Making Money As A Musician 

If there is one sound that all the musicians are unanimously a fan of, it is– “ka-ching!” And the good news is that new opportunities to hear it are sprouting for music artists everyday! Simply put, making money from your music is more possible than ever before. With the rise of streaming, music royalties from platforms like Spotify and Apple Music provide artists with a steady income stream.

Beyond that, there are countless musician jobs available—from performing and producing to curating playlists and working behind the scenes in the industry. A music artist in today’s day and age has more ways than ever to build a financially sustainable career in music.

In this blog, we will explore the following: 

1. How to make money as a music artist?
   
   
2. ​Why Do Musicians Struggle to Make Money?
   
   
3. Do artists get paid monthly?
   
   
4. How much money do music artists make?
   
   
5. How do Spotify and Apple Music pay a music artist?
   
   
6. Musician Jobs Other Than Performing
   
   
7. FAQs
   
   

How to make money as a music artist?

Music artists can earn through various revenue streams from their musician jobs. Here's an overview of some ways artists get paid:

1. Streaming Royalties

Platforms like Spotify, Apple Music, and Amazon Music pay music royalties based on the number of streams their songs receive. However, the per-stream payment depends from platform to platform. 

2. Performance Royalties

Artists earn performance royalties when their music is played live, on the radio, or in public venues such as cafes and stores. Organizations like ASCAP, BMI, and SESAC collect these royalties on behalf of artists. 

Learn more about how Performance Royalties work.

3. Live Performances and Touring

Live shows are a significant income source for artists. They can include concerts, festivals, and tours. However, touring can be financially challenging, with many artists facing high costs that may not match their earnings. Selling merchandise such as T-shirts, posters, and other branded items at your concerts or online provides artists with additional revenue. Merchandise sales can be particularly lucrative during tours.

4. Music Licensing and Sync Deals

Artists can license their music for use in films, television shows, commercials, and video games, earning synchronization fees. These deals can be highly profitable, especially when music is placed in high-scale media. The earnings however depend on number of factors like:

• Duration of the music 
• Artist’s scale and reach
• Type and scale of the media

Read more about how Sync Licensing works.

5. YouTube Monetization

By uploading your music and related content to YouTube, you can earn money through ad revenue, channel memberships, and Super Chats during live streams. Monetization depends on factors like viewership and engagement. 

Read more about making money as a music artist on YouTube.

6. Crowdfunding and Fan Funding

Platforms like Patreon or Buy Me A Coffee allow fans to support artists financially through subscriptions, providing a steady income stream. Artists can leverage their connection and engagement with the audience to raise funds on such platforms. Other crowdfunding platforms like Ketto, Kickstarter and GoFundMe can also be used for certain projects to reach more funders.  

7. Sponsorships and Brand Partnerships

Collaborating with brands for sponsorships or endorsements on social media offers artists additional income. These partnerships can range from sponsored social media posts to exclusive product collaborations.

8. Mechanical Royalties

Mechanical royalties are earned from the reproduction and ultimately the sale of music in physical formats such as CDs, vinyl, and digital downloads. In the digital age, these royalties have declined but remain a revenue source.

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9. Educational Content and Workshops

Some artists generate income by offering music lessons, workshops, or online courses, sharing their expertise with aspiring musicians. If you have the skill of teaching, don’t shy away from sharing your knowledge (and making that extra bag!)

​Why Do Musicians Struggle to Make Money?

Monetizing your music could be challenging for reasons like low royalty rates, high competition and even piracy. And the first step to overcoming a challenge is to identify the possible roadblocks. Here are some of the most common troubles you might face while trying to make money from your music!

1. Low Streaming Royalties

While streaming platforms like Spotify offer vast reach, the amount of music royalties per stream are minimal. Artists often find that substantial streaming numbers are required to generate significant income, making it difficult to rely solely on streaming royalties. ​

2. High Competition and Market Saturation

The ease of digital music production and distribution has led to an oversaturated market. This not just makes it harder to sell live performance tickets, but also makes it difficult to reach out to a wider streaming audience.

3. Digital Piracy

The illegal downloading and sharing of music can negatively impact artists' revenue. It reduces the possibility of generating revenues from music royalties furthermore.

Do artists get paid monthly?

Out of the many revenue streams, only two sources distribute monthly payments:

1. Streaming Services

Many streaming services, such as Spotify, Apple Music, and Amazon Music, typically distribute royalties on a monthly basis. However, the actual receipt of these payments by artists depends on their agreements with record labels, distributors, aggregators and even processing durations.

2. Organizations like ASCAP, BMI, etc.

Organizations like the American Society of Composers, Authors, and Publishers (ASCAP) distribute royalties 12 times a year, effectively providing monthly payments to their members. However, there is typically a delay of approximately 6-9 months from the time of the performance to the distribution of royalties.

Money from all the other musician jobs typically depends on a case-to-case basis.

How much money do music artists make?

The income that music artists earn from various revenue streams varies widely based on factors such as their popularity, reach, and business strategies. Below is a table summarizing potential earnings from ten common revenue sources:

These figures are approximate and can vary widely based on numerous factors, including the artist's market presence, fan engagement, and regional differences.

