Do Rock Bands Make Money Selling Merchandise?
The answer depends upon a number of factors. A band making around $800 per show could easily sell out a venue that has 500 to 1,000 attendees. It is more difficult to calculate the guarantees. For a mid-level band, they might sell out venues and make money from merchandise and ticket sales. In such cases, the band would need to guarantee $800 per show.
Selling non-musical products
While the music industry is a large market for band merchandise and physical music sales are down, it is still a big market. The music industry made $51.5 billion in 2018. Additionally, music is now available online without the need for physical CDs. In order to make up for this decline, rock bands must diversify their revenue streams. We’ll be discussing how band merchandise can make money for a band. Here are some examples non-musical products sold by rock bands.
Ticket sales
The majority of a rock group’s income comes via ticket sales. The concert promoter will get between five and fifteen percent of the total ticket price. This will pay for the artist guarantee, which guarantees a certain percentage. The remainder will go towards the production crew and sound, lights, transportation, as well as the manager. There are several ways to get better seating and avoid paying rush delivery fees. Here are a few of the options.
Merchandise
Is it possible for rock bands to make money selling merchandise? The answer depends on the situation. Some artists sell their merch while touring, but these sales rarely generate a profit for the band. The reason is that the band must pay someone to manage the merch counter. Even t-shirts rarely make 100 percent profit. Concession companies and venues typically take up to 20% of the sales. This means that bands are not able to make the most of merch.
Streaming revenue
Streaming revenue is a huge source of revenue for musicians. As of 2017, rock musicians made one-tenth of the industry’s revenue. Streaming revenue is growing by leaps and bounds, but it still remains a tiny fraction of the total. A stream payout of $0.006-$0.0084 for musicians is a small amount compared to the much larger amount earned through radio play.
Brand partnerships
Musicians can make a living through brand partnerships. Brands pay musicians to endorse their products and promote them on their websites. Brands might also partner with bands to create limited-edition merch and use their social media presence to promote them. Although some artists might be wary of brand partnerships, there are many that can benefit from them. This article will explore some of the most popular ways musicians make money from brand partnerships. Listed below are some of them:
YouTube monetization
Video ads are one of the many ways to monetize YouTube channels. Rock bands can use them. The most common method is by placing skippable ads, which are more expensive than non-skippable ones. Non-skippable preroll ads are more affordable. Display ads are most cost-effective and have CPMs around $12-15. See YouTube monetization for bands to get more information.