What’s a Fair Royalty Percentage for a Music Producer?
One of the most common questions in the music industry is: What percentage of royalties should a music producer receive?
Understanding fair royalty splits is essential for producers to ensure they are properly compensated for their work. In this article, we break down standard royalty percentages and what factors determine a fair share.
Standard Producer Royalty Splits
Music producers typically earn royalties in two primary ways:
Publishing Royalties – Earned from songwriting contributions.
Master Royalties (Points) – Earned from the recording’s revenue.
Publishing Split for Producers
If you are the sole producer of a track and no samples are used, you are generally entitled to 50% of the publishing.
If multiple producers contribute to the track, the 50% publishing share is split among them based on contribution.
If you co-write lyrics or melody, you may be entitled to an additional portion of the songwriter’s share.
Master Royalties (Producer Points)
Producers also earn a percentage of master royalties, often referred to as "producer points."
If the artist is signed to a major label:
New producers typically receive 3-4% of the master royalty.
Established producers can negotiate 3-7% or more.
Major producers with strong industry influence may request up to 10%+.
If the artist is independent, you can negotiate your master royalties with them! Different artists run their business differently, but many are willing to do a 50/50 master split with their producers.
Additional Factors That Impact Producer Royalties
Several elements influence a producer’s royalty percentage, including:
Advance Payments – If a producer is paid upfront, their royalty percentage may be lower. Typically, you have to recoup your advance payment out of just your producer points or master ownership percentage before receiving any additional master royalties. Publishing royalties can be earned regardless of recoupment.
Label Deals – Major label contracts may have predetermined producer royalty structures.
Sync Opportunities – If a track is licensed for TV, film, or ads, producers may negotiate additional sync royalties.
Negotiating Your Fair Share
To ensure you receive a fair royalty percentage:
Use a Split Sheet – Document all agreed-upon splits before the song’s release.
Register with PROs – Sign up with ASCAP, BMI, or SESAC to collect publishing royalties.
Work with a Publishing Administrator – Companies like Elizabeth Music Group ensure producers receive every royalty they are owed across global markets. A PRO is a great starting point but it is not enough.
Conclusion
A fair royalty percentage depends on your role in the song’s creation. If you are the sole producer with no samples, you should receive 50% of the publishing. Additionally, securing producer points on the master recording ensures long-term earnings. Always negotiate your terms upfront and register your work properly to maximize your earnings.
