Spotify: How to make money on Spotify

HOW TO MAKE MONEY ON SPOTIFY

Every musician, solo artist, and band asks how they can make money on Spotify.  If you want to know how to make money on Spotify, you must understand that you have been incorrectly informed about the state of the music industry and allegedly horrible returns available on streaming services in this new music industry.  I’m going to start with correcting the misinformation regarding making money on Spotify, since Spotify pays a larger royalty than most other online streaming services.  This is good.  What’s better is that all of these streaming services are connected now.  When you go for distribution with a company like CDbaby.com or Tunecore.com, you automatically get ingested into all the major streaming services at once.

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Let’s get back to Spotify because they pay higher.  Regarding misinformation out there that tells you that you can’t make money in the music industry anymore, nothing can be further from the truth.  You are getting this misinformation from major superstars who are not telling you the whole story because they don’t understand how the system works anyway.  You are at a huge advantage as an independent band or Solo Artist now.  You have the most advantage if you are a Solo Artist or Singer/Songwriter who makes your own music.

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The major artists signed to mega-labels don’t take into account that their record labels are taking the largest percentage of their earnings from every stream that takes place.  The record label wants the most profit.  But the misinformation gets worse.  The artists don’t tell you that they are one in only 5 or more songwriters who are also getting their cut from writing their share of the song.  Furthermore, every instrumentalist, background singer, producer, and engineer gets their cut.  If there are 5 songwriters involved, 5 instrumentalists involved, a producer, engineer, and label that is only interested in making their own profit (even if it means the artist earns nothing or is working towards paying back their advance if it hasn’t been recouped), this totals 13 entities in addition to the artist who will get paid per each stream of a single song.  An artist can get signed, not recoup on their advance because they’re not a priority artist with the label and they don’t sell.  They can be let go from the label owing the remaining balance on their advance and also be restricted under the previous contract from ever releasing future materials.  Does that sound like a nightmare?  It does to myself and all the other experts.

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If you want to know how to earn money on Spotify, you are best off as a solo artist or band with only one or more people owning the publishing.  You can have a song you wrote years ago that you’ve never distributed, enter it into Spotify, wait a year or more with little to no results, and then end up on one of Spotify’s best stations and suddenly be making $60,000 in a year on a single song, not to mention other songs of yours that start to get streamed as a result.  If you’re Solo, you’re making 100{904ac83d0f2af29eebb57dc7d57f270720e019a717053aa972713f6a9a731a9b} of the profit, less 9{904ac83d0f2af29eebb57dc7d57f270720e019a717053aa972713f6a9a731a9b} distribution fee.  There are countless stories of this happening for artists.  If you think of one of your songs as a single ten dollar bill, you invest it into the (metaphorical) Spotify stock market (I really mean the streaming service) and start to earn significant money over time.

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You need to understand how Spotify works so you can understand how to make money on Spotify.  Spotify operates through a unique streaming model.  It involves countless numbers of “individual stations” set up by fans or businesses who are active music fans and love to “share” songs from their own stations to other stations.  This multiplies your earnings.  But it can take some time.  The real brilliance of Spotify that benefits you, the artist, is that the company decided to allow die-hard music fans the opportunity to “get involved” by supporting the artists and songs they love by making their own stations and feeling like they too are involved in the process.  And they “are” involved in the process.  This is the KEY way concerning how to make money on Spotify.

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In conclusion, try to own 100{904ac83d0f2af29eebb57dc7d57f270720e019a717053aa972713f6a9a731a9b} of your publishing by writing the song entirely by yourself.  If you’re solo, make the music yourself.  The fewer involved in the creation and publishing rights involved in releasing a song, the more feasible money you can make.  Ideally, you will own 100{904ac83d0f2af29eebb57dc7d57f270720e019a717053aa972713f6a9a731a9b} of your song and its publishing.  Independent music artists can and do make far, far more than a signed star or megastar on one particular song; so get going!

More to come.

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Paul Spencer Alexander, (C)(P) – All Rights Reserved.

*Click here to learn how to get your music on Apple Music.