We all know that a true artist is never motivated by financials alone. Although the allure of the life of a rockstar always plays a role in the back of the mind, very few artists are driven by their bank balance. That being said, money matters, no matter how big of an artist you are.
That’s why we are seeing a growing debate around the economics of music streaming, which has completely reshaped the industry and could change how artists are able to make a living forever. According to an analysis of the major streaming platforms, artists often receive as little as 13% of the streaming income generated by their work, amounting to as little as $0.0035 per stream.
While the top 0.01% of artists can earn millions from the top music streaming platforms, many others are left with nothing. This is partly the fault of the streaming platforms themselves, which are algorithmically designed to reward the most successful creators and penalise those who don’t make it to the top.
However, it is also the result of a cultural shift. After all, we are simply not buying music records anymore, once a key source of revenue for music artists of all stripes. Regardless of the factors behind this transformation, it is abundantly clear that streaming does not pay. In light of this, how are musicians making cash? Read on to find out.
Live music
For artists of all stripes, live music is essential for boosting earnings potential within the music business. While traditional concerts and gigs are not as reliable moneymakers as they were a couple of years ago, that does not mean that live performances are not a good way to pay the bills. Increasing numbers of musicians are now turning to live-streaming platforms to supplement their income, where they can play to global audiences from the comfort of their homes. Livestreaming platforms for musicians such as Bandzoogle paid out more than $5 million to artists last year alone, thanks to virtual ticket sales and live ‘tip jars’ where fans can show appreciation for performers.
Sponsored content
SponCon has arguably emerged as one of the top revenue streams for artists in recent years. There is a wealth of options for artists that have enough brand power to put to a product, with countless industry examples. An artist could, for example, put their name to a makeup product, as the artist Halsey recently did with About Face, a range of pallets. Another popular tie-in can be found in the world of online casino gaming, where artists can sell their tracks and likeness to a slot game developer. One good example here might be the official Deadmau5 slot game at Betway online casino, which uses the top tracks from this house music legend in a 5-reel casino game for fans to enjoy. As top casinos continue to produce branded slots with artists of all stripes, this may become an increasingly popular source of income.
Merch it up
No matter how big your band is, you can always make some reliable money by selling merchandise. Merch sales are a great way of connecting with fans as well as raising awareness of your ‘brand’ as an artist, which is why all acts should take part. Once more, technology has stepped in to make it easier for smaller artists to sell merch. Sites such as Printful allow anyone to create and produce branded clothing, posters, and more. Meanwhile, a huge number of bands now use Shopify as a dedicated host for their virtual merch store, which removes the need to create one yourself. It’s now easier than ever to sell merch to your fans.
Stop, collaborate and listen
So-called ‘session work’ with other artists is not only a great way to capitalize on the success of others – but it’s also a great way to boost music revenues. By reaching out to a like-minded artist, you are creating something that fans of both can enjoy, while also gaining some much-needed and potentially lucrative exposure. What’s more, there is now a wealth of companies and platforms that allow any artist to reach out for meaningful and paid collaborations. Platforms such as the musician matchmaker JamBro, as well as services that are popular in the industry such as ProCollabs and AirGigs, can help you find the right collab act for your band.
Although it is getting harder to make money as an artist the traditional way, a huge number of new avenues have opened up. If you’re concerned about your bottom line, these moneymaking ideas are worth a try.
