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💵 Revenue Collection Roadmap

⏱️ Block 3 Kickoff · The Three Pillars of Music Income · Read before Week 9

🎯 The Complete Picture

Your business foundation is built (Blocks 1-2). Now it's time to start collecting revenue. Most artists only collect from one source and miss 60-80% of their potential income. This roadmap shows you all three revenue pillars and exactly how Weeks 10-13 will collect from each.

💿 MASTER RECORDING ROYALTIES
Weeks 8 & 10

Sources: streaming (master portion), downloads, physical, digital radio (Pandora/SiriusXM), sync (master rights), international neighboring rights.
Collected by: your distributor (Week 8) + SoundExchange (Week 10).

🎤 PERFORMANCE ROYALTIES
Week 11

Sources: radio, TV & film, streaming (performance portion), live venues, background music, international airplay.
Collected by: ASCAP or BMI — writer AND publisher accounts (SESAC is invite-only).

⚙️ MECHANICAL ROYALTIES
Week 12

Sources: streaming (mechanical portion), downloads, physical, sync, sample clearances, cover songs.
Collected by: The MLC, Harry Fox, Music Reports.

💡 The Revenue Reality

Most artists only collect master recording royalties from their distributor — roughly 20-40% of their total potential music income. The remaining 60-80% sits uncollected in performance and mechanical royalty pools, because artists don't know these separate collection systems exist.

🎯 The Complete Royalty Breakdown

There are publishing AND master recording versions of both performance and mechanical royalties:

📝 PUBLISHING SIDE (The Song/Composition)

  • Publishing performance royalties — when the song is performed (radio, TV, streaming, venues). Collected by ASCAP/BMI/SESAC
  • Publishing mechanical royalties — when the song is reproduced (streaming, downloads, physical). Collected by MLC, Harry Fox, Music Reports

💿 MASTER SIDE (The Sound Recording)

  • Master performance royalties — when the recording plays on digital radio (Pandora, SiriusXM). Collected by SoundExchange
  • Master mechanical royalties — when the recording is reproduced (streaming, downloads, physical). Collected by your distributor

🎵 One Spotify Stream = Four Separate Royalties

  1. Publishing performance royalty → ASCAP/BMI (the song being performed)
  2. Publishing mechanical royalty → The MLC (the song being reproduced)
  3. Master performance royalty → usually minimal for interactive streaming
  4. Master mechanical royalty → your distributor (the recording being reproduced)

Most artists only collect #4 and miss #1, #2, and #3 entirely — that's why the separate collection systems in Block 3 are essential for maximum revenue.

📋 Your Revenue Collection Journey

Week 8
Distributor
Master mechanical
Week 10
SoundExchange
Master performance
Week 11
PRO
Performance
Week 12
MLC · HFA · MRI
Mechanical
Week 13
Everything Else
Sync, lyrics, int'l

Each royalty type requires separate collection accounts. Major labels collect from all three pillars simultaneously — independent artists who follow the same strategy achieve major-label-level collection while keeping full ownership and control.

📋 Registration Preparation Checklist

Gather these documents and information NOW to streamline every registration in Weeks 10-13. Most accounts take 15-30 minutes when everything is prepared.

📄 Business Documents

  • Articles of Organization (Week 5)
  • Operating Agreement (Week 6)
  • EIN letter from IRS (Week 6)
  • Business bank account info + direct deposit authorization form (Week 8)

🏢 Business Information

  • LLC name and structure details · DBA certificate (Week 7)
  • Virtual business address, phone, and email (Week 4)
  • NAICS code (Week 4)

👤 Personal Information

  • Full legal name, date of birth, SSN
  • Government-issued photo ID + personal address (for verification)

🎵 Music Information

  • Song titles and release dates
  • ISRC codes from distributor (Week 8)
  • Writer/composer info, publisher splits and percentages
  • Previous PRO affiliations (if any)

💳 Payment Information

  • Business debit/credit card + routing & account numbers
  • Budget for registration fees ($100-400 total for all accounts)
  • Master W-9 template ready (Week 7)

💡 Pro Tip

Keep all of these in a dedicated folder — physical AND digital (this becomes your Business Bible in Week 14). Quick access during registrations turns each account into a 15-minute task.

🚀 Ready to Start Collecting?

You've built the foundation — your business is established and legally protected. The next four weeks install every collection meter your music needs. Every dollar your music generates should have a pipe flowing into one of your two accounts.

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