When I started learning the guitar, I met several artists and was fascinated by how diverse their activities were.
Since gigs are often unpredictable, independent artists, especially those starting out, can’t just rely on a single source of income.
In this sense, artists naturally adopt an entrepreneurial mindset, much like business owners who understand that depending on revenue from a single client is a risky strategy.
This got me thinking about how important it is to diversify income sources. In this article, I’ll explore 5 ways you can build multiple income streams to support your music career.
Table of contents
Live performances
The most obvious, traditional, and often the largest source of income for artists comes from live gigs, ranging from intimate café sets to sold-out arenas.
However, breaking into the live gig scene can be challenging if you’re not a known name. In the beginning, you will probably start playing gigs that do not pay much, if anything.
You’ll also need to learn how to engage your audience effectively, perfect the art of stage presence, and develop your style and appearance — it’s a show business, after all.
Here are some avenues you can explore:
Music venues
This is a common route for established artists. Performing at music venues, festivals, clubs, or restaurants can be a significant source of income through ticket sales.
Private events
An easier starting point for independent artists is to play at weddings, corporate events, and parties, usually for a flat fee. For example, I know a guy who organises free home concerts in his apartment with an option to donate. Neighbours seem not to mind.
Live streams
Another option for live performances is to use online platforms with virtual tipping. Twitch, for instance, isn’t just for gaming — you can set up a channel to connect with a global audience, monetising through subscriptions and donations.
Street performance
Often underrated, busking can be a good way to practice, gain visibility, and supplement your income with tips. You can also film and share your performances on social media, which could earn additional money (and fame points). Here’s a great example.
Once you establish your brand and build a loyal audience, live shows can be a significant source of income. They can also serve as a foundation for building other revenue streams.
Songwriting and recording
If you write music and record songs, you can license them to earn royalties.
There are two components of music through which royalties are generated:
- Composition: royalties from your musical compositions (melody, lyrics).
- Master recording: royalties from the recorded versions of your compositions, which you earn by licensing your music as a performing artist.
Royalties can be complex and vary by country, but broadly speaking, there are three main types of royalties a song can generate:
Mechanical royalties are earned when your music is reproduced, physically or digitally. For instance, you receive royalties each time your song is streamed on platforms like Spotify, Apple Music, and Amazon Music or digitally purchased, for example, on iTunes.
Performance royalties are generated whenever your music is played publicly, such as on the radio or live venues. Performance Rights Organisations (PROs) collect these royalties on your behalf from broadcasters and venues and then distribute them directly to you, the rights holder.
Synchronisation royalties (sync deals) are earned when you allow your song to be synchronised with visual media, such as films, TV shows, or commercials. Typically, the media company will pay you a flat fee for this.
Merchandising
What fan wouldn’t want a tee or a hoodie?
People frequently buy merch as souvenirs or collectables to support their favourite artist or to show their association with a particular music group or style.
Once you’ve established a fan base, merchandising can become a significant source of income because you’ll sell directly to fans at high margins. Sales volumes aren’t directly tied to your time, so you can combine this revenue stream with your ongoing music career.
Initially, you’ll likely need to fund merchandise production out of pocket, making it crucial to choose products that resonate with your audience.
When ordering merch from manufacturers, you have two main options:
- Print-on-demand (dropshipping): with this model, items are made as orders come in and are sent directly to customers. This method minimises the risk associated with holding inventory.
- Bulk manufacturing: this approach involves producing merchandise in large quantities upfront. You can then sell these items at shows or online. It might be more practical to consider this option later on, as initially, estimating demand can be tricky.
Setting up an online store might bring extra costs, like platform fees and managing legal and accounting aspects. However, many eCommerce platforms, like Shopify, can simplify the process. You’ll need to put in the time and effort at the start, but it becomes much easier to handle once you’re all set up.
Teaching music
You can teach what you know by offering private lessons, both online and offline.
Depending on your skills, teaching opportunities include singing, songwriting, instrument playing, music theory, recording, and production.
Rates are usually set by the hour or per lesson.
Online platforms such as Preply allow teaching and connecting with students globally. For in-person sessions, you’ll probably need to rent a studio, although many artists successfully offer lessons from their homes.
On top of that, organising workshops can be a great way to offer a group learning experience and reach more students at once.
Again, you can leverage social media to promote your lessons, for example, by sharing tutorials and song covers. You might even create and sell online courses on sites like Skillshare as you build more content.
Repairing instruments
As a musician, you’ve probably learned a lot about equipment and how often it requires maintenance or repairs — from restringing guitars to customising studio setups.
Perhaps not the most common source of income among artists, but if you have the technical skills and interest, you can venture into repairing, upgrading, and customising music gear.
You could also make some extra cash by buying damaged gear from other artists, repairing it, and reselling it.
You’ll have to set up a workshop and invest in the right tools, but being well-connected in the music scene can help you find your first clients — whether they’re other musicians or students from your private lessons.
Over time, this could evolve into a serious musical instrument repair business.
And as a bonus, you’ll have the skills to fix your own gear.
Final thoughts
I hope this overview has served as an inspiration, but the possibilities for earning and diversifying your income don’t stop here.
There are many other ways, including producing stock music, becoming a session musician, partnering with brands, and ghost production, among others.
If there’s a specific area you’re curious about, feel free to share it with me, and I’ll aim to cover it in future posts.
