Spotify is a well-known audio streaming service that both artists and listeners love. It is currently the most well-known music platform in the world, with 242 million users.
Despite its widespread use, many musicians are still unsure how to monetize their Spotify accounts.
Independent artists find it challenging to maintain their passion without adequate support and recognition. But remember that you have a right to compensation for your music, and you have a right to find a way to make money from it.
In this article, we are going to cover some tips and tricks on how to make money on Spotify.
Is Spotify a Money-Making Platform?
Yes! If your music is good enough to draw in listeners, you can earn money on Spotify. Of course, Spotify has policies that permit artists to make money from their work, just like any other music streaming service.
A pay-per-stream approach, for example, pays musicians every time their song is played. However, royalties is what everyone is aiming for. The platform distributes royalties to every relevant party who owns, records, and uploads a track.
Spotify handed over $7 billion in royalties to record companies and budding artists in 2021. Yes, royalties are a great way to make money from your music – but they aren’t the end all and be all.
Let’s take a look at how else you can make money from your music on Spotify.
How to Make Money on Spotify
When done properly, anyone can produce good outcomes and serious financial gain when it comes to their music on Spotify. So, pay close attention and see which of these techniques is going to make all the difference.
1. Share of Royalties
Because they cover all parties involved in creating a recording, royalties are Spotify’s preferred method of paying artists. For diverse stakeholders, there are three main forms of royalties. Along with paying the artist, Spotify compensates the lyricist and the label that distributes the music.
The various royalties that Spotify offers are listed below:
Royalties for Artists
The sum that Spotify directly pays the artist is known as “artist royalty” or “Master usage royalty.” If you’re an independent musician who uses a platform to distribute your music, Spotify will compensate you for each stream.
Spotify pays an average of $0.003 to $0.005 per stream. This payout is somewhat meager compared to other streaming services, and many musicians have expressed their disapproval of it.
Despite the criticism though, this sum has not been increased.
Mechanical Royalties
The creators of lyrics for a song released on Spotify receive mechanical royalties. Spotify doesn’t give these royalties to independent songwriters directly, unlike most streaming platforms.
They should be collecting the money, but they send it to a collection agency instead.
Performance Royalties
Artists that independently create their music and publish it receive these royalties. This can be seen as a combination of mechanical and artistic royalties. This is because the same person receives both royalties in this situation.
2. Playlists on Spotify
Who says the only way to earn money is to upload music to Spotify? Additionally, you can earn money by becoming a curator of a popular playlist.
The first step in this process is to create a playlist. Make sure it includes all the popular songs people want to listen to. Then, in order tomake sure that it does really well, you need to promote it beyond Spotify.
Once you’ve done this, you can create more playlists and repeat the same process. Also, you can charge musicians for the privilege of promoting their music once you establish your credibility as a curator. Alternatively, you can charge them for putting their songs on a playlist you’ve created.
3. Podcasts on Spotify
Spotify recently developed a podcast subscription service. Charging their listeners for access to premium content enables podcasters to make money.
So, if you’re passionate about podcasting, you can promote it on Spotify and earn money.
You need to be aware that creating and running a Spotify podcast isn’t as easy as it sounds. It takes persistence and hard work to draw in listeners and gain enough followers and plays to make money.
Therefore, before beginning a podcast, you should carefully consider whether it’s the right choice or not.
4. Earn Money by Increasing Music Streams
Increasing your Spotify streams is the easiest way to make money from them. Share your musicwith friends, promote them across platforms, and work to increase play counts.
Your artist royalties will increase, along with the number of streams you receive, bringing in more revenue.
However, this approach requires a lot of marketing on your part. Make the most of your social media networks and encourage your audiences beyond Spotify to listen to your tracks.
5. Sell merchandise on Spotify
Through a third-party software called “Merch Bar,” Spotify allows its artists to link their profiles with a store that sells products. This way, you can create merch associated with your music and sell it.
Here’s how to link your Shopify store to an artist profile directly:
- Step 1: Visit artists.spotify.com and “Log In” to your artist account.
- Step 2: Go to your profile page and select “Merch“.
- Step 3: Select “Login to Shopify.“
- Step 4: After logging in, enter the URL of your Shopify site and select “Link Shop.“
Of course, you’ll also need to change your online store’s settings to allow Spotify access to the products.
6. Promote Your Concerts on Spotify
If you have a decent-sized fan base on Spotify, make the most of it. Inform and invite your audience to your upcoming concert. You can even encourage people to turn up with the promise of a discount, or free tickets.
Let your audience know they can buy tickets online and provide the link in your profile. Using this strategy, you can attract more people to your concert and generate revenue from ticket sales.
Final Thoughts
At the end of the day, it’s easier than you think to make money from Spotify. Whatever path you choose to take, make sure that it’s viable, and it’s something that you can work hard at for a long time to come. Good luck!