Royalty Splits Explained: Ensuring Fair Compensation for All Contributors

In the music industry, royalty splits determine how earnings from a song or album are distributed among the various contributors, such as artists, producers, songwriters, and labels. A fair split ensures that everyone involved in the creative and business process gets the compensation they deserve.

Types of Royalties

There are several types of royalties, each covering different revenue streams:

• Mechanical Royalties – Earned from the reproduction of music (e.g., streaming platforms, downloads, CDs, vinyl).
• Performance Royalties – Generated when music is played publicly (radio, TV, live venues, or streaming).
• Sync Royalties – Paid when music is used in films, ads, video games, etc.
• Master Royalties – Earnings from the recording itself, typically split between labels, artists, and producers.
• Publishing Royalties – Related to the composition (lyrics and melody), shared among songwriters and publishers.

Common Royalty Split Structures

1. Artist-Label Split (For Signed Artists)

For artists under a record label, the earnings are typically split like this:

• Record Label: 50%-80% (covers marketing, distribution, and production costs)
• Artist: 20%-50% (based on their contract)

Example: If a track earns $10,000, and the artist has a 30% split, they receive $3,000, while the label keeps $7,000.

2. Independent Artist Split (Self-Released Music)

Independent artists who distribute music through platforms like Motiva Groove often have a different split:

• Artist: 80%-100% (if self-releasing)
• Distributor: 0%-20% (depending on the platform)

Example: On Motiva Groove, artists keep 80% of their earnings, while the platform takes 20%.

Royalty Splits for Producers & Songwriters

• Producers usually earn 3%-10% of master royalties OR receive an upfront fee + royalty points.
• Songwriters & Composers split publishing royalties (typically 50/50 with the publisher).
• Session Musicians are usually paid a one-time fee but may negotiate for royalties.

Example: A song earning $100,000 with a producer taking 5% would give them $5,000 in royalties.

How Motiva Groove Ensures Fair Compensation

At Motiva Groove, we provide:

• ✅ Transparent royalty tracking so contributors see real-time earnings.
• ✅ Automated payouts to all involved parties.
• ✅ Flexible royalty splits, allowing fair distribution based on contributions.

Conclusion

Understanding royalty splits is essential for ensuring fair compensation. Whether you're an artist, producer, or label, clear agreements help avoid disputes and ensure everyone gets paid fairly.

Want to distribute your music with fair and transparent royalties? 👉 Join Motiva Groove today!