From my observation all the people I know who earn their living in music graft hard to make ends meet. Many of them have different kinds of work within the field too, like teaching and playing gigs at the same time, or doing live engineering and regular recording studio work + gigs.
And many of them have a other work outside of music to support them while they 'break' into the music industry.
Every single one of these people work really really hard to make ends meet. They also all share one thing in common, pure unadulterated passion for music. They live it through and through as they make ends meet doing what they love.
Having observed people organising both successful and non-successful club nights, I can also attest to the amount of time and energy required to pull off such an event. The people involved relied heavily on their social networks to get things moving. Some of the artists being lined up weren't at the pinnacle of their career yet, but still earned several hundred pounds for their hour long sets. The take home profit after expenses for the organisers was in the region of several hundred which is good for a small unestablished night.
While DJing and club events make some money, I also know musicians who play in bands and earn peanuts (if they earn anything at all)...
To earn a living not working for the man, I think it is essential you know the skillset you're offering thoroughly as well as the market you wish to operate within. As mentioned above, success relies on your ability to spot opportunities and hussle rather than having talent alone. By knowing what you have to offer (your talent and knowledge), your ability to spot profitable opportunities and hussle should become easier.
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Here is a list of careers within the audio industry (that I've copied and pasted
from this thread on studying audio). Some of the roles don't involve creating music directly, but they are connected to the field of audio non the less. Maybe you have the skills and energy to earn a living in one of the auxillery fields?
Studio artist
Touring artist (not exclusive with the profession listed above)
Session Musician
Band musician
Singer (Choir/opera)
Director
Songwriter
Producer
Recording engineer
Mastering engineer
Duplication engineer (Mastering & duplication of CD's & vinyl)
Live sound engineer (Live gigs, festivals, theatre & events)
TV & radio broadcasting engineer
Radio DJ
Club DJ
Private hire DJ
Promoter
Venue owner/manager
P.A. / soundsystem hire
Festival organiser/events manager
Roadie
Artist Management
Copyright management (Performing Rights Society [UK])
Label owner
Sound designer (Folley sounds, sample bank collections)
Sound artiste (avant garde 'out their' stuff)
Commercials & radio jingles producer
Producer for TV shows, film & multimedia (games)
Sound engineer for film (Boom operator, field sound tech person)
Music sales (cds, mp3s & vinyl)
Sheet music sales
Music tech sales [hardware & software both web & bricks & mortar])
Instrument hire
Music gear repair (piano tuning, fixing old Moogs etc)
Music hardware developer
Music software developer
Acoustic engineer (preparing audio environments with acoustic treatments [clubs, studios])
Industrial audio engineer (helping heavy industry manage sound from heavy machinery etc)
University/scientific researcher within the acoustic field
Telecoms engineer (telephony, communications devices [TV, hifi units, Voice Over Internet Protocol, satallites etc] military comms {cryptography, field devices, ECM, audio weapons R&D)
Linguistics & Philology (Involving field work for research)
Audiologist (Working in hospitals testing hearing and fitting audio devices)
Speech therapist
Music teacher
Youth arts worker
Accountant
Lawyer
Media buyer
Schedule organiser
Graphic Designer
Photographer
Videographer
Dancer
Duplication plant worker
Coach driver
Caterer