Your Income as a Musician

Active income from your direct work or services.

Money earned from active work — exchanging time and effort for money, usually in the form of wages, salaries, or fees.

For Musicians: Gigs, session work, teaching lessons, playing weddings/events, and paid studio sessions.

Performance Fees: Payments for live performances at gigs, concerts, weddings, festivals, and corporate events.

Session Work: Income from recording sessions, whether for studio albums, film scores, or commercial projects.

Teaching and Workshops: Paid for offering lessons or running music workshops.

Most musicians rely heavily on earned income, but this form of income requires constant effort and can lead to burnout without careful management. While essential, it’s also time-intensive, and often inconsistent.

Income generated when selling something for more than its cost.

Income from running a business where your revenue exceeds your expenses.

For Musicians: Selling merchandise or products (t-shirts, vinyl, posters) at gigs or online.

Merchandising: Selling branded merchandise, such as t-shirts, posters, or custom instruments.

Music Production Services: Running a small studio or producing music for other artists.

Band/Ensemble Management: Managing and booking other artists or groups, taking a percentage of their earnings.

Shifting from earned income to business models allows musicians to leverage their talents and resources without directly exchanging time for money. Merch can be a high-margin revenue stream, especially if you build a loyal fan base. Without strong branding and fan engagement, this can be slow-moving.

Money earned from lending your money, like savings or investments.

This can include bank savings accounts, bonds, or private loans.

For Musicians: Investing earnings in savings accounts, bonds, or other interest-yielding vehicles.

Investing Savings: If you have surplus income, keeping it in a high-interest savings account or investing in bonds can yield small but stable returns.

Crowdfunding Platforms (Lending): Musicians can participate in peer-to-peer lending or invest in crowdfunding projects, receiving interest on their investment.

This is typically less significant for early-career musicians, but understanding it can help in the future when there’s surplus income to invest. Think of it as a way to make your money work for you during the off-seasons of your career.

Income from owning shares in a company that pays dividends.

Money earned from owning shares in a company or fund, where you receive a portion of the company’s profits.

For Musicians: Owning shares in a company, whether it's related to music or broader industries.

Investing in Companies: If you invest in companies, you may earn dividends.

Band Shares: In some cases, bands operate as formal businesses where members hold shares, and profits are distributed as dividends.

This won’t be an immediate source of income, but it’s a smart way to build financial stability over time. Even small investments can lead to dividend payouts that supplement your income down the line.

Earnings from renting out assets.

Money earned from renting out property or equipment.

For Musicians: Renting out your music gear, studio space, or even leasing rights to your compositions (sync licensing for ads, films, or video games).

Instrument Rental: Renting out instruments you own but don’t regularly use, especially expensive equipment.

Studio Rental: Renting out home or professional recording studio space to other musicians or producers.

Music Gear Rental: Renting out amps, PA systems, or other professional gear for live events or recording sessions.

Musicians can earn passive income by investing in high-quality gear or space and renting it out when it’s not in use. Sync licensing can be a gold mine, but it takes time to establish connections in this space. Equipment rental is more immediate but relies on the demand within your local scene.

Profits from selling investments (stocks, property) for more than you paid.

Income earned from selling assets at a higher price than you bought them.

For Musicians: Selling ownership stakes in music catalogs, albums, or shares of your business (if you’ve set up a label or a music-related company).

Selling Music Equipment: Musicians can benefit from buying and selling rare or vintage instruments or gear at a profit.

Royalties as Assets: Royalties themselves can sometimes be sold as assets, or musicians can purchase royalty streams from other artists and resell them at a higher value.

This is a long-term play that may come later in your career. It’s something to think about once you’ve built a valuable asset, like a business. Capital gains offer a way to make money from smart investments, especially in niche markets like rare instruments or music rights.

Earnings from licensing work, intellectual property, or content you own.

Ongoing income earned from work you’ve done in the past.

For Musicians: Music royalties from streaming services (Spotify, Apple Music), radio play, sync deals, and publishing royalties.

Streaming Royalties: Income from your music being played on platforms like Spotify, Apple Music, and YouTube.

Mechanical Royalties: Earnings from physical and digital sales of your music.

Synchronisation (Sync) Royalties: Income from licensing your music for TV shows, movies, video games, or commercials.

Performance Royalties: Earnings from live performances of your compositions (via performance rights organisations like APRA AMCOS).

Publishing Royalties: Earnings from songwriting or composing music that others perform or record.

Royalties are one of the few truly passive forms of income for musicians and can create long-term financial security. However, musicians must ensure they’re registered with the correct organisations. Focus on building sustainable streams here over time.