How to Make Money with Music: A Comprehensive Guide for Musicians (2024)

Musicians and artisans have struggled to sell their art at a fair price since ever!

But, for the first time, the avenues for making money as a musician have expanded beyond traditional record deals.

From streaming royalties to live shows and merchandise sales, musicians now have various opportunities to monetize their craft. With the rise in digital music and online platforms, you can choose a stable music career.

Thus, if you’re curious about how to make money with music, this comprehensive blog is for you.

How to Make Money with Music?

How do music artists make money? You must have asked this question several times if you are an aspiring musician.

Here are 8 top platforms for artists wondering how to make money with music:

1. Streaming Royalties

Artists can earn royalties based on how often their music is listened to on streaming services like Spotify, Apple Music, and Amazon Music.

These platforms pay artists a portion of their income per stream, which can accumulate significant revenue over time, especially for popular artists with large fan bases. To maximize streaming royalties, artists should promote their music on these platforms, encourage fans to stream their songs, and consistently release new music to keep listeners engaged.

2. Play Live Shows & Gigs

Even in this digital era, live performances remain a staple income source for musicians.

Fans who want to have real interactions often choose to listen to their favorite performers live.

From local venues to large festivals, performing live shows and gigs provides direct income from ticket sales and offers opportunities to sell merchandise like t-shirts, CDs, and posters. Additionally, live performances allow artists to connect with their fans personally, build a loyal fan base, and attract potential new listeners.

To succeed in the live music scene, artists should focus on booking gigs at suitable venues, promoting their shows effectively, and delivering memorable performances that leave a lasting impression on their audience.

3. Music Publishing

Music publishing involves licensing your music for use in various media, such as films, TV shows, commercials, and video games.

Music publishers work to place songs in these different mediums and collect royalties on behalf of the songwriter and composer. Artists can earn significant income through music publishing, especially if their songs are featured in popular media or become part of a successful soundtrack. To take advantage of music publishing prospects, musicians should consider collaborating with a respected music publisher who can assist in promoting their work and achieving lucrative licensing deals.

4. Merchandise Sales

Once you build a loyal fan base, you can use this popularity to make money.

Selling merchandise such as t-shirts, hoodies, posters, and other branded items can be a profitable revenue stream for musicians. Music fans love supporting their favorite artists by purchasing merchandise at live shows, online stores, or merchandise partnerships with retailers.

To succeed in merchandise sales, artists should invest in high-quality merchandise that resonates with their fan base and design eye-catching merchandise that reflects their brand identity. There are other ways to market your products, such as through live performances, email newsletters, and social media.

5. Music Teaching

Offering aspiring musicians music tuition or seminars is a common way for artists to boost their income.

Whether teaching instrument lessons, songwriting classes, or music production workshops, music teaching can be a rewarding way to share knowledge and skills while earning money.

Artists can offer private or online music lessons, teach group classes at local music schools or community centers, or even create online courses and tutorials to reach a wider audience. To succeed in music teaching, artists should showcase their expertise, build a reputation as knowledgeable and reliable instructors, and market their teaching services effectively to attract students.

6. Brand Partnerships & Sponsorships

Collaborating with brands for endorsem*nts, sponsorships, or product placements can provide additional income streams for musicians, especially those with a strong online presence.

Brands are always looking for ways to connect with their target audience through music, and partnering with musicians can help them reach new customers and enhance their brand image.

Artists can collaborate with brands in various ways, such as endorsing products, featuring brands in music videos or social media posts, or performing at brand-sponsored events.

7. Crowdfunding & Membership Subscription Services

Platforms like Patreon, Kickstarter, and Indiegogo allow musicians to monetize their fan base by offering exclusive content and experiences in exchange for monthly subscriptions or one-time donations.

Crowdfunding campaigns can help artists fund new projects, produce albums, create music videos, or finance tours. At the same time, membership subscription services provide a steady income stream in exchange for premium content and perks.

