How Do Artists Make Money From Spotify? An Expert Guide

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Everyone loves music from Gospel to Hip Hop, Blues, Jazz…the list goes on. You already got an account on Spotify so that once your favorite releases an album, you are the first to stream. Ever wondered how these artists make money? 

Maybe you’re gunning to become a musician and you’re just curious to know how much revenue you can generate if you get to upload your song on Spotify. Good thing you’re here.

This article will inform you on how artists make money as well as how much they actually make. If you don’t know how Spotify works. You will learn it right here. Stay Focus!

Spotify is currently the world’s biggest music streaming platform. According to data from on Spotify Usage and Revenue Statistics; Spotify has 286 million monthly active users, 130 million of these are premium subscribers, 36% of the global streaming market, 44% of users listen to Spotify on a daily basis, Average users listen to 41 unique artists per week.

What is Spotify

Spotify is a Swedish-based digital music streaming and media services provider that allows people to get quick access to millions of songs, videos, and podcasts from global artists.

Regardless of your location, you can get songs from your favorite artists from your mobile phones and desktop whenever you need it. incredible right?

How Spotify Works

  • Visit the Spotify sign up page on your PC or your phone browser:
  • Choose a subscription level: You can test Premium for three months for free. We recommend giving it a try because it offers a ton of perks you won’t find on the free version.
  • All that is left is to download and install the free Spotify app. Once you have installed the Spotify app, you can explore a lot of features on the platform.
  • Create a Friend Circle
  • Search Songs
  • Find the Right Music
  • Explore Collection
  • Discover Podcasts

How Does Spotify Pay Artists?

Spotify pays out according to Stream Share(the total streams on Spotify in a month in a country and figuring out what proportion of those streams were yours).

Spotify does not pay artists who are on their platform directly. Also, these artists cannot upload your music directly to Spotify. It has to pass through music distributors like TuneCore, DistroKid, and CDBaby. These distributors are the middlemen. 

To get started, first, create an account with your email and then upload your songs for release. You can choose from dozens of popular and barely heard of streaming services, of which Spotify is only one.

Songs are allowed to be released a week after unload that is if you are in a haste. However, most artists plan their release carefully and upload the songs two or so months in advance so they can take advantage of the pre-order promotion and releasing a single before the whole album comes out.

Bank Account Setup for Payment

Artists can receive their royalties it various ways; It can be as a direct deposit into your specified bank account or through Payoneer.

In most cases, distributors prefare to make their payments to artists using Payoneer, which has four options to payment: PayPal, Direct Bank Transfer, Pre-paid Mastercard, or a paper check for those without a bank account (in the US and Canada only). Payoneer charges a $1 fee for processing your withdrawal and making the payment.

If you prefer a check option, you’ll be required to register an account with TuneCore or DistroKid with an email address. For direct deposit or PayPal, you need your checking account information, bank card, and sometimes your address handy.

How Much Does Spotify Pay Per Stream?

Spotify doesn’t have a fixed “pay-per-stream” rate but, a royalties pool that it pays out based on the share of streams on its service.

The worth of one stream in royalties is dependent on many factors including but not limited to the following:

  • The country and location of the streamer
  • The listener’s tariff: whether it’s paid subscription or free account
  • Whether other songwriters contributed to the writing
  • The specific artist’s royalty rate
  • The relative pricing & currency in different regions

How Much Streams Do I Need to Earn A Minimum Wage?

It takes a lot of streams every month to earn a sustainable income from Spotify. That said, Spotify is estimated to pay $0.0038 per stream. Therefore, to earn minimum wage in the U.S, you need roughly 366,000 streams on a track.

To grow your streams, you have to get your music on user-created playlists on Spotify, so that Spotify itself starts to show your music to more people.

How Much Does Spotify Pay For 1 Million Streams?

With the average per-stream rate going at roughly $0.0038, 1Million streams pays around $30.80.

Spotify Alternatives

There are tons of great music streaming options, some of which offer additional features and larger music catalogs.

We’ve highlighted a few of the best alternatives below. They might make a better choice for you.

  • Apple Music
  • YouTube Music
  • Tidal
  • Slacker
  • Google Play Music
  • SoundCloud
  • Deezer
  • Pandora Radio
  • Amazon Prime Music
  • Songmetro
  • iTunes Music Store
  • Stereomood
  • Saavn

Wrap Up

You can download the Spotify app on your smartphone and enjoy the service for free, but its premium version isn’t free but, it has more amazing features.


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