How do I get paid from
record sales?
Payments from record sales are called mechanical royalties and are paid by the
record company to the publisher of the song through the Harry Fox Agency. The
royalty rate is set by congress (the "statutory rate") and is at this writing
set at 8 cents per song. Therefore if you had one song that was written and
published solely by you on a million selling album, you would earn $80,000 in
mechanical royalties.
How do I get paid from
radio airplay?
Performance royalties are collected from radio and TV broadcasters, etc. by the
Performing rights organizations ASCAP, BMI, or SESAC in the United States (each
country has its own P.R.O.). The P.R.O.s distribute these payments to their
member songwriters and publishers based on formulas that calculate how many
people have been exposed to the song. A number one pop single might earn as much
as a million dollars in performance royalties in its biggest year.
You may also make money when videos or DVDs that are sold, depending on the nature
of your original license agreement.
Songwriters earn money in two ways: a)
When records are sold and b) when their songs are
played on radio, TV and other public areas (restaurants, concerts, etc).
