How independent musicians get paid: questions and answers

Question 1

What is Tempo Industry?

Accepted Answer

Tempo Industry shows independent musicians the actual mechanics of getting paid: rights, releases, sync licensing and deals, explained with real numbers. We show how the money moves; results are yours.

Question 2

How many ways can one song earn money?

Accepted Answer

Every recorded song is two copyrights, and each earns separately. The composition (the song itself: the music and any lyrics) earns performance royalties, collected by a performing rights organization (PRO) such as ASCAP or BMI, and mechanical royalties, collected in the US by The MLC for on-demand streams and downloads. The sound recording (the master) earns payouts from streaming services and download stores through your distributor, and digital performance royalties from non-interactive radio such as SiriusXM and internet radio, collected by SoundExchange. US AM/FM radio pays nothing for the recording. Both earn sync fees when the song is licensed for film, TV, ads or games.

Question 3

Do I need a record label to get paid?

Accepted Answer

No. A distributor such as DistroKid, CD Baby or TuneCore delivers your music to streaming services and passes the master payouts to you, and you keep ownership of your recordings. Composition royalties don't come through standard distribution: you collect them by registering your songs yourself, or through a publishing administrator (some distributors sell this as an add-on).

Question 4

What does registering your songs mean, and why does it matter?

Accepted Answer

Registering a song tells the organizations that collect royalties that it exists and who owns it. In the US that usually means your PRO (as the writer and, if your PRO requires it to pay you the publisher share, as your own publisher), The MLC for streaming mechanical royalties, and SoundExchange for digital performance royalties on your recordings. Royalties for songs nobody registered can go unmatched and sit unpaid. Under the Music Modernization Act, The MLC holds unmatched streaming mechanicals for at least three years and can then pay them out to other publishers by market share; it plans to begin those payouts in 2027.

Question 5

How much does a stream pay?

Accepted Answer

There is no fixed per-stream rate. Most streaming services pay rights holders a share of their revenue in proportion to streams, so a stream's value varies by service, country and subscription type. For Spotify, industry estimates put the average at roughly $0.003 to $0.005 per stream, shared among all the song's rights holders (recording and composition), before your distributor's or label's cut. Since April 1, 2024, Spotify only pays recording royalties on tracks with at least 1,000 streams in the previous 12 months.

Question 6

What is sync licensing?

Accepted Answer

Sync licensing is licensing music to play alongside picture: film, TV, ads, trailers and games. A placement usually needs two licenses, each with its own fee: one from whoever owns the master (a master use license) and one from whoever owns the composition (a sync license). When the placement airs on TV or streams, the composition usually also earns performance royalties: the production reports the music to PROs on a cue sheet, so ask for a copy and check your name and share. If you control 100% of both the master and the composition (no co-writers, co-owners or uncleared samples), one yes clears both sides (a one-stop), which makes your music easier to license.

Question 7

What should I check before signing a music deal?

Accepted Answer

Check what the deal takes and for how long. Which rights: masters, publishing or both. The term and territory. The royalty rate or split, and what is deducted before you are paid (recoupment). Who owns the work when the term ends. Whether it's a 360 deal that also shares income such as touring or merch. Have a music lawyer read anything that transfers or exclusively licenses your rights. Earning independently first is leverage: you can walk away from a bad deal.

Question 8

Will the rights-registration checklist be free?

Accepted Answer

Yes. Join the email list on the Tempo Industry home page and we'll send the checklist when it's ready. After that, only emails worth your time, and you can unsubscribe anytime.