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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.
A Side Artist Agreement is a contract used when a record label, artist or producer hires a musician, singer or rapper who is not part of the artist's group or band to perform on an artist's recording.
Unlike publishing royalties (which get paid to publishers and songwriters), digital royalties get paid to: Featured artists 45% gets paid to the primary artist/s (the one whose name is probably on the album cover). Non-featured artists 5% gets paid to a fund for session players, backup musicians, etc.
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.
The agreement or contract is the legal document between an artist or owner of an artwork and a borrowing institution, or between an exhibition organiser and the host venue. They are written to specify details about work to be undertaken and the expected outcomes.