$91 vs $91,000

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Right now, the statutory mechanical rate in the US (set by Congress) is $0.091 per unit sold.  Meaning, each time someone buys an album at Wal-Mart or iTunes, each song generates $0.091 to be split among that song’s writers and publishers.

Just for the sake of easy math, let’s say you write a song by yourself and own the publishing.  All that $0.091 goes into your pocket.  If you get one song cut on an indie project which sells 1,000 units, that’s $91.  Okay.

Now, say that same song is cut on a platinum-selling album (1,000,000 units)  That’s $91,000 you just made- before taxes.

Indie cuts are great, and I’m thankful for every one I get.  But I’m careful about how much time I spend on them (pitching, writing for, etc.).  After all, it takes 1,000 indie cuts like that to equal just one platinum cut.  Yes, there are a LOT fewer platinum cuts to be had, but that’s 91,000 reasons to spend a lot of time working on a song and a cut with platinum potential.

To see the current mechanical rate for the US, click here.

http://www.copyright.gov/carp/m200a.pdf

God Bless,

Brent

http://www.amazon.com/New-Songwriters-Guide-Music-Publishing-ebook/dp/B0051HM8IY/ref=sr_1_11?s=books&ie=UTF8&qid=1388351284&sr=1-11&keywords=music+publishing

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Brent Baxter Music:  http://www.brentbaxtermusic.com

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