In today’s music industry, streaming has become the dominant way fans consume music. Platforms like Spotify, Apple Music, and YouTube offer easy access to a global audience, but they come with a significant downside: streaming pays notoriously low royalties. For independent artists, this means that relying solely on streaming revenue is unsustainable.
So, how do successful artists thrive in an industry where streaming income alone won’t cut it? They diversify. In this post, we’ll explore various revenue streams that go beyond streaming, helping you maximize your earnings and build a sustainable music career.
1. Sync Licensing (Film, TV, Ads, and Video Games)
What is Sync Licensing? Sync licensing refers to the process of licensing your music for use in visual media, such as films, television shows, commercials, and video games. Whenever a song is "synced" to visual content, artists and composers are paid for the use of their music.
Why it’s Lucrative: Sync deals often include upfront payments, which can range from hundreds to thousands of dollars depending on the project’s budget and the song's exposure level. Additionally, artists collect performance royalties whenever the licensed content is aired, leading to ongoing income streams long after the initial placement.
Example: Artists like Billie Eilish have benefited from sync placements in major media projects. Her song “Bored” was used in Netflix’s hit series 13 Reasons Why, giving her substantial exposure and opening up additional revenue streams.
How to Get Started:
Music Libraries & Sync Agencies: Upload your tracks to music licensing platforms like Songtradr, Artlist, or Musicbed, which connect independent artists with film and TV producers.
Network with Music Supervisors: Attend industry events or reach out to music supervisors who work with film, TV, and ad production companies. Building relationships with key people in the sync world can increase your chances of landing a placement.
Tailor Your Music: If you’re serious about sync licensing, consider creating instrumental versions of your tracks or writing music specifically for sync purposes. Tracks that fit well with emotional or dramatic scenes, for example, tend to get picked more often.
Bonus Tip: You can increase your chances of landing sync deals by ensuring your music is easy to clear—meaning you own all the rights, including the publishing rights, and there are no third-party claims that could complicate the licensing process.
2. Merchandising
What is Merchandising? Merchandising involves selling physical products related to your brand, such as T-shirts, hats, vinyl records, posters, and other exclusive items. For artists, merchandise is more than just an additional income source—it's a way for fans to connect with their favorite musicians on a personal level.
Why it’s Lucrative: Selling merch provides immediate income and can often have higher profit margins than streaming. Fans are willing to spend more on tangible products they can show off, wear, or display. Artists who tour or perform live often use merchandise tables to significantly boost their income at each show.
Example: Artists like Tyler, The Creator have built entire fashion lines around their music. His clothing brand, Golf Wang, merges fashion with his music persona, allowing fans to buy into his world and aesthetic. This type of branding through merch can generate long-term income well beyond album sales.
How to Get Started:
Start with Simple Products: T-shirts, hoodies, and posters are a great entry point for merch. Platforms like Printful or Teespring allow you to create print-on-demand products, which means you don’t need to invest in inventory upfront.
Create Limited Editions: Offering limited-edition merch builds urgency and exclusivity, driving fans to purchase quickly before items run out. Vinyl and cassette tapes have also made a comeback as limited-edition collectibles.
Sell Online & On Tour: Use your website or platforms like Bandcamp to sell directly to fans. At live shows, set up a merch table with eye-catching displays to encourage impulse purchases.
Bonus Tip: Design matters! Collaborate with talented designers or illustrators to create unique, high-quality merchandise that resonates with your audience. The better the design, the more fans will want to purchase and wear it, further promoting your brand.
3. Crowdfunding and Fan Support Platforms
What is Crowdfunding?Crowdfunding allows artists to raise money directly from their fan base to support projects like recording albums, touring, or producing merchandise. Platforms like Patreon, Kickstarter, and Bandcamp empower musicians to create content with financial support from fans who believe in their work.
Why it’s Lucrative: Crowdfunding allows artists to fund their projects upfront without needing to go into debt or rely on traditional label deals. In return for their support, fans receive exclusive perks, early access, or personalized rewards, making them feel more connected to the artist’s journey.
Example: Amanda Palmer, an independent artist, raised over $1 million through Kickstarter to fund her album and tour. Her crowdfunding success is a testament to the power of direct fan support. Through platforms like Patreon, she continues to offer exclusive content to her fans in exchange for monthly contributions.
