Understanding music royalties – how to maximise your earnings

Understanding royalties and how they work is really important for any music artist. The sooner you understand the world of music finances, the sooner you can ensure you’re collecting all your entitled earnings.

As a music artist, understanding how to earn money from your work is crucial. Music royalties are a primary source of income, but the system can be complex. Here’s a guide to help you navigate the world of music royalties and maximise your earnings.

Types of music royalties

There are several types of royalties you should be aware of:

1. Mechanical royalties: These are earned every time your music is reproduced or distributed. This includes sales of physical copies (CDs, vinyl) and digital downloads.
2. Performance royalties: These are generated when your music is played publicly. This can include radio, TV, live venues, and streaming services. Performance rights organisations (PROs) like ASCAP, BMI, and SESAC collect these royalties on behalf of artists.
3. Synchronisation (sync) royalties: These are earned when your music is used in sync with visual media, such as movies, TV shows, commercials, or video games.
4. Print music royalties: If you have sheet music for your compositions, you earn royalties from the sale of those prints.
5. Streaming royalties: These are earned when your music is played on streaming platforms like Spotify, Apple Music, and YouTube.

How to collect your royalties

To maximise your earnings, it’s essential to ensure you’re collecting all possible royalties. Here’s how:

1. Register with a performance rights organisation (PRO): Sign up with a PRO like ASCAP, BMI, or SESAC to collect performance royalties. These organisations monitor public performances and distribute royalties to their members.
2. Join a mechanical rights agency: Agencies like Harry Fox Agency (HFA) or Music Reports Inc. (MRI) handle the collection of mechanical royalties.
3. Distribute your music globally: Use digital distribution services such as our partners, RouteNote to get your music on multiple platforms worldwide. This ensures you’re earning from global streams and downloads.
4. Register with a sync licensing agency: Sync agencies help place your music in TV shows, movies, and commercials, ensuring you earn sync royalties.
5. Monetise your YouTube channel: Join the YouTube Partner Program to earn money from ads on your music videos. You can also use services like AdRev or Audiam to claim royalties from other people’s YouTube videos that use your music.

Maximising your earnings

1. Diversify your income streams: Don’t rely on just one type of royalty. Ensure your music is available across multiple formats and platforms to collect various royalties.
2. Promote your music actively: More plays and views translate to more royalties. Utilise social media, live performances, and collaborations to reach a wider audience.
3. Monitor your royalty statements: Keep track of your royalty payments and ensure you’re receiving accurate amounts. PROs and other agencies provide detailed statements—review them regularly.
4. Update your metadata: Ensure your music metadata (like song titles, artist name, and composer details) is accurate. Incorrect metadata can lead to lost royalties.
5. Leverage publishing administration services: Companies like Songtrust or Kobalt can help manage your publishing rights and collect royalties on your behalf, ensuring you don’t miss out on any income.
6. Negotiate higher rates: If you have a strong bargaining position, negotiate better royalty rates with your label or distributor. This can make a significant difference in your earnings.

Stay informed and educated

The music industry is always evolving. Staying informed is key to maximising your royalties. Follow industry news, attend workshops, and network with other professionals to keep your knowledge up to date.

By understanding the different types of royalties and how to collect them, actively promoting your music, and ensuring your data is accurate, you can significantly boost your earnings and sustain a successful music career.