Royalty splits and statements
Royalty splits define who gets which share of a track's income. Royalty statements show each person what was earned and paid in a period.
Definition
A split is an agreed percentage of the income from a song or recording. Songwriters agree publishing splits in a split sheet.1 Artists, producers and featured artists agree master splits in their contracts, often expressed as producer points.2
Common split arrangements
- Publishing splits between co-writers, ideally agreed in writing when the song is written1
- Producer points: a share of the artist's master royalties, often around 3 to 5 points, though this varies by contract2
- Featured artist fees or a share of master royalties
- Session fees for session musicians, often paid by the hour. They usually get no master royalties but can collect neighboring rights as non-featured performers234
Royalty statements
Labels and publishers send statements for each accounting period set in the contract. A statement can show streams, income, royalty rates and the amount paid out.2 Clear statements build trust. Late or confusing ones can damage the relationship with artists.
Paying the splits
Once splits are calculated, a label pays many small amounts to collaborators around the world, each with their own tax situation and payment method. Doing this by hand is slow and error-prone, which is why labels automate royalty payouts.
How Talentir helps
Labels, publishers and distributors use Talentir to pay artists and collaborators in the method they choose: bank transfer, PayPal, Venmo (US) or stablecoins. See Talentir for music
Further reading
- How to Split Music Royalties Among Collaborators (and Pay Everyone)
- Producer Points Explained: How Producers Get Paid
- How to Pay Songwriters and Handle Publishing Splits
- How to Pay Featured Artists and Collaborators
Related topics
Music royalties
Music royalties are payments to the owners of a song or recording each time it is streamed, sold, performed or used in media.
Recoupment and artist advances
An advance is money a label pays an artist before royalties are earned. Recoupment is the process of earning that money back from the artist's royalties.
What is a payout?
A payout is a payment a business sends to a person or company that earned money through it: a creator, artist, freelancer or partner.
Publishing and collecting societies
Music publishers manage and license compositions. Collecting societies, such as PROs, collect royalties for songwriters and publishers.
Sources
Music royalties
Music royalties are payments to the owners of a song or recording each time it is streamed, sold, performed or used in media.
Recoupment and artist advances
An advance is money a label pays an artist before royalties are earned. Recoupment is the process of earning that money back from the artist's royalties.