If there’s one question that musicians ask us all the time, it’s:
“how do I start earning money from my music?”
The key for musicians today is to diversify their revenue streams. No musician makes their income strictly from one method anymore. For the most part, we each have our hands in several different pots.
This a huge topic of debate in the music industry and nobody has a clear answer. With the advent of streaming, people are buying CDs and downloads less and less. Spotify pays unsigned artists $0.001 per stream, so you’re not going to get rich through streaming, but if people can’t hear you on Spotify, soundcloud, YouTube etc.,
How are they going to know your music exists? (Besides here on Exposed Vocals! – Shameless plug)
The basic answer to ‘where does money come from’ is that money comes from people. People can listen to you for free, so in order to get them to pay to hear you, whether live or via your recordings, you have to offer them something of value, something they believe enhances their lives in some way. In marketing terms that is called your Unique Selling Point (USP). I can’t tell you what that is… before we go any further I suggest you think hard about identifying your USP. Maybe it’s that you write particularly strong melodies, or songs that resonate very strongly with a specific group, let’s say lone parents. Maybe you have an unusual musical skill, like playing the harp or being able to sing 5 octaves.
Basically, what do you have that makes your sound worth paying for?
With that in mind, let’s look at some income streams you may be able to tap into. Most people who earn a living from music, like me, have several concurrent streams of revenue, e.g. publishing, teaching and performing. At certain times one of these streams will do better than others and some are more dependable than others.
Live Performance
You know the adage, “Don’t put all your eggs in one basket“. Musicians just can’t afford to do that anymore. There are just so many baskets and each one has its benefits. Some baskets will be more important to you, and some will be more important during specific times in your career.
Starting with what is no doubt the most obvious one. Chances are that most of the revenue you generate from live shows will still come from people paying to see your performance. This can be from tickets sold in advance, paying the cover at the door, suggested donations, or even passing-the-hat.
Merch
Not everyone at your show will buy merch, but some definitely will. Take your merch table seriously. Put it in the line of vision and make it look appealing. Set up a sign with a price list and image of your band. Take your merch more seriously and others will too.
Cover Gigs
Some musicians really hate this type of show. I get it: you’re basically wallpaper. No one sees you. But they hear you and you get a few hundred bucks (hopefully) for a few hours of music. Cover gigs are such a great way to subsidize your other shows. If you’re going to play cover gigs, think of them as shows you have to do in order to play the shows you want to.
Private Events
Similar to cover gigs, private events tend to be well-paying. Subscribing to a service like GigSalad can bring in some great revenue from private event planners, corporations, couples who need wedding music, and so much more.
House concerts
These are the real deal. If you need a type of show that requires very little promo but gives a whole lot in return, you should be doing house concerts. Cultivate relationships with fans who already come to your shows. Eventually some will want to host you in their home and share you with their friends.
Busking
Some people hate the word busk. But if you’re strategic, busking can be your best friend and you can make some decent money in an afternoon. Busk in high traffic – outside a major sports event, outside the entrance of a major festival, in front of a grocery store, or a movie theater. Try busking before shows while you’re on tour to make a bit of extra cash and promote your show that night.
Bonus tip: Spend Money
Couldn’t help but end on this. It’s true what they say: it takes money to make money. Spend a few hundred dollars to print T-shirts for your merch table, get a membership to GigSalad, join NACA, ship posters to venues you are playing at, etc. Put a few dollars into everything you do so that it looks good. It will pay off.
