How Freecords Stays Free: Our Business Model Explained

At Freecords we believe that everyone should be able to compete in the music pool based on the quality of their work and how it resonates with people—not on how much they can afford to pay for distribution. Put even more simply – we want to take all the noise surrounding music itself.
Written by
Eugene Ostapenko, COO
Published on
March 2, 2025

Why Freecords Exists

At Freecords we believe that everyone should be able to compete in the music pool based on the quality of their work and how it resonates with people, not on how much they can afford to pay for distribution. Put even more simply, we want to take all the noise surrounding music itself.

That’s why we offer 100% free distribution, 100% royalties, and no hidden fees, removing all entry barriers for artists. Naturally, this raises the question: How do we sustain this model?

Our Revenue Streams

While distribution itself is a net-negative for us, we’ve built Freecords around alternative revenue sources that don’t take money from artists. Here’s how we keep the platform running and growing:

1. Sponsorships & Partnerships

We partner with respectable music brands that have historically supported independent artists - companies like audio gear manufacturers, software developers and music tech companies. These partnerships allow us to fund Freecords without charging artists.

2. Patron donations

Many artists appreciate what we’re doing and choose to contribute voluntarily, which helps sustain our operations. Thank you!

3. "Slow Distribution" (7+11 Days)

Our approval process ensures high-quality uploads and smooth distribution. It consists of two stages:

1. Initial Review (Up to 7 Days): Our moderators check for Guideline adherence, file integrity, and other key factors.

2. Platform Processing (Around 11 Days): Streaming platforms conduct their final review before publishing.

4. Withdrawal Threshold of €50

Instead of processing micropayments daily, we have a €50 withdrawal threshold for artist payouts. This allows us to manage transaction fees efficiently and allocate resources where needed. Artists still receive 100% of their royalties—just in fewer, more manageable payouts.

The Reality of Free Distribution

We designed Freecords to be free, fair, and sustainable. Instead of taking from artists, we rely on sponsorships, donations, and operational optimizations to keep the platform running.

Other distributors claimed free distribution wasn’t possible. They were wrong.

Read this post on Medium

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