Label Service Fee Comparison Calculator

The label revenue split determines the percentage of your streaming income retained by the label after aggregator fees. A higher split means the label keeps more of your earnings, which can significantly reduce your net income if your streaming revenue is substantial. However, labels often justify this split with added perks like marketing and playlist pitching. To accurately assess the impact, you need to weigh the monetary value of these perks against the income you forfeit. For example, if a label takes 20% but provides $500 worth of marketing monthly, it might still be cost-effective if your independent marketing costs would exceed that amount.

Aggregator pay rates typically range between $0.0025 and $0.005 per stream, depending on the platform, region, and type of streams (e.g., premium vs. free-tier listeners). This rate directly influences your income from self-distribution. For example, if your aggregator pay rate is on the lower end ($0.0025), you would need significantly more streams to match the income you might achieve with a label that provides additional promotional support. Understanding your realistic streaming potential and the pay rate helps you decide whether the aggregator model is viable for your goals.

Estimating the value of label perks requires researching the market costs of similar services. For example, independent playlist pitching services might charge $200–$500 per campaign, while professional marketing campaigns can cost thousands of dollars monthly. If a label offers these services as part of their deal, you should calculate how much you would spend to achieve similar results independently. Additionally, consider the label's track record in delivering tangible benefits, such as placements on high-profile playlists or successful marketing campaigns.

One common misconception is that self-distribution guarantees higher income because you retain a larger share of revenue. While this is true in theory, it overlooks the costs and effort required to market your music effectively, secure playlist placements, and manage administrative tasks. Another misconception is assuming all aggregators offer the same pay rates or services—rates can vary significantly, and some aggregators charge additional fees for features like royalty splits or advanced analytics. Evaluating these factors is crucial to making an informed decision.

Streaming payouts vary by region due to differences in subscription rates, advertising revenue, and listener demographics. For example, streams from North America or Europe typically generate higher payouts than streams from regions with lower ad revenue or subscription fees. If your audience is concentrated in lower-paying regions, the income difference between label and indie distribution may be less pronounced. Labels with global resources might help you penetrate higher-paying markets, which could offset their revenue split.

Industry benchmarks for label revenue splits typically range from 15% to 30%, depending on the label's size, reputation, and the services included in the deal. For emerging artists, splits closer to 30% are common, while established artists with proven track records can negotiate lower splits. To secure a fair deal, compare the label's offer with industry averages and consider the value of additional perks like marketing, playlisting, and tour support. Always aim for a split that aligns with your projected income and career goals.

Choosing a label often involves trade-offs between short-term income and long-term career growth. Labels may provide resources to accelerate your visibility and fanbase, but they also take a share of your revenue and, in some cases, ownership of your masters. Self-distribution allows you to retain full control and a larger share of earnings, but it requires significant effort and investment in marketing and promotion. Consider your career stage and goals—independent distribution might be ideal for building a foundation, while a label partnership could be more beneficial as your audience grows.

To optimize your results, input realistic and well-researched values. For projected streams, use data from past releases or industry averages for artists at your level. For the label revenue split, aim for transparency by asking the label about all deductions, including hidden fees. When estimating the value of label perks, focus on tangible benefits with measurable outcomes. Finally, run multiple scenarios with adjusted inputs to understand how changes in streams, pay rates, or perk values affect your net income. This approach ensures you make a data-driven decision.