How the Highest-Earning EDM Artists Actually Make Their Money

The music industry is in interesting times. While the actual product (you know, music) isn't selling like it has over the last few decades, EDM is still super lucrative for artists, promoters, labels, and many other checkwriters who are looking to dip their fingers into the pot. Like hip-hop, rock, and other genres, we know that touring can pay very well if you're a big name, and is probably the easiest answer to the "how do EDM stars make money" question... but it isn't the only answer. In today's EDM scene, you have to be willing to spread your music and time thin, covering as many bases as you can while you're a hot commodity. If you're looking to get on the right track with the funds that are being tossed in EDM's direction, or just want to get a better idea at the ways EDM artists pay their rent, study up.

While the money made releasing music doesn't hold a candle to the money that DJs make touring, active producers can get paid by selling their music. The amount may vary, however, depending on what kind of contract they have; you'd have to assume that producers would see a bigger profit if they released music on their own as opposed to going through another label or entity. One way labels like Mad Decent and OWSLA are encouraging people buying music is by setting up subscription services, where a flat monthly fee nets subscribers early access to releases, along with other perks.

If you're lucky, you can get into songwriting and producing for signed acts; that's where a lot of the bigger recording industry funds for EDM acts come from. If you're really lucky, you can have the success that Calvin Harris, David Guetta, and others have had, producing music for huge pop stars. The upfront paydays are nice, but if one of those songs turns into a single (that then turns into a hit), you're talking about money that'll last years via publishing.

Touring is hands down one of the biggest revenue streams for DJs, both big and small. Being that the current model of the recording industry is broken, a big single or album just doesn't generate the money they used to. But on the flipside, if you have a popular song, you can end up getting your name on the lips of many fans and tastemakers, which in turn makes you that much more of an in-demand as a DJ. Work your way up the ropes and you could be commanding five to six-figure deals per show. During peak festival seasons, big-name DJs are in high demand, and are booked at events the world over.

For some DJs, residencies at major clubs are even more lucrative. Just look at the Las Vegas EDM residency wars; you have big names like Afrojack, Tiesto, deadmau5, and others commanding multi-million dollar deals to DJ at the same club for an alotted period of time. It's a dream-come-true for some DJs, and a great way to have steady income for doing what you love.

Fans might not be buying music the same way they were a decade or two ago, but everyone still needs clothes. Or hats. Or stickers. That $10 you might lose for a pirated copy of your album could be recouped quickly with the sale of a t-shirt, and many clothing companies and brands are itching to get in bed with popular artists to collaborate on exclusive designs for clothing.

Diplo, Tiesto, Steve Aoki, and many others have taken endorsement deals from certain brands and companies, many of which range in the funds and perks given; Diplo got a Blackberry that he didn't have to pay the bill on, for example. You need a certain level of status to have Heineken or Beats to recognize your worth, but once they do, you'll be able to cake up.

Being a hard worker is cool, but who doesn't want to be the boss? One of the constants in the profiles of many of the EDM scene's biggest acts is the starting of their own record label. It's a great way to build your profile, to nurture like-minded artists, and yes, to cake off of the music they release. These funds are small, but in the case of Diplo, having Mad Decent release Baauer's "Harlem Shake," then to have this song become the center of a huge viral craze, ended up turning a huge profit off of YouTube streams.

Outside of producing, performing, and the like, DJs have their own outside interests as well. You could open restaurants like Steve Aoki, for example. If you use your celebrity right, you could be turn some seed money and a cool idea into a long-lasting revenue source.