You wrote the song, released it, and people are streaming it. Now the money question: who actually pays you? This guide explains how to collect songwriting royalties in the United States, step by step. It’s part of our releasing series that starts with how to mix and master a song at home, because getting paid is the last stage of finishing a song.
A songwriter earns two main kinds of royalties for the composition: performance royalties, collected by a performing rights organization (PRO) like BMI or ASCAP, and mechanical royalties, which The MLC collects from US streaming and download services. If you also own or perform on the recording, SoundExchange collects digital performance royalties for that recording.
This article is general information, not legal advice. Rules and terms change, so check each organization’s official site, and talk to a music attorney for your specific situation.
The Two Copyrights in Every Song
Every recorded song has two separate copyrights, and each one earns its own royalties.
- The composition (musical work): the melody and lyrics. Owned by the songwriters and their publishers.
- The sound recording (master): the specific recorded performance. Owned by whoever paid for or made the recording, often the artist or label.
The MLC itself explains that it handles one specific set of rights for musical works, digital audio mechanical royalties, and does not replace SoundExchange or the PROs, which administer other rights. That’s why most independent songwriters need accounts in more than one place.
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Send My Cheat Sheet →The Main Royalty Types at a Glance
| Royalty | What triggers it | Who collects it in the US | Who it pays |
|---|---|---|---|
| Public performance (composition) | Radio, TV, live venues, streaming, businesses playing music | PROs: BMI, ASCAP, SESAC, GMR | Songwriters and publishers |
| Digital mechanical | Streams and downloads on US services | The MLC | Songwriters (self-administered) and publishers |
| Other mechanical | CDs, vinyl, some licenses | Publisher, administrator or direct license | Songwriters and publishers |
| Digital performance (recording) | Non-interactive digital radio like Pandora and SiriusXM | SoundExchange | Recording owners and performing artists |
| Master/streaming payouts | Streams of the recording | Your distributor | Recording owner |
| Sync | Use in film, TV, ads, games | Negotiated by you, your publisher or a sync agent | Composition and recording owners |
BMI vs ASCAP
BMI and ASCAP are the two largest US PROs. They license public performances of songs to radio stations, TV networks, venues, streaming services and businesses, then pay songwriters and publishers. SESAC and GMR also operate in the US; check their websites for how they admit new writers.
As a songwriter, you generally affiliate with one US PRO at a time for your writer share, so confirm the current rules before you apply. Here’s how to think about the choice:
| BMI | ASCAP | |
|---|---|---|
| What it does | Collects and pays public performance royalties | Collects and pays public performance royalties |
| Who can join | Songwriters, composers and publishers | Songwriters, composers and publishers |
| Writer application | Online at bmi.com; BMI lists a valid email as the requirement (applicants under 18 need a custodial trust account at a US bank) | Apply at ascap.com; check current requirements |
| Publisher sign-up | Online for US publishers, one-time processing fee | See ascap.com |
| Contract terms | See BMI’s standard writer agreement | See ASCAP’s membership agreement |
Both pay for the same kinds of performances, and both are well established. Many writers choose based on contract length, how easy the online portal is, or where their co-writers are. Read the current agreements on BMI’s join page and ASCAP’s website before you sign, since terms and fees can change.
Whichever you choose, register every song with your PRO, including co-writers and their split percentages. Unregistered songs can’t be matched to performances.
The MLC
The Mechanical Licensing Collective (The MLC) was created by the Music Modernization Act. According to the U.S. Copyright Office, as of January 1, 2021, songwriters and music publishers must register with The MLC to receive royalties under the new blanket license for streaming and downloads in the US.
The MLC says it administers blanket mechanical licenses for eligible streaming and download services in the United States and pays self-administered songwriters, publishers and administrators, and collective management organizations.
What that means for you:
- If you have no publisher or administrator, become a member of The MLC yourself and register your songs.
- If you have a publisher or admin company, they usually register with The MLC for you. Check that they have.
