Understanding Music Royalties: What Every Artist Should Know
Music royalties are one of the most important—and often misunderstood—aspects of the music industry. Whether you’re an independent artist, a songwriter, or a producer, understanding how royalties work is key to getting paid fairly for your work. If you’re creating music, you should be earning from it. But to do that, you need to know the different types of royalties and how to collect them.
There are several types of music royalties, but the two main categories are performance royalties and mechanical royalties.
Performance royalties are earned when your music is played publicly—on the radio, on TV, in a restaurant, or even at a live concert. These royalties are collected by Performance Rights Organizations (PROs) like ASCAP, BMI, or SESAC in the U.S. If you’re not registered with a PRO, you’re likely missing out on money you’re owed.
Mechanical royalties are earned when your music is reproduced, like when it’s sold as a digital download, streamed on platforms like Spotify or Apple Music, or pressed on vinyl. These are collected by mechanical rights agencies, such as the Mechanical Licensing Collective (MLC) in the U.S.
There’s also sync licensing, which happens when your song is placed in a TV show, film, commercial, or video game. These deals are negotiated individually and can pay out big, depending on the exposure and usage.
Royalties are often split between the songwriter, the composer, and the performer. If you’re collaborating, make sure to have agreements in place outlining who gets what percentage. Without that, things can get messy quickly.
The most important thing artists can do is register with the right organizations, keep track of their songs, and never assume that platforms are tracking it all for you. In reality, money gets lost all the time due to poor documentation or lack of registration.
At the end of the day, music is both art and business. If you’re putting your heart into your work, make sure you’re also setting yourself up to earn from it—consistently and fairly. Music royalties might seem complicated, but with the right knowledge, they can become a solid foundation for your career.