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How Producers Get Paid in the Music Industry

A question that’s asked often is, “How does a music producer get paid?” That answer has shifted dramatically in the music industry the last few years because, historically, record producers got paid based on album sales. They received a royalty anywhere between 3% and 5% based upon their stature and the number of sales that have been made on the record.

That model has changed because sales have decreased. Now, producers get paid a percentage of income. They get a percentage of licensing if they haven’t written the song. They may also get a percentage, in some instances, of any kind of endorsement deals that come out of the song and the success of that song.

That being said, because producers aren’t making the same money and have the same revenue streams, oftentimes, producers will ask for publishing on songs they didn’t write. If you’re in a situation where you’re not able to pay a producer or a producer is producing for you for free, that’s often a great tradeoff. You give a small percentage of the publishing where the producer gets a piece of the songs that they’ve worked on without accepting money. But if a producer hasn’t written those songs and the producer is being paid for their work, asking for publishing is a definite red flag. Make note of this as you continue your online music education.

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