Spotify Review: Are Music Artists Really Making Money?

how do singers make money on spotify

 

You are welcome to my Spotify Review.

I am sure you are here thinking of making money with  Spotify. In this article, you will learn all about how a musician or any music artist for that matter can start making money with Spotify.

You are reading this either because you are into music, a musician, songwriter, song publisher or you are interested in Music.

The almighty question is how do you make money with Spotify?

Audio and video streaming has become a popular niche that has seen some businesses try to explore.

While some of these businesses have failed to live up to the standard, few have managed to create reputations for themselves as top players in the industry.

Among these top companies running music streaming business is a renowned firm, Spotify.

If what you’re looking for is a convenient avenue to access your favorite music, videos, and podcasts, then Spotify should be one of the tools that you should consider.

 

Spotify at a Glance


how to make money on spotifyName: Spotify
Founded: 23rd April 2006
Launched: 7th October 2008
Headquarters: Luxembourg
Founder(s): Daniel Ek, Martin Lorentzon
Industry: Streaming Media
Price: Free/Student Premium $5/ Non Student Premium $9.9
Owners: Daniel Ek, Martin Lorentzon
Rank: 50%
Recommended: Yes

 

Summary Review of Spotify


Spotify is about helping the musician makes money while they have their songs stream

But, can you make money on Spotify? Should you upload your music for streams? There are many ways to make money online, but most of our waste of time and resources.

Streaming your music on Spotify will make you extra money, but is it enough?

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What is Spotify?

 


Spotify was founded by Daniel Ek who formerly worked at Stardoll as well as his associate, Martin Lorentzon.

The streaming platform that would become very popular was developed in 2006 by a Spotify team in Stockholm, Sweden.

While the research and development department of the company is located in Sweden, the business side of the company is based in London, UK. Shopify is, however, headquartered in Luxembourg though it also has branch offices in at least 20 countries.

The Spotify platform was launched internationally in 2008 with the company forced to restrict the proliferation of free subscribers by only allowing the registration of free accounts through invitation.

The premium account was, however, made available to everyone.

Spotify’s main feature is its streaming service, which allows music artists and record labels to stream newly released songs for an audience to purchase.

The tool also allows users to listen to their favorite songs multiple times at any time of the day.

With the music business actively seeking ways to tackle the piracy of music content, Spotify offers the best solution yet for artists that want to reap the rewards of their labor.

Spotify is also quite beneficial to upcoming artists as well as podcast hosts as it gives them the opportunity to make money on their content without having attained worldwide popularity.

For music lovers, it allows them to create playlists of their favorite songs without any hassle so that they can listen to them anywhere they go.

Spotify can be used by anyone as long as you want to upload or consume audio and video content. You can also learn more about Spotify on Wikipedia

It isn’t restricted to any country through a few countries in Asia that do not sanction its use.

 

==>How To Pitch Your Music With An Independent Record Labels And Music Publishing Companies

 

What Does Spotify Sell or Promote?


Spotify solely deals with the streaming and delivery of audio and video content.

 

The Cost of Joining Spotify


Subscription to Spotify’s essential services is completely free though premium members require a small subscription fee to be able to enjoy the benefits of its premium services.

 

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Is Shopify Legit Or Scam?


Shopify is not a scam and it is very legit.

If you are a music artist, a record label, or a host of a podcast program, you really can’t make money from Shopify as the platform's primary objective is to optimize the process of consuming quality audio content.

If you belong to any of the listed categories, however, then the opportunity to earn lots of money abounds.

 

What is Good About Spotify?


  1. It allows music artists to stream their works in return for substantial remunerations
  2. It ensures that users can listen to their favorite songs in top quality formats anywhere they are
  3. It supports the creation of playlists and provides a social platform for the sharing of created playlists.

 

What are the Issues with Spotify?


  1.  Apart from its compensation arrangement with music content owners, the platform doesn’t offer any other viable way to earn money
  2. Its free package is pretty limited, and users most often end up subscribing to its premium package.

 

Who is Spotify for?


If you’re a music artist looking for an avenue to earn some money from your creative content, especially if you aren’t signed to a record deal, Spotify is the best option for you to get some exposure and of course make some money.

