Merchandise vs. Streaming: How Musicians Can Make More Money

Let’s face it, we all want to know how to make some extra moo-lah off our beats. Is streaming the way to go, or should we be focusing on selling that drip? In AtVenu’s 2021 Year in Review, they dug deep and found that the average artist made a whopping 16 times more in Gross Merchandise Sales per show than in a year’s worth of streaming royalties. (Yep, you read that right – cough, cough – merch is where it’s at!)

Merch to Streams Ratio:

But hold on a minute, before you dismiss streaming altogether, let’s take a closer look. Did you know that selling just one band tee is equivalent to almost 9,000 streams on Spotify? Not too shabby!

Of course, if you’re in the top 0.17% of artists on Spotify, then maybe streaming is a viable source of revenue for you. But for the rest of us mere mortals, the numbers tell a different story. In 2020, less than 185,000 out of over 8 million artists on Spotify made over $1,000 in royalties, and only 14,000 made over $50,000.

That means only 2% of artists on Spotify made at least $1,000 in streaming royalties in 2020, and a mere 0.2% made over $50,000.

Ouch.

Merch Income Vs. Streaming Income:

In contrast, the average artist made over $10,000 per show in Gross Merchandise Sales last year, while the average artist on Spotify made a measly $625 in royalties in one year. (Can you say, “merchandise for the win”?)

Even small-cap artists who make $2.1K per show (or had 500 or fewer attendees at their show) made three times more per show than a year’s worth of streaming royalties based on the royalty distribution average. 

Not every artist makes the same per show, so AtVenu adjusted the ratios to reflect royalties based on venue size or audience outcomes:

You Could Be Losing Hundreds or Thousands Without Merch:

So, what does this mean for you or your band? If you want to earn a living off your music, you should definitely be thinking about ways to sell your merchandise. You could be missing out on hundreds if not thousands of dollars on potential royalties just by including merchandise in your sales funnel. And if you’re already selling merch, keep it up! It’s a great way to support your art and make some cash.

Of course, we’re not saying you should give up on streaming altogether. After all, it’s still a great way to get your music out there and reach new audiences. But if you’re looking for a more reliable source of revenue, you should definitely be focusing on your merch game.

So, the next time you want to support your favorite artist, don’t just stream their music – check out their merch, too! And as fellow musicians, let’s keep supporting each other and finding new ways to make a living doing what we love. 

What Now?

We want you to make money as much as you do! At Intercept Music, we put the artist first by providing high-quality and affordable tools to help you grow and promote your music! You don’t want to wait any longer than you already have to launch a merchandise line for your current or upcoming music project. Everything from your merch itself to managing your sales, Intercept Music offers Industry admired merchandise services to meet all of your creative and business needs! 

We build a fully operating online store with global product availability and shipping. There is no inventory to stock and there are no upfront inventory costs.

Our Merchandise Services Provide:

Up and Running Fast

Your store launches with an initial set of 6-8 custom-branded items from an extensive portfolio of product options.

Payments, Shipping, Tax:

Intercept Music manages your sales and shipping, collects payments, and collects and files all state sales taxes.

Product Design:

We can use your pre-existing logos and artwork or help you with new designs for your custom products.

Artist Biography + Links:

• Customizable: Control store’s appearance by editing details directly from the Intercept Music Dashboard.
• Profile Photo: Update the artist or band profile photo any time to keep things fresh.
• Social Media Links: Provide direct links to your artist’s social media pages and other sites of interest.

Promote Your Releases:

• Instant Access: New music is automatically added to your store so fans have instant access to your latest releases.
• Selectively Promote: Control which releases are promoted in your store. Display up to 16 releases of your choice.
• Smart Links: Links to major music services enable visitors to easily pre-save, play, download, or buy your music.

Custom Branded Merch

• Your Brand: Print-on-demand merch is designed around your brand, to reflect your unique style.
• Fresh Merch: We work with you to create an additional set of custom-branded merch with every new music release.
• Variety: Each product is available in a full range of sizes and a variety of colors or styles.

Let Us Help With Your Next Release!

If you need help planning a marketing campaign for your next release, our record label services & music industry connections can help! Joining our membership program will give you 20% off our record label marketing & promotion services if you join today!