If you’ve ever thought about taking control of your music licensing career and
reaping more rewards from your hard work, starting your own music publishing company could be the perfect move.
Let’s break down the steps to get you started on this exciting journey and dive deeper into how publishing royalties work, the benefits for songwriters, and the nitty-gritty of negotiating your own deals.
1. Understand the Basics of Music Publishing
First things first, you need to get a solid grasp of what a music publishing company does. In essence, a
music publisher helps manage the rights to your songs, collects royalties, and pitches your music for licensing opportunities in TV, films, ads, and more. By starting your own company, you’ll be handling these tasks yourself.
2. Legal Structure and Business Plan
Before you dive in, you’ll need to decide on the legal structure of your company. Will you be a sole proprietorship, a partnership, or an LLC? Each has its pros and cons, so choose what fits your situation
best. Once that’s sorted, draft a business plan. Outline your goals, target market, revenue streams, and marketing strategies. This plan will be your roadmap.
3. Join Performing Rights Organizations (PROs)
To collect performance royalties, you’ll need to affiliate your company with a performing rights organization (PRO) like ASCAP, BMI, or SESAC. These organizations collect royalties on behalf of songwriters and publishers when their music is played on radio, TV,
streaming services, and live venues.
Here’s how you can do it:
ASCAP
Creating a Publisher Account:
- Visit the ASCAP website and navigate to the "Join" section.
- Choose "Publisher" and fill out the application form.
- Pay the registration fee, which is currently $50 for publishers.
Process:
- You will need to provide your business information, including the legal name of your publishing company and contact details.
- ASCAP will review your application, and once approved, you’ll receive a unique ASCAP publisher account number.
BMI
Creating a Publisher Account:
- Go to the BMI
website and click on "Join."
- Select "Publisher" and complete the online application.
- The registration fee for BMI publishers is $150.
Process:
- You’ll be asked to provide details about your company and any affiliated songwriters.
- After submitting your application and fee, BMI will process your information and send you confirmation with your publisher account details.
SESAC
Creating a Publisher Account:
- SESAC is invitation-only, so you’ll need to contact them directly or be referred by an existing member.
- Once invited, you’ll fill out the necessary forms and agreements.
Process:
- SESAC will guide you through their unique registration process.
- Since SESAC operates differently from ASCAP and BMI, you might
need additional documentation or referrals.
4. Register Your Songs
Now that you’re affiliated with a PRO, register your songs with them. This ensures you get paid whenever your music is used. You’ll need to provide details like the song title, writer information, and publishing details.
5. Publishing Royalties Explained
Let’s dive into the nitty-gritty of publishing royalties. There are several types of
royalties that publishers collect:
Performance Royalties: These are earned whenever your song is played publicly – on the radio, TV, live venues, or streamed online. PROs collect these royalties and distribute them to songwriters and publishers.
Mechanical Royalties: These are earned from physical or digital sales of your music. Every time your song is sold or streamed, you earn mechanical royalties.
Synchronization Royalties (Sync
Royalties): These are earned when your music is licensed for use in TV shows, movies, commercials, video games, etc. Sync royalties are usually negotiated directly between the publisher and the licensee.
6. Songwriter Royalties vs. Publishing
RoyaltiesIt’s important to understand the distinction between songwriter royalties and publishing royalties.
Songwriter Royalties: As a songwriter, you earn royalties from the performance and
mechanical use of your music. This is typically split 50/50 with the publisher. If you’re self-published, you keep the publisher's share as well.
Publishing Royalties: These are the other half of the split. If you have a traditional publishing deal, your publisher would keep 50% of the total royalties (the publisher’s share) while you, the songwriter, would get the other 50% (the writer’s share). As your own publisher, you get to keep 100% of the
royalties.
7. The Benefits for Songwriters
Starting your own publishing company has numerous benefits:
Control: You have full control over how your music is used and who can license it. You’re in the driver’s seat when it comes to making decisions about your music.
