Most people assume since rappers show off tons of money jewelry and cars they tend to have money, and this isn’t necessarily the case, but I’m going to tell you why your favorite rapper isn’t really rich.
They Split the check
Most people think this is a problem that only signed artist deal with and it is true that the deal with this the most but independent artist deal with it as well, but to put it into perspective let’s say a rapper gets signed for 1 million a lot of rappers pay their manager 20% and that’s 200k of the million. Rappers also pay their lawyer 5% and their business manager another 5% so that is a total of about 300K off the million that rappers pay. Now that leaves about 700k but the problem with this is that now you are taxed at a higher percentage so let us say it’s about 48% but let’s say 50% to make it easier so now you have to divide that 700K by 2 leaving 350K after everything comes out.
They Have an Image to keep
Keeping up the rich image is a huge reason to why a lot of rappers go broke. Using the 350K from above now this rapper must keep up his image so let’s say he goes and buys a hellcat which’ll cost about 70K so now that’s 280K left over. Okay so that doesn’t sound so bad but don’t forget about the jewelry and the tons of designer clothes their going to buy and hotels/Airbnbs and these may cost about a total of let’s 100k when its all over now this rapper is down to 180K.
They Take Care of Everyone
Taking care of everyone cost these rappers tons and tons of money most rappers tend to buy their mom a home and the average home in the U.S cost about 300K but they can put a down payment of 10% which will be 30K but after they take all of their friends shopping and buy a few family members cars there won’t be much money left. The problem with taking care of everyone is it usually isn’t a one-time thing so the people they take care of become a monthly expense on top of their already expensive lifestyle.
Bonus
They mainly make money on the back end
This may come as a shock to some, but rappers only make money on the back end yes they get paid through streams and marketing but a lot of times that money is split amongst others but the show usually isn’t split as many ways meaning rappers get more of the profit. When Covid first hit many rappers were left in bad financial positions because they couldn’t do shows and for most rappers no shows equal no money.
Conclusion
Rappers are definitely in the position to be rich even after they split the check but what they do with their money is the problem. After they take care of everyone and up keep their image they usually don’t have too much money left the rappers who don’t really have this problem have someone on their team who helps them manage and put their money into the right places. Let me know down below what you guys think on why your favorite rapper isn’t really rich.
