school) helps:
- Cover group expenses (recording, promo, gear, merch)
- Save for future goals (touring, music videos)
- Avoid arguments over who owes what
Assign one member to track it—or use a shared spreadsheet or app like Splitwise, QuickBooks, or Google Sheets.
4. Keep Personal and Band Money Separate
Don’t let your personal account be the band’s bank. If someone fronts cash for an expense, log it clearly. Better yet, use a band fund for all shared costs so no one is left chasing repayments.
Transparency is key.
5. Be Clear About Who Owns What
If the band buys a PA, who owns it? If you split the cost of recording, does every member own the masters equally?
Answer these questions before you spend money. Otherwise, things get messy if someone leaves the group.
6. Track Every Dollar
Document all income and expenses, no matter how small. This isn’t just for trust—it’s also for taxes.
Tools you can use:
- Google Sheets (simple and free)
- Wave or QuickBooks (for more detailed reporting)
- Band Manager apps like BandHelper
Assign someone responsible—or rotate the job.
7. Decide How Merch Revenue Works
Merch can be a major income stream. Be clear on:
- Who pays to produce it
- Where that money comes from
- How profits are split
- Who handles sales and inventory
Pro tip: Treat it like a mini business within the band.
8. Plan for Growth (and Pay Discrepancies)
As your band grows, so might the complexity of your finances.
- If you hire a session player, are they paid a flat rate or a cut?
- Do you pay someone more for managing socials or booking?
- What happens when side projects bring in money?
Revisit your money plan regularly.
9. Put It in Writing
A simple band agreement doesn’t have to be fancy or legalese-heavy. But it should cover:
- Revenue splits
- Ownership of gear, songs, and recordings
- Who makes financial decisions
- Exit strategy if someone leaves
Even a Google Doc signed by everyone is better than a handshake.
10. Communicate and Review Regularly
Make “money talk” a regular agenda item in band check-ins.
- Review recent income/expenses
- Plan upcoming purchases
- Adjust splits if roles change
Keeping money discussions open makes everything else smoother.
Final Note: Bands are like businesses and relationships. The best ones thrive on communication, shared goals, and trust. Talking about money might not be as fun as writing a new riff—but it’s just as essential.
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