The tale of the struggling musician is all too familiar. To make ends meet, musicians have to work hard and sell their souls. This is partially true. Making money from music can be difficult. It’s possible. It’s very achievable.
You’ll find many revenue opportunities if you are willing to try different strategies and diversify your skills. You can make money with your ,, and your expertise, if you want.
10 ways you can make money with your music
You’re probably a musician and have wondered where the majority of artists’ revenues come from. How does music help artists make a stable income?
Here are 10 revenue streams that will make up the majority of an artist’s income.
1. Streaming Royalties
Let’s start with the easiest way to make money from your music . It’s releasing it online to all major music platforms. Spotify, Apple Music and Tidal are all available.
Although streaming sales may not bring in big bucks immediately, they can start to add up over time, particularly as your following grows and the number of monthly listeners increases. This makes streaming a regular source of income for many artists, new and old, large and small.
But how do you get there?
Through streaming royalties. Streaming royalties is the money you get every time your track gets streamed or downloaded via a digital music platform.
As your music distributor, Ditto will ensure that your music is available on every major music platform and digital store. We’ll also make sure that you get 100% of the streaming royalties due to you. Your personal Ditto dashboard allows you to access streaming analytics and streaming insights, so you can see exactly where your streaming revenue is coming.
You can even stream to monetize your music long-term through more lucrative income streams (such live shows, merch, and sync deals).
Online distribution of your music acts as a way for listeners to get to know you and your music. If they like what they hear they will be more inclined to buy tickets for your gig or a kit from your website. You get the idea.
2. Music Publishing
Music publishing royalties are one of the best sources of income for independent musicians.
It can be not easy to understand the workings of music publishing. It can be not easy to understand the music publishing process.
Here’s a very brief overview.
Music compositions and recordings are considered intellectual property. They come with a set of rights . This means that organizations such as streaming sites, radio stations and venues, who wish to use this property, must pay an annual licensing fee.
Two types of royalty are available from this license;
– Mechanical royalty – money due to you when a song has been streamed, downloaded, or reproduced on a CD/Vinyl.
– Performance royalty money due to you when a song plays on the radio, in a venue or on stage.
The artist is the owner of the work and is entitled to these royalties.
Even if you are already registered with an agency for music royalty collection, royalty management can be a complicated and tedious process.
Good news!
Ditto Music Publishing is able to do the job. Ditto Music Publishing only takes a 10% commission on publishing royalties that we collect. You keep the rest. There is no better deal in the music industry.
This is not all – working with Ditto Publishing allows us to pitch your music for sync deal. This means even more royalties opps. But more later!
3. Merchandise
As an upcoming musician, another way to generate income is by selling your own merchandise.
If you know where to find it, merch manufacturing can be very affordable. If you know where to source it, merch manufacturing can be very affordable.
Your merch range doesn’t need to include clothing. You can have a broad range of products, from mugs to phone cases to posters to bottle openers to more.
Offering a variety of products can increase or decrease the price point of your merch line. A $20 tour t-shirt may not be affordable for everyone. They’ll most likely be able to afford a $5 keyring. Those $5 bills add up!
When should you invest in merchandising?
Once you have a following, you should invest in merch. You can also play shows regularly to make the most of your merch sales. You can also sell merchandise via your website , or an existing online shop like Shopify.
Remember to be professional when selling merch. Keep track of stock levels, keep track payments, so you have the best merch for your next gig.
4. Live shows and touring
The world is now open again! Hooray! Live music and shows are a major source of income for musicians.
You can make a lot of money by playing live shows.
– Tickets sales
– Fees at the door
– Payment from venue owners or promotors (if it’s an ad-hoc show).
Once you have established yourself and are getting regular gigs as the opening act or main headline, you can start charging fans for tickets to see you perform.
Tickets for unsigned shows typically cost between $5 and $15.
You’ll also need to agree on dividing revenue if a support band or group is performing with you.
You should also consider any expenses you may incur as a live performer, such as venue hire/deposits, catering costs, or promotional material. Make sure to shop around for the best deal on venue hire.
Psst: If you are playing original material, keep track of your set lists to claim any performance royalties money.
5. Sales of physical music
It all started with one thing.
Today’s music industry is seeing less income from physical music sales, such as CDs and vinyl. However, physical music sales still provide a source of income for artists and musicians.
CDs are a great way to start. CDs are easy to make and inexpensive to reproduce. They can also be packaged up and sold together with other merchandise. They aren’t very popular nowadays, but that’s not surprising.
Vinyl has experienced a cultural revival and continues to outperform CD revenues year after year. A Spotify fan study revealed that vinyl was the most popular merch option across nearly every genre.