How to Get Started:
Choose a Platform: Depending on your goals, you might use Kickstarter for a one-time project or Patreon for ongoing monthly support. Both platforms allow you to offer rewards like early access to music, behind-the-scenes content, and personalized merch.
Offer Meaningful Rewards: Fans love to feel part of the creative process. Consider offering signed vinyl, private live-streamed concerts, or handwritten lyrics in exchange for their contributions.
Engage Regularly: Keep your supporters updated on your progress. The more transparent and engaging you are, the more likely fans will continue to support your projects in the future.
Bonus Tip: Make your rewards tiered and scalable, allowing fans to support you at different levels. For example, $5 per month could give access to exclusive content, while $100 might get them a one-on-one virtual meeting or a personalized song.
4. Live Performances & Touring
What are Live Performances? Performing live at concerts, festivals, or private events is one of the most traditional ways for musicians to earn a living. Touring, in particular, can be a significant source of income, especially when combined with merchandise sales.
Why it’s Lucrative: Live shows allow artists to sell tickets directly to their fans, and with additional revenue from merch tables, it becomes a major income source. Even smaller venues or house shows can be profitable, especially for independent artists with a loyal fan base.
Example: Beyoncé’s On The Run tour grossed over $250 million, showing how lucrative live performances can be. On a smaller scale, independent artists like indie musician Julien Baker rely heavily on touring for income, and their dedicated fan base ensures packed venues.
How to Get Started:
Play Locally First: Build a local following by performing in small venues, cafes, and clubs. Once you have a loyal fanbase, you can start booking larger shows and potentially go on tour.
Work with Booking Agents: As you grow, working with a booking agent can help you secure gigs in better venues or get on the roster of larger festivals.
Maximize Income with VIP Packages: Offer VIP packages that include meet-and-greets, exclusive merch, or signed albums to maximize revenue at each event.
Bonus Tip: Even if you're not ready for a big tour, performing at music festivals or live streaming your performances online can offer visibility and income. Platforms like Twitch, YouTube, and StageIt allow artists to perform live for a global audience and accept donations.
5. Music Production & Collaboration
What is Music Production? If you’re skilled in music production, offering services to other artists—whether as a producer, songwriter, or collaborator—can be a solid revenue stream. Producing for other artists allows you to monetize your expertise while building relationships within the industry.
Why it’s Lucrative: As a producer or songwriter, you can charge for studio time, beat-making, or co-writing sessions. If the song becomes successful, you’ll also earn royalties and additional fees, making it a long-term income source.
Example: Artists like Pharrell Williams and Max Martin have made substantial incomes by producing and writing for other artists, including some of the biggest pop hits. Even on a smaller scale, independent producers can earn good money by helping other artists shape their sound.
How to Get Started:
Build a Portfolio: Showcase your work online via platforms like SoundCloud, Instagram, or your website to attract potential clients.
Network with Artists: Connect with other artists, either locally or online, and offer your production services. Platforms like SoundBetter or Fiverr allow producers to list their services for hire.
Set Up Your Studio: Whether you have a home studio or rent time at a professional facility, ensure you have a comfortable, creative environment to work with clients.
Bonus Tip: Offer package deals that include mixing and mastering alongside production, giving you a competitive edge and allowing you to earn more per project.
6. Publishing Royalties
What are Publishing Royalties? Publishing royalties are payments made to songwriters and composers whenever their songs are performed publicly, broadcasted on radio or TV, or used in movies, commercials, and other media. These royalties are collected by Performing Rights Organizations (PROs) like ASCAP, BMI, or SESAC in the U.S.
Why it’s Lucrative: Publishing royalties can provide long-term income, as they are earned every time your song is played or performed publicly. If a song becomes a hit, you could be receiving royalty checks for years, even decades. In some cases, these royalties can surpass what an artist earns through streaming.
Example: A hit song like “Shape of You” by Ed Sheeran continues to generate publishing royalties every time it is played on radio stations, performed live, or used in commercials. For independent artists, even a well-placed song in a viral YouTube video or local commercial can generate a steady stream of royalties.
