Can you actually make money by uploading music on Spotify?
Technically yes!
Spotify, a streaming platform used by around 188 million premium subscribers in 2022, has opened up its direct monetization program. Millions of listeners flock to Spotify to enjoy music that is advertising-supported and subscription-based.
In the United States alone, people listened to an average of 25 hours per month in 2022, of which 44% use it on a daily bases, (including myself.) This data shows that the market is big enough for artists and podcasters of every genre. Just like Youtube, Spotify artists can earn a certain amount through advertising.
How much can you expect to make on Spotify?
Now let’s look at the numbers.
According to CNCB, artists can expect to earn between $0.006 to $0.0084 per stream to the holder of music rights. However, some of our research on Spotify puts that number even lower at $0.00437 per play, it ranges on average between $0.003 – $0.005 per stream in the US.
Why is the number so different for everyone?
Spotify has a pay-per-stream monetization method. This is mainly defined by the type of content you’re creating. A financial podcast with 5000 monthly streams would make more money than a rapper getting 10000 streams because of the higher value of the content in terms of keywords or what advertisers are willing to pay. This is also defined by your geography. A streamer in the US would make much more money than someone in India.
So let’s do some math here:
1000 streams would translate to roughly anywhere between $3 to $8.4 if we follow the worst and best scenarios. This was one of the lowest amounts paid by companies.
Of course, this is nowhere near as low as what YouTube gives content creators at $0.00069 per view. (However, these numbers are estimations, because a lot depends on context, niche, and how much advertisers are willing to bid.)
Once again, be aware that these numbers are estimates and there are multiple factors that affect the total number an artist receives per month.
The total number of streams is crucial, but the way Spotify decides how much you earn is based on the distribution of the net revenue given by from their Premium subscription fees and ads to rightsholders. After Spotify subtracts certain fees like taxes, billing, and commissions, an artist’s net revenue is determined.
This is why the total number you earn on Spotify can be seen as very low. For artists looking to accurately document and manage their earnings, tools like a reliable pay stub generator, can be invaluable for creating pay stubs that reflect their Spotify revenue.
How much do artists get paid on Spotify?
Spotify’s royalty payouts have had a lot of bad press from some major artists like Taylor Swift who pulled out some of her songs. However, streaming services can be lucrative (and seem fairer) when the artist owns the publishing and songwriting rights. Spotify pays out 70% of its revenues to rights holders.
If you self-release your music through a platform like CD Baby, you can retain a larger slice of the pie than if you sign the track to a label. Sometimes releasing with a label can be the best option due to their market reach and leverage with streaming sites. You’ll need to decide what is best for you.
However, Spotify’s payout might be insufficient if you are new or have a small channel. Therefore I would suggest artists, podcasters, and composers use software platforms like Buzzsprout which allows you to upload, host, and promote your content. They also offer a $20 Amazon Gift Card if you decide to sign up for their paid plans, which you can receive after the second paid invoice.
And of course, let’s not forget the biggest source of online entertainment explained, Youtube.
Lastly, one of the best ways to promote yourself, your brand, your band, or your podcast is by building your own website with your chosen domain name. This way, your audience, and internet browsers can find you and get to know more about you through your website. That is why I’d recommend using Bluehost, to start a website in about 15 minutes.
There are plenty of other platforms and ways to monetize your voice. But at the end of the day, it all comes down to marketing yourself, which is why it’s so important to have your own website. At the end of the day, whatever you do, do it with a passion! 🙂
How to get your music or podcast on Spotify’s playlist and generate revenue?
If you’re confident that your songs are well written, then you can start pitching your music to get featured on a Spotify playlist. The subscription is actually pretty simple:
- Firstly, get a verified profile on Spotify.
- Come up with a new, catchy melody that will stick in people’s heads and start uploading them or an attention-grabbing topic for a podcast. (I know, easier said than done)
- Use platforms like Tunecore or Buzzsprout to upload and edit your content.
- In order to grow your channel, try and send your tracks to other popular music blogs too. Not only is it more exposure if they like your content but you might also get in touch with more curators.
- Create a personal website to brand yourself. This way people can find you and get to know more about your work on multiple search engines like Google, Yahoo and Bing.
- Through your website, you can send emails to reach people, grow your fan mailing list, build your brand, or the name of your name as a musician so that people can find you on Google. This will probably turn out to be more fruitful than focusing on social media alone in the long run.
Conclusion
Spotify is the second biggest music streaming platform in the world after Apple Music. While Spotify’s payouts through ads are insufficient for most artists to make a living, it opens doors to a huge fanbase. Artists, music composers, and podcasters should focus on using Spotify as a platform for their content to be heard and enjoyed while making a little extra money.
At Times International, we have published new articles on how much you can make on different podcasting platforms for your content.
