How do songwriters get paid?

You may not see songwriters performing their hits on stage or hear a DJ shout out their name before their tracks come on the radio. But songwriters are the ones who make the music world sing.

If you’re just getting started as a songwriter and want to learn how you can make money off your songs (without having to perform them yourself), you’ve come to the right place. Without you, there’d be no hit songs for vocalists and bands to bring to life. And you deserve to get paid for that hard work.

So how does a songwriter get paid? Primarily through royalties – but “royalties” is a broad and often confusing term. We’re here to answer all your questions about how to make money as a songwriter so you know what royalties you’re entitled to, who will pay them and how, and how much you can earn for your songs.

What is a songwriter?

Some songwriters write melodies, chords, and lyrics, but you don’t have to do all three – if you’re composing one or more of those aspects of a song, you’re a songwriter. Producers can also be songwriters if they offer significant contributions to a song’s composition. Many of the world’s most famous songs were co-written and made with the help of a producer.

You’ll get royalties for whatever parts of a song you write. If you came up with the words, for example, you’d get lyricist royalties. If a producer helped you knock out the melody, you’d split that portion of the royalties with them.

Types of songwriter royalties

Once you’ve identified which skills you can offer as a songwriter, it’s time to think about getting paid. Since songwriters earn royalties, you’ll want to understand the following four types:

• Mechanical royalties: Musicians earn mechanical royalties on album sales and downloads (i.e., on Apple Music or iTunes). But just how much do songwriters make a per song? You’ll get a set amount for every thousand downloads or physical sales of your song at a rate set by the Copyright Royalty Board. The mechanical royalty rate’s been set at 9.1 cents per mille since 2006, but the CRB reassesses the rate every five years, and songwriters are pushing for an increase to kick in at the start of 2023. Keep in mind that if you’re a co-writer on a song, you’ll have to split your earnings. And whether you’re the only writer or working on a team, you’ll still have to split the profits with the publisher.
• Performance royalties: You’ll earn royalties when someone performs your song or a listener streams the performance. Performing Rights Organizations (PROs) like ASCAP, BMI, and SESAC make these royalty payments, and songwriters and publishers each keep 50% of the earnings.
• Sync licensing: When your song becomes the soundtrack for a film, TV show, or other visual media, you earn synchronization (“sync” or “synch”) licensing royalties. You may be able to negotiate another deal, but you’ll generally split earnings with the artist and record label.
• Print royalties: We’re sure your songs are so great that guitarists and pianists everywhere will want to play along. And that’s good news for you – you’ll earn a payout every time someone buys your sheet music.

How can I make money writing music (without royalties)?

You may enjoy an outpouring of royalties if you write a hit song. But what can you do in the meantime to make some cash?

• Publishing draws for songwriters: If you have a lot of good ideas for original songs, consider teaming up with a music publishing company. The publisher will pay a salary for your work so you can scale back at your day job – or even turn songwriting into your full-time gig. Some publishing deals will give you an advance that’s deducted from royalties once your song hits the airwaves.
• Writing briefs: If you’ve ever felt the beginnings of a song bubbling up while watching a scene in a movie, writing briefs might be a good avenue to explore. You’ll write up the feelings a scene inspires and suggest music that can bring that feeling to life. In some cases, you can offer to write a song or jingle. If the producers decide to use it, you get paid.
• Side gigs: If you’re a songwriter, you probably have a background in music. Post on job boards about your drumming skills or vocals – you might just get hired by a local band or a group on tour. If you’re a singer-songwriter or instrumentalist, you could also contact local event spaces and try scoring a live performance.

How much do songwriters make?

When someone’s primary income source depends on a variable like royalties, there’s no good way of estimating how much they make. You could earn around $50,000 per year if you’re a salaried director or composer. But if you write an absolute banger that tops the charts, you could earn hundreds of thousands in royalties.

Examples of money-making hits

You know those songs that everyone knows the words to? The ones you can’t help but sing along to at the grocery store? The songwriters of those tracks make a steady haul in royalties. Here are a couple of examples:

• Dan Wilson: The writer of certified hits like Adele’s “Someone like You” and Semisonic’s “Closing Time” has earned over $800,000 in royalties.
• Bonnie McKee: The pop genius behind the catchy Katy Perry songs “California Gurls” and “Roar,” to name a few, is part of a songwriting trio that’s earned almost $​​650,000 in royalties.

Get creative

If you’ve got a creative mind, our best advice is to diversify your revenue streams. Even the music industry’s biggest players don’t live off royalties alone – and that includes performers. Keep writing your songs, but get as many gigs as possible, monetize your social media platforms, teach classes and stay as creative with your income as you are with your music.