As someone in the talent management and representation industry, one of the most distressing concerns is the fact that local venues want entertainment. Still, it’s usually the entertainment that gets the short end of the stick, so to speak. As I was talking with my daughter, who is also my client, that reality led to a larger conversation that I’ve often talked with her about: Know your worth and charge tax. You can’t keep performing for free if you need to make income; however, with the advancement of technology, you have to find other means as an artist.
Without artists, the world would be boring, but the consumers don’t care about that; they want the show.
The financial reality for local musicians, singers, and bands is shaped by the need to draw income from a variety of sources, as depending solely on recorded music sales or modest performance fees from small venues rarely offers a sustainable livelihood.
The current state of income and money-making for local artists is generally challenging, but they are adapting by leveraging multiple sources:
Primary Income Streams for Local Artists
Live Performances and Gigs:
- Venue Payments: While big acts get large, guaranteed fees, local artists at small venues often rely on a smaller guaranteed fee, a percentage of the door/ticket sales, a percentage of bar sales, or a combination. The profit margin for venues is typically low (around 5-15%), which can limit what they can pay local talent.
- Ticket Sales & Door Revenue: This is a key source, but artists still have to cover all their performance-related expenses (band members, equipment, travel, promotion) from their share, leaving a minimal net profit.
- Private/Corporate Events: Gigs like weddings and corporate functions can offer more reliable and higher-paying income than public venue shows, providing a crucial stable income source.
Merchandise Sales:
Selling physical goods (T-shirts, CDs, vinyl, etc.) at live shows and online is often one of the most profitable per-transaction income streams for local artists, as they keep a large percentage of the sales.
Music Education and Session Work:
- Teaching: Offering music lessons (in-person or online) is a widespread and stable way for musicians to supplement their income.
- Session Work: Being hired to perform or record for other artists, commercials, or projects is another significant source of revenue.
Modern Digital Income Streams – The digital age has created new avenues, though the payment per stream is extremely low:
Streaming Royalties:
While platforms such as Spotify and Apple Music offer invaluable exposure and help artists connect with broader audiences, the financial returns are minimal—often amounting to mere fractions of a cent per stream. As a result, it takes hundreds of thousands of streams to earn a substantial income. Still, streaming plays the most vital role in cultivating a fanbase, serving as a gateway to more lucrative opportunities such as live shows, merchandise sales, and other direct-to-fan revenue streams.
- Digital Sales: Selling digital downloads directly to fans (often via platforms like Bandcamp or their own website) allows artists to keep a higher percentage of the revenue than streaming.
- Synchronization (Sync) Deals: Licensing music for use in TV, films, advertisements, and video games can provide lucrative, albeit sporadic, income and significant exposure.
- Online Content Monetization: Generating income through platforms like YouTube (Partner Program) and offering fan memberships/subscriptions (e.g., Patreon) for exclusive content are growing ways to connect directly with and monetize a dedicated fan base.
Challenges for Local Artists
- Financial Precarity: Most musicians only find part-time work, if any at all, and must piece together their income from multiple sources. The current average hourly wage for musicians and singers, while potentially high for high earners, masks the financial instability of the majority.
- Competition and Saturation: The low barrier to entry for releasing music digitally means the market is highly saturated, making it difficult for local acts to stand out and attract a paying audience.
- Touring Costs: While touring remains a key avenue for gaining exposure and boosting merchandise sales, the associated expenses—such as travel, accommodation, and production—can quickly add up. Smaller-scale touring is financially difficult for many artists because the expenses (renting equipment, travel, etc.) typically cost more than the income generated by low-capacity ticket sales.
- Industry Complexity: Navigating music publishing, royalties, and legal contracts adds a layer of complexity that can be daunting for independent artists without professional management.
In essence, local artists must function as entrepreneurs—constantly creating, marketing, performing, and managing a multi-faceted business to achieve a sustainable income. Live performance remains a critical element for local artists, serving not just as a revenue source but as a primary driver for merchandise sales and direct fan connection.

Monica is the founder and publisher of Black El Paso Voice. She is an advocate fighting against racism and embracing positive community involvement. She is a lover of God, Puerto Rican cuisine, and the greatest defender of her family. She also enjoy House Music and swears it’s the best music on the planet!