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Music Royalties Breakdown
Besides getting paid for CD sales, merchandise sales and touring, there are other types of royalties that you can collect in the music world. When submitting to the types of companies we post on our Opportunities and VIP page, keep in mind that if you are accepted, these companies will more than likely owe you some form of monetary payment. As long as you have protected and registered your music by signing up with the companies mentioned in the below, you will be receiving checks! Music royalties breakdown:
Performance Royalties
When a song is played or performed in a public setting, the owner of the composition and the publisher are owed performance royalties which are split 50/50. These types of performances can include terrestrial radio, music played in stores and music on streaming sites like Pandora or YouTube.
Mechanical Royalties
Mechanical royalties are owed to the composer and publisher of a musical work each time a song is sold. This is important for songwriters that are not the actual artists or performers of the songs being sold, and a bonus for those who write and perform their music.
Synchronization Royalties
When songs are used in TV, film, radio and the like, royalties are owed to the composer of the song and the publishing company that marketed the song successfully. The royalties are split 50/50, and sometimes include an upfront, one-time ‘Sync Fee’ for acquiring the song’s synch rights.
How To Make Sure Your Recieve Your Royalties
PROs for songwriters, or Performance Rights Organizations, are societies responsible for collecting income on behalf of songwriters when a song is performed for public broadcast. This means they collect money on your behalf for the music you’ve written when it’s played or performed. This includes things like getting played on the radio, being featured in a commercial, or any live broadcasted event. PRO's literally track down companies for you to make sure you get paid for your hard work and creations.
Current Songwriter PROs you can sign up with (you only need one):
ASCAP.com/join ($50 fee)
BMI.com/join (free!)
For SESAC, you have to be exclusively invited.
There is a newer organization collecting money for the sound recording owner, while the other 3 collect only for the songwriter. SoundExchange is free to register for and collects royalties for the party that owns the song master. This includes payment for plays on digital streaming services like Pandora and Music Choice. Chances are, you wrote the songs and own the sound recording, yet are leaving money on the table by not signing up to two companies. Join BMI + SoundExchange, or ASCAP + SoundExchange to cover all of the royalties owed to you.
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