Increased Revenue: By handling your own publishing, you keep all the publisher’s share of the royalties. This can significantly boost your
income.
Flexibility: You’re not tied down by the terms of a traditional publishing deal. You can negotiate directly with licensees and have the flexibility to adapt to changes in the industry.
Direct Relationships: Building direct relationships with music supervisors, advertising agencies, and other industry professionals can lead to more personalized and lucrative licensing opportunities.
8. Negotiating Your Own
Deals
One of the biggest advantages of being your own publisher is the ability to negotiate your own deals. Here’s how you can approach it:
Know Your Worth: Understand the value of your music and the market rates for licensing. This will help you set fair prices and terms for your deals.
Be Prepared: Always have your contracts ready. When negotiating deals, you’ll need to provide licensing agreements, sync contracts, and other legal
documents. If you’re not sure where to start, check out my Ultimate Music Licensing Contract Bundle for templates that can help you get started.
Build Relationships: Networking is key. Develop strong relationships with music supervisors, ad agencies, and other potential clients. Personalized connections often lead to better deals.
Be Flexible and Open
to Negotiation: Every deal is different. Be prepared to negotiate terms to meet both your needs and those of your client. Flexibility can lead to more opportunities.
Protect Your Rights: Ensure that every deal you make protects your rights and interests. Always read contracts carefully and consider consulting a legal professional if needed.
9. Set Up a Royalty Collection System
Collecting royalties is crucial for any music publishing
company.
Here are some resources and tools that can help you manage this process effectively:
PROs (ASCAP, BMI, SESAC): As mentioned earlier, affiliating with a PRO is the first step. These organizations will collect performance royalties on your behalf and distribute them to you.
Harry Fox Agency (HFA): HFA handles mechanical licensing and royalty collection for publishers. They offer services to help you manage and collect mechanical royalties from digital and physical sales.
Songtrust: Songtrust simplifies global royalty collection by registering your songs with multiple PROs and organizations worldwide. They provide a centralized platform to track your royalties and ensure you’re getting paid.
Audiam: Audiam focuses on YouTube and other digital platforms, helping you collect mechanical and performance royalties from streams and downloads.
SoundExchange: This organization collects digital performance royalties from
non-interactive streaming services like Pandora and SiriusXM. If your music is played on these platforms, SoundExchange ensures you get paid.
CD Baby Pro Publishing: If you distribute your music through CD Baby, their Pro Publishing service can help you collect global publishing royalties. They register your songs
with PROs and other royalty collection agencies.
TuneCore Publishing Administration: Similar to CD Baby Pro, TuneCore’s service helps you collect worldwide royalties by registering your songs with various organizations and managing the royalty collection process.
By using these
resources, you can ensure that all your royalty streams are accounted for and collected efficiently.
10. Build a Catalog
Your catalog is your product. Start by compiling all your original songs and registering them with your PRO. The more songs you have, the more opportunities you have to earn. Don’t just stick to one genre – diversify to appeal to a broader market.
11. Network and Market Your Catalog
Networking is key in the music industry.
Build relationships with music supervisors, advertising agencies, filmmakers, and other industry professionals who might need your music. Attend industry events, join relevant organizations, and leverage social media to get your music out there.
12. Pitch Your Music
Actively pitch your songs for licensing opportunities. This can involve reaching out to music supervisors directly, submitting your music to libraries, or using platforms designed to connect musicians with
licensing opportunities. Be persistent and don’t be discouraged by rejections.
13. Keep Learning and Adapting
The music industry is constantly evolving, and staying informed about the latest trends and technologies is crucial. Whether it’s new royalty collection methods, changes in licensing laws, or emerging music genres, staying ahead of the curve will give you a competitive edge.
Conclusion
Starting your own music publishing company is a
big step, but it’s a fantastic way to take control of your music career. With the right knowledge, determination, and a bit of hustle, you can create new revenue streams and open up a world of opportunities for your music. So, what are you waiting for? Get out there and start building your music empire!