How to Get Started:
Register with a PRO: If you’re a songwriter or composer, register your songs with a Performing Rights Organization (PRO) such as ASCAP, BMI, or SESAC. These organizations will track the use of your music and ensure you’re paid for it.
Understand Mechanical and Performance Royalties: Mechanical royalties are paid for the reproduction of your music (e.g., on CDs or downloads), while performance royalties are paid when your song is publicly played (e.g., on radio, TV, or in a live venue).
Consider a Publishing Deal: If you’re serious about maximizing your royalties, signing with a music publisher can help. They’ll actively seek licensing opportunities for your music in exchange for a percentage of the royalties.
Bonus Tip: Explore international royalties as well. Your PRO will typically have reciprocal agreements with foreign organizations, so your songs can generate income across borders. It’s worth exploring global platforms that track your songs in international markets.
7. Digital Products & Courses
What are Digital Products? Digital products include downloadable content such as sample packs, loops, tutorials, or music production courses. For musicians, sharing your expertise in songwriting, production, or music business can create passive income streams that generate money long after you’ve created the product.
Why it’s Lucrative: Once created, digital products can be sold repeatedly without additional production costs. Whether you're offering music samples for other artists or in-depth production courses, these products allow you to earn revenue passively, making it a great way to build long-term income.
Example: Artists like Deadmau5 and Armin van Buuren have both offered online production masterclasses, charging premium fees for students eager to learn their techniques. Even smaller producers and beat makers sell sample packs and production tools that bring in steady income.
How to Get Started:
Create a Course or Product: Identify a niche area of expertise, whether it’s in music production, vocal techniques, or songwriting. You can create an online course using platforms like Teachable or Udemy, or sell products like sample packs on Splice or your own website.
Build an Email List: Start building a fanbase of musicians who are interested in learning from you. Send them valuable content regularly and pitch your digital products as a way to deepen their learning.
Offer Free Content First: By offering free tutorials or samples, you can attract a larger audience, then upsell premium content. This freemium model helps you build trust and demonstrate your expertise.
Bonus Tip: Bundle your digital products! For example, if you create a series of tutorials, offer a package deal that includes bonus content, exclusive access to Q&A sessions, or downloadable materials. This increases the perceived value and encourages larger purchases.
8. Brand Partnerships & Sponsorships
What are Brand Partnerships? Brand partnerships involve collaborating with companies to promote their products or services in exchange for compensation. These partnerships can take various forms, from featuring products in music videos to social media endorsements or live event sponsorships.
Why it’s Lucrative: Brands are always looking for influencers and musicians who align with their audience, making it a great way for artists to earn money through their platforms. In addition to cash payments, artists can receive free gear, tour sponsorships, or other perks that benefit their career.
Example: Artists like Travis Scott have made millions through partnerships with major brands like McDonald’s and Nike. Even smaller-scale musicians can land deals with local brands, musical equipment companies, or clothing lines that cater to their fanbase.
How to Get Started:
Identify Brands That Align With Your Image: Look for companies whose products fit your style, genre, or values. Whether it’s a fashion brand, beverage company, or tech startup, ensure the partnership feels authentic to your audience.
Build a Social Media Presence: Brands look for artists with engaged followers. Focus on growing your social media following and creating content that attracts potential sponsors.
Pitch Yourself: Don’t be afraid to reach out to brands directly. Create a proposal that highlights your value as an artist, your audience demographics, and how their brand would benefit from collaborating with you.
Bonus Tip: Once you land a partnership, maintain a strong relationship with the brand by delivering value. Overdeliver on your commitments and stay active in promoting the partnership. This could lead to more lucrative deals down the line.
Conclusion:
In the ever-evolving music industry, artists who diversify their revenue streams are better positioned to succeed financially. Whether through sync licensing, merchandise, live performances, or brand partnerships, there are numerous opportunities to generate income beyond streaming. The key is to think creatively, understand your audience, and take advantage of every potential income stream available to you.
By diversifying your approach, you can build a sustainable, long-term career that isn’t solely reliant on one source of income. Explore these options, and start expanding your revenue streams today.
Call to Action:
If you’re ready to take your music career to the next level, let us help! At BORN GENIUS, we offer services in mixing, mastering, music distribution, mentorship and more to ensure you maximize every revenue stream possible. Contact us today to learn more about how we can support your career.
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