- Unsigned Artists: New rappers who are not signed to a record label may have limited earnings. They might rely on revenue generated from independent music distribution platforms, such as Spotify or Apple Music, as well as live performances at local shows or open mics. In this phase, earnings could range from a few hundred dollars to several thousand dollars per year.
- Signed Artists (Indie Labels): Rappers who sign with independent record labels may receive financial support for recording, distribution, and marketing. Income can come from album sales, streaming royalties, merchandise, and touring. New rappers on independent labels may earn between $10,000 to $50,000 per year.
- Signed Artists (Major Labels): Major record label contracts typically offer more significant advances, marketing budgets, and distribution networks. Successful new rappers on major labels can earn substantial incomes from record sales, streaming platforms, endorsement deals, and sold-out concerts. Some might make over $100,000 per year or even more.
It's important to note that breaking into the music industry as a new rapper is highly competitive, and financial success can take time. Many new rappers must invest in their craft and build a following before reaching significant earnings.