Understanding Music Royalties & Payments
Understanding Music Royalties & Payments (And How to Actually Get Paid) 🎶💰
Royalties Are Everywhere—So Why Are Artists Still Broke?
Every time a song plays, somebody’s getting paid. The real question is—are YOU getting your cut?
Most artists create incredible music but don’t understand how royalties work, so they miss out on thousands (or even millions) of dollars in potential income. The music industry is built on complex royalty systems, hidden payouts, and middlemen taking their share.
👀 Translation? If you’re not paying attention, your money is slipping through the cracks.
But don’t worry—we’re about to break it down in the simplest, most profitable way possible.
The 4 Main Types of Music Royalties (AKA Your Money Streams) 💵
Every time music is streamed, downloaded, performed, or played, different types of royalties are generated.
🔹 1. Mechanical Royalties (When Your Music Is Reproduced)
These are royalties paid when your song is physically or digitally copied. Think:
✅ Streaming (Spotify, Apple Music, Tidal, etc.)
✅ CD & Vinyl Sales
✅ Digital Downloads (iTunes, Amazon, Bandcamp, etc.)
📌 Who Pays? Streaming platforms & digital distributors (but they don’t always pay YOU directly).
🔹 2. Performance Royalties (When Your Music Is Played in Public)
Every time your song is played on the radio, in a bar, on TV, or in a concert, you earn performance royalties.
✅ Radio Stations
✅ Live Performances (yes, even when YOU perform your own song!)
✅ TV Shows, Commercials, & Movies
✅ Bars, Clubs, & Restaurants
📌 Who Pays? These royalties are collected by Performing Rights Organizations (PROs) like:
🎵 ASCAP / BMI (USA)
🎵 PRS (UK)
🎵 SOCAN (Canada)
💡 Pro Tip: If you’re not registered with a PRO, you’re leaving serious money on the table.
🔹 3. Synchronization Royalties (Sync Royalties = BIG $$$) 🎬
These are royalties paid when your music is used in visual media—like TV shows, movies, video games, and YouTube videos.
✅ Netflix, HBO, Hulu Soundtracks
✅ Movie Trailers & Commercials
✅ YouTube & TikTok Videos
✅ Video Game Soundtracks
📌 Who Pays? Film studios, advertising agencies, video game companies, YouTubers, etc.
💰 Why This Is Huge: A single sync deal can pay thousands (sometimes even six figures!) upfront, plus ongoing performance royalties.
🔹 4. Print Royalties (For Songwriters & Composers) 🎼
This is the least common royalty but still important—paid when your sheet music is printed & sold.
✅ If you write music for orchestras, choirs, or schools, this applies to you.
📌 Who Pays? Publishing companies, music schools, and retailers.
Where Does Your Royalty Money Actually Go? (And How to Get It) 🔄
Here’s the real problem: Music royalties don’t just appear in your bank account. They go through a maze of middlemen before you ever see a dime.
👀 The Money Path Looks Like This:
1️⃣ A fan streams your song on Spotify.
2️⃣ Spotify pays your digital distributor (like DistroKid, TuneCore, or CD Baby).
3️⃣ Distributor takes a cut, then pays you.
4️⃣ Performance royalties go to PROs (ASCAP, BMI, etc.).
5️⃣ PROs take their cut, then pay you.
6️⃣ If you have a publisher, they take a cut before you get the rest.
💀 See the problem? Too many middlemen = less money in your pocket.
How to Make Sure You’re Getting Paid (And Not Losing Out) 💡
✅ 1. Register with a PRO (Performing Rights Organization)
- If you’re not signed up with ASCAP, BMI, PRS, or SOCAN, you’re missing performance royalties.
- These royalties don’t pay automatically—you have to claim them.
✅ 2. Use a Digital Distributor (DistroKid, TuneCore, CD Baby, etc.)
- This is how you collect mechanical royalties from streaming & downloads.
- Some distributors also offer publishing admin services to help claim more royalties.
✅ 3. Get a Publishing Administrator (If You Write Your Own Songs)
- Publishing admins (like Songtrust) help collect ALL your royalties worldwide.
- They make sure you get paid from radio, TV, and international plays.
✅ 4. License Your Music for Sync (TV, Movies, & Games)
- Sign up with music libraries like AudioJungle, Musicbed, or Artlist to get sync deals.
- Network with music supervisors who place songs in films & commercials.
✅ 5. Sell Your Music as Digital Assets (The FanRaizd Method 🚀)
- Instead of waiting for platforms to pay you, SELL your music as music tokens.
- Fans buy your tokens → You get paid upfront.
- Fans resell → You keep earning again and again.
💡 Why This Works? Traditional royalties take months (sometimes YEARS) to pay out—but music tokens let you earn instantly.
Final Thought: Take Control or Get Left Behind 🚀
Royalties can be a goldmine—IF you know how to claim them. Most artists miss out because they’re waiting for money to magically appear. It won’t.
🔹 Learn how royalties work.
🔹 Register with PROs & distributors.
🔹 Monetize your music beyond just streaming.
🔹 Use FanRaizd to SELL your music & get paid instantly.
💥 You made the music. Now, it’s time to make the money. 🚀