Last updated on Mar 5, 2024

How can you ensure that you receive accurate royalty payments as a musician?

If you are a musician who creates original music, you deserve to get paid for your work. However, the music industry can be complex and confusing when it comes to royalty payments. Royalties are the fees that you earn when your music is used, performed, or streamed by others. How can you ensure that you receive accurate royalty payments as a musician? Here are some tips to help you navigate the process and protect your rights.

1 Register your works

The first step to receiving accurate royalty payments is to register your works with the relevant organizations. These include performing rights organizations (PROs), mechanical rights organizations (MROs), and sound recording copyright owners (SRCOs). PROs collect and distribute royalties for public performances of your music, such as radio, TV, or live venues. MROs collect and distribute royalties for the reproduction of your music, such as CDs, downloads, or streaming. SRCOs collect and distribute royalties for the use of your sound recordings, such as digital radio or satellite services. By registering your works with these organizations, you can ensure that you are properly identified and credited for your music.

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Arnon Woolfson

Award winning Marketing & Business Professional | Music Industry Expert & Judge | I guide Executives & Artists, leveraging business opportunities at the intersection of marketing, music & technology.
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This is critical to get right but also requires ongoing maintenance. Ensuring every bit of metadata entered is accurate is important and ensuring it remains that way over time makes the difference between being paid and not! If you have a song achieving success internationally, you may need to ensure that you have admin taking care of collection for you.

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2 Track your streams and sales

The second step to receiving accurate royalty payments is to track your streams and sales. This means keeping records of how many times your music is played or purchased on different platforms, such as Spotify, Apple Music, YouTube, or Bandcamp. You can use tools like SoundScan, SoundExchange, or TuneCore to monitor your streams and sales and compare them with your royalty statements. This can help you spot any discrepancies or errors and claim any missing payments.

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3 Audit your statements

The third step to receiving accurate royalty payments is to audit your statements. This means reviewing your royalty statements from the organizations that pay you and verifying that they are correct and complete. You should check for things like the amount of royalties, the source of royalties, the period of royalties, and the deductions or fees. You should also look for any missing or delayed payments, or any payments that seem too low or too high. If you find any issues or questions, you should contact the organization and request an explanation or a correction.

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Arnon Woolfson

Award winning Marketing & Business Professional | Music Industry Expert & Judge | I guide Executives & Artists, leveraging business opportunities at the intersection of marketing, music & technology.
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Thankfully there are some new businesses coming online to help with this. Be careful who you trust as there are a number of companies promising the world and not delivering but the fact is that the admin & accounting system is antiquated (requiring modernisation) so as a writer / artist you cannot trust that the system will pay you fairly. It won’t. It’s too fragmented snd not properly joined up. Checking line by line, ensuring all IP exploitation is accounted for and checking for unaccounted for usage is important. There is a new business in place that can really help, using new technology and methodologies that have impressed me. They’re currently under the radar but impressive.If anyone is interested, feel free to reach out to me.

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4 Hire a professional

The fourth step to receiving accurate royalty payments is to hire a professional. This means working with a lawyer, an accountant, or a manager who can help you with the legal and financial aspects of royalty payments. A professional can help you negotiate better deals, review contracts, file taxes, resolve disputes, and claim your rights. A professional can also advise you on the best strategies and opportunities to maximize your royalty income and protect your interests.

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Arnon Woolfson

Award winning Marketing & Business Professional | Music Industry Expert & Judge | I guide Executives & Artists, leveraging business opportunities at the intersection of marketing, music & technology.
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I agree. The old fashioned route does involve having a royalties expert on-side and there are a number of amazing people out there. As previously mentioned; I’ve recently come across a couple of game changing new technologies (originally from the banking world) that are disruptive and making a real difference. They’re currently under the radar but I can informally discuss these if anyone is interested. These new approaches will undoubtedly change the way things work. Exciting times…

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5 Educate yourself

The fifth step to receiving accurate royalty payments is to educate yourself. This means learning more about the music industry and how royalty payments work. You should understand the different types of royalties, the different sources of royalties, the different rates and formulas of royalties, and the different rights and obligations of royalties. You should also stay updated on the latest trends and changes in the music industry and how they affect your royalty payments. By educating yourself, you can make informed decisions and avoid common pitfalls and mistakes.

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6 Join a community

The sixth step to receiving accurate royalty payments is to join a community. This means connecting with other musicians and industry professionals who can share their experiences and insights on royalty payments. You can join online forums, groups, or networks, or attend events, workshops, or seminars. You can also join associations, unions, or guilds that represent and advocate for musicians and their rights. By joining a community, you can benefit from the support, advice, and resources of others who face similar challenges and opportunities.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Arnon Woolfson

Award winning Marketing & Business Professional | Music Industry Expert & Judge | I guide Executives & Artists, leveraging business opportunities at the intersection of marketing, music & technology.
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We are living in exciting times, with technology and innovation only increasing in its sophistication. I would say…. Watch this space. Thankfully things are (slowly) changing for the better for rights owners (writers / artists).

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How can you ensure that you receive accurate royalty payments as a musician?

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1 Register your works

2 Track your streams and sales

3 Audit your statements

4 Hire a professional

5 Educate yourself

6 Join a community

7 Here’s what else to consider

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