Here's How Much Money A Hit Record Gets You As A Producer

Here's How Much Money A Hit Record Gets You As A Producer

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This video was made in response to a video called called “Here’s How Much Money A Hit Record Gets You As A Producer” , that I watched, made by YouTube user KYOKU. The video contained several errors when it came to making a hypothetical answer to come up with the amount of money that a producer generates from a hit song. It is very hard to calculate exactly what a hit song generates unless you have someone’s contract in your hand along with Worldwide radio data, streaming data and other data, which may be very hard to come by. There is no real way to determine how much a hit song will make. After a hit song runs it’s course, that song has the possibility to be revived and used in some way, on a later date, on commercials, films, video games, TV shows, leaving possibility to generate unforeseen revenue. There are also cases where a song wasn’t a hit in the past, but elements of the song may be sampled or lyrics may be used in newer songs, by current artists, generating unforeseen royalties for songwriters. Songs continue to make money, even after you die, therefore, you can never predict how much money a song will generate. In this video, I discuss the Four Types of Music Royalties. The four types of music royalties are “Performance Royalties”, “Mechanical Royalties”, “Synchronization” & “Print Music Royalties”. There is also now a new royalty which generates money for artists (performers) called “Digital Performance Royalties”, which is collected by SoundExchange. Everyone’s contracts and every songs copyright split is different. You can ask a successful producer to give you an estimate of how much this or that song made, thus far, but there is no real way to give a definite answer on how much a producer makes from a hit record. Publishing is a topic which is often very misunderstood in the music business. I have been studying publishing for the past few years and here is my response.

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Blog Comments

I got a question I can't find the answer to; Let's say me as a producer and the artist both have 50% of publishing, when it's performed live; am I entitled to 50% of what they charge to perform? i.e: Artist charged $10,000 for a show, do I receive $5,000?

I got a question I can't find the answer to; Let's say me as a producer and the artist both have 50% of publishing, when it's performed live; am I entitled to 50% of what they charge to perform? i.e: Artist charged $10,000 for a show, do I receive $5,000?

I wanted point out that Mechanical Royalties are for Songwriters as it has nothing to do with the acutal Master Recording. That's an entirely different Copyright we're talking about as that's part of the Songwriting/Publishing royalties. Those royalties are for the Underyling Compostion embodied on the Master Recording that a Songwriter or Publisher owns and controls rather it's Music Or Lyrics. Many Record Labels like to include the CONTROLLED COMPOSTION clause for Co-Writers that own and control the composition found in Production Agreements for the Record Producer and Recording Agreements for the Artist. It's basically reducing the Mechanical royalty rate of the statuary 9.1 cents generally a 25% reduction meaning the Artist or Producer gets 75% of the 9.1 cents. Then you have the Sound Recording Copyright for the Master Recording. That 3% a Record Producer gets is what's called Record royalties aka "Point's" on an Album for exploiting the Masters that the Record Producer produced. Points are typically a calculated by the Artist Record royalties as an All-In and then prorated divided by a fraction such the number of Masters the Producer produced and the number of Royalty bearing Masters on the Album/EP based on the SRLP (Suggested Retail Listing Price) or Net receipts. Producer/Songwriter's such as Dr. DRE, Scott Storch, Timbo or Pharrell are enittled to both Record Royalties for producing the Master's and Songwriting/Publishing royalties (Mechanical/Peformance) as the Co-Writer for composing the beat. The Producers upfront advance is generally recouped by the label from record sales before the Producer is paid any future Record royalties. The Artist also has to recoup all recording cost. Most Producer's are paid on all Records sold known as Record one's.

This is a video for me because I'm aspiring to be a record producer but a theme music composer as well

Thanks for the breakdown.

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too much respect in this video

thank you so much brother

Thanks bro for this info. Guys like me really need the true info because we are head first in the music industry independently. The right info is very very very important. Thanks big dog.

Man I watched both videos. So glad you did this one???? 3% are you serious!

Thank you for the knowledge ??

Great stuff man

Serious question how would someone know their song is being played on a jukebox?

Wow your uncle made cola bottle baby. That's a great song

Lit content add ads bro

Give thanks Brother!!!

But what about Soundexchange and Digital royalties? Like the money from the monetization of a video. Is this included in a PRO's collection?

Gr8 info big bro keep it up

Im glad i seen your comment on that dumb video. Came to a better page for LEGIT info. Thanks man!

Great content. I have a question for you, when you lease the same beat online to 100 different artists. How can arists avoid copyright claims on youtube or spotify etc. from other artists that also have the right to use that beat. and leased it. I have been strugling with this for years. Would be great if you could share your experience with this.

Remember tiny said she made $3 million off of no scrubs. And the dream made $18 million over the years off of umbrella. . and bey one year made 4 million off her songwriting and publishing catalog. Pharell made I think 7 million off blurred line. I heard Lionel Richie makes around $3 million a year just off his songwriting and publishing catalog

Theirs a lot of ways a producer/songwriter can make money. Big money once you create a hit

U be dropping science!!!!!

Great video!!

Thanks. This is logical and makes perfect sense. I just subscribed.

Great video! Very useful information! Thank you for sharing and supporting! It is very important things to know! By the way I really did not know about “I will always love you “ ! I am surprised ? I am gonna listen to it. Interesting to see the original version.

3 and 4 were both the same points

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