You don’t need millions to be a successful creator. You do not require millions of funds or millions of consumers, clients, or admirers. You simply need thousands of loyal fans to make a life as a craftsperson, photographer, singer, designer, author, animator, app maker, entrepreneur, or innovator.
READ ALSO: Do Artists Need a Record Label?
So if you’re an independent artist trying to figure out how to make money from your music without a record label, where do you start? Creating different revenue streams for independent artists can be difficult at first, but here are a few ideas to get you started.
Streaming revenue for independent artists
Since the advent of social media networks, website platforms, and mobile devices, which increased global accessibility, the barriers to entry into the music business have been significantly reduced.
According to a recent Rolling Stone story, DIY or independent artists who do not rely on record labels will make more than $1 billion this year, with TuneCore collecting more than $500 million for their artists.
TuneCore paid out $86 million to its musicians in the first three months of 2019, “very close to an eyebrow-raising $1 million per day.”
Whatever your feelings about streaming services, it’s difficult to dispute that they were a much-needed breath of fresh air in an otherwise stagnant business.
Thanks to the rise of Spotify, YouTube, Pandora, Apple Music, and other streaming services, musicians and independent artists in particular have been able to take full advantage of the wide reaches of the internet.
Using distribution platforms such as TuneCore and CD Baby, independent artists are able to upload their music and collect 100 percent of publishing royalties due.
Direct to consumer business model
Nipsey Hussle, the late, brilliant rapper, was all about building a direct-to-consumer business strategy. Following the success of his Crenshaw campaign in 2013, in which Nipsey sold 1,000 physical copies of the mixtape in 24 hours, Nipsey’s #Proud2Pay movement was praised and followed by independent musicians all over the world.
Nipsey increased the stakes a year after releasing Crenshaw by releasing Mailbox Money for $1,000. Nipsey announced the project’s earnings thus far on Instagram after a month.
He earned $175,000 in January alone, including $60,000 from the sale of 60 physical copies, $15,000 from digital copies, $50,000 from iTunes, $50,000 from Spotify, and 250,000 free downloads via DatPiff.
You may not have the same devoted fans that Nipsey had when he released Crenshaw and Mailbox Money as an independent artist, but you can still apply his direct-to-consumer business model to build your own success.
Independent musicians can sell their music on platforms like Bandcamp, in addition to physical things like vinyl, t-shirts, tickets, and cassettes.
Bandcamp will then distribute 80-85% of the funds to artists on a daily basis, with the balance going to payment processing fees and the company’s revenue split, which is 10-15% on digital items and 10% on physical goods.
Touring & merchandise
Income from live performances can be limited at initially, but as you develop skill, you will be able to charge more for tickets and play more frequent events, resulting in increasing revenue. You’re not going to be on the radio or featured on any major playlists anytime soon, so focus on releasing quality music that connects with your audience, growing your fandom, and hitting the road to perform and sell stuff.
When it comes to merchandising, hoodies and hats are typically the most popular items that musicians offer on the road, but you may expand the selection to include items such as bottle openers, tote bags, posters, and much more.