In some cases, recording companies would simply give artists a flat fee for their work, and the artists would not receive any further payments. In other cases, recording companies would send royalty payments to the artists' managers or agents, who would then take a cut of the money before giving the rest to the artists. This practice often led to artists being cheated out of their fair share of the profits from their recordings.
The lack of royalty payments to early blues artists was a major contributing factor to the poverty that many of these artists faced. Despite the fact that their music was often very popular, many blues artists lived in poverty and died without ever seeing the financial rewards of their work.