Understanding Royalty Payments

Royalty payments are at the core of music distribution. This guide explains how royalties work on Dismusic, how they're calculated, and how you'll receive your payments.

What Are Music Royalties?

Music royalties are payments made to rights holders (artists, songwriters, producers, etc.) when their music is streamed, downloaded, or used commercially. As an artist distributing through Dismusic, you'll earn royalties when listeners stream or purchase your music on various platforms.

Types of Royalties You'll Earn

Through Dismusic distribution, you'll primarily earn:

Streaming Royalties: Paid when your music is streamed on platforms like Spotify, Apple Music, etc.
Download Royalties: Paid when someone purchases your music on platforms like iTunes
Public Performance Royalties: Collected when your music is played in public spaces (requires registration with a PRO)

How Royalties Are Calculated

Each streaming platform has its own method for calculating royalties, but generally:

Platform Revenue: The platform collects subscription fees and ad revenue
Artist Share: A percentage of that revenue is allocated to rights holders based on their share of total streams
Distribution: Dismusic collects these royalties and passes them on to you

Royalty rates vary by platform and region. For example:

Spotify typically pays between $0.003 and $0.005 per stream
Apple Music typically pays between $0.007 and $0.01 per stream
YouTube Music typically pays between $0.002 and $0.004 per stream

These rates are approximate and subject to change based on various factors including subscription vs. free tier listeners, geographic location, and platform-specific payment models.

Dismusic's Royalty Structure

With Dismusic, you keep 100% of your royalties. Unlike traditional distributors that take a percentage of your earnings, our model is based on a simple subscription fee, allowing you to maximize your revenue.

This means if your music earns $100 in royalties, you receive the full $100 (minus any applicable payment processing fees or taxes).

Payment Schedule

Dismusic processes royalty payments on the following schedule:

Streaming platforms typically report and pay royalties 2-3 months after the streams occur
Once we receive these payments, they appear in your Dismusic dashboard within 7 business days
You can withdraw your available balance at any time, provided it meets the minimum withdrawal amount of $10

Payment Methods

Dismusic offers several payment methods for withdrawing your royalties:

Direct Bank Transfer: Funds sent directly to your bank account (available worldwide)
PayPal: Quick transfers to your PayPal account
Payoneer: Alternative for regions where other methods may not be available

To set up or change your payment method, go to the Settings page in your dashboard and select "Payment Information."

Tracking Your Royalties

Dismusic provides comprehensive analytics to help you track your earnings:

View earnings by track, album, or your entire catalog
Filter by platform, country, and time period
Download detailed reports for your records
Monitor trends to identify your most profitable content and markets

Access these analytics through the "Earnings" section of your dashboard.

Royalty Splits with Collaborators

If you collaborate with other artists, you can set up royalty splits in your Dismusic account:

Navigate to the specific release in your dashboard
Select "Manage Collaborators"
Add each collaborator's email and their percentage share
Collaborators will receive an invitation to create or link their Dismusic account
Once confirmed, royalties will be automatically split according to the percentages you've set

Tax Information

Depending on your country of residence, you may need to provide tax information:

US-based artists: You'll need to provide a W-9 form
Non-US artists: You may need to provide a W-8BEN form

You can submit these forms in the "Tax Information" section of your account settings.

Common Questions About Royalties

Why do my royalty amounts fluctuate?

Royalty amounts can vary based on factors like streaming volume, geographic location of listeners, subscription vs. free tier streams, and seasonal listening patterns.

Why is there a delay in receiving royalties?

Streaming platforms collect and process data before distributing payments to distributors like Dismusic. This process typically takes 2-3 months, which is standard across the industry.

Do I need to register with a PRO (Performing Rights Organization)?

While not required for distribution through Dismusic, registering with a PRO (like ASCAP, BMI, or SESAC in the US) is recommended to collect additional royalties when your music is played in public venues, on radio, or in other public performances.