This is Part Two of my blog posting series on “Making Money From Your Songs”. Part One explains What Is Music Publishing.
While some songwriters use a music publishing company to exploit their songs, others choose to handle their own music publishing. There are pros and cons on both sides of the issue. One advantage to acting as your own music publisher is keeping all of the income generated from your songs. Music publishing companies typically keep fifty percent of your songwriting revenue in return for helping you promote your songs. The disadvantages to handling your own publishing include foregoing the advance or upfront money normally paid by a music publisher. You’ll also be solely responsible for promoting your songs and handling all the administrative paperwork that goes along with music publishing.
Your decision on whether to work with a music publishing company may ride on whether or not you’re a songwriter who also performs. If you plan to record and release the songs you write on your own CD, you may not need the promotional muscle of a music publishing company. However, if your goal is to get well-known artists to cover your songs or to place your songs in film and television, a well-connected, experienced music publisher can get those placements for you.
If you decide to handle your music publishing yourself, you’ll need to form a music publishing company. The first question is who should hold an interest in the publishing, and how the publishing company should be set up. If you’re an individual who writes all your songs on your own and who performs as a solo artist, the answer is simple. You’ll be the sole owner of your music publishing company – although you may choose to organize your publishing company as a corporation or limited liability company instead of as a sole proprietorship.
Determining who holds an interest in the publishing can become more complicated if you collaborate on your songs or you perform with a band. I’ll address that issue in my next blog posting.