Ever wondered how much you should be getting in terms of royalties? Do you struggle to grasp the concept of division of percentages of royalties? Are you earning any money from your music at all?
I've done a lot of songs with various artists and producers and sometimes I get told that I'm only entitled to figures between 10% and 30% royalties when a song I produced comes out. These statements always confuse me. I always ask where this figure comes from and the answer is always some long-winded version of "I put money into the song as an artist therefore I'm taking what is owed to me that's why I'm taking a big portion if not all of the royalties". It fascinates me that no one really knows what percentage they're entitled to. It fascinates me even more that people think that they are "giving" me royalties. I use the word entitled because as the composer of the beat, I'm entitled to that share. As the person who wrote or performed the lyrics, you are also entitled to a percentage. Lets share the spoils with the same kind of energy we had when we were making the song. Always confirm your words and actions because saying something like "the artist takes 80% in most cases" without any basis for your information is going to crush the relationships you've built. You'll sound pretty silly as an added bonus.
I'm sure you're still asking what the hell everyone should get paid, huh? The answer is whatever is going to keep relationships with the other party smooth. Disputes at SAMRO arise when one group decides to split shares 60 - 40 while the other group decides on 50 - 50. SAMRO obviously can't pay out because you guys haven't settled on a common split. The money then sits there until you guys manage to sort out that dispute. There's no way for you to undercut your fellow musician as you both submit notification of works forms for your collab. The info on all forms must be identical
Conventionally, the production team would get half the royalties and the artists and songwriters would get half. Sound engineers aren't entitled to any royalties as of yet. As the industry develops, we need to use new methods of splitting these royalties up. I've gone into 3 way partnerships where we split royalties equally. I agree to equal splits because it's what keeps both parties happy. Remember, one relationship is worth many royalty payments. If you keep pissing all over your relationships then you'll eventually sink. In some situations an artist with a lot of leverage (fame, reach, monetary investment) can negotiate a bigger share because of what they're bringing to the table. Keep your colleagues happiness as top priority even if it is just a transaction.
Be smart and communicate as much as you can with the people you work with.
SB