Local, independent record stores are in decline due to changes in the music business industry. Some retailers still allow you to sell your music on consignment. Essentially, the retailer allows you to place CDs on their shelves, but they do not pay upfront for them. Later, if someone buys a CD, both you and the retailer share the profit. The percentage you receive depends on the deal you negotiate.
The old-school approach to music sales is the merchandise table. Before every gig, find a well-trafficked area to set up a table for your T-shirts, stickers, mailing list and CDs. During the gig, make sure to let everyone know where it is. After the gig, stand by the table and greet people. Many independent bands make the largest part of their income with this approach. Some bands have started to put their music on small, inexpensive flash drives instead of more costly CDs. You can buy flash drives in bulk from online computer hardware retailers, some of whom offer labeling services that can put your band's logo and website name on each flash drive.
The Internet offers many opportunities for music sales, but success is far from guaranteed. Most bands have found it more profitable to give away their music for free and shift their focus to selling limited-edition albums or other band merchandise. If you do not want to give away your music, you still have some options. There are music distribution sites that help you set up a "store-front" page on their website. You can personalize your page with artwork, song clips, biographies and show dates. Some music distributions sites allow you to set the price for your songs. Others have set fees. Most distribution sites take a percentage of your sales as their fee. Some websites, such as www.CdBaby.com, add a mail-order service to their music distribution.
One profitable option is to license your music to films, television shows and commercials. The competition is tough. If possible, approach independent or student filmmakers to gauge their interest in licensing your music for free. This will build up your portfolio and increase your chances of selling your music in the future.
Music licensing sites such as www.magnatune.com and www.youlicense.com supply song databases to producers who are looking for music for their projects. Typically, these music licensing sites will screen your music to verify its suitability and quality. Once your music is accepted, they will promote it. If it is sold, they will take a percentage of the profit.