Podcast Summary: The Economics of Everyday Things

Episode 3: "My Sharona"
Host: Zachary Crockett (Freakonomics Network)
Date: January 8, 2026

Overview

This episode dives into the economics behind the enduring 1979 hit single "My Sharona" by The Knack. Host Zachary Crockett explores how one song, written in a single hour, has generated income for its creators for decades through a complex web of royalties, licensing deals, and re-discoveries—offering a rare look at the music industry’s financial machinery. Through interviews with band members, a music publishing expert, and Sharona herself, the episode tells the real story of how a single pop culture moment can deliver a lifetime of returns.

Key Discussion Points and Insights

1. The Origin Story: Teenage Crush to Pop Sensation

• Sharona Alperin (the real "Sharona") recounts her years in LA, working retail, and being courted by Doug Feiger, the band’s lead singer, while she was 16-17.

  • Sharona: “I brought some friends. They were honestly really good... Did I just hear a song with my name in it on the radio? Like, what just happened?” (01:19–02:34)

• Songwriting Magic:

  • Doug Feiger and Burton Averre wrote "My Sharona" in about an hour, inspired by late-70s LA’s music scene and 'air guitar in your bedroom' energy.
  • Averre: “Best hour ever.” (05:02)

2. The Economics of a Hit Single

• From Struggling Band to Major Deal:

  • The Knack signed a $100,000 advance with Capitol Records after a string of buzzworthy club shows with celebrity guest appearances (Springsteen, Petty, etc).
  • Averre: “13 points, which for a new band was unheard of.” (meaning the band got 13% of album sales, instead of the typical 10-12%) (07:58)

• Recoupment & Royalties:

  • Advance money goes to the band, but must be repaid through sales before they see royalties. The band spent just $17,500 recording, keeping much of the advance.
    Averre: “Most of what we did in the studio were one takes... we spent, and this isn’t an exaggeration, $17,500.” (06:09–06:43)
  • After recoupment, artists receive a percentage of sales (“points”); the song’s massive sales (2+ million in year one) meant substantial checks for members.

• The Power of Songwriting:

  • Performance and mechanical royalties flow to songwriters (Feiger and Averre), not the full band, resulting in additional, ongoing income from airplay and covers.

    Music industry expert Michael Kloster: “Being the songwriter is really key to your financial success and your longevity.” (09:23)

    Averre: “I remember the first check I got from the mechanicals, and it was about 90,000.” (09:51)

3. Covers, Parodies, and Legal Loopholes

• Weird Al’s "My Bologna":
  • My Sharona’s catchy riff inspired one of Weird Al Yankovic’s first big parodies; Feiger and Averre collect royalties from every parody play/sale.
• Sampling:

  • Run DMC sampled "My Sharona" in "It’s Tricky" (1987) without permission—a legal gray area then. The Knack later sued and settled.

    Zachary Crockett: “Now, samples usually are not a big money maker. For My Sharona, the serious bucks were yet to come.” (11:30)

4. The Long Tail: How One Song Keeps Paying

• Syndication and 'Reality Bites' Revival:

  • By the early '90s, new income slowed. But the song resurged thanks to its prominent use in the 1994 film "Reality Bites," resulting in a $60,000 synchronization (sync) fee to the songwriters.

    Averre: “We made a good chunk off of the sync rights. It was probably about 60,000 [from] Reality Bites.” (15:37)

  • This brought "My Sharona" back on the charts, generating a new wave of sales and licensing.

• Endless Licensing:

  • The song has appeared in dozens (an estimated 50+) of films, commercials, even pizza ads—each appearance brings in revenue.

    Kloster: “We’re constantly throughout the year licensing the song in all different types of situations and all over the world... a very large, substantial payday.” (16:26)

5. Streaming Era Economics

• New Revenue Streams:

  • With Spotify and Apple Music, streaming royalties replaced much of the old revenue from physical sales. Per-play rates are tiny but add up at scale.

    Kloster: “When you look at your statements and you actually see the per song micro penny rate, you’re like, oh my lord. On an individual line basis, it’s very minuscule, but... volume… adds up.” (17:14)

6. The Lasting Payoff—and a Bittersweet Legacy

• The Songwriter’s Life:

  • Burton Averre reveals he still earns $100k–$300k/year from that one golden hour in 1979.

    Averre: “I still make a very good living off of that one song. I do not have the wolf at the door. Probably never will.” (17:54)

• Sharona’s Perspective:

  • Sharona Alperin, now a real estate agent, reflects on being immortalized in the context of a possessive pop song ("My" Sharona) written about her as a teenager:
  • Sharona: “Come on... is there a more obsessive or possessive word in the English language?... It was time for me to be my Sharona.” (18:50)
  • She now embraces the legacy, running her business at myshirona.com.

Notable Quotes & Memorable Moments

• On the Creative Process:
  Averre: “Most of what we did in the studio were one takes... Best hour ever.” (05:09)

• On Royalties and Income:
  Averre: “I remember the first check I got from the mechanicals, and it was about 90,000.” (09:51)
  Averre: “I still make a very good living off of that one song.” (17:54)

• Sharona on Ownership and Legacy:
  Sharona: “It's like, dude, no, I'm not yours. It was time for me to be my Sharona.” (18:59)

• Music Publishing Wisdom:
  Kloster: “Being the songwriter is really key to your financial success and your longevity.” (09:23) Kloster: “We're constantly throughout the year licensing the song in all different types of situations and all over the world.” (16:26)

Timeline of Segments & Key Timestamps

• 01:19–02:42: Sharona Alperin describes her origin story and the surprise of hearing the song.
• 03:24–05:09: Burton Averre and Zach Crockett walk through the birth of "My Sharona" and band’s early days.
• 06:09–08:11: Economics of record advances, how the band managed money, and deal structure.
• 09:23–10:32: Songwriting royalties explained and importance for long-term income.
• 10:32–11:45: Weird Al parody and sampling controversies (Run DMC).
• 13:47–14:59: The song’s dwindling revenue in the '90s and rebirth with "Reality Bites."
• 15:18–17:29: Synchronization, endless licensing, streaming era payments.
• 17:54–18:59: Averre and Sharona reflect on money, legacy, and their lives now.

Conclusion

This episode tells the fascinating economics behind an instantly recognizable song—how its creation, business deals, copyright splits, and endless re-discoveries add up to a case study in the music industry’s unique pathways to financial longevity. While band members and songwriters enjoy long-tail earnings, the muse at the heart of the song deals with the complications of fame, identity, and artistic possession.

For more:

• myshirona.com – Sharona Alperin’s website.

(Summary compiled by Podcast Summarizer, preserving original tone and attributions as found in the transcript.)