Spotify also compensates acclaimed artists via their record label. Spotify is also quite valuable to music lovers who want to be able to have easy access to their favorite songs at any time of the day.

 

Guides to Uploading Music On Spotify Playlist


If you’re an artist or you have a podcast, it is quite easy to make some money with Spotify. All you have to do is open an account on the streaming platform and upload your music for verification.

After the authenticity of your song has been confirmed, the content will be made available to the millions of Spotify users, and you will be able to make money through streaming sales.

How much money you make will be depended on the number of streaming your songs gets.

 

how much money do you make on spotify

 

How Do Artists Make Money on Spotify? 


Are you a musician and songwriter of original songs?   

You make more money when you have your music play on any platform such as streaming online, live music venue, radio, Apple Music, via Spotify or any sales of the Song in another country.

This is only made possible if only you distribute your music through CD Baby Pro Publishing Administration. You will be able to receive your music publishing royalty globally, all in one place.

It is the duty of CD Baby, to gather and collect all the music royalty you are owed globally in one place.

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It is crucial and essential you pass through CD Baby as a songwriter and musician for every of your music distribution.

But, how do you make money on Spotify? Below are four ways you can earn on Spotify:

1.) Payment Via Music Streaming

You get your song stream by millions of people online on Spotify, and for every streaming, you are paid roughly between $0.006 and $0.0084. This payment is referred to as “ Master Use Royalty or Artist Royalty.”

If you have registered through CD Baby and you get your Song (s) streamed, Spotify will pay you for every stream made by users on the Spotify platform.

2.) Payment For Mechanical Royalties

As a songwriter or a publisher, you are entitled to what is called a mechanical royalty. Whenever any of your compositions are stream, download, or copy.

Song streaming platforms such as Spotify and Apple Music own every songwriter these mechanical royalties.

In most cases, this is not paid to songwriters, except you have a publishing administrator such as the CD Baby Pro Publishing Administration.

3.) Payment For Performance Royalties

This is the amount paid to a songwriter or publisher when their music is played in a public place or media. 

It happens when a song is played, either live or recorded, either on radio, TV, or stream on the Internet.

The condition is that you must be a registered member of Performing Rights Organisation such as ASCAP (American Society of Composers, Authors, and Publishers), Global Music Rights, Pro Music Rights, BMI, and SESAC.

There is a publishing contract agreement between the songwriter, publisher, composer, and publishing company.  

The publishing company will monitor the usage of songs on any media or platform to collect a royalty for onward transfer to the songwriter and composer.

4.) Payment For Synchronization Royalty

Music is usually played in the background during the radio program, TV shows, Movies, or usage of songs during commercial or advertisement, Video games, YouTube, or Song plays on Web sites.

Songwriters and publishers of such songs get rewarded via Synchronization Royalty.

The condition remains that the songwriter and publisher must be a member of any Performing Rights Organisation such as BMI, ASCAP, and Global Music Rights.

 

How Much Money Do Artists Make on Spotify


Spotify will not pay you as much as when you get your music sold physically or via download; it is all about streaming music online. 

Spotify has been accused of not compensating musicians enough; they only pay royalties on the number of artists that are streamed in a proportion of total songs streamed.  

Spotify usually shares approximately 70% of its revenue to the right holders that will later pay the artist based on individual agreements.

According to the latest information, the artist will earn between $0.006 to $0.0084 per stream share to the holder of music right on the Spotify platform. Other information available even lowers the earning per pay to $0.00437.

The payment per stream varies from location to location. It all depends on the premium subscription of various areas and regions. The premium payment in the US is $9.9, the UK is $13.12, and while India is premium amount is $1.7.

In every one of the above markets, Spotify engages in a lot of ads to support its earnings. 

But you can put the average amount earned by artists on Spotify to $0.0032 per stream.

This is one of the least amounts paid out by other streaming services company as listed below:

  • Apple Music average rate of $0,0056
  • Google Play an average rate of $0,0055 
  • Deezer fell slightly lower to an average rate of $0.00436
  • YouTube pays an average rate of $0.00069 per stream

So, the common question in Quora about Spotify is this “what is Spotify rate pay for a million stream?” Spotify pays approximately between $0.00437 and $0.006 per stream. One million streams should earn a payout of between $6.000and $8,400.

