The music stores will sell downloads at the price you set, keep their cut (roughly 25-30%), and report the rest of the sale to Soundrop. We will then take out and pay any applicable mechanical licenses on your behalf if it's a cover song (12 cents per cover composition for downloads) before we take our 15% admin cut.
Example for an original:
- price = $0.99 - 30% (partner's cut) = $.69 -15% (our cut) = $0.59 (your share)
Example for a cover:
- price = $0.99 - 30% (partner's cut) = $0.69 - $0.12* (mechanical license) = $0.57 - 15% (our cut) = $0.48
The way sales reporting and commission processing flows for streaming revenue is similar to downloads, but the amount earned fluctuates based on each music store's payment rates.
Payout of your earnings may be subject to tax withholding and fees based on your location and selected method of payment. You can see additional information about this here.
Mechanical Royalty Rates
* New mechanical royalty rates went into effect on January 1, 2023 due to a ruling passed by the Copyright Royalty Board.
This ruling increased the U.S. mechanical royalty rate from 9.1 cents to 12 cents per track.
Meaning a 12 cent mechanical royalty fee will be removed from each US download sale of a cover song.
This fee comes out of your Soundrop earnings each month.