42 Different Ways That Artists Can Earn Money

By Paul Resnikoff

Songwriter & Composer Revenue

1. Publisher advance
   Bulk payment to songwriter/composer as part of a publishing deal.
   Paid to: songwriter composer by publishing company.
   Rate: varies according to deal.
2. Mechanical Royalties
   Royalties generated through the licensed reproduction of recordings of your songs — either physical or digital.
   Paid to: songwriter/composer by publisher, label, Harry Fox, or digital aggregator like CD Baby. Rate: 9.1 cents per manufactured copy of song/composition.
3. Commissions
   Typically a request from an ensemble, presenter, orchestra or other entity for a composer to create an original work for them.
4. Public Performance (PRO) Royalties
   Revenue generated when your songs are played on radio, TV, in clubs and restaurants. Paid to songwriter/composer/publisher by ASCAP/BMI/SESAC.
5. Composing Original Works for Broadcast
   Typically a commercial request to compose an original jingle, soundtrack, score, or other musical work for a film, TV or cable show, or an ad agency.
6. Synch Licenses
   Typically involves licensing an existing work for use in a movie, documentary, TV, video games, internet, or a commercial. Paid to songwriters/composers either via publisher or record label, or via a direct licensing deal with the licensee (movie studio, ad agency, etc) if you are self-published..
7. Sheet Music Sales
   Revenue generated by the sale of songs/compositions as sheet music. Paid to songwriter/composer by publisher, or directly from purchasers if you are selling it on your website or at performances..
8. Ringtones Revenue
   Generated from licensing your songs/compositions for use as ringtones. Paid to songwriter/composer via your publisher, your label or Harry Fox..
9. ASCAPlus Awards Program
   Awarded by ASCAP to writer members of any genre whose performances are primarily in venues outside of broadcast media.
10. Publisher Settlement
    Payment from publishers to writers for litigation settlements.

Performer & Recording Artist Revenue

1. Salary as Member of Orchestra or Ensemble
   Income earned as a salaried member of an orchestra or ensemble.
2. Shows/Performance Fees
   Revenue generated from playing in a live setting (for non-salaried players).
3. Record Label Advance
   Paid to artist as part of signing a deal.
4. Record Label Support
   Money from label for recording or tour support.
5. Retail Sales
   Revenue generated from selling physical music in retail stores or via mailorder. Paid to artist/performer by your label, or digital aggregator like CD Baby.
6. Digital Sales
   Revenue generated from selling music digitally/online. Paid to artist/performer by your label, or digital aggregator like CD Baby or Tunecore.
7. Sales at Shows
   Revenue generated from selling recordings of music at shows/live performances. Paid to artist/performer directly by fans.
8. Interactive Service Payments
   Revenue generated when your music is streamed on on-demand services (Rhapsody, Spotify, Rdio). Paid to artist/performer by your label, or digital aggregator like CD Baby or Tunecore.
9. Digital Performance Royalties
   Revenue generated when your sound recordings are played on internet radio, Sirius XM, Pandora. Paid to performers by SoundExchange.
10. AARC Royalties
    Collected for digital recording of your songs, foreign private copying levies, and foreign record rental royalties, distributed to US artists by AARC.
11. Neighboring Rights Royalties
    Collected for the foreign performance of your recordings.
12. AFM/Secondary Markets Fund
    Paid to performers on recordings used in TV and other secondary uses.
13. AFM/Sound Recording Special Payments
    Paid to performers for the sales of recorded music.
14. AFTRA Contingent Scale
    Payments paid to performers when a recording hits certain sales plateaus.
15. Label Settlements
    Payments from labels to recording artists for litigation settlements (MP3.com, Limewire).

Session Musician Revenue

1. Session Musician/Sideman Fees for Studio Work
   Revenue paid to you for playing in a studio. Paid by label, producer or artist, depending on situation.
2. Session Musician/Sideman Fees for Live Work
   Revenue paid to you for playing in a live setting. Paid by label, producer or artist, depending on situation..
3. AFM/AFTRA Payments
   Payments from the AFM/AFTRA Intellectual Property Rights Distribution Fund, which distributes recording and performance royalties to non-featured artists.

Knowledge of Craft: Teaching & Producing

1. Music Teacher
   Revenue generated from teaching your musical craft.
2. Producer
   Money from producing another artists’ work in the studio or in a live setting.
3. Honoraria or Speakers Fees

Brand-Related Revenue

1. Merchandise Sales
   Revenue generated from selling branded merchandise (t-shirts, hoodies, posters, etc.). Paid to artist/performer by fans.
2. Fan Club
   Money directly from fans who are subscribing to your fan club
3. YouTube Partner Program
   Shared advertising revenue, paid to partners by YouTube
4. Ad Revenue
   Or other miscellaneous income from your website properties (click-thrus, commissions on Amazon sales, etc.)
5. Persona Licensing
   Payments from a brand that is licensing your name or likeness (video games, comic books, etc)
6. Product Endorsements
   Payments from a brand for you endorsing or using their product
7. Acting
   In television, movies, commercials

Fan, Corporate, & Foundation Funding

1. Fan Funding
   Money directly from fans to support an upcoming recording project or tour (Kickstarter, Pledge Music)
2. Sponsorship
   Corporate support for a tour, or for your band/ensemble
3. Grants
   From foundations, state or federal agencies

Other Sources of Revenue

1. Arts Administrator Money paid to you specifically for managing the administrative aspects of a group that you are a member of.