Royalties
Producer Royalties
Producers earn a “points” share of the master by contract — and can be paid directly from SoundExchange out of the artist's share via a Letter of Direction.
A producer's main royalty is points — a negotiated share of the master (customarily around 3–5%), paid by the artist or label under the producer agreement. Points are contractual, not set by law, so the exact share is whatever you agree.
For digital-performance royalties there is a cleaner path: a producer, mixer, or engineer can be paid directly by SoundExchange when the featured artist files a Letter of Direction. SoundExchange pays them as a percentage of the artist's 45% share — not off the top — so the split stays transparent.
Notes keeps producer credits and splits attached to your release so the right share reaches the right person, with no percentage taken.
Good to know
Producer Royalties: common questions
- What are producer “points”?
- A point is one percent. A producer paid “three points” earns 3% of the relevant master royalty, set by the producer agreement — there is no statutory rate.
- Can a producer get paid by SoundExchange?
- Yes. When the featured artist files a Letter of Direction, SoundExchange pays the producer, mixer, or engineer directly out of the artist’s digital-performance share.