Alte Kaserne
Alte Kaserne

Can you become a millionaire by producing electronic music?

There are many ways to generate revenues with your music. This article focuses on royalties.


Mechanical royalties

Mechanical royalties are payments to the writer of a song whenever that song is reproduced in some form. This includes your share of earnings from vinyl, CDs, downloads, streamings, etc. For instance, when a record label presses a CD or vinyl record of your music, you are owed mechanical royalties. The same holds true when your music is downloaded or streamed.

For CD sales, downloads, etc. you need to collect the money directly from the label(s) you are working with.


Performance royalties

These are the payments made to a songwriter or publisher for the public performance or broadcast of a musical work on the radio, on television, in bars and nightclubs, at concert venues, and other public places.

When it comes to performance royalties, you need to be a member of a so-called PRO (Performance Rights Organisation) or a CMO (Collective Management Organisation) such as BMI, ASCAP, GEMA, PRS, SACEM, SIAE, SGAE, etc. These societies collect money on behalf of the songwriters whenever their music is played on the radio and TV or in bars, clubs or during live performances.

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