How to Split Royalties With Collaborators and Producers (Split Sheets)

How to Split Royalties With Collaborators and Producers

To split royalties fairly, agree on percentages in a signed split sheet before release, then register those same numbers everywhere money is paid: songwriter shares with your PRO, master earnings through your distributor's splits tool (or by paying collaborators yourself), and producer shares of SoundExchange through a Letter of Direction.

Most split fights aren't about greed. They happen because nobody wrote anything down, or because the numbers at the PRO don't match the numbers at the distributor. This guide shows how to agree on splits, put them on paper, and set them up so collaborators get paid automatically where possible.

Key Takeaways

• There are two separate pies: the song (composition) and the recording (master). Splits for each are agreed separately.
• Use a split sheet for every song, signed by everyone, before the song is released.
• PRO registration: BMI counts writer shares as 100% and publisher shares as another 100%. ASCAP registers writer shares totaling 50% and publisher shares totaling 50%.
• Distributor splits: DistroKid and TuneCore can pay collaborators automatically. CD Baby says it can't split payouts, so you pay collaborators yourself.
• SoundExchange: Producers, mixers, and engineers can be paid part of the featured artist's royalties through a Letter of Direction, which takes at least two weeks to process.

What exactly is being split?

Every released song has two copyrights, and each one earns different royalties. Splitting starts by being clear about which one you're dividing.

If you need a refresher on each income stream, start with our guide to collecting music royalties. For ownership basics, see how to copyright your music.

How do I decide what percentage everyone gets?

There's no legal formula. The percentages are whatever the collaborators agree to, so agree early and write it down. Common ways teams decide:

1. Equal split among everyone in the room. Simple and common in co-writing sessions, where everyone who contributed to writing gets an equal share of the song.
2. Split by contribution. For example, separate lyrics from music, then divide each side by who wrote what. This is more precise but takes more discussion.
3. Producer deals on the master. Producers are often paid an upfront fee plus a percentage of master earnings (often called "points"). If the producer also wrote part of the music, they should also get a songwriter share of the composition.
4. Features. A featured artist's share is negotiated case by case. Decide whether they get a writer share (if they wrote their verse), a share of master income, a flat fee, or a combination.

The rule that prevents most disputes: have the conversation in the session or right after it, while everyone remembers who wrote what. Waiting until a song is getting streams makes every conversation harder.

What goes in a split sheet?

A split sheet is a short signed document listing every contributor and their agreed share for one song. It isn't filed anywhere official, but it's the record you'll use to register with PROs, set up distributor splits, and settle disagreements.

Split sheet checklist

• Song title (and working title if different) and date of the session
• Each contributor's legal name and artist name
• Each contributor's role (lyrics, music, production, feature)
• Each contributor's PRO affiliation and IPI number, if they have one
• Each contributor's publisher (or "self-published"), with publisher PRO and share
• Composition shares for every writer, totaling 100% of the writer side
• Master shares, if anyone besides the master owner gets a cut, and whether it's paid from the first dollar or after costs are recouped
• Any samples or interpolations, and who is responsible for clearing them
• Contact email for each person
• Signatures and dates from everyone

Keep the signed PDF with your release files. If you work with a record label later, it will usually ask for this paperwork.

How do I register splits with my PRO?

Register the song once with the agreed shares, listing every co-writer and publisher and their PRO affiliation. Each PRO expresses shares a little differently:

Source: the BMI Royalty Policy Manual section "How Royalties are Divided," and ASCAP's Registering Your Music help pages.

Things BMI's manual spells out that matter for collaborators:

• A registration from any one writer or publisher credits all participants, but BMI encourages each co-publisher to file its own registration so the work lands in the right account.
• If a later registration conflicts with an earlier one, BMI asks for documentation or written confirmation from everyone before changing its records. Your split sheet is that documentation.
• Late registrations can delay or lose royalties, so register before or right at release.

Co-writers at different PROs each register the song with their own society, using the same shares. Mismatched percentages across societies are one of the most common reasons royalties get held.

How do I split streaming income automatically?

