To fully monetize your music catalog and ensure you're collecting all potential royalties, you need to register with the right platforms and organizations.
Here's a comprehensive guide to the companies and websites you must sign up for as an independent artist.
1. Distribution Platforms for Master Royalties
These platforms distribute your music to streaming services like Spotify, Apple Music, Amazon Music, and others. They also manage payouts for streams, downloads, and physical sales:
- CD Baby
- TuneCore
- DistroKid
- Similar platforms.
💡 Why? These services ensure your music is available on all major platforms and pay you master royalties for every stream or download.
2. Publishing: Setting Up Your Publishing Company
To collect your publishing royalties, you must establish yourself as both a songwriter and a publisher. If you’re not signed to a publishing company, you can act as your own publisher. Start by registering with a Performing Rights Organization (PRO) like ASCAP, BMI, or SESAC. As your own publisher, you’ll control the 50% publisher’s share of your royalties and ensure that no money is left unclaimed.
You do not need an LLC to set up a publishing company with a PRO. Instead, you can create a publishing name that represents you and your music. Choose a name that is memorable and timeless, as it will follow you and your catalog throughout your career. Once registered, you must log every song you write with the PRO, submitting it under both the writer's share (50%) and the publisher's share (50%). This step is crucial for tracking royalties globally and building a comprehensive publishing catalog that generates revenue from streams, radio play, live performances, and more. Properly managing your publishing ensures you get paid for every usage of your songs.
Step 1: Performing Rights Organizations (PROs)
PROs collect performance royalties from radio, TV, live venues, and digital platforms for songwriters and publishers.
- U.S. PROs:
- ASCAP (American Society of Composers, Authors and Publishers)
- BMI (Broadcast Music, Inc.)
- SESAC, AllTrack, GMR (for select songwriters).
- International PROs: Contact the PRO in your country (e.g., PRS for Music in the UK, SOCAN in Canada, APRA AMCOS in Australia).
👉 Find PROs by Country: https://www.scapr.org/our-ordinary-and-associate-members/
💡 Pro Tip: You don’t need an LLC to set up a publishing company with a PRO. Pick a memorable and timeless name.
After registering as your own publisher with a PRO, sign up for The Mechanical Licensing Collective (MLC). The MLC works alongside your PRO to ensure you collect all your digital mechanical royalties from streaming and download platforms, completing the process for comprehensive royalty collection.
Step 2: The Mechanical Licensing Collective (MLC)
The MLC collects mechanical royalties from digital audio streams and downloads in the U.S.
- What It Does:
- Ensures you receive digital mechanical royalties.
- Works in tandem with PROs for comprehensive royalty collection.
👉 Sign Up for The MLC https://www.themlc.com/
3. Publishing Administrators
Publishing administrators help manage your music catalog and collect royalties worldwide.
Songtrust
- Collects royalties from 60+ collection societies globally.
- Charges a one-time $100 setup fee per writer and a 15% commission.
- Registers songs on your behalf and provides tools for YouTube monetization.
👉 Sign Up for Songtrust: https://www.songtrust.com/
💡 Why Use Songtrust? While PROs like ASCAP and BMI collect domestic performance royalties, they don’t cover all the international and mechanical royalties your music may generate. Songtrust bridges that gap, ensuring you capture revenue from over 60 global collection societies and pay sources. It's particularly helpful for artists with growing catalogs that are gaining traction internationally. However, Songtrust charges a 15% commission on collected royalties, so it’s optional if you prefer to manage your publishing independently. For those who want a streamlined, global approach to royalty collection without giving up ownership of their songs, Songtrust can be a valuable tool.
Songtrust does not actively pitch or secure synchronization (sync) deals for your music. However, they play a supportive role in the sync licensing process:
- Forwarding Sync Requests: If Songtrust receives inquiries about licensing your music for sync opportunities, they promptly forward these requests to you, allowing you to handle negotiations directly.
- Assistance with Negotiations: While Songtrust doesn't pursue sync deals on your behalf, they can assist in negotiating sync licenses if you receive an offer. They charge their standard 15% administrative fee on any upfront fees associated with the license.
- Educational Resources: Songtrust provides educational materials, such as their free Sync Crash Course, to help you understand the fundamentals of sync licensing and how to position your music for such opportunities.
In summary, while Songtrust doesn't actively secure sync placements, they support you by forwarding opportunities, assisting with negotiations, and offering educational resources to help you navigate the sync licensing landscape.
4. Sound Recording Royalties (SoundExchange)
These royalties are for the digital performance of your sound recordings on non-interactive platforms (e.g., Pandora, SiriusXM).
- SoundExchange
- Collects and distributes royalties for featured artists, non-featured artists, and copyright owners of sound recordings.