The condition still applies; the audio tracks should be over 30 seconds in length of play, and the user must have done a stream of 30 seconds minimum of every track. 

 

How Spotify Makes Money


Spotify is a music subscription service that is monetized via premium subscription services and advertisements. Spotify has a global presence in over 80 countries and regions, with over 270 million active monthly users. 

Spotify Makes Money in two significant ways:

  • Premium Service

This is a music streaming service that is offered to both paying and non-paying members.

Paying members are called premium subscribers. They have unrestricted and unlimited offline and online access to the Spotify catalog of music with no ads.

 Spotify makes Money from various premium subscription plans.

  • Ads-Supported Service

Spotify has the option to display Ads in their platform, but this ad is only shown to non-premium subscribers. This is one-way Spotify makes Money on their platform. 

Non-Premium member subscription has limited online access to the Spotify music catalog. The interruptions of the Ads limit their streaming experience. 

Spotify earns its revenue from the Ads Supported Services that is created via the sales of video and audio display advertisement space from their streaming platform. 

Spotify posted €678m in earnings in 2019, while the gross profits were reported to be €101m. Spotify revenue had incremental of 25% in 2019 compared to that of 30% of 2018

 The company experienced a gross profit slow down to 4% in 2019 compared to the growth of 126% of 2018. 

 

How Spotify Pay Artist And Songwriters?


Spotify pays music artists, songwriters, and song publishers via Performing Rights Organisation such as

ASCAP. Spotify pays per every song streamed, i.e., Pay per stream; they pay through your label.

If you are an independent artist, you are expected to go through the Performing Rights Organisation.

The average payment per every song stream is a peg to be in the range of $0.006 and $0.0084, and this also depends on which country the streaming is done from.

 

Best Alternatives to Spotify?


Apple’s iTunes is perhaps the most significant competitor Spotify has. Its rate of $0.99 per download makes it very affordable for music lovers.

It, however, doesn’t cater to the needs of new artists and those that offer audio content that is not necessarily for music purposes.

You can also use Taxi Music to launch yourself to the world as a musician.

The Spotify competitors include the following:

  • Apple Music 
  • Google Play 
  • Deezer, and
  • YouTube 

 

Is Spotify Good or Bad for Artists


 So, Is Spotify bad business for artists? From many online complaints in some forums. Yes, Spotify is bad for artists. They are not earning enough from Spotify. 

In recent times, Spotify is even asking top labels and artists for Money for them to advertise their songs on their app just because they are pushing to increase their earnings. 

 

What is the Public Opinion on Spotify


Spotify is generally praised for providing another innovative avenue to consume audio content?

Content providers like artists and podcast hosts do believe, however, that their pay package should be improved if all users are to enjoy the benefits of the platform thoroughly.

 

Is Spotify Worth It?


What do you think of my Spotify Review? I believe you now know how to start making money with Spotify.

Spotify is an excellent medium for every songwriter, publishers and song artist to make money via various royalties.

Spotify is a legit streaming service that gives artists of all caliber the chance to make some money.

If you aren’t in the music business or do not have any audio content, then Spotify is not for you. Spotify is helping singer, songwriter, or a publisher makes money daily online.

Are you making money with Spotify before now? Can you validate my Spotify (spotify.com) Review?

What are you waiting for? Are you a singer, songwriter, or a publisher?

Do you have any questions or contributions? Kindly drop your thought in my comment area below. I will revert to you ASAP.

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19 thoughts on “Spotify Review: Are Music Artists Really Making Money?”

    • Dear Rick,

      Thanks for reading my article about Spotify (spotify.com) Review and how to make money with spotify.com.

      Thanks for taken your time to also drop a comment.

      I hope you will visit my page again.

      Regards

      John

  1. Spotify is definitely the real deal. I know of at least a bunch of musicians making money using this platform. It’s very easy to join and use and I think most musicians can make money with it really fast. Of course, not anyone with a song can be successful but most can because there’s a niche for pretty much anything nowadays.

    Reply
    • Dear Patrick,

      Are you into music or you are an artist? Thanks for reading my Spotify (spotify.com) Review; the article is based on how to make money with Spotify (spotify.com).

