How Royalties Work for Independent Artists
There are at least 6 different types of music royalties. Most independent artists only collect 1 or 2. Here's how to collect them all.
The 6 Types of Music Royalties
1. Streaming / Download Royalties (Master Side)
This is the royalty most artists know about. When someone streams your song on Spotify, Apple Music, or any platform, you earn a per-stream payout. Downloads from iTunes or Amazon pay a fixed amount per purchase.
- Spotify: ~$0.003–$0.005 per stream (varies by country and account type)
- Apple Music: ~$0.007–$0.01 per stream
- Amazon Music: ~$0.004 per stream
- Tidal: ~$0.008–$0.013 per stream
Who collects this: Your distributor (OneSync). Paid directly to your account.
2. Mechanical Royalties (Publishing Side)
Mechanical royalties are owed to the songwriter every time a song is reproduced — including every stream. This is separate from the streaming royalty above.
- US streaming rate: ~$0.0009 per stream (set by the Copyright Royalty Board)
- Physical/download: $0.12 per copy for songs under 5 minutes
Who collects this: A publishing administrator or mechanical rights organization (Harry Fox Agency, MLC). OneSync's publishing admin collects this for you.
Deep dive: Mechanical vs Performance Royalties →
3. Performance Royalties (Publishing Side)
Performance royalties are generated when your song is performed publicly: radio play, live venues, TV broadcasts, restaurants, bars, etc.
Who collects this: Your PRO (ASCAP, BMI, SESAC in the US). You must register directly with a PRO.
4. Sync Licensing Fees
When your music is placed in a TV show, movie, commercial, video game, or social media content, two fees are paid: a master use license fee (for the recording) and a sync license fee (for the composition).
- TV background music: $1,000–$5,000
- TV featured song: $5,000–$75,000
- National commercial: $25,000–$500,000+
- Film placements: $10,000–$250,000+
Who collects this: Your sync licensing representative. OneSync includes sync licensing for free. How sync licensing works →
5. YouTube Revenue
Revenue from YouTube comes in two forms: ad revenue from your own channel, and Content ID revenue from other people's videos using your music.
Who collects this: Your distributor (via YouTube Content ID). OneSync includes this free.
6. Neighboring Rights
Neighboring rights royalties are paid to performers and recording owners when a recording is played publicly (radio, TV, public spaces) — separate from songwriter performance royalties.
Who collects this: Neighboring rights organizations (SoundExchange in the US). You must register separately.
How to Make Sure You're Collecting Everything
- Use a distributor with publishing admin: OneSync handles both distribution and publishing. Why you need both →
- Register with a PRO: Join ASCAP, BMI, or SESAC to collect performance royalties
- Register with SoundExchange: Collects neighboring rights/digital performance royalties
- Opt into sync licensing: OneSync includes this free — your music is pitched to music supervisors
- Enable YouTube Content ID: Included free with OneSync distribution
📚 Related Guides
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