10 Steps to Making Money in the Music Business

Short answer: To make money in music, protect your songs and recordings first, register them everywhere royalties are collected so the money can find you, then stack income around the music: streaming, YouTube, live shows, merch, sync licensing and brand deals. Do it in that order. Most artists do it backwards and leave money on the table.

It takes more than a good song, talent or a great recording to make money in the music business. After all, it's the music business. Quality music is by no means easy to write, perform or record, and you can't fake good music. But artists usually understand how to make great music better than they understand how to get paid for it.

I first wrote this guide in 2018, when I was managing partner at Chandler & Chandler Law Group in Atlanta. A lot has changed since then. Streaming is now about 82% of U.S. recorded-music revenue, Spotify won't pay recording royalties on tracks under 1,000 streams a year, and a collective called The MLC now pays songwriters billions in streaming royalties that used to go missing. The fundamentals haven't changed: protect it, register it, collect it, then grow it. This is the updated version, written from the side of the table where I see what artists miss.

1. Protect your work

You technically own a copyright the moment you write or record something and it's fixed in a tangible form, like a voice memo, a session file or a lyric sheet. Proving it is the hard part. A registration with the U.S. Copyright Office is the proof, and it's also an easier asset to license or sell.

Here's what most artists don't know: every released track has two copyrights. One is the song (the composition: melody and lyrics, owned by the writers and their publishers). The other is the recording (the master, owned by whoever paid for or made it, often you). They earn different royalties, collected by different organizations. That one idea explains most of this guide.

Why registration matters

• For U.S. works, you can't sue for infringement until the work is registered, or a registration has been refused.
• If you register within three months of release, or before someone infringes, you can ask a court for statutory damages of $750 to $30,000 per work, up to $150,000 if the infringement was willful, plus attorney's fees. Register late and those are off the table, which is often what makes a case worth bringing.

What it costs (2026)

Fees from the Copyright Office fee schedule, checked Oct 21, 2026.

More on protecting a catalog: copyright and royalties.

2. Set up the business

This step wasn't in my original list, and it should have been. Money flows to whoever's name is on the paperwork. If your music makes money, run it like a business from the first release.

• Form an LLC and open a separate bank account. It keeps your music income clean for taxes and separates your personal assets from business risk. See business formation for creators.
• Sign a split sheet every session. Before anyone leaves the studio, write down every writer, their percentage of the song, their PRO and IPI number, and their publisher, and have everyone sign. It takes five minutes. The fight it prevents can take years.
• Get producer and feature terms in writing: who owns the master, the producer's royalty ("points") and share of the song, credit, and what happens if the track takes off. If you're using a leased beat, read the lease. Many non-exclusive leases cap streams or bar Content ID.
• Bands need a band agreement: who owns the name, how money splits, and what happens when someone leaves.

3. Get your codes and credits right

Streaming services and collection societies pay by matching codes and names, not by listening. Bad metadata is one of the biggest reasons artists don't get paid. When The MLC launched, streaming services handed it $424 million in historical royalties that couldn't be matched to their owners.

• ISRC identifies a recording, like a barcode for each track and music video. Most distributors issue ISRCs free. If you want your own, the U.S. ISRC Agency charges a one-time $95 fee for a prefix.
• ISWC identifies a song. It's usually assigned when your PRO or publisher registers the composition.
• UPC identifies a release (single, EP or album). Your distributor provides it.
• IPI number: your ID as a writer, issued when you join a PRO. Put it on every split sheet.

Keep one spreadsheet of your catalog: title, writers and splits, ISRC, ISWC, UPC, release date and every registration. When a label, publisher or buyer asks what you own, you'll have the answer in minutes.

4. Register to collect every royalty

My original article told artists to partner with royalty collectors and to register with SoundExchange. That's still right. Today the map is clearer, and there's a new player. Here's where the money actually comes from.

If you write and record your own music, you're owed money from both columns. Every organization below collects something the others don't, and none of them collects for you automatically.

Some numbers that show why this matters. The MLC has now distributed more than $4.2 billion to songwriters and publishers, and the unclaimed balance starts going out by market share in April 2027. That means it goes to whoever is registered, not necessarily to whoever wrote the songs. SoundExchange has paid out more than $13 billion since 2003. Registration at The MLC and SoundExchange is free.

For extra reading on choosing a publishing partner, Jamie Purpora's 10 things to ask before choosing a publishing partner still holds up. The Future of Music Coalition's money-flow charts now live at Berklee Online. Remember this: no one will care as much about your music as you do.

5. Distribute and stream smart

A distributor (DistroKid, TuneCore, CD Baby, UnitedMasters, Amuse and others) gets your recordings onto streaming services and pays you the master side. Compare them on what you keep, annual fees, splits payments to collaborators, Content ID, and whether you can leave and take your catalog with you.

The competition is real. About 106,000 new tracks were uploaded every day in 2025, and tens of millions of tracks on streaming services have never been played once. Two rules change how you release:

• The 1,000-stream rule. On Spotify, a track must reach 1,000 streams in the past 12 months, plus a minimum number of unique listeners, before it earns recording royalties at all. Ten tracks with 900 streams each earn nothing. Release fewer songs and push each one harder.
• Songwriter streaming royalties are separate. The current U.S. streaming mechanical rate is 15.3% of service revenue in 2026, rising to 15.35% in 2027, shared across all the songs streamed. Physical and download mechanicals are 13.1¢ per song in 2026. That money flows through The MLC and your publisher, not your distributor (step 4).