Selling vinyl copies of your music is a great way to get in on the current buying trends, as many bands are releasing limited edition vinyl runs.
A 50% increase in cassette tape sales was also recorded in 2020. This may be a temporary trend but it’s worth jumping on board to match your branding and image.
Remember that you can also sell vinyl and CDs at shows via your website or other online stores and physical distribution to record shops and ecommerce wholesalers such as Amazon.
6. Sync Deals
It can be difficult to make money in music sync, but it is possible if you can crack it.
Music sync can be a completely different world.
These are the purposes of music sync. Also known as “synchronising license”, it allows artists to make money by having their music featured on a form of visual media , such as movies, TV shows, or video games.
The media company must pay the artist for a license to use their music. This is known as a flat fees.
It’s clear to see that sync is a very profitable revenue stream for musicians.
Your music publisher is the best place to submit your music for a deal.
We have years of experience pitching tracks to major global networks and streaming video services like Netflix, HBO, and BBC.
7. Sponsorships & Brand Partnerships
Have you ever seen your favorite artists collaborate with a particular brand or product?
This is essentially referred to as an endorsement or brand partnership. The musician can make money by being an endorser of a brand or product.
You might consider partnering with the following brands/companies as a musician:
Manufacturers of musical instruments
– Clothing Lines
– Social media app developers
Grooming products
When you partner with a brand, they may negotiate a deal to increase their visibility or promote their brand through your association as an artist. Sponsored posts can be made on your social media platforms, during live shows, or on your YouTube channel.
As an emerging artist, it is unlikely that Marshall or Fender’s CEO will come knocking on your door and offer to help you. Let’s face it. Let’s be real.
This is why it’s important to start small. Seek out smaller brands, whether local or independent, to see what deals you can make. Although payment might be minimal at first, it is a great place to begin.
Make sure you align your brand with the brand, if possible.
It makes sense, for example, that South Korean boyband BTS is collaborating with Hyundai Motor Company, South Korea, to help World Earth Day and climate change.
Snoop Dog, a pioneer in Just Eat, is willing to disagree…
It is important to be true to yourself as an artist. If you don’t feel that your association with a brand will strengthen your image, it’s best not say “no-deal.” You don’t want to compromise your authenticity or the loyalty of your fans.
8. Crowdfunding and membership subscription services
You can also make great income streams by crowdfunding or membership subscription services.
What’s crowdfunding?
Crowdfunding basically turns your community and followers into a sustainable source of funding for your projects.
This allows you to solicit financial support from your fans and audience as an alternative to seeking a large advance from one source (such as a loan or record label). Independent musicians will find it a great alternative.
There are many crowdfunding platforms available. These are some of the most popular platforms for creatives and artists:
GoFundMe
– Kickstarter
– Indiegogo
ArtistShare
Plus loads more!
What’s a membership subscription?
A membership subscription service differs from crowdfunding in that it is not a crowdfunding platform.
These are where you create a membership for a subscription service that your followers can subscribe to.
Subscription services like Patreon allow subscribers to access exclusive content (such artwork, photos, and videos) by their favorite artists for a monthly fee.
Artists can then use the subscription fees to fund their current projects. It’s a two-way street.
The platform you choose to use for crowdfunding and subscription services will depend on what you’re trying to fund.
It might be best to fund it on a music-specific crowdfunding platform like Indiegogo. Kickstarter would be a better choice if you need more creative funding for songs and albums. A Patreon subscription service is best for ongoing funding campaigns for larger projects.
9. Music libraries: Writing
Producing music for music libraries or production companies is a great way to build your musical skills.
What’s a music library?
A music collection is basically a curated set of music-related material, such as audio recordings or musical scores, that can only be used for private and licensed use. Is intended for YouTubers, videographers and indie filmmakers.
You’ll likely write or compose music in a style other than your own music when you work on a music library. This may seem daunting, but it is an amazing opportunity to explore new musical territory and challenge yourself as a musician and a writer.
With music libraries, payment is made via royalty with PRS. This means that you might not get paid immediately and could take up to one year.
If you are good at music writing but open to learning and willing to try something new, you should consider writing music libraries.
Some of our favorite music libraries include:
– Airbit
– Jamendo Music
–Marmoset
Artlist
There are many more! So do some digging.
10. Teach what you already know
Last but not least, why not earn some extra money teaching other craftspeople the secrets of your trade? !
You can sell your music to younger artists through online tutorials, workshops, and vlogs if you are a singer, rapper, composer, or producer.
You could tutor aspiring musicians part-time if you are an instrumentalist.
You can offer your knowledge to anyone interested in learning and buying it.
Music Fibre can be a great tool for teaching. Their vast directory includes music professionals with extensive industry knowledge.
You can repurpose your musical talents and make money!