When a track is the result of collective work — producer, artist, featuring, co-author — the inevitable question arises: how is the money divided? Royalty splits are one of the most practical and often least understood aspects of music distribution.
Two Types of Royalties, Two Separate Flows
Before talking about splits, it's essential to understand that there are two distinct royalty flows:
1 — Master Royalties (Recording)
These relate to earnings from streaming and digital sales tied to the audio recording. They arrive via the distributor.
2 — Publishing Royalties (Composition)
These relate to the musical composition: melody, harmony, lyrics. They arrive via your collecting society (ASCAP, BMI, PRS, SIAE, etc.) or your publisher.
The split discussed in this article relates primarily to master royalties in the context of digital distribution.
How the Master Split Works in Distribution
In a traditional model, master royalties go to the master holder (whoever distributed the release). If you're an independent artist distributing on your own, everything comes to you.
When there are collaborators (e.g., a producer who contributed to the track, a featuring artist, a co-producer with an agreed share), the split can be managed in two ways:
Method 1 — Manually Managed Split Outside the Platform
The account holder receives 100% of royalties and then manually transfers shares to other collaborators via bank transfer or private agreement. This is still the most common method, but it requires trust and clear agreements made in advance.
Method 2 — Automatic Split Integrated in the Distributor
Some distributors (including LightSound) allow you to set an automatic split: you define the percentages for each collaborator directly in the platform, and when royalties arrive they are automatically distributed according to those shares.
How to Set Up a Split Correctly
When setting up a split, this is the information needed:
- Collaborator's name
- Role (artist, producer, featuring, co-author of the master, etc.)
- Percentage (all percentages must add up to 100%)
- Collaborator's payment account (to receive royalties)
Example:
| Collaborator | Role | Split |
|---|---|---|
| Mark (you) | Artist / Main | 60% |
| Luke | Producer | 30% |
| Sarah | Featured Artist | 10% |
Written Agreement First
Whatever method you choose, put the split in writing before publishing. A simple agreement between parties (even informal but signed) prevents future disputes.
Points to clarify in advance:
- Each person's percentage of master royalties
- Each person's percentage of publishing royalties (separate)
- Who has the right to request a takedown of the release
- What happens if one of the collaborators no longer wants to publish that track
- What happens in the case of future syncs or licenses
Master Split vs. Publishing Split: Don't Confuse Them
A common mistake: confusing the master split with the publishing split.
- Master split: decided among those who contributed to the recording (production, performance)
- Publishing split: decided among those who contributed to the composition (melody, lyrics, harmony)
These are two separate agreements. A person can have 50% of the master (because they produced the track) but zero on publishing (because they didn't write any lyrics or melody). Or vice versa.
What Happens with Featuring Artists
A featuring artist usually does not automatically have a right to a cut of master royalties — unless it's stipulated in the agreement. In many cases, featuring artists are paid upfront (flat fee) instead of receiving a royalty percentage.
It depends on the agreement: there's no universal standard. The important thing is to have it in writing beforehand.
At LightSound: Collaborator Management and Splits
With LightSound you can add collaborators to a release, specify their roles and credits, and set up royalty splits directly on the platform. Collaborators added to the release receive their shares automatically without you having to manage transfers manually.
For details on the specific feature, check the FAQ section or the product documentation.