Many music distributors proudly advertise slogans like “Keep 100% of your royalties” - a phrase that’s instantly attractive to independent artists looking to earn every rupee or dollar they deserve. But behind this appealing promise lies a complicated web of costs, tricks, and in some cases, outright manipulation. The truth? That “100%” often applies only on the surface. Dig deeper, and you’ll find loopholes, hidden fees, and something even more worrying: the royalty report you see as an artist may not even be the full truth.
Gross vs. Net: The Misleading Math Behind “100% Royalties”
At first glance, “100% royalties” implies you’ll keep all the money from your streams - no cuts, no middlemen. But this usually refers only to gross revenue: the total amount a streaming platform like Spotify or Apple Music pays before any fees are deducted. What really matters is net income: how much you get after all costs.
For example, LANDR offers a Basic plan at €18.99/year claiming artists keep 100% of royalties. But if you stop paying that subscription, they begin taking a 15% cut. DistroKid charges $19.99/year for unlimited uploads and says you keep 100% - but that $20 is how they profit. Even TuneCore, once commission-based, now offers a “100% royalties” plan - but it comes with annual per-release or per-artist fees.
In every case, you're still paying. Whether upfront or in disguise, the money is leaving your pocket.
The Ugly Possibility: Are Revenue Reports Being Manipulated?
Beyond the fees and plans lies a darker possibility many artists never consider: the revenue reports you receive from your distributor may not be the complete truth.
Most independent artists never get to see the original reports from DSPs (Digital Streaming Platforms) like Spotify, Apple Music, or YouTube. Distributors act as the middlemen - and they control what data reaches you. This means they could underreport your earnings, take hidden backend commissions, or apply unofficial cuts without ever disclosing them. You see a clean, 100% payout on a possibly doctored dashboard - but how would you know if it’s accurate?
This is not just a conspiracy theory. Several artists across forums have shared inconsistencies between what DSPs report (when they get direct insight via backend tools) and what distributors show. Since most platforms don’t provide public APIs or user-facing DSP receipts, the room for manipulation is large. It’s a loophole that some distributors exploit to cut royalties behind the scenes - while still claiming transparency.
Subscription & Pay-Per-Release Fees: You’re Still Paying
Let’s say you earn ₹3,000 from streams in a year and your distributor charges ₹1,499 annually for access. That’s 50% of your revenue gone, even if your dashboard shows “100% royalties.” The math doesn’t lie: if you're paying out of pocket just to stay listed, you're not keeping 100% of anything.
Even seemingly “cheap” services like DistroKid or RouteNote take their pound of flesh. With RouteNote’s free tier, you keep 85%, not 100% - unless you upgrade. Others charge for each release, like CD Baby or TuneCore, reducing your earnings per song.
And that’s assuming they don’t hide backend deductions in the name of internal costs or “processing.”
Hidden Fees & Paywalled Features: The Real Cost of “Free”
Many services lure you in with zero commissions, only to nickel-and-dime you later:
Withdrawal fees
Currency conversion costs (often 3-5%)
High payout thresholds (like $50 minimum before you can cash out)
Locked features like Content ID, split payments, or metadata control
Unchained, for instance, claims 100% royalties - but takes 15% of splits unless you pay extra. FreshTunes is “free,” but diverts 20% of royalties owed to songwriters. On RouteNote’s free plan, they take 15% of all royalties.
Every small charge adds up. And while you believe you’re keeping “everything,” the system is quietly draining your income.
Case Study: Same Streams, Different Outcomes
Let’s say your songs earn $400 from Spotify and YouTube. You choose between four distributors:
Distributor A: Flat ₹49 fee, 90% royalties = ~$364
Distributor B: 100% royalties, $20 yearly = ~$342
Distributor C: Pay-per-release = ~$333
Distributor D: Hidden fees and commissions = ~$327
Each claims “100% royalties,” but your actual income can vary by over ₹3,000 per year.
Now imagine if your distributor is also cutting backend royalties and showing you edited reports - your real earnings could be even lower, and you’d never know.
The Illusion of “Zero Commission”: A Psychological Trap
The phrase “keep it all” is powerful. Marketers know indie musicians are emotionally and financially vulnerable - so a phrase like “100% of your royalties” creates instant trust. But slogans don’t pay rent.
Experts warn that fixating on the commission rate blinds artists to the real economics: lower service quality, less support, and potentially manipulated reports. You might be sacrificing control, trust, and clarity - all for a feel-good number that may not reflect reality.
Why Transparency Matters: The DireNote Media Approach
The safest way around these gimmicks is to use a distributor with clear, upfront pricing. For example, DireNote Media explicitly brands itself as transparent and artist‑friendly. Its website emphasizes avoiding hidden charges and complicated contracts. DireNote’s plans clearly list the fee and the exact royalty split. For instance, their “Carbon Plan” is a one‑time ₹49 (pay-per-release) fee for 90% of streaming royalties (song stays live 5 years), while “Carbon Plus” is ₹149 for 95% (lifetime). There are no mysterious add‑ons – you know in advance that after paying ₹49 you will keep 90% of whatever your streams earn. This clarity lets artists calculate net income easily. In short, rather than chasing 100% slogans, look for a service (like DireNote Media) that lays out every cost from the start.
Final Takeaway: Don’t Fall for “100%” Without Doing the Math
If a distributor only offers “100% royalties” while you’re paying them, then it’s not really free, and it may not even be honest. Every rupee spent on hidden fees, ambiguous reports, or locked features eats into your actual income.
In an industry where transparency is rare and data manipulation is real, choose partners who earn your trust - not just your streams. Pick a distributor that doesn’t just show flashy percentages, but gives you full visibility into what matters: your real net earnings.
DireNote Media stands for ethical distribution, clear reporting, and empowering artists with the truth.
Comments
Post a Comment