Entry 8. Merchandising

It’s no secret that musicians make most of their money off merchandise. They get pennies at most for each play on music sharing websites like Spotify and Pandora. iTunes takes a 30% cut from all their store sales. And on top of that, people just aren’t buying albums like they used to. The whole music world is moving toward singles. Record labels take out a hefty cut from the tour and album sales. Merchandise is really the only thing that promises large returns for artists. Unfortunately, that drives prices up at the concerts themselves, but merchandise is usually cheaper at store locations. The mindset is that the fans are willing to support the artist. It is sort of an intimate connection between the fans and the bands. It’s like cheering for your favorite sports team.

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