- Royalties: Perhaps the most common source of income for lyricists is "song royalties." Royalties are payments made to lyricists and composers each time their musical composition is used, such as when their song is played on radio, TV, or in public, sold as sheet music or music downloads, or streamed online. Royalties can be paid in different ways, such as through performing rights organizations (PROs) like ASCAP and BMI, or through record labels or distributors.
- Songwriting fees: Lyricists may also charge a flat fee for writing lyrics for a specific song. This fee is typically negotiated between the lyricist and the person or company who commissions the work, such as the music producer, artist, or music publisher.
- Song co-writing: Lyricists may collaborate with other songwriters or musicians to write songs, in which case they share in the income generated by the song through royalties or song fees.
- Artist collaborations: Lyricists may also work directly with artists to write songs for their albums or performances, in which case they may receive a combination of songwriting fees and royalties.
- Music publishing deals: Lyricists can sign contracts with music publishers or labels that give them an upfront fee or advance in exchange for the rights to their songs. The music publisher then handles the administration and exploitation of the songs and pays the lyricist a share of the royalties earned.
- Live performances and touring: Lyricists may perform their songs or collaborate with musicians to perform live at concerts, festivals, and other events. This can provide additional sources of income, especially for lyricists who are also performers or tour with other artists.
It's important to note that the specific payment structure and income opportunities can vary widely depending on the genre, location, and industry practices.