AUTOMATED ROYALTY SPLITS

Automated Royalty Splits That Run Themselves

Automated royalty splits are rules that divide music earnings among contributors by preset percentages every payment cycle. LabelGrid calculates each share automatically when DSP royalties arrive, applying recoupment and logged expenses, then generates artist statements and records the payouts you make. No spreadsheets, no manual math. Splits are included from the Basic plan up.

Set up a split in three steps:

Open a release or track and add each collaborator.
Enter each person's share. LabelGrid checks that the shares total 100%.
Save once. Every royalty period, each share is calculated automatically and added to that collaborator's balance for the monthly payout.

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One earnings stream forks along flowing gradient ribbons into three rounded contributor share badges of 55, 30 and 15 percent totalling 100%, set once and running every payout cycle

SPLIT CONFIGURATION

How do automated royalty splits work?

You define each contributor’s percentage once, per release or per track. The same configuration holds your label’s distribution fee and any recoupment terms. From then on, every payout cycle applies those rules automatically. A remixer who earns 15% on one single and an in-house producer on standing points are both handled the same way. Change a percentage and it takes effect from the next cycle, so a one-off collaboration and a long-term roster deal can live side by side. For labels running splits across a whole roster, the same engine scales without extra per-release work.

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For Labels

A contributor statement broken down by source: streams, rate and each person's exact share, tracked in native currency

Three connected steps: set percentages to 100%, deduct expenses and recoupment, then compute each contributor's share

MULTI-PARTY PAYOUTS

What does each contributor see on a statement?

Every statement breaks earnings down by DSP, then by release and track: which platform paid, how many streams, the rate, and the contributor’s exact share. Payments arrive from each platform in their native currency and are tracked per DSP, so multi-currency earnings stay accurate instead of being flattened into one number. Export a statement as a PDF to send to the contributor, or pull transactions as CSV for your books. Splits feed directly into full royalty accounting, putting expense ledgers and invoicing in the same place as monthly payouts. See the artist payouts guide for setting up statements and the payment workflow.

Royalty Accounting

HOW IT WORKS

How to set up a royalty split in three steps

1. Configure

Choose the contributors and their percentages, per release or per track. Add your distribution fee, producer points, and any recoupment terms. Percentages are checked so each split totals 100%.

2. Process

When DSP royalties arrive, LabelGrid computes every contributor’s share automatically across Spotify, Apple Music, and the rest, per release and per track. Committed expenses then reduce those balances until they are recouped.

3. Pay

Generate statements each cycle, approve them, then record each payment as you send it. LabelGrid tracks the whole payment lifecycle, so every party gets a clear record of what they earned.

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EXPENSE RECOUPMENT

How does recoupment affect a split?

Log studio costs (recording, mixing, mastering) and marketing spend against the specific release it belongs to. Earnings are credited to each artist by their split, then those costs reduce the artist’s balance, and recoupment runs every payment cycle until it clears. An artist on an advance starts earning their full share automatically the cycle after costs are recovered. Contributors see the running balance: what was spent, what was earned, and what they’re still owed. There are no per-release or per-split fees. Royalty splits are part of LabelGrid’s accounting tools. Splits come in on the Basic plan, and every price is published on the pricing page.

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An expense ledger and recoupment meter showing costs recovered before any share is paid, with the running balance

One split engine across LabelGrid, direct/SOBO and hybrid catalogs, each tracked separately with plan-based retention

SPLITS AT SCALE

Do splits work across distribution models?

Yes. The same split engine runs across LabelGrid distribution deals, direct deals delivered on your own behalf (SOBO), and hybrid catalogs that mix both, with each model tracked separately so revenue is never blended. Retention follows your plan: 85% on Solo and Basic, 90% on Pro, and 95% on Custom and API plans under LabelGrid’s DSP deals. UGC and Content ID earnings through LabelGrid’s deals carry a 20% fee on every plan, so you keep 80%. On your own direct deals or Merlin Network membership via SOBO (Custom and API plans), you keep 100%. Our terms allow a minimum payout threshold, and we will let you know if one applies to your account. Payouts run monthly, and earnings update per DSP, per release and per track as statements process. Advanced analytics is included on every plan, and Pro plans and above add white-label reports carrying your own label’s identity. For distributors building on top of LabelGrid, the same accounting runs through the white-label REST API.

MORE FEATURES

Discover All LabelGrid Services

Distribution

Distribute music to all major platforms with advanced metadata and batch operations.

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Catalog Management

Manage releases and tracks, with their artwork and metadata, across your entire catalog from one dashboard.

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Royalty Accounting

Automated royalty processing for your whole roster, with expense ledgers and invoicing alongside transparent statements.

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White Label & API

Run your own branded distribution platform with LabelGrid's white-label infrastructure and REST API.

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COMMON QUESTIONS

Frequently Asked Questions

What are automated royalty splits?

Automated royalty splits divide a release's earnings among its contributors by configured percentages. LabelGrid calculates every party's share automatically when DSP payments are processed - including expenses, recoupment, and your label's fee.

Can I set different splits per release?

Yes. Splits are configured per release or per track, so one-off collaborations and standing roster deals both work. Each configuration applies automatically every payout cycle.

How do expenses affect splits?

Earnings are credited to each artist by their split first, and committed expenses then reduce that artist's balance, so recoupment runs automatically each payment cycle until the balance clears.

When do contributors get paid?

LabelGrid pays your own cleared royalties out monthly by bank transfer or wire. Our terms allow a minimum payout threshold, and we will let you know if one applies to your account. Paying your roster is a separate flow, and LabelGrid does not move that money for you: it builds the payment request from the approved statement, you send the payment through your own bank, then you mark it paid so the ledger and the balance stay right.

Can contributors see their statements?

Yes. Every statement shows DSP-level detail - platform, streams, rate, and each party's share. Export a statement as a PDF to send to the contributor, or export transactions as CSV for your own accounting.

Do splits work with direct deals (SOBO)?

Yes. Splits apply across LabelGrid distribution deals, direct deals delivered on your own behalf (SOBO), and hybrid catalogs, with each model tracked separately. Royalty retention depends on your plan and deal type: 85% on Solo and Basic, 90% on Pro, and 95% on Custom and API plans under LabelGrid’s DSP deals. UGC and Content ID earnings through LabelGrid’s deals carry a 20% fee on every plan, so you keep 80%. On your own direct deals or Merlin Network membership via SOBO (Custom and API plans), you keep 100%.

Is there a fee per split or per release?

No. There are no per-split or per-release fees. Automated royalty splits are included from the Basic plan up, alongside expense ledgers, statements, and payouts. Splits come in on the Basic plan, and every price is published on the pricing page.

How do splits relate to royalty accounting?

Splits are one part of LabelGrid's royalty accounting suite, which also covers expense ledgers, statements, invoicing, and payouts.

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Automated royalty splits with recoupment and contributor statements, all in one dashboard with published pricing and no per-release fees.

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