The easiest option was the last one. Before the mid-twentieth century, there were no such things as televisions, radios, and record players to keep a family entertained in the evenings. Often after dinner, many families would sit around the piano and play through the latest sonata, trio, string quartet, or perform a series of songs. The piano, found in a large percentage of homes, took the place of the stereo system. This also had an effect on the music producing side of things.
Many modern musicians live on royalties from recordings.
The 18th century parallel was the written music. Composers were paid a one time fee for their compositions by the publishers, who earned money by selling copies of the printed music. In addition to the self-generated music, public concerts had become a more important aspect of the Classical Era. While freelancing was not common, the patronage system had begun to break down. While the first public concerts were being given in the late 1600s, many concert series were started for public consumption in the 1700s, and by the 1800s, these concerts became an important factor in the lives of the musicians and the audiences.