How to Make Money from Spotify?

Spotify is one of the most renowned providers of audio streaming services, primarily focused on delivering music online.

Launched years ago, Spotify is a Sweden-based provider of audio and media streaming services. As of June 2022, Spotify stands as the world’s largest music streaming service provider, boasting over 433 million monthly active users and 188 million premium subscribers, available in more than 180 countries (as of January 2025). (Source: Spotify Newsroom)

How Can You Make Money on Spotify?

You might wonder: Can I make money simply by uploading music online?

The answer lies in understanding the vast music market. For instance, in the United States alone, people listen to music for an average of 32 hours per week. This reflects a market large enough to support artists of all genres.

Spotify operates on two primary models: ad-supported streaming and subscriptions. Similar to YouTube, Spotify artists can earn money through advertisements or premium subscriptions.

Ways to make money from Spotify?

Content

Artist payouts depend on music rights ownership, with earnings ranging between $0.003 and $0.005 per stream. This means that for every 1,000 streams, an artist could earn between $3 and $5.

How do artists make money on Spotify?

Music Recording and Composition:

For the music listener, a song is simply a song. However, in the music industry, a song is divided into two categories: composition and sound recording. Copyright for sound recordings is owned by artists and production companies.

Sound recording licenses that generate revenue fall into three main categories: performance rights, copyrights, and synchronization rights. Most often, when someone listens to a song, both types of copyright are involved, resulting in two streams of revenue paid to the respective parties.

Advertising:

Nowadays, musicians tend to avoid sharing the burden of promotion with giant companies. Brand partnerships are often the first step, allowing artists to endorse brands they genuinely admire. Another way to generate income is through YouTube.

On YouTube, you earn a share of the revenue from ads that appear during or at the start of your videos. In the United States, the average YouTube revenue per 1,000 views is around $3, which is relatively high compared to other platforms (some sources suggest it could be even higher).

Merchandise, Fashion, and Other Sales:

Selling non-musical products is an easy and popular strategy that artists have used throughout the ages. Crowdfunding and creating dedicated channels for fan engagement are additional ways for artists to earn money through Spotify.

You can also launch your custom app or offer a subscription package for your music. Email subscriptions, limited-edition music releases, and artist-sponsored festivals are other ways to generate additional income.

How to monetize playlists on Spotify

Some popular playlists can generate enough income for an average person to cover their bills or meet other financial obligations.

Paid Placements:

Major record labels often pay tens of thousands of dollars just to have their artists’ songs added to playlists. This practice is known as paid placements. The amount of money you can earn from platforms like “0Playlist” depends entirely on the size and quality of your playlist.

Paid Song Reviews:

Another way to earn money from a Spotify playlist is by partnering with commercial services. These services act as intermediaries, connecting playlist owners with artists. As a playlist owner, you can earn a small amount of money for reviewing a song.

Key Obstacles to Monetizing a Playlist

Most genres feature hundreds, if not thousands, of playlists created by artists, listeners, and record labels. This makes your playlist easily lost in the crowd. The standard method for conducting research is to input a keyword, then filter and sort the results. However, this process is time-consuming as it must be done manually.

The second major obstacle is finding the playlist owner. This is because Spotify does not provide contact information for playlist owners. As a result, even if your playlist is discoverable and well-liked, there is no way for others to reach out to you.

How to Make Money on Spotify Podcasts

Affiliate Marketing:

Affiliate marketing involves earning a commission when you refer people to another playlist. You typically make money when someone subscribes to the playlist you promote. Affiliate marketing is particularly effective when promoting a playlist you are passionate about or already subscribed to.

Sponsorships and Advertising:

When exploring how to monetize podcasts on Spotify, sponsorships and advertising should not be overlooked. There are numerous podcast advertising networks that connect you with advertisers. However, you’ll need a sizable audience base of about 5,000 to 10,000 listeners per month. You can also reach out directly to companies.

Coaching and Consulting:

Coaching and consulting are somewhat like presenting ideas, but here, you don’t work directly with the clients. Instead, you guide them with effective strategies to achieve their goals. Consulting isn’t limited to the fitness and diet industries; even the music industry has consultants.

Crowdfunding and Donations:

To support yourself and your podcast, you can also request direct contributions in the form of donations. Entertainment-focused podcasts are particularly well-suited for monetization. Does Spotify pay podcasters? That depends entirely on how much financial support you receive from your audience.

Public Speaking:

Many podcasters are invited to speak or perform at public events. This is an excellent opportunity. If someone is impressed by your podcast and believes you are a perfect fit for entertaining their audience at live events, you can earn a substantial income. Fees can range from a few hundred dollars to six figures.

Conclusion:

Simply learning how to make money on Spotify is not enough. To achieve significant earnings, implement the right strategies in your Spotify account.

The platform already has a vast user base and may continue to dominate online music platforms. Opportunities are endless and continue to grow over time. It’s up to us to take the first step toward achieving our goals. Work sincerely and earnestly, and eventually, you may generate substantial income.