To succeed in crowdfunding and membership subscription services, artists should engage with their fans, offer compelling rewards and incentives, and communicate the value of supporting their creative endeavors.

8. Writing for Music Libraries

Writing and licensing music for music libraries can generate passive income as your music is used in various projects like films, TV shows, commercials, and video games.

Music libraries, also known as production or stock music libraries, provide a catalog of pre-made music tracks that filmmakers, advertisers, and content creators can license for their projects. Artists can submit their music to music libraries and earn royalties whenever their songs are licensed.

To succeed in writing for music libraries, artists should focus on creating high-quality music that is versatile, licensable, and in demand for various media projects.

How To Start a Recording Studio?

Starting a recording studio can be exciting for music enthusiasts and entrepreneurs. Once your name is established among the top musicians and singers, you can expand and set up your music studio.

It requires careful planning, financial backing, and meticulous attention to detail. However, it requires careful planning, investment, and attention to detail.

If you are wondering how to start a recording studio, here are some steps for you:

1. Decide if the Business Is Right for You

Before starting your recording studio, you must determine whether this is the proper business for you. Consider your love of music, your technical talents in audio engineering, your ability to manage a business, and your desire to devote time and finances to establishing and operating a recording studio.

2. Register Recording Studio Name

Choose a name for your recording studio that reflects the soul of your company and will stick in the minds of potential customers. Check to see if the chosen name is available, and then register it with the relevant local government or business registration agency.

3. Apply for Recording Studio Business Licenses and Permits

Look into the specific licenses and permits required to open a recording studio in your area. These may include business licenses, zoning permissions, health and safety permits, and music licensing agreements. Consult with local authorities or a business attorney to ensure compliance with all legal requirements.

4. Open a Business Bank Account

Create a corporate bank account for your recording studio to keep your personal and business finances separate.

This will streamline financial management, tax reporting, and budgeting processes. Select a bank with account options that suit your needs and provides business banking services.

5. Get Business Insurance

Protect your recording studio against potential risks and liabilities by obtaining adequate business insurance coverage. Consider insurance policies covering property liability, general liability, equipment liability, and professional liability. Speak with an insurance agent who specializes in small businesses to evaluate your insurance needs and choose the appropriate policy.

6. Essential Software and Tools

Investing in essential software and tools is crucial for running a recording studio efficiently. Here are some key software and tools you’ll need:

• Digital Audio Workstation (DAW): When recording, editing, mixing, or mastering audio tracks, choose a trustworthy DAW application. Popular DAWs include Studio One, Logic Pro, Ableton Live, FL Studio, and Pro Tools.
• Audio Interfaces and Converters: Invest in high-quality audio interfaces and analog-to-digital converters to capture and process audio signals from microphones and instruments.
• Microphones and Headphones: Acquire a diverse collection of microphones suitable for recording vocals, instruments, and other sound sources. Invest in studio-quality headphones for monitoring and playback during recording sessions.
• Studio Monitors and Acoustic Treatment: Install studio monitors (speakers) with accurate frequency response and acoustic treatment to ensure an optimal listening environment for mixing and mastering. Acoustic treatment includes sound-absorbing panels, bass traps, and diffusers that diminish room reflections and resonance.
• Invoicing Software: If you want to make profits for your studio, you must manage your finances well. Manage your recording studio’s finances efficiently using invoicing software like Moon Invoice to create and send professional invoices to clients, track payments, and manage billing cycles. Look for invoicing software that offers customizable musician invoice templates, automated invoicing, payment reminders, and reporting features.

How Much Does it Cost to Start a Recording Studio Business?

The cost of starting a recording studio business varies significantly depending on location, size, equipment quality, and business model.

Here’s a comprehensive breakdown of the probable costs connected with opening a recording studio.

1. Studio Space

The cost of studio space can vary based on location, size, and amenities. Renting a commercial space in a prime location with suitable acoustic characteristics can be expensive. Converting an existing space into a studio may require renovation and soundproofing, adding to the overall cost.

