How do artists get paid on Spotify?
Streaming services like Spotify have created a new avenue for artists to be heard, to grow a fanbase, and in some cases amount real fame and fortune without radio support. If you’re an artist starting out in your music career, Spotify is a serious platform on which you can build your career. We’re here to answer the key questions many people ask when they’re starting out: How do artists get paid on Spotify? Will I get paid per stream? How much will I get paid?
As you will discover, there is more than one way to make money on Spotify. That changed this year (2020) when Spotify seemed to recognise that creative industries such as the music industry were under economic threat. It provided fans with another way to support independent artists, their crews, and the causes they most care about. Read on to find out more.
How artists get paid on Spotify
The short answer is via your music distributor. Spotify does not pay artists directly.
A music distributor will upload your music to Spotify and other major streaming platforms (Apple Music, Deezer, TIDAL, etc) either for an annual fee or for a cut of your royalties. Here are three main music distributors for you to research:
We use Distrokid. They charge just $19.99 a year for unlimited uploads, and you keep 100% of your royalties. An incredible price if you’re planning on producing a large volume of records over the year. For DJs and producers, it’s practically a steal.
Tunecore is considerable more expensive: $29.99 per year per album for the first year. This rises to $49.99 for subsequent years. Like Distrokid, you get to keep all your earnings.
CD Baby’s model is a little different. Their standard pricing is $9.95 per single or $29 per album and take a very small commission.
EXCLUSIVE DEAL: Click here to get 7% off your first year with Distrokid
Once you’re signed up with a music distributor they’ll receive your earnings. But you need to be patient. It can take Spotify up to 90 days to report your earnings to your distributor, and you’ll have to wait until the end of the quarter to receive money from your distributor.
Do artists get paid per stream?
We’ll keep this short and sweet: Yes. Every time someone listens to one of your tracks for at least 30 seconds, Spotify will add your royalty to your total.
How much does Spotify pay per stream?
As of 2020 Spotify pays out between $0.003 and $0.005 per stream. If you’re with a distributor that takes a commission, take into account that you’ll receive a little less.
It might seem like a small amount, but there are still many reasons why overall music streaming is good news for independent artists.
Your music will be exposed to millions of listeners.
Given that Spotify offers free accounts there is practically no barrier for people to discover your music.
You’re far more in control of your work and career than if you were to sign on with a record label.
It’s down to you to promote your work and grow your fanbase. Once you have traction, streaming exponentially becomes far more profitable.
How to get donations from Spotify fans
This year, in response to the COVID 19 pandemic, Spotify rolled out a new feature that allows fans to, in effect, crowdfund their favourite Spotify artists.
Recognising that listeners want to financially support independent artists, Spotify created the “Artist’s Fundraising Pick.” Primarily, it’s to allow artists to support themselves and their crews. Spotify receives none of the money raised this way.
Fans can make donations through the Spotify app on their phones.
If you already have a Spotify Artist account, find out how to set up the Artist’s Fundraising Pick feature by watching this video showing the step by step process.
WATCH: How to get sponsor links on Spotify
We hope this article helps answer your burning questions about artist payment on Spotify.