How to Make Money as a Songwriter in Today's Crazy Marketplace

I've been writing songs for decades. I attended Berklee College of Music on a Professional Songwriting Scholarship. I have numerous songs published and thanks to technology, several hundred recorded and on streaming services. I have three CDs out. I've had a few artists record my work. But nothing you would have heard. So suffice it to say, I know a little bit about how this craziness works.

I can't tell you how many people over the years who have no experience in the music field try to tell me how it all works and who I should pitch too as well as other foolishness. I've not had that experience in other businesses I have worked in. It's something unique to songwriting.

But we are living in an amazing time where the independent can succeed if they have a good product and persistence much to the chagrin of the music industry.

So let's jump in...

To make money writing songs today, independent artists must understand how publishing, PRO royalties, and streaming payouts work—and actively register, track, and manage their rights to ensure they get paid.

Here’s a concise, easy-to-follow breakdown of how songwriters earn income in today’s music industry, especially for those managing their careers without a label.

1. Music Publishing: The Foundation of Songwriter Income

Music publishing is the business of managing and monetizing your songs. When you write a song, you own the copyright to the composition. This copyright is split into two halves:

- Writer’s Share (50%) – belongs to the songwriter(s)

- Publisher’s Share (50%) – typically managed by a publishing company, or by you if you self-publish

How publishing earns money:

- Mechanical Royalties – earned when your song is reproduced (CDs, vinyl, digital downloads, streaming)

- Performance Royalties – earned when your song is played publicly (radio, TV, live venues, streaming)

- Sync Licensing – earned when your song is used in film, TV, ads, or video games

To collect publishing income:

- Register your songs with a Performing Rights Organization (PRO) like ASCAP, BMI, or SESAC

- Consider joining a publishing administrator like Songtrust or CD Baby Pro to collect global royalties

- If you co-write, clearly define splits and register them properly

“If you understand publishing, you understand how songs make money.” – P.G. Banker, Dark Horse Institute

2. Performing Rights Organizations (PROs)

PROs collect and distribute performance royalties when your song is played in public spaces or broadcasted.

Major U.S. PROs:

- ASCAP (American Society of Composers, Authors and Publishers)

- BMI (Broadcast Music, Inc.)

- SESAC (Selective, invitation-only)

How it works:

- You register as a songwriter and optionally as a publisher

- You submit your songs to their database

- They monitor radio, TV, venues, and digital platforms

- They pay you quarterly based on usage

Important tips:

- Always register new songs promptly

- Use tools like SoundExchange to collect digital performance royalties for non-interactive streams (e.g., Pandora, SiriusXM)

- If you perform live, submit setlists to your PRO for live performance royalties

3. Streaming Royalties: The Harsh Reality

Streaming is the dominant form of music consumption—but it pays songwriters very little.

How streaming royalties are split:

- Platforms like Spotify pay about $0.004 per stream

- That money is divided among:

- The label or distributor

- The performing artist

- The publisher

- The songwriter(s)

Songwriters typically receive less than 10% of that $0.004 per stream—and that’s often split among multiple co-writers.

To collect streaming royalties:

- Distribute your music through platforms like DistroKid, TuneCore, Ditto or CD Baby

- Ensure your metadata is correct (song title, writer names, splits)

- Use publishing administrators to collect international royalties

- Register with SoundExchange for digital performance royalties

“Songwriters make almost nothing from streaming. A stream is split into so many different percentages… songwriters get the least.” – American Songwriter

4. Sync Licensing: Big Money, Big Opportunity

Sync licensing involves placing your music in visual media—TV shows, films, ads, trailers, and games.

Why it matters:

- Sync deals can pay thousands upfront

- You also earn performance royalties when the media airs

How to get sync placements:

- Work with sync agents or music libraries (e.g., Musicbed, Artlist, AudioJungle)

- Tag your songs with moods, genres, and themes

- Make instrumental versions available

- Own both the master and publishing rights (or have clear agreements)

5. Buyouts and Commissioned Work

Some songwriters earn money through buyouts—flat fees for custom songs, jingles, or ghostwriting.

Pros:

- Immediate payment

- No need to chase royalties

Cons:

- You may give up future royalty rights

- Often work-for-hire with no ownership

Best practices:

- Use contracts that define rights and payment

- Consider whether you want long-term passive income or upfront cash

6. How to Track and Maximize Your Earnings

To ensure you get paid for every use of your song:

Register Everything

- With your PRO (ASCAP, BMI, etc.)

- With SoundExchange for digital performance royalties

- With a publishing administrator (Songtrust, CD Baby Pro)

Use Metadata Correctly

- Include full writer names, splits, ISRC codes, and song titles

- Mistakes in metadata can block payments

Monitor Usage

- Use tools like Songtrust, Audiam, or Royalty Exchange

- Submit live performance setlists to your PRO

- Track YouTube and TikTok usage with Content ID systems

Stay Independent, Stay Informed

- You don’t need a label to earn money—but you do need to manage your rights

- Build relationships with producers, artists, and sync agents

- Keep learning about new platforms and royalty changes

Realistic Income Expectations

According to MIDIA Research:

- 54% of songwriters earn less than $1,000/year (don't let that disappoint you, that means 46% make more than $1,000/year. That's not bad.

- Only 10% earn more than $30,000/year from songwriting. Again, not bad considering most are not pursuing this full-time.

To increase your odds:

- Write often and collaborate widely

- Pitch for sync opportunities

- Perform live and submit setlists

- Build a catalog and register every song