The first step to collecting royalties as an independent record label is to copyright your music. This will give you legal ownership of your work and allow you to collect royalties from anyone who uses it. You can copyright your music by registering it with the United States Copyright Office.
2. Create a Sound Recording
Once you have copyrighted your music, you need to create a sound recording of it. This can be done in a recording studio or at home. The sound recording will be the basis for all of the royalties that you collect.
3. Distribute Your Music
Once you have created a sound recording of your music, you need to distribute it. This can be done through a variety of channels, such as online streaming platforms, record stores, and live performances. The more widely you distribute your music, the more likely you are to collect royalties.
4. Join a Performing Rights Organization (PRO)
A PRO is an organization that represents the rights of music creators. PROs collect royalties from businesses that use music, such as radio stations, television stations, and online streaming platforms. When you join a PRO, you will be entitled to receive royalties for any of your music that is used by a business that is a member of the PRO.
5. Register Your Sound Recordings with SoundExchange
SoundExchange is a non-profit organization that collects and distributes royalties for sound recordings. When you register your sound recordings with SoundExchange, you will be entitled to receive royalties for any of your music that is streamed on an online platform that is a member of SoundExchange.
6. Monitor Your Royalties
It is important to monitor your royalties to make sure that you are receiving all of the money that you are entitled to. You can do this by checking the royalty statements that you receive from your PRO and SoundExchange. You can also contact your PRO and SoundExchange directly if you have any questions about your royalties.
7. Enforce Your Rights
If you believe that your copyright or sound recording rights have been infringed, you can take legal action to enforce your rights. You can do this by filing a lawsuit in federal court.