Do I Keep 100% of My Royalties?

 

One of the most important questions independent artists ask when choosing a distributor is: “Do I get to keep all my royalties?” The answer isn’t always straightforward. It depends on the distributor, the plan you choose, and any additional services you opt for. Understanding how royalties work can save you money and help you make smarter decisions for your music career.

---

1. Distributors That Let You Keep 100%

Some distributors operate on a flat subscription or per-release fee model and allow artists to retain all their earnings.

Example:

• DistroKid – Artists pay an annual subscription and keep 100% of royalties.

• RouteNote Premium – Paid plans allow artists to retain full revenue.

Pros of keeping 100% royalties:

• No surprise deductions from streaming or download revenue

• Clear understanding of your earnings

• Easier to plan budgets for future releases

Cons:

• Usually requires upfront payment (annual subscription or per-release fee)

• Optional services like marketing, YouTube monetization, or physical distribution may cost extra

---

2. Distributors That Take a Revenue Share

Other distributors operate on a revenue share model, where they take a percentage of your royalties. This is common for one-time or free plans.

Example:

• CD Baby Standard – Takes 9% of digital distribution royalties

• Symphonic – Certain plans may include revenue sharing for premium services

• Free plans often share revenue in exchange for zero upfront fees

Pros of revenue share models:

• Lower upfront costs—good for artists with limited budget

• Easy entry for first-time independent musicians

Cons:

• You earn less per stream or sale

• Hidden fees (administration, payment processing) may reduce earnings further

• Less control over income reporting if multiple splits are involved

---

3. One-Time Fees vs Subscription vs Revenue Share

It’s important to compare fee structures because they affect whether you truly keep 100% of royalties:

Distributor Model	Upfront Cost	Royalty Retention	Ideal For
Subscription	Annual fee	Keep 100%	Frequent releases, long-term career
Per-Release Fee	One-time fee per release	Usually keep 100%	Occasional releases, small catalog
Revenue Share / Free Plan	$0 upfront	Partial royalties	Low budget, trying out distribution

Pro tip: Even if a distributor advertises 100% royalties, check the fine print for administrative fees, optional services, or territory-specific deductions.

---

4. Additional Factors That Affect Your Royalties

Even when a distributor allows you to keep full royalties, certain factors may reduce your actual earnings:

1. Payment processing fees: Banks or PayPal may deduct small amounts when you withdraw funds.

2. Currency conversion: If your earnings are paid in USD but you live elsewhere, you may lose a small portion to conversion.

3. YouTube monetization or sync licensing: Some distributors take a cut if they provide these services.

4. Collaborators or samples: Any co-writers, producers, or unlicensed samples may require sharing royalties.

---

5. How to Maximize Your Royalties

• Choose a distributor with clear royalty policies – Avoid free plans that take large shares.

• Keep all revenue streams separate – Track Spotify, Apple Music, and YouTube earnings individually.

• Clear samples and collaborations in advance – Ensure all contributors agree to splits.

• Use UPCs and ISRCs correctly – Ensures proper reporting of each track and version.

---

✅ Key Takeaways

• Some distributors let you keep 100% of royalties (e.g., DistroKid), while others take a revenue share (e.g., CD Baby).

• Free or basic plans often share revenue in exchange for no upfront cost.

• Always read the terms carefully to understand deductions, optional services, and administrative fees.

• Proper setup of UPCs, ISRCs, and metadata ensures accurate royalty collection.