If you decide to make music on your own, the entire process can be confusing. First, do independent musicians make any money?

Is it better to sign to a label, or is going independent the best idea?

These may be some of the questions you have regarding this industry, as well as what could be holding you back from diving into it.

Luckily, we’ve done some digging and have the answer for you!

Update 10/12/23: This article has been refreshed with new information regarding independent artist salaries and tips for expanding your income streams as an unsigned musician.

How Much Money Do Independent Artists Make?

Most independent artists make around $5,750 per year. However, the median salary for an indie musician/creator falls closer to $12,860 annually, which is more of a bump than the first figure.

The issue with this data is: every musician is different.

For instance, you may be raking in millions of streams monthly, meaning you make far beyond five or even ten thousand each year.

The more hype and following you build, the more money you can expect to make on royalties, merch, and even touring.

Expanding your income avenues is critical because those with one or two won’t make anything close to what musicians with 4-5 income streams are pocketing.

Most times, independent musicians have to rely more on touring and merch to stay afloat. Since royalties account for essentially nothing for smaller artists, you need to get creative with your streams of income.

For example, most indie artists choose to take on brand deals, licensing deals, collaborations, and even sign with management for touring.

The key here is getting your name, face, and music to as many people as possible, whether on your own or through a company/team.

It’s also a good idea to keep your income expectations low for the first couple of years so you aren’t disappointed when your 1099 form comes in from your distributor.

Related: Are Musicians Considered Independent Contractors?

How Do Independent Artists Get Rich?

If the above section made you depressed, pick your chin up! Luckily, there are endless ways to make extra cash as an independent musician, which we’ll share below.

According to Bryan Boliver Music, one of the BEST ways to get rich as an indie artist is to write songs for other people. If you’ve ever heard the term “ghostwriter,” that’s what this mainly falls under.

You write a hit track, and a more prominent artist picks it up.

Of course, you might get your name added to the official production list, although this only happens sometimes.

At the end of the day, you know that song became a hit because of your efforts.

Regardless, making royalties behind the scenes is incredibly lucrative.

That said, you want to ensure you get enough percentage of each sale/stream to make giving up your potential hit to a random pool of artists worth it.

Billboard explains how even collaborative songwriters (more than one of you) can take anywhere from a few thousand to six figures for their contribution to someone else’s song.

Related: How Do Billboard Charts Work? [The Hot 100 Explained]

So, you don’t need to release your own songs to become mega-wealthy and successful.

The same applies to producing for other artists, big or small, which is yet another way to increase your annual salary as a musician.

Why Touring Might Also Be Worth It For Independent Musicians

Another route for increasing your annual salary as an independent artist is touring.

Because of how many fans you can get to buy tickets and merch at your shows, this can quickly outweigh streaming royalties.

As of 2023, musicians make between $11,000 to well over $100,000 each year they embark on a tour.

Of course, some people will be on the lower end of the spectrum, pocketing a few thousand for a small-scale tour, while others will exceed six figures without batting an eye.

Tours (domestic or global) are the best to make quick cash as a performer.

For one, you’re making most, if not all, of the money as an indie musician, or at least 75% with a manager and staff.

We cannot stress this enough: GO ON TOUR.

Going on tour for a few months of the year is not only super fun but could also get you out of financial hardship and expand your influence over the music world.

There are powers in numbers, and a tour is proof of that sentiment. Yes, it’s scary to do something SO big: but we know you’ll thank us when all is said and done.

Related: How Many Songs Do Demos Have? [+ Tips For Sending One]

How Do Indie Artists Get Paid?

Now that you know how to make money as an independent artist, how/when do you get paid? Well, depending on your distributor, this timeline may vary.

In general, indie artists have monthly royalty payouts from the distributor they release their music through.

For example, if you use DistroKid, you might wait three or so months for your first royalty payout and then monthly from there.

The same goes for CD Baby and TuneCore, which follow a similar payout schedule and practice.

There are many hidden secrets in the streaming world, with one being most services only send distributors 70%-ish of the total streaming revenue.

With that said, you need to get hundreds of thousands of streams from Spotify, Apple Music, YouTube, etc., for these payouts to make a difference.

Related: Which Music Distributor Is Better: DistroKid Or TuneCore?

Even then, streaming royalties should never be your bread and butter.

Most streaming services pay you around $0.0033 per stream.

Yes, that sounds horrifying, and we think it’s unfair. However, Spotify and the other big services still have to pay their shareholders and themselves, hence why your cut is so tiny.

One thing to remember as an indie musician is the difference between the various streaming services and how much they pay per stream.

Apple Music pays you closer to one cent per stream, which is much better than a third of a penny (Spotify, we’re giving you the death stare).

Again, this is the nitty-gritty of the business, which won’t be a problem if you wrote a hit for someone else and get to keep cashing that one in each month or two.

Related: Do Audio Engineers Get Royalties? [& How To Become One]

Is It Worth It To Be An Independent Musician In 2023?

Yes! Even if you aren’t making millions a year as an independent music artist, that doesn’t mean it can’t or won’t happen.

Many people in and out of the industry see 2023 as a massive year for indie and small artists and predict larger opportunities than ever before.

One reason behind this is that social media platforms like TikTok give indie musicians an opportunity of a lifetime: endless reach.

Some major labels can’t even get their signed artists on people’s ‘For You‘ pages and feeds, so that’s exciting news for the little guy (or gal).

As long as you keep your content fun and engaging, we don’t see why you can’t take over the internet overnight.

The main thing here is to remember to stay 100% genuine.

Even though it might be easy to hop on a trend with your sound or image, in the end, people will respond better to musicians who keep it real.

Just be yourself, make great stuff, and don’t be afraid to post it online. We think you’ve got this and don’t need a major label to make you a star.

Let’s empower all the independent musicians around us!

And while we have your attention:

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LANDR vs eMastered: Which Is Better? [Pricing, Features, Reviews]

Who Is The Highest Paid Independent Artist? [Inc. 15+ Indie Musicians You Should Stream]