The Revenue You're Missing
When you distribute music, your distributor collects streaming royalties from Spotify, Apple Music, and other platforms. This is money owed for the sound recording - the specific performance you uploaded.
But streaming also generates royalties for the underlying composition - the song itself. If you wrote the music, you're owed these composition royalties too. And they're collected through completely separate systems.
Most independent artists are registered with a distributor and nothing else. They're collecting roughly 60-70% of what they've actually earned.
The Six Royalty Types
Understanding what you're owed is the first step to collecting it.
| Royalty Type | What Generates It | Who Collects | You Need To |
|---|---|---|---|
| Streaming (recording) | Spotify, Apple Music streams | Your distributor | Already set up |
| Mechanical | Streams, downloads (composition) | MLC (US), publishers, CMOs | Register with MLC |
| Performance | Radio, TV, live venues | ASCAP, BMI, SESAC | Join one PRO |
| SoundExchange | Pandora, SiriusXM, digital radio | SoundExchange | Register directly |
| Sync | Film, TV, ads, games | Direct licensing or sync agents | Pitch or hire agent |
| Sheet music sales | Publishers | Rarely relevant |
If you're both the songwriter and the performer/owner, you're owed all of these. If you perform covers, you're owed recording royalties but not composition royalties (those go to the original songwriter).
Step 1: Confirm Distributor Setup
You likely have this covered, but verify:
- Your music is live on major platforms
- You're receiving royalty statements
- Your bank/payment information is current
- All releases show your correct artist profile
This handles streaming royalties for sound recordings - the largest single revenue stream for most artists.
Step 2: Register with a PRO
Performing Rights Organizations (PROs) collect performance royalties when your songs are played publicly: radio, TV broadcasts, live venues, retail stores, even Spotify in some contexts.
In the US, you have three options:
ASCAP: Largest membership base, established reputation. Open enrollment, no fee to join.
BMI: Second largest, similar to ASCAP. Free to join as a songwriter.
SESAC: Invitation-only, smaller roster. Higher barrier but personalized service.
You can only join one PRO. Choose ASCAP or BMI if you're starting out - they're equivalent for most purposes.
To register:
- Go to ascap.com or bmi.com
- Create an account as a songwriter/composer
- If you also own your publishing (most independent artists do), register as a publisher too
- Register each of your songs with complete metadata
Registration takes 10-15 minutes per song. Once registered, you'll receive payments whenever your music is publicly performed and reported to the PRO.
Step 3: Register with the MLC
The Mechanical Licensing Collective handles mechanical royalties for interactive streaming in the US. When someone streams your song on Spotify, two royalties are generated: recording (to your distributor) and mechanical (to the MLC).
If you wrote your songs and haven't registered with the MLC, you're missing roughly 15% of your US streaming value.
To register:
- Go to themlc.com
- Create an account (free)
- Claim your works by searching for your songs
- Verify ownership and provide payment details
The MLC holds unclaimed royalties for three years. If you register now, you can claim historical payments from the past three years. After that, unclaimed money is redistributed.
This is free money you've already earned. Registration takes 30 minutes.
Step 4: Register with SoundExchange
SoundExchange collects royalties for non-interactive digital radio - Pandora, SiriusXM, iHeartRadio, and similar services. This is different from streaming; it's compulsory-license radio where listeners don't choose specific tracks.
Your distributor does NOT register you with SoundExchange. This is a separate registration you must complete yourself.
What About Covers?
If you record cover songs:
- You earn recording royalties (paid through your distributor)
- You do NOT earn composition royalties (those go to the original songwriter)
- You must obtain a mechanical license (usually handled by your distributor's cover song service)
- Performance royalties go to the original songwriter's PRO
Your distributor (DistroKid, TuneCore, etc.) offers cover song licensing that handles the mechanical license legally. Use it - distributing covers without proper licensing creates legal exposure.
International Considerations
If you have significant international listenership:
Mechanical royalties: The MLC only covers US mechanicals. International collection requires either a publishing administrator or direct registration with each territory's CMO (collection management organization).
Performance royalties: ASCAP and BMI have reciprocal agreements with international PROs, so performances abroad should flow back to you automatically. Verify with your PRO.
SoundExchange: US only. International neighboring rights are collected by country-specific organizations. UK artists register with PPL; Canadian artists with Re:Sound; etc.
The complexity of international collection is why publishing administrators earn their commission. For artists with 20%+ international audience, a service like Songtrust often pays for itself.
The Bottom Line
Your distributor handles one revenue stream. The complete setup requires:
- PRO membership for performance royalties
- MLC registration for US mechanical royalties
- SoundExchange registration for digital radio royalties
- Optionally, a publishing administrator for global collection
This isn't complicated, but it requires initiative. Most artists never complete the setup because no one makes them. The reward for doing the work is capturing 100% of what you earn instead of leaving 30-40% uncollected.