Understanding Music Royalties: A Complete Guide for Musicians

Music royalties are one of the most important aspects of a musician’s career. They represent the earnings that musicians, songwriters, producers, and others make when their music is played, sold, or performed publicly. Understanding how music royalties work is essential for ensuring that you get paid properly for your creative work.

In this guide, we’ll explain the different types of music royalties, how they are collected, and how platforms like Muibas can help you collaborate on projects that maximize your royalty potential.

  1. Types of Music Royalties

There are several types of royalties that musicians and songwriters can earn from their music. Understanding the different types will help you know what to expect in terms of payment and how to collect your earnings.

  1. Mechanical Royalties

Mechanical royalties are generated when your music is reproduced in a physical or digital format. This applies to physical copies like vinyl or CDs and digital downloads or streams on platforms like Spotify or Apple Music.

  • Collected by: Music publishers or collection agencies like The Mechanical Licensing Collective (MLC) in the U.S.
  • How to Earn: Each time your music is sold or streamed, you’re entitled to a mechanical royalty.
  1. Performance Royalties

Performance royalties are earned when your music is played in public, whether live at concerts, on the radio, in restaurants, or via streaming services.

  • Collected by: Performance Rights Organizations (PROs) like ASCAP, BMI, and SESAC in the U.S., and PRS for Music in the UK.
  • How to Earn: You earn performance royalties every time your song is publicly performed or broadcast.
  1. Sync Royalties

Sync royalties come from the synchronization of your music with visual media, such as TV shows, films, commercials, or video games. This is one of the most lucrative forms of royalties for independent artists.

  • Collected by: Music licensing companies, sync agents, or directly negotiated deals.
  • How to Earn: You earn a sync royalty each time your music is licensed for use in a video or film project.
  1. Print Royalties

Print royalties are earned when your compositions (sheet music or lyrics) are printed and sold, whether digitally or physically.

  • Collected by: Music publishers or specialized agencies.
  • How to Earn: You earn print royalties every time someone buys your sheet music.
  1. How Are Music Royalties Collected?

Music royalties are collected through different organizations depending on the type of royalty. Understanding the collection process ensures that you’re registered in the right places to collect all the money you’re owed.

  1. PROs (Performance Rights Organizations)

PROs collect performance royalties whenever your music is played publicly. In the U.S., ASCAP, BMI, and SESAC are the primary organizations, while countries like the UK have PRS for Music.

  • How to Collect: Register your songs with a PRO to ensure you’re collecting performance royalties when your music is played on the radio, live, or streamed publicly.
  1. Mechanical Licensing Agencies

Agencies like The MLC and Harry Fox Agency (HFA) handle mechanical royalties. These organizations collect royalties for digital downloads and streaming platforms, ensuring songwriters get paid for every play.

  • How to Collect: Make sure your music is registered with a mechanical licensing agency, and work with a digital distributor (such as DistroKid or TuneCore) to ensure your music is available on streaming platforms.
  1. Music Licensing Platforms

Sync royalties are usually collected through music licensing platforms or agencies. Platforms like Songtradr, Musicbed, and Pond5 allow you to license your music for use in visual media and collect royalties for placements in TV shows, films, or ads.

  • How to Collect: Submit your music to sync licensing platforms or work with a music licensing agent to find sync opportunities.
  1. Direct Negotiations

For print royalties or exclusive licensing deals, royalties are often collected through direct negotiation with the buyer, whether that’s a publisher, film producer, or another party interested in your music.

  • How to Collect: Negotiate the terms directly, ensuring you retain rights and receive the proper compensation for your music.
  1. Platforms That Help You Maximize Royalties

In addition to understanding the types of royalties and how they’re collected, leveraging the right platforms can significantly increase your earnings. Here are some key platforms that can help you monetize your music effectively.

  1. DistroKid and TuneCore

These distribution platforms help you get your music on streaming services like Spotify, Apple Music, and Amazon Music, ensuring you earn mechanical royalties for streams and downloads.

  • How They Help: Both platforms distribute your music to all major streaming services, ensuring that every play counts toward your royalties.
  1. Bandcamp

Bandcamp allows you to sell your music directly to fans, letting you keep a large percentage of the revenue while collecting mechanical royalties for each sale.

  • How It Helps: Bandcamp is ideal for musicians who want to sell their music and merchandise directly to fans without giving away large cuts to third parties.
  1. Songtradr and Sync Platforms

Sync platforms like Songtradr connect your music with opportunities in film, TV, and video games, helping you collect sync royalties for licensing your music in visual media.

  • How They Help: These platforms offer a marketplace where filmmakers and content creators can discover and license your music, generating upfront fees and ongoing royalties.

Muibas Tip:

Collaborating on Muibas allows you to create high-quality music with other talented musicians, making your tracks more attractive for streaming, sync, and licensing opportunities. Whether you’re building an album for Spotify or producing sync-ready tracks for TV, Muibas can enhance your music, making it more marketable and increasing your potential royalty earnings.

  1. How to Ensure You Get Paid

The key to maximizing your royalty earnings is to ensure that you’re properly registered with all necessary organizations and platforms. Here are a few steps to make sure you don’t miss out on royalties:

  • Register with a PRO: Sign up with a PRO like ASCAP, BMI, or SESAC to collect performance royalties.
  • Register with a Mechanical Licensing Agency: Ensure your music is registered with The MLC or Harry Fox Agency to collect mechanical royalties.
  • Use Digital Distributors: Work with platforms like DistroKid or TuneCore to get your music on all major streaming services.
  • Join Licensing Platforms: Submit your music to sync platforms like Songtradr to access sync licensing opportunities.

By making sure you’re covered across these various platforms and agencies, you can ensure you’re collecting all the royalties your music generates.

Conclusion: Understand and Maximize Your Music Royalties

Music royalties can come from many different sources, and understanding how they work is crucial for independent musicians. Whether through mechanical royalties, performance royalties, or sync licensing, artists have more opportunities than ever to generate income from their music. Collaborating with other musicians on Muibas allows you to create professional-quality music that’s ready to monetize across these platforms, helping you maximize your earnings and reach a wider audience.