Music Distribution Explained: Fees, Revenue & Payouts
The music distribution world can feel like a maze of fees, percentages, and payment delays. For independent artists, producers, and labels, understanding key fees, revenue shares, and payout timelines is essential to keeping your royalties intact.
In this guide, 92MMM will break down how distributors charge, how much you actually earn, and when you can expect to see the money in your account.
Music Distribution Explained: Key Fees Every Artist Should Know
Every distributor charges differently. The most common music distribution fees include:
- Annual or Subscription Fees
Platforms like DistroKid and TuneCore charge a flat yearly rate for unlimited uploads. This is ideal for artists releasing multiple singles or albums each year. - Per-Release Fees
Companies such as CD Baby charge per single or album uploaded. This works best if you release only occasionally. - Add-On Fees
Some distributors charge extra for services like YouTube Content ID, Shazam integration, or sync licensing. Always check the fine print.
Pro Tip: If you’re planning consistent releases, subscription-based models usually save more in the long run.
Music Distribution Explained: Revenue Shares & Royalty Splits
When your music earns royalties from streaming platforms, downloads, or YouTube, distributors may take a cut. The revenue share model varies:
- 100% Royalty Models
You keep all royalties but pay an annual or subscription fee. (Ex: DistroKid, TuneCore). - Revenue Split Models
No upfront cost, but the distributor keeps a percentage of your royalties, usually 9–20%. (Ex: CD Baby, UnitedMasters Free). - Hybrid Models
A mix of lower fees and partial revenue share.
Choosing between models depends on your release strategy. Frequent releases? Go for a flat fee. Occasional drops? A revenue-share distributor might be more cost-effective.
Music Distribution Explained: Payout Timelines & Delays
One of the biggest frustrations for artists is how long it takes to actually get paid. Here’s what you need to know:
- Streaming Platform Reports
Spotify, Apple Music, and others usually report royalties 1–3 months after streams happen. - Distributor Payment Cycles
Most distributors pay monthly or quarterly, but always with a delay.- Example: January streams → reported in March → paid in April.
- Withdrawal Options
Payments are usually made via PayPal, Payoneer, or bank transfer. Some distributors allow instant or early withdrawals for a small fee.
Common Hidden Costs to Watch For
- Minimum withdrawal thresholds ($5–$25).
- Currency conversion fees for international artists.
- Cuts on sync placements or publishing unless you opt out.
Quick Comparison of Popular Distributors
| Distributor | Fees | Revenue Share | Payout Timeline |
| DistroKid | $22.99/year | 0% | Monthly, 2–3 months delay |
| CD Baby | $9.95/single, $29/album | 9% | Monthly, 2–3 months delay |
| TuneCore | $14.99–$49.99/year | 0% | Monthly, 2–3 months delay |
| Amuse (Free) | $0 | 15% | Every 3 months |
| UnitedMasters Free | $0 | 10% | Quarterly (faster with premium) |
Final Thoughts
Understanding music distribution fees, revenue shares, and payout timelines is key to maximizing your royalties as an independent artist. The right distributor depends on your release strategy:
- Releasing frequently? Go for a flat fee, 100% royalty model.
- Releasing occasionally? A revenue-share option could make more sense.
- Need faster payouts? Look for distributors with early withdrawal features.
By knowing where your money goes and when it arrives, you can make smarter choices that protect your income and fuel your career.
