Hip-hop stars diversifyin’ to stay rich – report

NEW YORK, (Reuters Life!) – Rap star Jay-Z came  first in a list of the richest rappers in 2010, earning more  than double that of runner-up Sean “Diddy” Combs.  

Shawn “Jay-Z” Carter took in $63 million in personal income  between June 2009 and June 2010, according to Forbes.com.  

Diddy took in $30 million, followed by Senegalese-American  rapper Aliuane “Akon” Thiam at $21 million.  

Despite beginning a jail sentence in March for weapons  charges, New Orleans-born rapper Dwayne “Lil Wayne” Carter came  in fourth, earning $20 million, ahead of California rap icon  Andre “Dr. Dre” Young, who took in $17 million. 
 
Almost all stars at the top of the list all share a common  strategy — diversification.  
The top-earning rappers pulled in cash from alcohol  sponsorships, clothing lines, nightclub properties and film  appearances, in addition to concert tours and record sales.  

Jay-Z co-owns the 40/40 nightclub chain. Diddy promotes  Ciroc vodka and appeared in the feature film “Get Him to the  Greek.” Dr. Dre and Lil Wayne have record labels. Akon appeared  in a Pepsi World Cup ad campaign. 
 
The real money isn’t in record sales, said Zack O’Malley  Greenburg, a Forbes writer who compiled the list.  

“Eminem tied at number 14, even though he’s sold more  records than any artist since 2000,” Greenburg said.  

Eminem earned $8 million this year, despite the release of  his album “Recovery” which sold 741,000 copies in the first  week of sales.  

“It’s pretty shocking to see him so low down on the list,”  said Greenburg. “Compared to his peers, he doesn’t really do  much outside of music.”  

Rappers have responded to the current era of the digital  download, when record sales don’t reach the numbers they used  to.  

“Artists don’t put out albums anymore, they put out single  hits, so they have reasons to tour. Hits and tours make you  relevant, and they get you sponsorships, and earn you money  from merchandise,” said Greenburg, who is the author of a  forthcoming business-focused biography of Jay-Z. 
 
Greenburg looked at male recording artists who primarily  produced rap or hip-hop, and estimated their earnings from  record sales, song downloads, touring, film and TV appearances,  endorsements and other sources.  

 The full list can be found on www.forbes.com/hiphop.