If you are an up-and-coming music artist, you probably already know that generating revenue through your
music is not an easy task, especially when starting out your music career.
The goal for every artist would be to make music for a living and become financially stable from it.
In today’s day and age, music artists have much more control over their careers than artists 20 years ago.
There are an abundance of platforms and channels that can assist you in promoting your music. The question however is,
how do you utilise these tools to make money from your music?
It is also vital to remember to develop diverse streams of revenue in order to grow and build your music career.
Listed below are the best methods on how you can generate revenue from your music.
1.Music Video Distribution (YouTube)
Most music artists know to put their new tracks onto their own YouTube, but there are however thousands of YouTube channels
that will play your music video. The benefits of doing this is that your music will eventually generate more performance royalties
for you and end up getting your music exposed towards a wider audience.
YouTube pays between $0.10 - $0.30 per Ad view. Therefore we can say that Youtubers earn an average of $0.18 per ad views.
It is important to note that Ad views are not the same thing as video views. The average payment that youtubers receive for
video views is around $3 - $5 per 1000 video views. A popular YouTuber however can earn around $7000 per 1 million video views.
These payments also vary depending on many factors, for example, video length, video description,
how regularly you post videos and the type of content you post. These factors will all have an impact on the size of your payment
from YouTube. In order to make money off YouTube you need to have at least 1000 subscribers on your channel as well as achieve
4000 watched hours over a 1 year period.
2.Collect Royalties From Public Performances
It is imperative that musicians sign up with a Performing Rights Organisation (PRO). These organisations collect royalties
on behalf of songwriters and publishers, and help ensure that they get paid for the use of their music.
One type of royalties that PRO’s collect on your behalf is public performance royalties.
When your track is played on the television, radio, shopping malls or at any other public space,
these places must pay for the use of your track when playing it. The PRO collects those payments and distributes
the money accordingly. Payment is done on a quarterly basis, depending on the society you’re attached to.
3. Social Media Platforms:
One of the best methods you can earn revenue from your music is by uploading your music,
through social media platforms such as TikTok and Instagram. As a music artist,
you can earn money by allowing Instagram to use your music in Instagram stories.
Signing up for Facebook music and making your music accessible to billions of users can lead to you
creating another stream of revenue for yourself. Digital distribution platforms such as CD Baby or Distrokid,
can assist you in uploading your music onto Facebook and Instagram.
The royalties you will receive will depend on the amount of people who use your songs when posting on these platforms.
You will need to sign up for social video monetization on these digital distribution platforms in order to benefit and receive
royalties for your music.
TikTok
When your music is uploaded onto TikTok, you will be giving millions of TikTok users consent,
allowing them to use your music when creating their videos. You will get paid a proportionate cut of
TikTok’s subscription revenue per month.
This is calculated and set out in the contract between your digital distributor and TikTok.
This will only occur when someone uses your song in their video.
The amount you are paid can vary depending on your digital distributor.
TikTok videos can be between 15 or 50 seconds in length, therefore, can further affect the value of your royalties.
If you decide to upload your will not receive any royalties. The reason for this is that the earnings that you make,
has to be collected by digital distributors, as it is part of the contract between TikTok and digital distributors.
It is difficult to determine the exact amount of revenue you can earn on TikTok as there are so many variables
that influence your earnings. In June 2019 the average royalty you would receive would be $0.030 per video,
in which your song was used in. Based on this information, if your song was used in different videos 10 000 times,
you would generate revenue of approximately $300.
TikTok tends to pay bi-annually or annually depending on your music catalogue size. In my opinion,
TikTok and other social media platforms are a great place to get your music exposed.
How do artists get paid?
4. Earning revenue from music streaming platforms
Having your music available to stream is a game changer for your success as an artist.
Allowing your fans to stream all your latest singles can have a massive impact on the amount of
revenue you earn through streaming. Spotify for example, is currently one of the most popular music streaming platforms
that you can use to upload your music to.
Having your music updated and available to stream can also help other music lovers around the world discover your music.
Spotify pays an artist $0.003 - $0.005 per song stream. The exact amount Spotify pays you per stream
depends on certain variables such as the country of the stream, what percentage of streams you bring into Spotify and the
time spent listening to your song.
