Spotify is one of the most popular music streaming services. It has millions of active users paying for the premium service. So, how to make money on Spotify? Let Life Gadgets Online help you find out the answer in this article.
1. How Much Does Spotify Pay Artists?
It depends, and this fluctuates based on the number of subscribers and the amount of music content uploaded. Remember that Spotify also distinguishes between Spotify Premium, Spotify Free, Spotify Family, and so on.
As reported by Digital Music News, Spotify pays $0.00437 per stream at this moment. Please note that only tracks that are played for at least thirty seconds count towards revenue. This means that a musician needs around 336,842 streams to earn $1,472 in revenue.
2. How Does Spotify Pay Artists?
Artists are not paid directly by Spotify for their streams. Payment is handled through the distributor, just as musicians use the service of a digital music distributor to publish their music on Spotify.
After the streams are completed, Spotify will transfer the revenue to your music distributor, which you can then view in the distributor’s dashboard and have transferred to your checking account or PayPal.
3. Can I Pay For Streams On Spotify?
You should never try to manipulate your streams in any way. It is considered a type of fraud and is punishable by jail time and large fines.
Numerous companies provide stream generation services for a fee. You pay them, and they stream your music using a computer program or a robot.
If you violate these rules, Spotify will notify your local fraud agencies, freeze your earnings, and most likely block you from accessing any future releases through the platform.
4. 8 Ways To Make Money From Spotify
Here are some common ways to make money from Spotify:
4.1. Performance Royalties
If you’re registered with a performing rights organization like ASCAP or BMI as both a songwriter and a publisher, you will get these royalties through them for any Spotify plays.
Check out CD Baby Pro if you haven’t already registered with a performing rights organization. Your songs will be registered with collection societies worldwide, and you can collect all of your publishing royalties.
4.2. Mechanical Royalties
Every time music you’ve written is streamed, streaming services like Spotify and Apple Music owe you a mechanical royalty.
Those mechanical royalties are not paid directly to independent songwriters with Spotify, but rather to the Harry Fox Agency in the United States. If you have a lot of Spotify plays, royalties can quickly add up and go unpaid unless you have a publishing administrator on your side.
4.3. The Regular ‘Ole Payment For The Stream
This is referred to as “master use royalty” or “artist royalty.” It is technically the payment for streaming your licensed sound recording.
It is the money you are paid by Spotify each time your music is streamed if you distribute your music through CD Baby. In the accounting section of your CD Baby member’s account, you will find a comprehensive report of streams and payments.
4.4. Earning As A Playlist Curator
Curating playlists on Spotify is a way for people to make money. However, this is only feasible if your playlist is extremely popular, with hundreds of thousands of streams. If your playlist is popular, adding a track by a new artist to it will result in more streams for that artist.
There’s another way for playlist curators to earn money. This is accomplished by creating their own playlists and receiving payment for each stream. Some websites and platforms compensate playlist curators for their songs’ number of times.
4.5. Earning On Spotify As An Artist
There are two main ways to make money on Spotify as an artist. The artist receives royalties from the master rights to the track, or the artist receives revenue from mechanical reproduction or performance rights.
The first is the one that performing artists receive for each stream. If you sing the song, the master royalties will go to the label for which you recorded it. The second one is a little trickier because you won’t get paid directly if you’re an independent songwriter or composer.
4.6. Submit Your Playlist To A Website Which Pays
You must now find websites that will pay you for each play of a song from your playlist. You can find websites that do this by doing a quick Google search. Before using such sites, you can read or watch YouTube reviews.
4.7. Sell Merch On Spotify
You most likely sell merch as an additional revenue stream. To sell your merchandise on Spotify, you must first sign up for MerchBar (a service allowing you to sell directly to fans).
Create a Merchbar account, add your inventory, then connect your Spotify for Artists profile. When fans view your Spotify profile, they will be able to see images of what you are selling and purchase directly through Merchbar.
4.8. Promote Your Concerts On Spotify
Promoting your concerts on Spotify is another way to earn money on the platform. Sign up for Songkick (a website where fans can find and purchase tickets to concerts in their area) if you want to add your concert dates to Spotify.
You will need to enter your tour dates and sync them with your Spotify profile after you’ve set up your Songkick account. Fans can learn about your upcoming show and even purchase tickets from there.
By reading the article from Life Gadgets Online, you can learn more about how to make money on Spotify. Remember that you cannot get rich quickly on Spotify. It takes perseverance, efficient and effective hard work, and, most importantly, the quality of the content, whether it’s music or a playlist.