How Do Songwriters Make Money? A Guide to Royalties and Income Streams

How Do Songwriters Make Money? A Guide to Royalties and Income Streams

By Marcus Hartley

December 13, 2024 at 07:06 AM

Songwriters can earn income through multiple revenue streams, primarily through performance royalties, streaming royalties, and publishing deals. Here's how each works:

Performance Royalties

  • Earned when songs are played in public settings
  • Includes live performances, TV, radio, stores, and restaurants
  • Collected through Performance Rights Organizations (PROs) like BMI, ASCAP, SOCAN, or PRS

Woman writing on notebook at desk

Woman writing on notebook at desk

Streaming Royalties

  • Generated from each stream on music platforms
  • Typical split example:
    • 49% to artist
    • 48% to songwriter
    • 3% to producer
  • Independent collaborators often split 50/50

Publishing Deals

  • Songwriter signs over partial publishing rights
  • Usually 50% of publishing rights to company
  • Company provides co-writing opportunities and industry connections
  • May include advance payment
  • Takes time to generate sustainable income

How to Maximize Earnings as an Independent Songwriter:

  1. Register with Collection Organizations
  • Join a PRO (BMI or ASCAP)
  • Use a digital distributor
  • Register with a publishing admin company
  • Sign up with SoundExchange (US only)
  1. Collaborate with Others
  • Co-write with established songwriters
  • Share streaming revenue through splits
  • Build industry relationships
  1. Perform Live
  • Earn performance fees and tips
  • Generate additional PRO royalties
  • Build local music community connections
  1. Pursue Sync Licensing
  • Place songs in TV and film
  • Earn upfront sync fees ($hundreds to $thousands)
  • Collect backend performance royalties

Woman strums guitar by sunlit window

Woman strums guitar by sunlit window

For maximum earning potential, successful songwriters often combine multiple revenue streams and typically also work as performers, producers, or artists themselves.

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