Music Business Glossary
Simple, plain-English definitions of the money and business terms every independent artist runs into. Click a category to filter.
The original recording of a song. Whoever owns it earns money whenever it gets streamed or used.
Money a label pays you upfront. Not a gift, it gets paid back out of your future royalties.
The process of a label taking back the advance from your royalties before you see extra money.
Money you earn every time your music gets streamed, sold, or used.
The percentage of income you get to keep, versus what the label keeps.
Your share of all the streams in one country. This decides your share of that country's payout pool.
Money paid for the song itself, the melody and lyrics, separate from the recording.
The US organization that collects streaming songwriting money. If you write your own songs, you likely need to register here.
The actual money a label keeps after its own costs are taken out.
What an advertiser pays per 1,000 ad views on YouTube.
What you actually earn per 1,000 views, after YouTube's cut.
YouTube's system that finds your music in other people's videos, so you can claim a share of that video's ad money.
A view where an ad actually played. Not every view earns money.
Paying Spotify subscribers versus free, ad-supported listeners. Both pay you, usually at different rates.
You lend your music to a label for a set time, then get full ownership back.
A company gets your music onto Spotify and other apps, without taking ownership of your masters.
A deal where the label takes a cut of touring and merchandise too, not just your music.
How long a contract lasts, often measured in albums or years.
A clause letting the label choose to extend the deal. Usually the label's choice, not yours.
A clause saying you can only release music through that one label.
The regions of the world where a deal actually applies.
When a label uses money from one of your projects to cover costs from another one.
A lawyer who specializes in music contracts, not general business law.
One fixed price for a task, instead of paying by the hour.
The company (like DistroKid) that gets your music onto Spotify and pays you your share.
YouTube's official program that lets you earn money from ads on your videos.
A deal where you perform for reach and attention instead of a direct payment.
A Spotify tool that boosts your song in exchange for a smaller cut of royalties on those specific streams.
Spotify's rule that a song needs 1,000 streams in a year before it earns any money at all.
The percentage of people who see your video's thumbnail and actually click it.
How much of your video the average person actually watches.
How much total watch time your video adds to someone's visit, a signal YouTube rewards.