How Royalties Work

Royalties & Payments

Understanding how music royalties work is essential for any artist. This guide explains the different types of royalties you'll earn and how SeemDistro helps you collect them.

Types of Royalties

Streaming Royalties

These are payments you receive when your music is streamed on platforms like Spotify, Apple Music, and others. The amount paid per stream varies by platform, subscription tier, and user location.

Download Royalties

Payments for each purchase of your music on digital stores like iTunes or Amazon MP3.

Public Performance Royalties

These royalties are generated when your music is played in public spaces, radio, TV, or venues.

Mechanical Royalties

These are paid to songwriters and publishers for the reproduction of compositions.

Sync Licensing Royalties

Payments for the use of your music in films, TV shows, commercials, and other media.

How Royalty Rates Are Determined

Royalty rates vary based on several factors:

  • Platform: Each streaming service has its own payment structure
  • Premium vs. Free: Premium subscribers generate higher royalties than free-tier users
  • Geographic Region: Rates vary by country based on local subscription prices
  • Distribution Deal: Your specific agreement with SeemDistro

How SeemDistro Collects Your Royalties

  1. Digital Service Providers (DSPs) like Spotify and Apple Music track all streams and downloads of your music
  2. DSPs pay SeemDistro your earned royalties (typically with a 1-3 month delay)
  3. SeemDistro processes and accounts for all your earnings
  4. We transfer the royalties to your account based on your payment schedule

Payment Schedule

SeemDistro offers flexible payment options:

  • Monthly payments (for balances over $50)
  • Quarterly payments (for all balances)
  • Annual payments (for all balances)

You can select your preferred payment method:

  • Direct bank transfer
  • PayPal
  • Check (US only)
  • Cryptocurrency (Bitcoin or Ethereum)

Royalty Splits

If you collaborate with other artists or songwriters, you can create royalty splits in your SeemDistro dashboard:

  1. Go to your release
  2. Select "Manage Royalty Splits"
  3. Add collaborators and their percentage shares
  4. Save and confirm the split arrangement

All parties must approve the splits before payments are distributed.

Royalty Advances

Eligible artists may qualify for royalty advances. Contact our artist relations team to learn if you qualify.

Tracking Your Earnings

Use your SeemDistro dashboard to:

  • View detailed royalty reports
  • Track earnings by platform
  • Monitor geographic performance
  • Analyze trends over time
  • Export reports for accounting

Tax Information

SeemDistro is required to collect tax information for all artists. Ensure your tax forms are up to date in your account settings to avoid payment delays.

Ready to continue?

Take your knowledge to the next level with the next article in this series.

Continue to Payment methods and schedules

Was this article helpful?

Contact Support

Send us a message and we'll get back to you as soon as possible.