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Business Operations Business Models

How Does Bandcamp Make Money (Business and Revenue Model)

The Bandcamp business model

Bandcamp logo
Here’s what you should know:
  • What is Bandcamp, and how does Bandcamp work?
  • How does Bandcamp make money?
  • Subscription Revenue (Bandcamp Pro and label accounts)
  • Revenue Sharing (Commissions)
  • Bandcamp profit and revenue
  • What is the Bandcamp business and revenue model?
  • Bandcamp funding, net worth, and valuation
  • Bandcamp subsidiaries, acquisitions, and exits

How does Bandcamp make money and how is it free to use? Well, here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Bandcamp business and revenue model, how much money Bandcamp makes per year, and how Bandcamp works.

What is Bandcamp, and how does Bandcamp work?

Bandcamp is an online music store and promotional platform for independent artists and labels.

Founded in 2013 by Dave Macli, David Ponte, and Thomas Klinger, Bandcamp went on later to get acquired by Epic Games on March 2, 2022, for an undisclosed amount.

Now, Bandcamp has more than 1 million registered fans on its platform that have paid artists roughly $1 billion through Bandcamp since its founding back in 2013.

So, how does Bandcamp work? To use Bandcamp as an artist, simply download their app on the Apple App Store or Google Play store, or visit their website and visit the artists’ webpage.

Once there, get started by creating an account, and uploading your music and the merch you want to sell.

Some of Bandcamp’s competitors include TuneCore, DistroKid, Patreon, and other services that empower artists.

Bandcamp App in Apple App Store | Bandcamp Business Model | How Does Bandcamp Make Money? | How Does Bandcamp Work?
Source: Apple App Store | Bandcamp

How does Bandcamp make money?

According to Bandcamp, Bandcamp has more than 1 million registered fans that have paid artists roughly $1 billion through Bandcamp’s platform since its founding back in 2013.

So how does Bandcamp make money off of all these transactions?

Below is a breakdown of how much money Bandcamp makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways how Bandcamp makes money in 2022

Bandcamp has a revenue model that makes money in two (2) ways; through subscription services (Bandcamp Pro and label accounts) and revenue sharing (commissions).

#1. Subscription Revenue (Bandcamp Pro and label accounts)

One of the ways Bandcamp makes money is through the subscription services they offer to both artists and labels.

Although Bandcamp makes it free for artists to create an account, they also offer a premium tier; Bandcamp Pro. Which offers additional perks that the free account does not offer such as deeper analytics, batch uploads, personal domain URLs for artists, and more.

And unlike artist accounts, Bandcamp does not offer free accounts for labels. Which you can see the pricing below for both label and artist accounts.

How much do Bandcamp Pro and label accounts cost?

  • Bandcamp Pro: $10 per month
  • Bandcamp label account: $20 per month for up to 15 artists, and $50 per month for unlimited artists

#2. Revenue Sharing (Commissions)

Bandcamp also makes money from commissions they collect on everything the artists make on the Bandcamp platform.

As noted above, fans have purchased roughly $1 billion worth of physical and digital items from artists through Bandcamp since its founding back in 2013. Of which, Bandcamp takes a 10% to 15% cut on all of it. (depending on the type of item being sold, which you can see below.)

How much does Bandcamp pay artists? (Bandcamp revenue share and fees)

  • Bandcamp takes 10% of merch sales, and 15% of digital music sales (10% when sales reach $5,000 USD)

Bandcamp profit and revenue

Bandcamp has not released any official reports in regard to company earnings.

Note: Because Bandcamp is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Bandcamp business and revenue model?

Bandcamp makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Revenue sharing business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

Bandcamp funding, net worth, and valuation

According to Bandcamp’s Crunchbase profile, Bandcamp has raised an unknown amount over 1 round.

On March 2, 2022, Bandcamp was acquired by Epic Games for an undisclosed amount.

Bandcamp subsidiaries, acquisitions, and exits

To date, Bandcamp has not made any acquisitions, investments, or exits.