How to Get Paid · Chapter 01 of 9
Every song is two copyrights
When you release a song, you’ve made two separate things, and each one earns its own money from its own collectors. Most bands set up one and miss the other.
Facts last checked
| The recording (the “master”) | The song (the “composition”) | |
|---|---|---|
| What it is | The actual audio file: this performance, this mix | The melody, chords and lyrics, however anyone plays it |
| Who owns it | Whoever made and paid for the recording. For Copper Kettle, the three of them equally | The songwriters, and their publisher if they have one. For “Porch Light”, Ana 40 / Ben 30 / Cass 30 |
| Its ID number | ISRC, one per recording | ISWC, one per song |
| Main collectors | Your distributor, SoundExchange | Your PRO (BMI or ASCAP), The MLC, a publishing administrator |
The ownership doesn’t have to match. In Copper Kettle, the recording is split three equal ways but the song isn’t. If a fourth friend played trumpet on the recording but didn’t write anything, they might get a share of the recording money, if the band agrees, but nothing from the song.
Why this matters: most distributors collect only the recording side. If nobody sets up the song side, that money is never paid to you. This is the single biggest leak for independent musicians.
Every income stream, and who pays it
Think of each stream of a song as dropping coins into several jars. Each jar has its own collector, and you have to sign up with each collector to empty its jar.
Recording money
| Money | Comes from | Who pays you | What you do |
|---|---|---|---|
| Store and streaming sales | Spotify, Apple Music, Amazon, YouTube Music, iTunes downloads and others | Your distributor | Sign up, upload, and set splits so each bandmate is paid directly |
| Digital radio | Services where the listener can’t pick the song: satellite radio, internet radio, music channels on cable TV | SoundExchange | Register each band member as a featured artist, and whoever owns the recordings as the rights owner |
| YouTube Content ID | Ads on other people’s YouTube videos that use your recording | Your distributor or a YouTube partner | Turn on Content ID for tracks you exclusively own |
| Foreign “neighbouring rights” | Radio, TV and public play of recordings in other countries | SoundExchange, with an international mandate, or a neighbouring-rights agency | Tick the international option in SoundExchange |
| Sync (master-use fee) | A film, TV show, ad or game uses your recording | Whoever licenses the music, paid to the recording owners | Negotiate a master-use licence |
Song money
| Money | Comes from | Who pays you | What you do |
|---|---|---|---|
| Performance royalties | Radio (including AM/FM), TV, live venues, bars, and streaming services like Spotify and Apple Music | Your PRO: BMI or ASCAP | Join as a writer, then register every song with its splits |
| US streaming and download mechanicals | Every on-demand stream and download in the US | The MLC | Join (free) and register every song |
| Publisher share | Half of all performance money is set aside for “the publisher” | Your PRO, paid to your publisher (or to you, at BMI) | See the publisher share |
| Worldwide mechanicals and foreign performance | Streams, downloads and plays in other countries | Foreign societies: through your PRO for performance, through a publishing administrator for mechanicals | Optional: sign up with an administrator such as Songtrust or Sentric |
| YouTube (the song) | The song inside any YouTube video | A publishing administrator that delivers your songs to YouTube | Optional, through an administrator |
| Sync (sync fee) | A film, TV show, ad or game uses your song | Whoever licenses the music, paid to the songwriters and publishers | Negotiate a sync licence |
A quirk of US law: AM/FM radio in the US doesn’t pay the recording owners or performers anything. Only the songwriters get paid for those plays, through their PRO. SoundExchange money comes from digital radio only.
Where one stream’s money goes
One play of “Porch Light” on Spotify in the US pays three ways:
- Spotify → distributor → the three band members. Recording money, split by the distributor’s splits.
- Spotify → The MLC → Ana, Ben and Cass. Mechanicals, 40 / 30 / 30, if the song is registered at The MLC.
- Spotify → BMI and ASCAP → Ana, Ben and Cass. Performance royalties, 40 / 30 / 30, if the song is registered with each writer’s PRO.
The same play on internet radio, where the listener can’t choose the song, goes to SoundExchange for the recording and to the PROs for the song. The MLC isn’t involved.
Questions
What is the difference between the master and the composition?
The master is the recording: this performance, this mix, the actual audio file. The composition is the song itself: the melody, chords and lyrics, however anyone plays it. Each is its own copyright, with its own owners, its own ID number and its own collectors.
Does my distributor collect songwriting royalties?
Usually not. Most distributors collect only the recording’s money from stores and streaming services. The song’s money is collected by a PRO (BMI or ASCAP), The MLC and, optionally, a publishing administrator. If nobody sets those up, that money is never paid to you.
Can the recording and the song have different owners?
Yes, and in bands they often do. A band can own the recording in equal shares while the song is split by who wrote what. A session player might get a share of the recording, or a fee, but nothing from the song.
Does AM/FM radio pay the band for the recording?
No. In the US, AM/FM radio pays only the songwriters and publishers, through their PROs. Recording owners and performers are paid only for digital radio, through SoundExchange.
Sources
Official pages, all checked on October 28, 2026.
This guide is general information, not legal or tax advice. Fees and rules change: check the official site on the day you sign up. For a big deal, such as a sync offer, a label contract or selling a catalogue, pay a music lawyer for an hour.