Merch Strategy 101: Key Elements Every Artist Needs to Know

This guest post was written by the team at Merch Cat.

For many artists, merchandise (or merch) is one of the biggest missed opportunities in their career. It’s not just about selling a t-shirt at the merch table or online —it’s about building a sustainable revenue stream and creating a deeper connection with fans. Think of merch as an extension of your music: it’s something tangible that fans can hold on to long after the last note fades. Merch is revenue, but the real magic is in the relationship it creates - when a fan wears your shirt, hoodie, or hat out in the world, they’re carrying your brand with them. It’s free advertising, community-building, and a memory all in one.

Merch can often seem daunting because it’s a combination of branding and design, product selection, production, budgeting, marketing, and distribution (e-commerce for online and touring logistics for live shows). Having a merch strategy provides a clearer path to success and a plan to get there. It means thinking beyond “what looks cool on a shirt” and working with the framework that covers branding, fan psychology, product decisions, pricing, sales channels, analytics, and fan engagement. So let’s break it down…

Start With Your Brand Identity

Great merch should start with your brand. Your brand is the face you show the world and your merch is the physical representation of this. Your merch should reflect your identity as an artist. Whether it’s your logo, album artwork, or a lyric that resonates, designs should feel authentic and connected to your music. Fans wear merch not only because they like the item, but because it represents you, and most likely taps into something that drew them to you in the first place.

Understand Your Fans

Without artists there is no music and without fans, there is no music business. Understanding your fans—both demographics (age, location, gender) and psychographics (lifestyle, style, values)—is crucial. A college audience may want affordable tees and stickers, while a more established crowd may spend more on premium hoodies, vinyl, or limited-edition items.

Community is More Valuable Than Virality

For independent artists, building a strong community creates long-term stability in a way that viral moments rarely do. A single trending video might generate millions of views, but those numbers fade as quickly as they rise.

On the other hand, a core of 500 people who actively engage with every release, attend shows, and invest in merchandise provides sustainable support. These fans amplify your work organically, share it with friends, and stick with you through different stages of your career. In today’s music landscape, lasting impact comes less from chasing algorithms and more from nurturing genuine connections with the listeners who truly care.

Curate a Thoughtful Merch Mix

Not every fan wants the same product or has a budget for that $25 t-shirt, $35 vinyl, or $60 hoodie. A thoughtful mix—like one budget-friendly item (sticker, drawstring/tote bag, CD) one mid-tier piece (t-shirt or hat), and one premium option (hoodie, vinyl, or poster)—ensures there’s something for everyone.

Choose Products That Fans Will Actually Use

When it comes to product selection, quality matters. The brand, style, and cut of your product impacts whether fans will wear it once or make it part of their regular wardrobe. A $5 cheap tee that shrinks after one wash does more harm than good. The same goes for other goods. Invest in items fans are proud to wear or use. Ask yourself would I buy/use/wear this if MY favorite artist was selling it?

Source Products Wisely

Where and how you source products matters for both cost and reliability. Do you go through a local printer, online vendors, or a touring supplier who can deliver mid-tour? Do your research, ask other artists, and look for smaller local shops if just starting out. Avoid big online corporate shops like CustomInk. Build strong vendor relationships no matter what level you’re at - this helps avoid delays and ensures consistent quality.

Set Smart Prices Based on Real Costs

Many artists “wing it” as they go, thereby avoiding what is realistic and feasible. Two critical questions that should be raised are “what are we willing to pay to acquire the product (or what is our budget)”? And “what are we going to price it at to sell”? Do the math ahead of time and build a plan – i.e. if we can get x item at this price, and sell it at that price, then it makes sense. Pricing should balance fan affordability with your need to hit profit targets. Always factor in costs (printing, shipping, credit card fees) when setting price points.

Define Your Target Returns

Merch is a business. Along with looking at cost and pricing, setting a  return on investment (profit/cost) goal upfront gives you a playbook to follow and helps you evaluate whether your strategy is working. Are you targeting 2x ,3x or higher ROI? If you stick to the cost and pricing above, does it get you there? Clarity here helps keep you accountable and avoids wasted money.