Start a jingle company by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your jingle company. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Check out our How to Start a Business page.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
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.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Jingle Company Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your jingle company is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a jingle company. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
In particular, may require jingle companies to obtain a seller’s permit. A seller’s permit enables states to record and collect taxes from goods (and sometimes service) sales.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
In addition, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources
Jingle companies should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership (who will ultimately own the composition--usually the company producing the ad). Here is an example of one such services agreement.
Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your jingle company when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.
Jingle writers will need to register with a PRO, such as ASCAP or BMI, to ensure their music is copywritten, and to ensure payment will be properly disbursed.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market a jingle company
Many new jingle company owners make connections with creative directors and producers at advertising agencies. Providing samples of your work to various music production companies can also generate more business as well as help make valuable connections with potential future collaborators.
How to keep customers coming back
Attracting customers requires gaining a thorough understanding of their needs and demonstrating your ability to meet them. Asking the right questions, such as whether there is a particular song that is similar to what they are looking for or a particular artist’s style that they prefer, is a great form of active listening. Retaining customers requires being flexible enough to make whatever changes are necessary throughout the collaborative process to ensure their complete satisfaction.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Jingle Company In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
This business is ideal for musically creative people who enjoy using their talents to promote business ventures.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
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.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
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.