4 royalties you’re probably missing (even if you’re registered with ASCAP, BMI, or SESAC)

Posted: August 26, 2014 in Artist Corner, Marketing Tips, PR2Promo Offers, Social Media Tips
Tags: , , , , , , , , , , ,

If you’ve affiliated yourself as a songwriter with a performing rights organization (such as ASCAP, BMI, or SESAC) and registered all your songs, you’ve taken an important first step in collecting the publishing royalties you’re owed.

That being said, PROs such as ASCAP and BMI only collect one form of music publishing revenues: theperformance royalty.

In order to collect ALL of the royalties you’re owed, you either need to have a publishing rights administratorworking on your behalf, or spend hundreds to thousands of hours each year tracking down this money yourself (in every corner of the globe); oh, and you’ll also need to speak dozens of languages and be absolutely psyched about paperwork.

In case my sarcasm went undetected, I’ll repeat it plainly: it’s nearly impossible for independent artists to collect all the music publishing revenue they’re owed — while also having time to make music — without the help of a traditional publisher or a service like CD Baby Pro.

If you’re only signed up with a performing rights organization such as ASCAP or BMI, here’s what you’re missing:

1. Mechanical royalties for physical product (CDs, vinyl, etc.)

Performing rights organizations do NOT collect mechanical royalties. Yet every time a song you’ve written appears on an album that is manufactured for sale, you’re owed a mechanical royalty. If you’re releasing your own material, you’re essentially paying this royalty to yourself. But if other artists cover your songs, are you set up to get paid?

2. Streaming 

Every time your music is played on an interactive streaming service such as Spotify or Beats Music, you’re owed publishing royalties, in addition to the standard streaming license fee you receive per play. These publishing royalties from streaming services are comprised mostly of mechanical royalties, but there is also a small percentage of performance royalties that will be paid to your PRO. Again, if you’re only registered with ASCAP or BMI, you’re only getting paid a fraction of what you’re owed.

3. International download sales

As our friends at SongTrust explain: “Outside of the US, music retailers (iTunes, Amazon, etc)  are required to pay mechanical licensing societies (think Harry Fox Agency but in other areas of the world) around 9% of revenue earned from each download. This amounts to about 9 cents per digital download, owed to the songwriter. This money sits at the mechanical society until it is collected by a publishing administrator.” Without a service like CD Baby Pro, you’re leaving those uncollected international mechanical royalties on the table.

4. International Performance Royalties

US-based PROs such as ASCAP and BMI are great at collecting performance royalties within the United States. But with CD Baby Pro, your songs will be registered directly with international performing rights organizations around the world. We’ll collect your international performance royalties straight from the source. With our direct agreements, you’ll get paid faster and more efficiently than you would via BMI, ASCAP, or SESAC (who have reciprocal agreements for international performance royalties).

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If you want to make sure you’re set up to collect all the publishing royalties you’re owed, check out CD Baby Pro.

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