How do free distributors for Spotify make money if they don’t charge artists?

Although free distributors for Spotify don’t require upfront payments, they typically generate revenue in other ways. Many take a small percentage of streaming royalties, while others offer premium features such as faster payouts, advanced analytics, or expanded distribution to additional platforms. Some distributors also run promotional services, charging artists who want to boost their reach with ads or playlist placements. This model allows artists to get started without financial barriers while still giving distributors a sustainable business strategy. It’s important for musicians to compare platforms and understand fee structures before choosing a distributor.