This Spotify Payment Prediction Should Not Surprise You
Posted: Sep 11, 2017
Category: Music Streaming
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**Guest post written by Corey Koehler, an indie singer-songwriter from Minnesota, as featured in his blog MusicGoat.com.
"Do you think a Spotify payment like .004891 cents per play sucks?
Then you are gonna love this…
The Prediction
I was reading an email from one of the marketing legends Perry Marshall when I read this…
“The very next thing that’s going to happen with Spotify (after they go public and their founders become billionaires) is: The bands will be paying Spotify 0.4891 cents per play, instead of Spotify paying the bands.” – Perry Marshall
Nice huh?
Then a couple days later I saw Techcrunch report that Spotify is offering “sponsored songs” to labels.
“Spotify is now testing a new “Sponsored Song” ad unit that a company spokesperson tells us is “a product test for labels to promote singles on the free tier.”
More on that here -> Spotify ‘Sponsored Songs’ lets labels pay for plays
Not the greatest news for the little guy. But from Spotify’s standpoint it makes a lot of sense when you think about it. Especially when you have a board room full of suit and tie guys looking for a return on their investment.
+How to Make Money in the Music Biz
Besides, they own the platform, so they make the rules.
Another platform did something very similar.
There was a time when you could reach most – or all – of your fans on Facebook with a post without having to type in your credit card number.
+Facebook For Bands | Hacking the Promotion Machine
Then their audience exploded, they went public and WHAMO! Pay to play bitches.
Like I said, their platform, their rules.
What a savvy DIY musician should do
Build Your Own Platform. You need to own your audience just like Facebook and Spotify.
There is a saying in internet marketing circles, “don’t build your house on rented land.”
In other words, you need to get your audience off of Spotify’s and Facebook’s lawn and on to your own.
You do that by driving all of your fans to your website and incentivizing them to join your email list.
Once on your email list, you can reach out to your fans as long as they stay subscribed. You can promote new music, a crowdfunding campaign, upcoming shows and even direct them to the next big platform to jump start your presence.
+6 ways to persuade people to sign up for your band's email newsletter
Bottom line…
This is your wake up call. Spotify payments will remain extremely low and you might find yourself reaching into your wallet to pay them at some point.
But don’t let all this news bring you down. And definitely don’t be the bitchy musicians on social media who complains that the man is trying to hold you down (#weak).
+Why Bands Need to Stop Bitching
There are a ton of tools and platforms out there that you can use to get your music heard and your audience built. Be the DIY musician who keeps your eyes peeled and mind open. The opportunities will come.
For now, get started on that email list (or re-energize it).
Come on over to my lawn to join me and 4000+ of my musician friends (you’ll like it I swear). Click here to get my free email jump-start checklist and a free copy of my Sell More Singles ebook."
Related Blog Posts:
+Do It Your Fucking Self...the blog
+The Bribe to Subscribe: Bands and E-mails