Royalty Split Agreements: How Is Songwriting Income Split?

More and more artists are working together to create original songs. But this can cause tension when it comes to credits – and cash.

On this page, from River Recording Studios in Southampton

So how is songwriting income split? It can be agreed upon in a number of ways – such as equal shares or by allocating percentages. If you’re collaborating with others to compose music, you’ll need to have some frank discussions about royalty split agreements.

In this guide, we will explain what constitutes a writer’s credit, the way revenue shares work, and how they should be worked out, so you can protect yourself and others.

How is songwriting income split?

Whether writing for others or crafting your own tunes, songwriting can be one of the biggest earners in the music industry. However, there are some considerations before you get to the stage where you can start taking home the big bucks. Agreeing on how to split the earnings between you, has to be thought through, planned and negotiated.

The percentage a songwriter gets when deciding the songwriting splits depends on a few different factors. These range from whether the song was written as a solo project, to whether it was co-written with others, and which writer was responsible for which part. The split nods to how much copyright the individual deserves from that particular song.

For example, if there are four songwriters working together and it’s divided that everyone has an equal percentage, the songwriting split will work out at 25% each. Alternatively, if the songwriting has been all down to one songwriter’s talented lyricism, then 100% will be the agreed amount.

How is a song royalty split?

It’s important that you allocate writing percentages early before the money comes rolling in. If not, your success will likely be dampened by legal disputes. By getting organised and discussing arrangements at the start, you’ll find that splits don’t have to be difficult.

Once you’ve agreed who’s entitled to a writing credit, you need to allocate the percentage you each receive. This can be based on how much you have each contributed to the song. Although there are other things to consider, such as if one of you has a higher profile or is the headliner.

Reflect on each individual’s contribution to the song to divide up the songwriting credits. It may be contentious, cause a few arguments and you’ll have to be blunt with one another. But it will avoid more serious disputes later down the line.

Royalty split agreements

There are different sorts of royalties ranging from public performance, mechanical, synchronization and print music. The payment from these royalties fund music roles considerably within the industry, so they need to be calculated correctly. Royalties are split in alignment with the agreed songwriting splits.

A music publisher ensures that singers and songwriters are paid what they deserve for all their hard work within the industry. Particularly when the recorded tracks are used for commercial purposes. When a songwriter works with a publisher, an agreement is signed, placing the song’s copyright to that company. The song can then be licensed by the publishing company who becomes responsible for making sure the track is being used appropriately. A publisher will ensure you receive the correct amount, in the right way and on time. But to do that, they need to know how the songwriting credits are being split.

Making a master recording split agreement

If you’re planning to lay down a track in the studio, the finished product will be your master recording. Should that recording go on to make money, various people involved in the process of recording it (vocal and instrumental backing musicians, beat-makers and producers) will be entitled to earn from the track. This is different to a live performance of a song, for which only the writers will be entitled.

Songwriter and producer splits

There’s another person to consider when recording your master: the studio producer. As with songwriting, the amount they’ll be entitled to will depend heavily on their involvement. Some renowned producers, such as Mark Ronson, have a huge amount of input in the writing process. They may also produce the beats and completely change the sound of the song. But they may have already had a large flat fee upfront. Do be sure to have a conversation about expectations. If your record takes off, you all need to know where you stand. So be sure that your producer is involved in these conversations and ideally, that you have a contract with everything clearly stated, before hiring them.

Split sheets for artists

The crucial action to take when it comes to the music publishing aspect of songwriting split agreements is the publishing split sheet. This is the very first document that needs to be finalised. Use it to state everyone’s percentages, clearly stating their role. It’s vital that this is completed before taking a co-written song to a publisher. Watch this video for an easy step-by-step guide to completing your own split sheet.

How do you split royalties between artists?

Royalties are calculated by working out where, when and how many times the song was played while taking into consideration the agreed split of songwriting contribution. Organisations such as PRS for Music calculate song royalties for the singer, songwriter or band. Following this, the singer receives their earnings from the royalties.

What is a Nashville split?

The US city known for mass-producing country music has its own method; the split is equal between everyone who’s in the room when the song is written/recorded. This is to balance that some may make more of a contribution than others on different days over the course of an album. Many bands choose to adopt this egalitarian approach not only in terms of writing but by giving equal pay to everyone when touring and gigging too.

The legal issues involved in the business of the music industry should never get in the way of your creativity as an artist. Don’t be intimidated by splits, copyright and royalties. But do take a little time to think about how it’ll work between you and your collaborators, once money is being generated.

If you’re struggling with any of the practical aspects of the industry, consider booking an artist consultation for personalised advice on taking the next steps in your music career.