Music Royalties Explained: A Simple Guide for Independent Artists

by RMG EMPIRE STAFF October 9, 2025

Music royalties can feel complicated, but the basics are simple once you understand that every song has two sides: the recording and the composition. Each side earns different royalties, collected in different ways. Here is music royalties explained for independent artists.

RMG Empire note: The business side decides who gets paid. Roots Music Group helps artists understand ownership, splits, and strategy as part of our artist development services.

Master Rights vs. Publishing Rights

The master is the actual recording. Whoever owns the master, whether that is you or a label, earns money when the recording is streamed, sold, or licensed.

The composition is the song itself: the lyrics and melody. Songwriters and publishers own the composition and earn publishing royalties.

If you wrote and recorded your own song and own the master, you are entitled to both sides.

Recording Royalties

When your songs stream, the platform pays the master owner. As an independent artist, that money typically flows through your distributor. In the U.S., digital performance royalties for sound recordings on non-interactive services like internet radio are collected by SoundExchange, so register there too.

Performance Royalties

Performance royalties are paid when a composition is played publicly, including on streaming services, radio, TV, and in venues. Performing rights organizations collect these for songwriters. In the U.S., the main ones are BMI, ASCAP, and SESAC. Register as a writer and register every song you write.

Mechanical Royalties

Mechanical royalties are earned when a composition is reproduced, including through on-demand streaming and downloads. In the U.S., The MLC collects streaming mechanicals. Outside the U.S., other societies handle them. A publishing administrator can help collect mechanicals worldwide.

Sync Fees

When your song is used in film, TV, or ads, you typically earn a fee for the master and a fee for the composition, plus performance royalties when it airs.

How to Make Sure You Get Paid

• Register as a songwriter with a performing rights organization
• Register your songs and splits accurately
• Register with SoundExchange as the master owner and performer
• Keep your metadata clean and consistent
• Use a split sheet for every collaboration
• Keep records of every release

Protect Your Ownership

Ownership is leverage. Before signing any deal, understand exactly which rights you are giving up and for how long. Read our guide to contract red flags, and always have an entertainment attorney review important agreements.

This article is general education, not legal or financial advice.

Roots Music Group offers publishing education and career guidance for artists who want to keep ownership at the center.

How RMG Empire Can Help

You do not have to figure this out by yourself. With the RMG Artist Development & Release Partnership, RMG Empire works with you on:

• Publishing education and ownership guidance
• Organized metadata and catalog records
• Career planning with clear income goals
• Guidance before you sign any agreement

Learn more about working with RMG Empire.

Build Your Career With RMG Empire

RMG Empire is the artist family of Roots Music Group Inc., an independent record label and artist-services company with roots in Los Angeles and a network across Miami, Atlanta, and New York. RMG Empire artists get support with artist development, release strategy, marketing and PR, distribution guidance, booking preparation, and long-term career planning. RMG Empire is the artist family of Roots Music Group Inc., built to help independent artists grow with professional structure while keeping their voice and ownership at the center.

• Explore RMG Empire artist services
• Read our music industry FAQ
• Talk to the RMG Empire team

Ready when you are. Submit your music today.