How to Make Money from Spotify

How to Make Money from Spotify

A few years ago, when the Internet age was introduced, piracy ruled the digital waves. Music lovers got to know that they can download everything for FREE. Sales of the recorded music declined and every musician started seeing the doom. Fortunately, those days no longer exist.

But the path to the successful business model that works for music producers, recording artists, and Internet companies is still full of rocks.

Spotify is one big name in Internet music delivery.

Launched in October 2008, Spotify is a Swedish-based audio streaming and media services provider. As of September 2020, Spotify has a global presence in 92 countries and territories with 320 million monthly active users and 144 million Premium Subscribers.

But, how to make money from Spotify simply by uploading music online? Well, the following article is the answer.

In the United States alone, on an average people listen to music 32 hours per week, this means that the market is big enough for artists irrespective of the genre. On the other hand, Spotify is both – advertising-supported and subscription-based. Hence, just like Youtubers, Spotify artists can make money from Spotify through advertising.

How to Make Money with Spotify?

The artists can expect to earn from $0.006 to $0.0084 per stream depending on the music rights you hold. So, all-in-all, per 1000 stream you can generate roughly $4.37. This is a general idea of how to make money on Spotify. However, just for knowledge, YouTube gives out $0.00069 per view.

How Do Artists Make Money from Spotify?

  • Recording and Writing Music – For a music listener, a song is a song. But for the music industry, a song is divided into two categories – composition and sound recording. Sound recording copyrights are owned by the artists and the record labels.

Sound recording licenses that generate royalties are divided into three categories – performance rights, reproduction rights, and sync rights. But, most of the time, whenever someone listens to a song and both types of copyright comes in thus generating two sets of royalties which are paid to the respective parties.

  • Advertise- In the present day, musicians don’t like partner shipping with big corporate giants to promote their music. The brand partnership is the first step where artists can sponsor a brand they genuinely like. Another way to earn money is from YouTube.

Here, in the YouTube videos, you have a share in the profit from the ads that come within the video or at the starting of the video. Also, in the United States, YouTube’s payout rate is somewhere $3 per 1000 streams which is high amongst all.

  • Merchandising, Fashion and Other Selling – Sell out non-music products. This is an easy strategy that is popular amongst artists for ages. Crowdfunding and creating custom channels to communicate with fans is another way of how artists make money from Spotify.

You can also release your dedicated app or subscription package for your music. Email subscriptions, limited music releases, artists curated festivals are another way round to make some money.

How to Monetize Playlists on Spotify

Following are the ways to make money from a Spotify playlist. Some of the popular playlists make an average person generate enough income so that they can pay their bills.

  • Paid Placements – Major record labels tend to pay tens and thousands of dollars just to add their artists’ songs in the playlists. This is known as paid placements. The amount of money you will earn back from the 0playlist completely depends on the size and quality of the playlist.
  • Paid Song Reviews – Second way to make money from Spotify playlist is to get associated with one of the commercial services. They act as a middleman and help connect the owners and artists. When you review a song being the owner of the playlist, you are paid a small amount.

Major Obstacles to Successful Monetization of Playlist

Most genres have hundreds and thousands of playlist created by artists, listeners and record labels. This easily makes your list mixed up. The standard way to do the search is by inserting the keyword, then filtering and sorting the results. But this is time-consuming for it has to be done manually.

The second major obstacle is looking for you – the owner of the playlist. This is because Spotify never provides the contact information of the playlist owners. This means even if your playlist is discoverable and people like it, in no way they can communicate with you.

How to Make Money on Spotify Podcasts

  • AFFILIATE MARKETING – Affiliate marketing is the one where you get a commission when you refer people to another playlist. Typically, you will earn money when someone subscribes to the playlist. Affiliate marketing is highly suitable when you promote the playlist you are passionate about or you have already subscribed.
  • SPONSORS & ADVERTISING – When looking for how to monetize podcasts on Spotify sponsorship and advertising should not be missed. There are so many podcast ad networks that connect you with advertisers. But, you need to have a large audience base of about 5K or 10K listeners per month. You can also directly reach out to companies.
  • COACHING & CONSULTING – Coaching and consulting is very much similar to the offering. Here, you don’t work for them; instead guide them with suitable strategies to attain their goals. It is not that consultants are there only in the fitness and diet industry, even the music industry has consultants.
  • CROWDFUNDING & DONATIONS – To support yourself as well as your podcasts, you can also directly ask for contributions in the form of donation. More and more entertainment-based podcasts are a good fit to monetize. Does Spotify pay podcasters? It completely depends on the amount of money people support you with.
  • PUBLIC SPEAKING – Many podcasters are approached to speak and sing in the public. It is a good approach. If someone likes what you had spoken on your podcast and they think that you are a perfect fit to entertain their audience and live events – provided you are getting paid. The fee can range from a few hundred dollars to 6 figures.


Simply learning on how to make money from Spotify won’t fulfill the purpose. For successful earning, implement the suitable steps in your Spotify account.

Undoubtedly, Spotify is one of its kind music platforms that provide users with ample amounts of golden opportunities to earn money. The present-day belongs to diversified income to lead a quality life. Such type of income protects both – you and your business.

The platform already has a large number of users and will continue to reign in the online music platforms. Opportunities have no end; they continue to grow with time. It is us who need to take the first step to attain the goal. Try to work dedicatedly and diligently, and in the end, you will earn a handsome living.

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