Spotify pays you according to what they call Stream Share. Stream Share looks at the total number of streams on Spotify in a country,
during a 1 month period. This assists Spotify to determine and calculate what proportion/percentage of those streams were yours.
Stream share determines your slice of the revenue from a really large pie.
For example, if your average per stream is $0.004. You will need to get 250 streams on Spotify in order to earn $1.
You may be asking yourself, “how many streams do i need on Spotify to earn $1,000 from streaming?”
The answer is you will need to get 250,000 streams on Spotify in order to earn $1000.
The amount of revenue you will earn varies depending on whether you are signed to a label or if someone has writing or
recording rights to your music. It is logical to think that in order to get more streams,
you will need to get on more Spotify playlists.
One Submit for example is a platform that allows you to submit your music to curators from 6 different platforms,
including Spotify playlists. You can mass submit to playlists by the size of playlists with an adjustable pricing for your budget.
5. Creating & selling merchandise
Selling merchandise is a great way you can generate solid revenue as a music artist. Selling merchandise online as well
as at your live gigs, gives you the opportunity to market yourself as an artist and earn money at the same time.
A great tip to sell more merchandise at your live shows, would be to go stand by the merchandise stand after
you are finished performing. This will give your fans/audience an opportunity to meet you,
and at the same time drive sales of your merchandise, as your fans will possibly ask you to sign their merchandise.
T-shirts, caps, hoodies, mugs and buttons are usually popular sellers amongst fans.
You can place someone on your behalf at the stand if you’re a shy person.
Merchandise is an underrated revenue generator, which should be prioritised by any music artist trying to
make it in the music industry.
6. Perform live shows/gigs
Performing live is considered to be one of the best methods to earn revenue as a music artist.
Due to the worldwide decline in Coronavirus infections in 2022, artists around the world have slowly gone back into the process
of playing more live gigs. This is a great opportunity for music artists to get back out there and do what they do best.
As we all know, more shows and more merchandise sold equals more revenue.
Music venues, bars, music festivals and private events such as weddings are all amazing opportunities for music artists
to grow their fan base, earn revenue and promote their music all in one place.
7. Offer membership subscriptions
Offering a membership subscription to your fans gives them the opportunity to access your exclusive music,
rewards and content via your website, for only a small fee per month. Fans for example can have access to your entire discography,
early access to any new music releases and merchandise discounts. This can give loyal fans an incentive to subscribe
to the membership. Subscriptions to these memberships can be incredibly rewarding for you.
This can really assist you in creating a steady source of income for you in the long term.
8. Brand sponsorships and partnerships
This tip is for the more advanced artists, who already achieved a decent amount of fans.
Being able to collaborate or partner with a brand is a massive opportunity for you, as an artist,
to promote yourself as well as your music. Brand partnerships allow you to earn a significant stream of income
as well as partner with a brand that you admire and would like to be affiliated with.
Being a brand ambassador can definitely have its perks, however, you need to be careful which brand you associate yourself with,
as this is extremely vital in how you will be perceived by the public and your fans, as you are representing this brand.
You will most probably be asked to promote their brand through either sponsored posts on your social media or at your live shows etc.
Well known brands such as Yamaha or Marshall tend to collaborate with music artists who have an already established
following and strong social media following
It is recommended, as an up-and-coming artist, to reach out to local and more independent brands and
attempt to negotiate a possible brand deal with them. The rewards won’t be as extravagant as you might like,
but we all need to start somewhere. Important! It is vital that you associate yourself with a brand that is aligned with your
personal brand as a music artist. Stay true to who you are as an artist without the need to compromise your authenticity.
It is clear that any music artist is capable of generating revenue through their music.
The amount of revenue earned however, is determined by the amount of effort and time that you, as an artist,
puts into your music and everything that goes with it. Just like any other profession e.g Doctor or Engineer,
you will have to be fully committed and serious about making a career out of your music.
If you remain persistent and diligent throughout the growth of your career, it is inevitable that you will succeed.
Good Luck!!
Check out how much does Spotify pay per stream
Read how to submit music to Spotify playlists
Check out the best music promotion services
For Crypto NFT for artists check out this blog article
For One Submit TikTok music promotion plans
To submit your music, visit our One Submit home page
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