- Use The MLC’s Public Work Search to see whether your songs are already listed and whether the data is correct.
Publishing Administration
A publishing administrator registers your songs with PROs, The MLC and collection societies around the world, then collects your publisher-side royalties for a percentage. You usually keep ownership of your copyrights, which is the main difference from a traditional publishing deal.
When admin makes sense:
- Your songs are earning outside the US and you want international mechanicals and performance royalties collected.
- You don’t want to manage registrations yourself.
- You have a growing catalog and want one dashboard.
When you might skip it:
- You’re just starting and your catalog is small. You can register with a PRO and The MLC yourself.
Always read the commission rate, contract length and what happens to your songs if you leave. Ask whether the administrator registers your songs with The MLC and with foreign societies, how often they pay, and whether you can see song-by-song statements. A good administrator answers these questions plainly.
SoundExchange
SoundExchange says it is the sole organization designated by the US government to administer the Section 114 sound recording license, collecting digital performance royalties from services like Pandora, SiriusXM and iHeartRadio for artists and rights owners.
This money is for the recording, not the song. If you’re a songwriter who also performs on and owns your recordings, which is true for many independent artists, register with SoundExchange as both an artist and a rights owner.
Step-by-Step: How to Collect Songwriting Royalties
- Finish and protect your song. Fix it in a recording or lyric sheet. Consider registering it, as explained in our guide on how to copyright a song.
- Agree on splits with co-writers in writing. See our guide on how to co-write a song.
- Join one PRO as a writer (BMI, ASCAP, SESAC or GMR) and register each song with all writers and splits.
- Decide on publishing. Self-publish, sign with an administrator, or set up your own publishing entity with your PRO.
- Register with The MLC if you’re self-administered, or confirm your administrator has registered your songs.
- Register with SoundExchange if you own or perform on the recordings.
- Release through a distributor to collect master royalties from streaming stores, and make sure your metadata (writer names, ISRC, song titles) matches everywhere.
- Check statements every quarter. Look for missing songs, wrong splits or unmatched plays.
Common Mistakes That Cost Songwriters Money
Joining a PRO but never registering songs. Membership alone doesn’t get you paid.
Assuming your distributor collects everything. Distributors usually collect master royalties, not your songwriter performance or mechanical royalties.
Mismatched metadata. A typo in a co-writer’s name or a different song title can break matching.
No written split agreement. Settle splits on the day you write the song.
No song spreadsheet. Keep one sheet listing every song’s title, writers, splits, PRO work ID, ISRC and release date. It makes registrations and fixes far faster.
Ignoring SoundExchange. Independent artists who own their masters often leave this money unclaimed.
Frequently Asked Questions
Do I need a publisher to collect songwriting royalties?
No. You can join a PRO as a writer and register directly with The MLC as a self-administered songwriter. A publisher or administrator mainly helps with registrations, international collection and finding opportunities.
Can I join both BMI and ASCAP?
Not as a writer at the same time. In the US you affiliate with one PRO for your writer share. Check each PRO’s current rules before you apply.
Is The MLC the same as a PRO?
No. The MLC collects digital audio mechanical royalties from US streaming and download services. PROs collect public performance royalties. Most songwriters should register with both.
Does SoundExchange pay songwriters?
SoundExchange pays for the sound recording, not the composition. Songwriters only earn from it if they also own or perform on the recording.
How long does it take to get paid?
Royalties travel through several organizations, so payments often arrive months after a stream or performance. Each organization publishes its own distribution schedule on its website.
Is this legal advice?
No. This is general information to help you understand the system. For contracts, splits or disputes, talk to a qualified music attorney and check the official sites linked below.
Official Sources
- U.S. Copyright Office: Music Modernization Act – the law behind The MLC and the blanket license.
- The MLC – membership, song registration and Public Work Search.
- SoundExchange: What We Do – digital performance royalties for recordings.
- BMI: Join – writer and publisher application r