How do musicians make money?
I am sure you are curious on how musicians make money. Well you are about to find out how these musicians make their money.
When I was little, I do ask myself; how does musicians make money in the music industry?
I wanted to become a musician because of the way some of them spend lavishly on cars, houses, chains, wristwatches etc. Well, I guess music isn’t for everyone.
However, as time goes on, I came to understand how these musicians make their money. That was what made me write this article so that you can also know how o make money in the music industry in case you plan on also becoming a musician.
Without wasting your time, let us look at how musicians make money.
How do musicians make money?
Musicians make money from the following ways;
1. Selling of their songs
One of the ways musician make money is by selling their songs. Musicians can make money in the music industry by selling their songs to other musicians or on platforms such as Amazon etc.
2. Album sales
The sales of album is one of the ways musician makes money in the music industry. Creating and selling an album isn’t easy though because you will need massive publicity for you to make a successful album sales.
3. Live shows/Concert
Live shows, concerts and tours are one of the ways musician make money in the music industry. The joy of a musician is to have a successful tour or live show or concert or have a sold out venue ticket sales.
4. Sponsorship or brand ambassador deals
Imagine you being a brand ambassador for brands like Tesla, Porsche, Puma, Adidas, Nike, etc. Now imagine how much you will be earning per week of being their brand ambassador or having a sponsorship deal with them.
5. Streaming platforms
Musicians can make money from steaming platforms such as TouTube, Spotify etc. If you continue reading this article, you will find out how musicians make money from streaming platforms such as YouTube and Spotify specifically.
6. Teach music
If you are a musician, that is good at teaching and can also play musical instruments such as piano, guitar, saxophone etc. you can make money in the music industry by being a music teacher. Teaching music isn’t easy though because you need to understand every aspect of music from singing to he playing of instruments.
How much do musicians make per song?
Musician make money per song depending on how much the musician want to sell his/her songs on platforms such as Amazon, Apple etc. A song can cost an average of $3 on these platforms.
How do musicians make money from streaming?
The music industry has always made more money for record labels than the artists. And now that streaming is the main way that many of us consume songs, there’s even less money left for musicians.
Streaming services such as Apple Music and Spotify make money from subscription fees and advertising. They make deals with record labels to get access to their songs. These platforms keep about 30% of the revenue from streaming, 15% goes to what’s known as a music publisher – who represent songwriters – while the record label gets 55%. And the label then pays a percentage of this to the musician – after they’ve paid back the label’s investment in them.
However, some of the streaming platforms musicians make money from are;
How do musicians make money on Spotify?
Spotify generally pays between $.003 and $.005 per stream, which means a musician will need about 300 streams to make a dollar from Spotify. The amount Spotify pays musician per stream has reduced over the years. For a musician to make $100, the musician must have atleast 30,000 streams on spotify.
Moreover, Spotify does not directly pay musician. You also cannot make money from Spotify by directly uploading your music to Spotify. A middleman is needed before you can make money from this streaming platform. The middleman in this situation is a music distributor, such as TuneCore, DistroKid or CDBaby. These websites are the conduit between the artist and Spotify, and they are the ones who receive your royalties.
With your email, create an account and then upload your songs for release. You are able to choose between dozens and dozens of well-known and barely heard of streaming services, of which Spotify is only one. Spotify allows for songs to be released a week or so after uploading, but that’s considered rushing it. Most artists plan their release carefully and upload the music two or so months in advance so they can take advantage of pre-order promotion, releasing a single before the entire album is made available, or they work on getting placed in a popular curated playlist.
Once your music begins racking up plays, Spotify keeps track of all those listens and pays out the appropriate amount to whichever distributor you decided to work with (and there are a lot of them). Then, it’s up to that company to actually pay you, which may be delayed slightly.
How do musicians make money on YouTube?
One of the main ways artists make money on YouTube is from ads streamed across their music videos. But, there are a few other ways to monetize your work on YouTube, including user-generated content and brand sponsored videos.
Brands set up advertising campaigns directly through YouTube, and if their target audience matches your fanbase / YouTube audience, then chances are you’ll see some ads placed across your videos.
There are 3 types of YouTube ads that can run across your videos: Pre-Roll, In-Stream and Bumper Ads.
- Pre-Roll Video Ads: This type of YouTube video ad is shown before your video, and usually runs for about 30 seconds. Advertisers are charged per click, meaning brands only pay you for the total number of clicks generated on your video, rather than its number of views.
- In-Stream Ads: These ads are shown to your audience before they view your video, but they have the opportunity to skip the video after five seconds. For these ads, you’ll be paid per view.
- Bumper Ads: These are the short-form, six-second and non-skippable clips that show before your videos. You get paid every time a user watches the ad.
You also have the option to turn off ads or block certain advertiser categories.
Conclusion on how does musician make money
Musicians make money from music by:
- Album sales
- Selling of songs
- Live shows/concerts/tours
- Sponsorship or brand ambassadorship deals
- Streaming platforms
- Teaching music
These are the various ways musicians make money from in the music industry.