Many people struggling for the award do so because of the prestige, honor, and recognition that go with it. It is not because of the prize money. Organizers of the event do not pay a dime to the winners of the various award, however the prestige and honor that accompany are more than any kind of monetary rewards.
Though there is no prize money associated with the award, there are lot of incentives. For instance, those who win the award will become popular and the music that gives that award will translate into sales. People struggle for it not because of the immediate financial rewards in terms of cash prize, it is because of the changes in can make to their music.
Another way of benefitting from the system is the Grammy auction where money can be raised. Amount to be realized here is not static, it varies. The prize can range from anything thirty thousand dollars to hundreds of dollars as was the case in the past. To the participants, they do not expect much in terms of financial award. Even for the organizers, they were not anticipating that they are going to dole out funds for winners of the award.
Concert tickets sales may be another reward for the winners. For the fact they won the thing has already made them stars and whenever they stage a concert, many people will try to make it.