Artist Performance Agreement With Royalty
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FAQ
Recording artists earn royalties from the direct sale of their recordings on CDs and other media. They do not earn royalties when their songs are publicly performed like when their songs are played on the radio and TV, or in bars and restaurants.
Record Label Royalties It is an industry norm for a new artist to only receive 10-16% of their sales. The reason for this incredibly high (or low depending on your point of view) percentage is Record Labels take on all the financial risk that Artists never could imagine taking on their own.
Under the traditional recording agreement, recording artist royalties usually range from 10% to 25% of the suggested retail price for top-line albums (although many record companies have begun to compute royalties on the wholesale price).
The artists and record labels receive a share of the streaming royalties, neighboring royalties, digital performance royalties, and sync fees. At the same time, the publisher and songwriters receive the performance royalties, mechanical royalties, and sync fees (with the PROs and distributors also taking their cut).
For major label record deals, a typical artist royalty is in the 12-20% range. This lower royalty is a reflection of the increased investment that comes with a major label. In other words, you make less from record sales, but should be benefitting from a much larger investment in recording and marketing.
