If TV killed the radio star, then streaming killed the independent industry as a whole. Too dramatic? Okay, okay let’s back this up a bit.
Streaming services have certainly opened a door to artist discovery. Through algorithm-curated playlists, users are matched with artists at a rate so much higher than Jack Black’s character in High Fidelity could’ve ever imagined. But how much good is that doing for artists?
Purely from a monetary standpoint, not too much.
Streaming giants like Spotify and Apple Music, on average, pay their artists three-tenths of a penny per stream. That means 1,000 streams puts about $3 in their pocket. Ah, remember the days when that $10 EP at the end of a concert actually put $10 into the band’s bank account?
A recent stat found nearly 80% of artists on Spotify have less than 50 monthly listeners. That could mean they’re earning as little as $0.22 cents a month. If you’re curious how many streams it takes to get lucrative, check out this royalty calculator.
As a result, artists have to rely on touring and merch sales more than anything to make a living on their dreams (don’t even get us started on ticketing fees).
At its heart, Songfinch is a music company, so we wanted to come up with a business plan that would make sure real artists were seeing real money for their work. The average artist in our company earns about $25,000 per year, but we’ve got plenty making even more (with some in the six-figure range yearly).
Here’s how it breaks down.
Songfinch costs $199 per song (not including any add-ons or rush fees).
- $100 per song goes to the artist
- +$40 for extra verses (40% of customer orders)
- +100% of gratuity (35% of customers tip)
One out of every three songs either gets a tip, an extra verse, or both. So one out of every three songs pays between $140 to $180 to artists.
Giving artists a better opportunity to earn a living from an industry that has routinely made that improbable is important to us and our investors. Oh yeah, did we mention we’re backed by some real heavy hitters in music today, including The Weeknd, Doja Cat, and Quincy Jones?
We love music, you love music – let’s help independent artists make a living doing what they do best. Get started on your song today.