- Offers international royalty collection via agreements with 50+ global organizations.
👉 Register with SoundExchange: https://www.soundexchange.com/
💡 Why? Without SoundExchange, you could be missing royalties from digital platforms.
5. Neighboring Rights
Neighboring rights are royalties earned when your music is played publicly abroad.
- SoundExchange International Mandate
- Handles global royalty collection for neighboring rights.
- Agreements cover 81% of the global market outside the U.S.
Learn more here https://www.soundexchange.com/international-partners
💡 Pro Tip: If you're earning internationally, register with foreign CMOs to avoid leaving money on the table.
6. Organizations That Collect Voluntary Mechanical Royalties
For voluntary mechanical royalties (e.g., physical sales and downloads):
- Music Reports: Licensing and royalty administration for publishers and songwriters.
- Harry Fox Agency: Focuses on licensing and administering mechanical royalties in the U.S.
7. YouTube Monetization
Monetize user-generated content featuring your music through platforms like:
- Songtrust
- Your PRO/MLC registrations
💡 Why? Your music might already be earning royalties on YouTube—make sure you’re collecting them.
8. Key International Resources
If you're outside the U.S., consult these organizations to collect royalties in your country:
- SCAPR: A global database of neighboring rights organizations.
👉 View List by Country https://www.scapr.org/our-ordinary-and-associate-members/
9. The Breakdown: How Royalties Are Divided
When you register your songs, remember:
- 50% Writer’s Share: Collected by PROs like ASCAP/BMI.
- 50% Publisher’s Share: Collected by PROs and publishing administrators.
How Royalties Are Divided with ASCAP
ASCAP divides performance royalties into two equal parts: 50% for the writer(s) and 50% for the publisher(s), for a total of 100%. This means royalties are split evenly between the two shares, ensuring both writers and publishers receive fair compensation.
Key Points for ASCAP’s Royalty Division:
1. Writer’s Share: ASCAP pays 50% of the royalties directly to the songwriter(s).
2. Publisher’s Share: If you are your own publisher, you’ll collect the remaining 50% as the publisher.
3. Accurate Registration: When registering a song, the total writer splits must add up to 50%, and the total publisher splits must add up to 50%. This ensures the full royalty allocation is distributed.
Self-Publishing with ASCAP
If you’re the sole creator and publisher of your music, you will receive both the writer’s share and the publisher’s share, giving you access to 100% of your royalties.
💡 Example:
- If you co-write a song with one other writer and split it equally:
- Each writer gets 25% (writer’s share).
- Each publisher gets 25% (publisher’s share).
By setting yourself up as both the writer and publisher, ASCAP allows you to collect all royalties from your works without the need for a third-party publisher.
How Royalties Are Divided With BMI
Performance royalties, as managed by organizations like BMI, are calculated as a single unit equal to 200%. This structure ensures that both writers and publishers receive their fair share. Here’s how it breaks down:
- Writers’ Share (100%): Half of the total royalties (100% of the 200%) is allocated to the songwriters or composers.
- Publishers’ Share (100%): The other half is allocated to the publishers.
Important Rules for Dividing Royalties:
1. Publisher’s Share Limit: The total publisher’s share cannot exceed 100%.
2. Writer-Publisher Agreements: If writers are contractually entitled to more than 100% of the total royalty, the agreement must specify the exact percentages allocated to all parties (writers and publishers) while ensuring the total does not exceed 200%.
3. No Publisher Involvement: If there is no publisher (or only partial performing rights assigned), the writers receive the entire 200% (or the remaining balance of it) based on their respective shares.
💡 Example: If two co-writers each own 50% of a song and there is no publisher, they would split the full 200% equally, receiving 100% each.
Publisher Assignments
If a songwriter assigns their share to a publisher, they forfeit their rights to any portion of the publisher’s share allocated to co-writers. For instance, if Writer A assigns all rights to a publisher but Writer B does not, Writer A cannot claim any part of Writer B’s publisher royalties.
10. Additional Notes
- Royalty Timelines: Payments from PROs, MLC, and SoundExchange can take 9-12 months to process initially.
- Admin Fees: Organizations like SoundExchange and Songtrust charge minimal administrative fees (4-15%).
Quick Checklist for Artists
- Distribute Your Music: CD Baby, TuneCore, DistroKid.
- Register with a PRO: ASCAP, BMI, or local equivalent.
- Set Up with The MLC: Collect digital mechanical royalties.
- Join Songtrust (Optional): Simplify global royalty collection.
- Register with SoundExchange: For digital performance royalties.
- Track YouTube Revenue: Monetize your songs online.
By registering with these essential platforms, you’ll ensure that every play, stream, and performance of your music translates into revenue. Start today to secure your financial future as an artist!