A common question asked by new labels is at what point should they start worrying about royalty statements and accounting to their artists? The answer is simple: start today.
Royalties are the payments that come from every stream, sale or monetised use of your music and while monthly earnings may not always feel like much in the beginning, over time they add up.
Successful labels are run like a business, and we challenge you to find a single successful business that doesn’t take good care of its finances - even in the early days when they weren’t making a profit.
Whether you are a small imprint with a couple of releases under your belt or a label with ten years behind you, keeping on top of accounting for each of these incremental statements to the artists who have trusted you with their music is a crucial aspect of good label management.
Adopting a professional attitude to royalty management means that you should be transparent with your artists, even if their release isn’t earning money. This level of respect works both ways and as your label grows, any artist who has experienced honesty and professionalism from a label finding its feet will be much more likely to work with them again over a label that has never sent them a single statement.
And finally, if you start early and keep on top of royalty statements from day one, you won’t find yourself with the worrying task of tackling years’ worth of statements at once further down the line.