H
National Lawyers Guild
NYWIFT
NYSBA
Soho House
Fractured Atlas

How Will My Royalty Percentage Be Calculated?

Even counting the royalty percentage the way the industry counts it (see previous FAQ), will you actually receive royalty payments for each record sold? Almost certainly the answer is no, if industry practice is being followed.

The contract will generally allow for the record company to be repaid all advances before they have to pay you a penny in royalties. In industry lingo, you need to be fully “recouped” before you receive any royalty payments.

The record company set up an account for you and place royalty payments into it. It uses that account to pay itself back for the advances and expenses associated with producing and distributing the record. Only when all the company’s advances have been repaid out of your royalty account will the company starts to pay you royalties.

This means that, even with a high percentage royalty rate and strong sales, no royalty payments may ever reach your wallet. Make sure you understand when and how much you can realistically expect to be paid under the deal – before you sign!

Client Reviews
★★★★★
"Deborah is smart, pragmatic and forthright" Townes, Filmmaker.
★★★★★
"Deborah has the unique ability to present an 'ask' in a way that is undeniably clear and justified. She has fundamentally changed the way I approach my valuation in the industry by removing the 'cringe factor' from discussions around compensation. She brings a charming touch of grace to negotiations representing my company's value and supporting its reputation while simultaneously securing fair and equitable compensation. Don, TV Producer / Showrunner.
★★★★★
"Deborah made a confusing and painful process understandable and linear. We could not have asked for a better lawyer." Podcast Production Team.
★★★★★
"Deborah makes reviewing legal documents so easy. I know she always has my best interests at heart. It's a pleasure working with her." Melissa, Executive Director of artist not-for-profit organization.
★★★★★
"Deborah is simply amazing. She is a master at protecting her clients. She will protect you and always have your back. I am so lucky to have found her." Warren, TV Series Writer & Creator.