Songwriters can earn money through multiple revenue streams, primarily through performance royalties, streaming royalties, and publishing deals.

Performance Royalties

• Earned when songs are played in public settings
• Includes live performances, TV/streaming platforms, retail stores, radio, and gyms
• Collected through Performance Rights Organizations (PROs) like BMI, ASCAP, SOCAN, or PRS for Music

Streaming Royalties

• Generated from each song stream
• Typical royalty split example:
  • Publishing/mechanical: 100% to artist/publisher
  • Performance: 50% songwriter, 50% artist
  • Streaming: 3% producer, 49% artist, 48% songwriter
• Independent collaborations usually split 50/50 between creators

Publishing Deals

• Involves signing over partial/full publishing rights
• Standard split: 50% to publishing company, 100% songwriting rights retained
• Companies provide co-writing opportunities and industry connections
• Usually includes an advance payment
• Takes time to become financially sustainable

How to Maximize Earnings as an Independent Songwriter:

1. Register with Multiple Organizations

• Join a PRO (BMI or ASCAP)
• Use a digital distributor
• Register with a publishing admin company
• Sign up with SoundExchange (US only)

2. Collaborate with Other Writers

• Co-writing creates additional revenue streams
• Network with published songwriters
• Consider relocating to music industry hubs

3. Perform Live

• Generates performance royalties ($1-2 per song)
• Builds industry connections
• Creates additional income through venue payments and tips

4. Pursue Sync Licensing

• Place songs in TV shows and films
• Earn upfront sync fees ($hundreds to $thousands)
• Collect ongoing performance royalties

Success in songwriting often requires diversification beyond just writing songs. Most successful songwriters also perform, produce, or work in other areas of the music industry while building their careers.

Related Articles

Previous Articles