      Definitely, a lot of music artist are making good money online and with Spotify (spotify.com). And you can also achieve the same.

      It is important to leverage on the opportunity online to ensure you get paid through what you love doing best; which is music.

      John

      Regards

  2. Hi John
    I uploaded my music via spotify and am getting hits like mad.

    I can’t thank you enough. How else do you think I can make money as a music artist?

    Great work

    Reply
    • Dear Edwin,

      Thanks for reading my Spotify review. I am glad you came visiting my site.

      And I am so very happy that I can help with my content.

      To take care of your question on how to make money as a music artist.

      The good news is this, identifying your area where you can impact people, and that is via music. I am happy for you. Many people are yet to discover their callings.

      So, how do you start making money. You have identified your audience.

      But you can go deeper by drilling down to narrow your niche. There are various aspect of music that you can concentrate on.

      Many music artist are searching online on a daily basis asking one questions. What type of questions are they asking of? You can pick an area and start addressing to such area of needs.

      You can easily build your audience. You must help your audience sincerely before you can start to make money from them. Making money via yiur audience is the first thing you should learn to do.

      The questions are, how do you help your audience online?

      You will be shock how much money you will be making with time. Help , help and help first.

      Regards

      John.

  3. Nice information about Spotify, Jofa! Thanks for that. I’ve been streaming music on Spotify for some time but don’t understand how money can be made from this platform. Thanks once again for sharing this review, it’s detailed and informative. Will be back to read more reviews.

    Reply
  4. You say:

    The only condition is that you must be a registered member of Performing Rights Organisation such as ASCAP (American Society of Composers, Authors, and Publishers), Global Music Rights, Pro Music Rights, BMI and SESAC.

    Pro Music Rights were trying to scam Spotify by getting hundreds of tracks which were just two-minute long repeated loops made into albums with clickbait title. They are not a real PRO.

    Reply
  5. My husband and I have used the free version of Spotify for years. We have not used the paid version of Spotify. I had no idea that you can make money through podcasts with Spotify – I will have to send this article to my brother who does actually record podcasts regularly. Thanks for the insight!

    Reply
  6. Hi there,

    Thank you kindly for such an in depth article about Spotify and the ability to earn some money from music and pod casts. I never actually know that it is possible to do such a thing.

    Do you have any specific advice in regards to how to get started on spotify or specific equipment needed?

    Reply
    • Dear Derek, 

      Thank you for visiting my website. You don’t need any special requirement t9 sign up with the Spotify 

      Jus sign on and you can see how to upload your songs and start making money from the article. 

      Regards.  

      John

  7. Thanks for the info Jofa! Spotify could be a good way to earn some money. One of my cousins was looking at spotify a little while ago, I have sent this article to her! May take a few thousand plays before she makes anything but good to know it is possible!
    Thanks
    Dan

    Reply
  8. This was an interesting article! The funny part is that I am actually a Spotify customer and was using it within the last few hours while working on a website project at my office. Even being a customer, I had no idea that this was actually how the Spotify system worked, lol. I just knew that I like the flexibility in terms of content. Thanks for your informative article, now I understand a little bit more about what I have been paying for, lol.

    Reply
    • Hi Sherman, 

      I am happy that you visit my website and that you found help. Please come again.

      Regards 

      John

  9. Thanks for showing me how to make money with Spotify. Although I’m not a muscian, I know every people who are that could benefit from this.

    I wonder do you think setting up a YouTube channel plus putting your music on Spotify would increase the chance of you making money?

    Reply
    • Dear Michael, 

      YouTube is a great money making channel for anybody in any niche. It will indeed help and boost anyone to making money online. It is indeed a way to go. 

      Thank you for coming to my website. 

      Regards 

      John

  10. Wow, there is a lot of information here but, I think it’s necessary if someone is contemplating the use of this format.

    I have HEARD of Spotify but didn’t really understand what it was about. So thanks for making it clear for all of us.

    Too bad there isn’t some way for them to develop an affiliate program so others could make money promoting their favorite musicians.

    Thanks again for this informative review, John and all the best.

    Wayne

    Reply

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