I bet many have been wondering after releasing this amazing song, “Perfect, how’s this song gonna make me rich!” That’s a great question, one every artist should be thinking about before they even start making their music.
As an artist, there’s nothing more joyous than seeing your music loved by fans all over the world. But, oftentimes, it’s not just about the fame and clout. Making sure you get paid for your hard work is just as important.
Royalties are the bread and butter of a musician’s income, but figuring out how to track and collect them can feel like a puzzle. Don’t worry—I’ve made it super easy for you to understand exactly how to get paid every penny you’re owed.
Understanding Royalty Monetisation
Before I jump into how you can start collecting your royalties, I must explain what royalty monetization is. Simply put, royalties are payments you receive whenever your music is used. Whether your songs are played on the radio, streamed online, featured in a commercial, or performed live, you’re entitled to receive payments from anyone using your work.
There are several ways to monetize your music through royalties:
- Digital Streaming Platforms: Every time your music is streamed on platforms like Spotify, Apple Music, Tidal, or Boomplay, you earn royalties. While each stream will only bring in a small amount, these can add up quickly when you have a large listener base.
- Radio and TV Airplay: When your track or music video gets airtime on the radio or is featured on TV, you earn royalties, which are often better pay than those from digital streaming platforms.
- Live Performances: If your music is performed live, whether by you or someone else, you are owed performance royalties.
- Synchronization Licensing: If your music is used in movies, TV commercials, or video games, you get paid. This type of licensing can be a profitable source of income.
Understanding these different revenue streams is key to making sure you collect all the royalties you’re owed. Without this, you are just missing out on earnings that are rightfully yours.
Insights On How To Collect Royalties
Collecting royalties might seem like hard work at first, but with the right information, you can make sure you’re getting the money you’ve earned. Here’s how to do it:
1. Join a Performing Rights Organization (PRO):
In many countries, including Nigeria, you need to be registered with a PRO to obtain your performance royalties. For example, in the U.S., you can join ASCAP or BMI, while in Nigeria, you can register with COSON (Copyright Society of Nigeria).
These organizations track where your music is played and collect royalties on your behalf. Signing up with a PRO or CMO is the first thing even songwriters should do after distributing their music if they want to collect royalties worldwide.
Once you’re registered, you’ll receive an IPI (Interested Parties Information) number, a unique ID that helps global royalty organizations identify your work.
2. Register Your Songs:
Make sure all of your songs are registered with a PRO, as well as with digital platforms and any other royalty collection agencies. If your music isn’t registered, there won’t be a way for you to receive any royalty payment.
3. Keep Track of Your Music Usage:
It’s important to monitor where and how your music is being used. You can do this with online tools or by hiring a music rights management service to do the tracking. This is very necessary in making sure that every use of your work is accounted for and that you’re paid accordingly.
5. Use Digital Distribution Services:
Platforms like TuneCore, CD Baby, or DistroKid are great options for distributing your music to digital platforms and collecting streaming royalties. While these services charge a small fee, they make it much easier to get your music out there and ensure you’re paid for it.
At the heart of it, a digital music distributor helps you get your music onto streaming and download platforms. These distributors act as a pipeline, taking a small fee or commission on your sales to make your songs available worldwide.
Some full-service platforms offer additional services, such as selling your music vinyl and merchandise, providing creative or manufacturing support, or helping with promotion to press and radio.
6. Audit Your Royalties:
It’s important to regularly check your royalty statements for accuracy. Mistakes often happen, and if you’re not paying close attention to them, you could be getting ripped and miss out on significant income.
Collecting paid royalties is directly proportional to your music promotion. If your music isn’t out there on the right platforms. You won’t be getting the fame and money you deserve. Let our promotion services maximize your royalty earnings.
Tips On How To Collect Publishing Royalties
Publishing royalties are a key income stream reserved for songwriters and composers. Here’s how to ensure you’re collecting your fair share as a songwriter:
Sign a Publishing Deal: If you don’t already have a music publisher, it’s high time to sign with one. A music publisher will take care of registering your songs, making sure they’re used, and collecting all your publishing royalties on your behalf.
Set Up a Publishing Company: Alternatively, instead of having to pay a music publisher, you can create your own publishing company. This gives you more control over your music and allows you to collect both the songwriter’s and the publisher’s share of royalties.
Register with a Mechanical Rights Organization (MRO): Besides joining a PRO, register with an MRO like the Mechanical Licensing Collective (MLC) in the U.S. or MCPS in the UK. These organizations will collect all your mechanical royalties on your behalf.
License Your Music for Covers: As a songwriter, you’re entitled to mechanical royalties whenever other artists cover your songs. Make sure your music is properly licensed to avoid missing out on this additional income.
Monitor Global Usage: If your music is gaining popularity overseas, make sure you’re collecting royalties from those markets as well. To do that, you will need to register with international PROs or use a service that handles global royalty collection.
Monetize Digital Downloads and Physical Sales: Remember, you’re entitled to royalties for every digital stream, download, and physical sale of your music. Make sure these sales are reported accurately so you receive all the royalties you deserve.
Mechanical Vs Performance Royalties: Differences
Many artists are often caught slacking when it comes to the differences between mechanical and performance royalties. This shouldn’t be you after reading this:
Mechanical Royalties:
These royalties are earned whenever your music is physically or digitally reproduced. This includes sales from CDs, vinyl records, digital downloads, and streams on platforms like Spotify. Mechanical royalties are typically collected by organizations known as Mechanical Rights Organizations (MROs).
Performance Royalties:
Performance royalties are earned every time your music is played publicly, whether it’s on the radio, on TV, in a public venue, or during live concerts. These royalties are collected on your behalf by Performing Rights Organizations (PROs) like ASCAP, BMI, or COSON.
Key Differences:
Mechanical royalties are generated from the reproduction of your music, while performance royalties come from the public performance of your music. Both royalties are essential, and to maximize your income, you should make sure you’re collecting both.
What Are Forever Royalties:
“Forever royalties” is a term that refers to royalties that an artist continues to receive for the lifetime of their work, plus a certain period after their death. Here’s what you need to know:
“Forever royalties” refer to the royalties an artist continues to earn throughout their lifetime, plus a period after their death. Here’s the gist about it:
- Lifetime Earnings: As long as an artist’s music is being used, they continue to earn royalties. This income can provide financial security throughout their life.
- Posthumous Earnings: After their death, their next of kin or children can continue to earn royalties for up to 70 years (in most jurisdictions). This can be a significant legacy for families or beneficiaries.
- Importance of Registration: To ensure you and your heirs receive these royalties, it’s vital to have your music properly registered and all your rights managed correctly.
Conclusion: Easy Steps To Track and Collect Your Royalties
Tracking and collecting your royalties often feel daunting, but by being equipped with the right knowledge and tools, you can make sure every penny and cent you’ve earned easily finds its way to you.
By learning about the various types of royalties, properly registering your music, and utilizing the right services, you can secure a steady financial future as a musician.