For many musicians and producers, the goal isn’t always to become a multi-millionaire rock star. Some just want to finance their next album, quit their day job, or make a sustainable living from their passion. Whatever your goals are, generating a steady income stream is key to reaching them. The exciting thing about today’s music industry is the number of revenue streams available to you if you know where to look.
This is an ideal time to be a musician. There are so many income opportunities in the music industry, and the key to success is to diversify. By tapping into multiple streams, you’re spreading out the risk. If sales dip in one area, other revenue streams might pick up the slack. Focusing on just one avenue, like iTunes sales, can leave you vulnerable if that revenue doesn’t come through. Instead, aim to have multiple streams working together.
Here are 10 revenue streams musicians and producers can explore to finance their musical goals:
#1 License Your Music
Licensing your music is one of the most lucrative revenue streams available to musicians. Whenever a commercial project like a TV show, film, video game, or advertisement needs music, they pay to license your track. There are two main types of music licensing:
Production Music (Stock Music): Often instrumental music specifically created for syncing with media like TV or film.
Entertainment Music: What we typically think of as “regular” music—tracks that aren’t necessarily created for licensing but can still be used in commercial projects.
To license your entertainment music, working with a music publisher is ideal. They have the industry connections and expertise to secure higher-paying placements. If you can’t find a publisher, there are DIY licensing platforms like YouLicense and LicenseQuote.
For production music, sites like Pond5 are great options. They allow you to upload and sell your music, giving you control over pricing and licensing terms.
#2 Collect Back-End Royalties
If your music ends up on television or radio, you’re entitled to performance royalties. These are payments made by broadcasters to Performance Rights Organizations (PROs), which then distribute the royalties to you. Being registered with a PRO is essential if you want to receive these royalties, especially for broadcast uses of your music.
#3 Join SoundExchange
In addition to PROs, SoundExchange collects royalties for the digital performance of your music on streaming platforms like Pandora or SiriusXM. These royalties are separate from the streaming royalties paid directly by platforms and can be a great supplemental income stream. You’re essentially getting paid twice for digital plays.
#4 Physical and Digital Distribution
Getting your music distributed online is essential for reaching fans and generating sales. Platforms like TuneCore, CD Baby, and DistroKid offer digital distribution services, helping you get your music on iTunes, Spotify, and other streaming platforms. Many of these services also offer physical distribution for CDs and vinyl, providing another potential revenue stream.
If you want a cost-effective option, AMAdea is a standout service. It offers free distribution, keeps 90% of your sales, and covers both digital and physical formats.
#5 Playing Gigs and Touring
While touring can be expensive, it’s a traditional and effective way to make money as a musician. Whether you’re playing local gigs or national tours, income can come from show guarantees, door splits, or donations. Plus, touring presents a prime opportunity to sell merchandise.
#6 Merchandise Sales
Selling merchandise is an excellent way to diversify your income, especially if you’re touring. T-shirts, posters, hoodies, and other memorabilia can be sold at shows or online. Websites like DizzyJam allow you to sell merchandise online without having to buy physical inventory upfront. Once set up, online merchandise sales can provide passive income.
#7 Affiliate Marketing and Advertising
If you have a social media following or an engaged audience, you can make money through affiliate marketing and advertising. Whether it’s by endorsing products, using affiliate links, or promoting brands that align with your image, there are multiple ways to monetize your online presence.
#8 Session Work and Ghostwriting
Many producers and studios are always on the lookout for session musicians or ghostwriters. If you have the ability to record high-quality tracks or offer specialized skills, you can earn money working with other artists. Platforms like Fiverr are great for offering virtual session work, while websites like EDM Ghost Producer connect producers with ghostwriting opportunities.
#9 Enter Contests
Competing in music contests can offer cash prizes and exposure. While talent shows like American Idol may not be your goal, there are numerous contests for remixing, songwriting, and production. Websites like Indaba Music frequently host contests, offering prizes that range from $300 to $1,000 or more.
#10 Teaching Lessons or Tutorials
If you have a talent for teaching, offering music lessons can be a reliable income stream. You can do this in person by advertising locally, or online through platforms like YouTube or Fiverr. If you create virtual tutorials, keep in mind that monetizing YouTube videos might not generate significant revenue on its own, but they can serve as a marketing tool to attract more students or fans.
Conclusion: Diversifying Revenue Streams
This list is far from exhaustive—there are countless ways to make money in the music industry today. The most important takeaway is that diversifying your revenue streams is crucial. By relying on multiple sources of income, you give yourself a better chance of reaching your financial goals as a musician or producer.
If you have a following, you can monetize it in many ways. If you don’t yet have a following, focus on building one. Whether through licensing, merch, or teaching, the opportunities are endless, and with the right approach, there’s no limit to what you can achieve.
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