Income Considerations

There are literally millions of music producers in the music industry. Most never achieve the financial success of a Sean "P. Diddy" Combs or of the Neptunes. According to Payscale, most music producers earn anywhere from $27,000 to $50,000 annually.

Significance of Location

What location you work from has a significant effect on your earnings as a music producer. Music producers in Georgia are generally the highest paid of all music producers, averaging around $70,000 annually. Music producers in Illinois earn an average annual salary of $50,000.

Self-Employed vs. Employee

Music producers who are employees earn around $45,000 annually as opposed to the $40,000 earned annually for self-employed music producers. However, self-employed music producers experience greater flexibility in providing their services to artists. Self-employed music producers may be paid a set amount per track, or they may receive royalties in addition to upfront fees. Music producers who are employees receive a set salary that may or may not include benefits.

Experience

The more experience you have as a music producer, the more money you'll earn. You may start out making little or no money at all. As you build a name and good reputation for yourself, you can command more money as a music producer. Music producers who are just starting out usually earn around $27,000 a year. Music producers with 20 years of experience or more make $50,000 or more annually.

Potential

There is no question that music producers have the potential to make millions of dollars. Your reputation for producing "hits" and your longevity in the music industry will go a long way toward helping you secure high earnings as a music producer.