2. Equipment

Investing in high-quality recording equipment is essential for delivering professional audio recording and production services. The equipment cost can vary based on brand, specifications, and quantity.

Here are some essential equipment’s estimated costs:

• Digital Audio Workstation (DAW): $200 – $600+
• Audio Interface: $100 – $1000+
• Microphones: $100 – $3000+
• Studio Monitors: $200 – $3000+
• Headphones: $50 – $500+
• Cables, Stands, and Accessories: $200 – $500+
• Acoustic Treatment: $500 – $2000+

3. Furniture and Fixtures

Furnishing the studio with desks, chairs, storage cabinets, and acoustic furniture adds to the startup costs. Additionally, installing lighting fixtures, wiring, and electrical outlets may require professional assistance.

4. Software and Plugins

Aside from the DAW, investing in additional software and plugins for recording, mixing, and mastering is necessary. Software and plugins can range in price from free to hundreds or even thousands of dollars per license.

5. Business Licenses and Permits

Obtaining essential business licenses and permits from local authorities costs money, which might vary based on the area and needs.

6. Marketing and Promotion

Allocating a budget for marketing and promotion is essential for attracting clients and establishing a presence in the industry. Costs may include website development, branding materials, advertising, and promotional campaigns.

7. Insurance

Purchasing business insurance to protect against liabilities, equipment damage, and other risks is crucial. The location, size, and kind of coverage all affect how much insurance costs.

8. Miscellaneous Expenses

Additional expenses may include utilities, internet service, professional fees (legal, accounting), and ongoing maintenance and upgrades.

How Much Should You Charge for Recording Studio Time?

Determining how much to charge for recording studio time depends on several factors. After figuring out how to make money from music or living room concert sessions, you need to make a plan.

Here’s a breakdown of considerations to help you determine an appropriate rate:

1. Studio Expenses

Calculate your studio’s operating expenses, including rent, utilities, equipment maintenance, insurance, software licenses, and other overhead costs. Divide these expenses by the monthly hours you expect to operate the studio to determine your baseline cost per hour.

2. Equipment Quality and Amenities

Consider the quality of your studio’s recording equipment, acoustics, and amenities. Studios with high-end equipment, acoustically treated rooms, and additional amenities like a lounge area or refreshments may justify higher rates.

3. Market Demand and Competition

Research the rates charged by other recording studios in your area and assess the demand for recording services. You can set higher rates if there is high demand and limited competition.

4. Experience and Expertise

Consider your experience, knowledge, and status in the sector. Studio heads that have a track record of successful projects may expect greater fees due to their perceived worth and experience.

5. Client Budgets and Project Scope

Consider the budgets of your target clients and the scope of their projects. Clients may have varying budgets and expectations for their recording projects, so be prepared to offer flexible pricing options based on the required services.

6. Specialized Services and Packages

Offering specialized services such as mixing, mastering, vocal coaching, or instrument rental may allow you to charge higher rates for additional services. Consider creating packages or bundled services to provide value to clients while maximizing your earnings.

7. Pricing Structure

Determine your pricing structure using characteristics such as hourly rates, half-day rates, full-day rates, or project-based pricing. Hourly rates are common for short recording sessions, while half-day or full-day rates may be more suitable for longer sessions or multiple projects.

8. Value-added Services

Consider offering value-added services such as free initial consultations, flexible booking options, discounts for repeat clients or promotional offers to attract and retain clients.

Final Words

When you decide to sell music online as a musician- it requires skill, dedication, and an entrepreneurial mindset.

By diversifying income streams and exploring opportunities beyond traditional music sales, musicians today can build sustainable careers in the music industry. Additionally, starting a recording studio business can provide a platform for aspiring artists while creating a fulfilling entrepreneurial venture.

After your firm is properly established, you will need to manage your funds. Tools like Moon Invoice will help you with this while you can concentrate on your artistic endeavors.

FAQs

Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.