Claim your profile on Spotify for Artists and Apple Music for Artists before release day, pitch each single for editorial playlists, and run pre-saves so the first week counts.

6. Build and monetize YouTube

This is still two parts. First, make a channel and post compelling videos with your music. They don't have to be expensive; real life filmed on a phone works. Tell the story behind the song. Second, get paid for it.

From YouTube Partner Program overview and YouTube's 2027 update, checked Oct 21, 2026. Apply before February 2027 if you're close.

• Content ID earns you money when other people's videos use your recording. Most distributors offer it. Here's how Content ID works. Don't turn it on for tracks built on leased beats or uncleared samples, because you'll be claiming money that isn't yours.
• Get an Official Artist Channel so your channel and your topic channel combine. Eligibility rules are here. More tools at YouTube for Artists.
• TikTok, Instagram and Facebook pay for your recordings through your distributor's social licensing. Check that it's switched on.

YouTube is still the number one place for new fans to find you. Early on, think of ad revenue as a bonus and discovery as the real prize.

7. Make money around your music

Now let's talk about the real dinero. You probably won't live on streaming and ad revenue at first. But live shows are not dead, and merch is not dead. Live Nation alone drew 159 million fans to about 55,000 shows in 2025. And vinyl passed $1 billion in U.S. sales for the first time since 1983.

• Play every opportunity, and be ready to sell. A new artist sells more physical product at the merch table than online.
• Book and promote your own shows. If you can't get paid slots, build the bill yourself. B and C markets with little live music are often easier to fill. Plan around holidays, list the show everywhere, and find a sponsor. Don't try to throw the biggest show on the planet your first time.
• Make merch people want. Some fans will like your logo more than your music, and that's fine. You made money on the shirt and they're advertising you.
• Sell direct. Bandcamp keeps 15% of digital sales (10% after $5,000 a year) and 10% of physical, and waives its share on Bandcamp Fridays. Fan memberships, signed vinyl and bundles all work.
• Sell your skills: features, beats, production, session work, mixing, lessons, writing for others.
• Film every show and cut it into clips for YouTube and short video.

8. License your music and land brand deals

Music that's paired with video tends to pay more than music on its own. A sync license puts your track in a film, TV show, ad, game or trailer, and it pays twice: once for the song and once for the master. If you own both, you can approve a placement fast ("one-stop"), and music supervisors love that. Libraries and sync agents can pitch you. Read their exclusivity and commission terms before signing.

Brand deals are now a real income line for artists with an audience: sponsored posts, ambassador roles, music in ads, and appearances. They also carry the contracts I see go wrong most often. Before you sign, check:

• Usage rights: how long the brand can use your content, name and likeness, and whether that includes paid ads. "Perpetual" or "in all media" should cost a lot more.
• Exclusivity: which competitors you can't work with, and for how long after the deal ends.
• Payment: when you get paid, and what happens if the brand cancels.
• Morality clause and approvals: who decides when content is "acceptable" and whether they can pull payment.

I review brand deals for a flat fee. See Brand Deal Review for a written review of the red flags in 48 hours.

9. Listen to fans and promote where it pays

There's no better way to test your music than to listen to fans. They'll tell you when you have a hit record. Test new music on listeners and friends and take note of what lands. You don't have to make music for them instead of for you, but pay attention to what resonates.

Then promote in the channels that return money, not just likes. A YouTube video can earn from the song, the ads and a merch shelf at the same time. Social media is where music catches on, but an email list is the one channel you own. Algorithms change, and your list doesn't. Collect emails at every show and every link in bio, and use them for releases, tickets and merch drops.

10. Measure, then sign smarter deals

If you do everything above, you'll have numbers, even if they're small at first. Study them:

• Which songs and videos get the most saves, shares and repeat listens?
• Where are your listeners? Book shows there.
• What gets you subscribers and email signups fastest?
• Who buys your merch, what sells, and how did they find it?
• Which royalty statements are missing money? Compare streams to statements.

Your numbers are also your leverage. Managers, labels, publishers and brands will come with offers once something works. That's when the paperwork matters most. Watch for these:

The income streams, side by side

Making money in music is achievable

As the music industry changes, it creates opportunities for artists who move fast and handle the business as carefully as the music. Making great music takes writing, playing, singing, recording and engineering coming together. A career takes the same kind of fundamentals on the business side: protection, registration, a team and good contracts.

One member of that team should be an entertainment attorney. A good one makes sure your work is protected, keeps you out of deals that hurt your career, and helps you get the most from the deals you do sign. If you have a deal in front of you, book a consultation. If you're building a release plan, look at the Artist Accelerator. For more tips like these, join the Royalty Builders newsletter or follow @atlentlaw on Instagram.

FAQ

Stats and fees checked against official sources on October 21, 2026. This article is general information, not legal advice. Share or quote it freely. All I ask is a link back to this page. Everyone deserves credit for their work.