Use your distributor's splits feature if it has one; otherwise you'll have to pay collaborators yourself. Here's how three popular distributors handle it, according to their own help centers:

How to set up a split on DistroKid

1. Sign in, click Splits, choose the release, and click Next (or use Edit Splits on the album page).
2. Click + Add collaborator under each song, enter their email, and set their percentage. The total always stays at 100%.
3. Click Review Changes, choose who pays for non-member collaborators, then Save Changes.
4. Collaborators accept the invite by email. If you change a split later, they'll need to accept again.

DistroKid notes that collaborators can only see their own percentage, not anyone else's.

Important: distributor splits only cover what the distributor collects (mainly streaming and download income from the master). They don't pay songwriter performance royalties, which come through PROs.

How do producers get paid from SoundExchange?

A featured artist can sign a Letter of Direction (LOD) telling SoundExchange to pay a percentage of the artist's royalties to a producer, mixer, or engineer. SoundExchange collects digital performance royalties from sources like satellite and internet radio, and it pays featured artists directly, so this is the clean way to share them.

What SoundExchange's LOD page says you need:

1. A signed Letter of Direction form naming the featured artist, the performer's legal name, the effective date, and the payee's contact details.
2. A Repertoire Chart listing each track, its ISRC if available, and the payment percentage. The percentage is a share of the featured artist's share, not "points."
3. A DocuSign certificate of completion (or equivalent) if it was signed electronically.

Submit by email to accounts@soundexchange.com or through your SoundExchange Direct account. SoundExchange says an LOD takes at least two weeks to process once it's complete.

Rules to know:

• LODs are only for creative participants such as producers, engineers, mixers, and remixers. They can't be used to pay labels, lenders, or other third parties.
• They aren't used between two featured artists. For "Artist A featuring Artist B," SoundExchange splits featured artist royalties 50/50 unless the artists tell it otherwise.
• With multiple featured artists, a producer needs an LOD from each artist whose share they're being paid from.

What if a collaborator won't sign or disappears?

Don't release until splits are agreed if you can avoid it; if you can't, hold their share and document everything. Practical options:

• On DistroKid, an unaccepted invitation holds the collaborator's earnings until they join. On TuneCore, unaccepted shares are paid to you, and you're responsible for passing them on.
• Keep a written record (texts, emails) of what was agreed, even if nobody signed a split sheet.
• For larger sums or real disputes, talk to a music attorney before registering conflicting shares.

Royalty split setup checklist

• Split sheet signed by every contributor
• Song registered with your PRO, with shares matching the split sheet
• Co-writers confirmed they registered with their own PROs using the same shares
• Distributor splits set up (or a written plan for paying collaborators yourself)
• Producer agreement on master points, in writing
• SoundExchange LOD submitted for any producer receiving a share of artist royalties
• Copies of everything stored with your release files

Add these to your release day checklist so they happen before the song goes out.

FAQ

Is a split sheet legally binding?

A split sheet is a written agreement signed by the parties, which is far stronger than a verbal one. How it's enforced depends on its wording and your local law, so get a music attorney to review anything involving significant money.

What's the difference between a split sheet and a producer agreement?

A split sheet records who owns what share of the song. A producer agreement covers the producer's fee, master royalty points, credit, and when royalties start. Producers who also co-wrote should be on both.

Do producers get songwriter royalties?

Only if they helped write the composition and are listed as writers. Production work on the recording alone is usually paid through fees, master points, and SoundExchange LODs rather than PRO writer shares.

Can I change splits after release?

On DistroKid you can edit splits anytime, and collaborators must re-accept. On TuneCore, edits apply from the next weekly sales posting and aren't retroactive. PRO changes after registration require agreement from everyone affected.

My collaborator uses a different distributor. Can we still split?

The release can only be distributed by one account, so splits are set up on that distributor. DistroKid and TuneCore both let collaborators accept payment with low-cost collaborator options instead of a full plan.

Related Guides

• How to Register and Collect Music Royalties
• How to Copyright Your Music
• How to Contact Record Labels and Submit Demos
• Free Music Release Day Checklist