How do Spotify and Apple Music pay a music artist?

Spotify and Apple Music compensate music artists through a royalty system based on the number of streams their songs accumulate. Here's an overview of how each platform calculates and distributes payments:

Spotify's Payment Structure:

• The exact per-stream rate can vary based on several factors, including:
  
  
• The listener's country and its subscription pricing.
  
  
• Whether the stream comes from a free or premium user.
  
  
• The artist's specific agreements with their record label or distributor.
  
  
• Starting in early 2024, Spotify requires that tracks must have at least 1,000 streams in the previous 12 months to generate recorded royalties.
  
  

Apple Music's Payment Structure:

• Apple Music royalties are calculated on a pro-rata model. In this system, the total revenue generated by the platform is pooled, and payments are made based on an artist's share of total streams.
  

Here's a comparison of how Spotify and Apple Music compensate artists:

Both platforms typically pay royalties to rights holders, which can include record labels, publishers, and distributors. Artists signed to labels may receive their share after the label takes its agreed-upon portion. Independent artists often use distribution services to collect these royalties.

Musician Jobs Other Than Performing

There are many other ways to earn as a musician, that go beyond just performing or making money by making music. A lot of these jobs also provide an added income stream for artists that aids their music and gives them much more financial stability. Record labels like Universal Music and Warner Music, streaming platforms like Spotify and Apple Music could be few of the many places to look out for a variety of musician jobs like:

1. Music Curator

Music curators create and manage playlists for streaming services, radio stations, or brands. They analyze trends and select songs that fit a specific vibe or audience. Companies like Spotify, Apple Music, and YouTube Music often hire curators to craft engaging playlists.

2. Artist & Repertoire Representative

A&R professionals work with record labels to discover and sign new talent. If you have a great ear for music and industry trends, this could be an exciting career path.

3. Music Journalist or Blogger

Do you also have solid opinions about the music you hear? Music journalism or music blogging might be your thing! Music journalists review albums, interview artists, and report on industry trends for magazines, websites, and blogs. You can even start your own music blog or YouTube channel.

4. Sync Licensing Specialist

This job involves placing music in films, TV shows, commercials, and video games. You can work for a licensing company, a record label, or as an independent music supervisor.

5. Music Teacher or Coach

Teaching music—whether privately, at a school, or through online platforms like Udemy—can be a great way to earn while sharing your knowledge.

6. Digital Marketing for Musicians

Many artists struggle with social media and promotion. If you understand branding, advertising, and audience engagement, you can work as a music marketer for labels or independent artists.

FAQs

1. What are music royalties?

Royalties are payments made to rights holders—such as songwriters, recording artists, and publishers—for the licensed use of their music. These payments are generated whenever a song is sold, streamed, performed publicly, or synchronized with visual media. 

2. Different types of royalties

Other than streaming royalties, there are:

• Mechanical Royalties: Earned when a song is reproduced or distributed, including physical sales, digital downloads, and streams.
  
  
• Performance Royalties: Generated when a song is performed publicly, such as on radio, television, live venues, or streaming services.
  
  
• Synchronization (Sync) Royalties: Collected when music is used in sync with visual media like films, TV shows, or advertisements.
  
  
• Print Music Royalties: Arise from the sale of sheet music.
  
  

3. Is music a high-paying career?

The earning potential through music jobs varies widely. While top artists can earn substantial incomes, many musicians face financial challenges. Success depends on many factors like talent, marketability, and effective management.

While top artists can earn substantial incomes, many musicians face financial hurdles, with success depending on many volatile factors other than talent, networking, etc. In my opinion, while making money as a musician can be challenging, developing financial literacy and business skills can go a long way in creating a more stable and profitable career.

4. Can independent artists earn well without a record label?

Yes, independent artists can earn a sustainable income by leveraging various revenue streams such as streaming royalties, live performances, merchandise sales, and crowdfunding. Building a dedicated fanbase and utilizing digital platforms are key strategies.

5. Who is the highest-paid Spotify artist?

As of 2024, Taylor Swift was reported as Spotify's highest-paid artist, earning over £79.8 million in royalties. 

6. Do artists make more money from live performances than from streaming?

Many artists find live performances to be more lucrative than streaming due to higher immediate payouts from ticket and merchandise sales. Streaming provides ongoing, albeit smaller, revenue per play, making live shows a significant income source for many musicians.

7. How do artists manage their finances effectively?

Effective financial management for artists includes budgeting, diversifying income streams, saving for taxes, and planning for periods with fewer gigs or releases. Collaborating with financial advisors or accountants can help ensure long-term financial stability.

Our Final Thoughts

A successful music career isn’t built on just one revenue stream—it’s about diversification. From streaming royalties to merchandise sales and live performances, artists who explore multiple income sources can create a steady and profitable career. By leveraging digital platforms and engaging directly with fans, musicians can turn their passion into a thriving business.

We at GreaseRelease, have a bunch of curators on our network who are looking for new & exciting music to push on their massive playlists. If you make music and want to reach a wider audience, check out our submission platform and get a chance to reach millions of listeners! Submit your tracks now!