In the music business, "points" refer to percentage points of a record's royalties or revenue—typically tied to the master (sound recording) rather than publishing. When a producer, contributor or engineer "gets points," they receive a share of money generated from sales, streams, and licensing.

1 point = 1% of the net royalties paid on the master recording.

Points are typically allocated during contract negotiations and can vary widely depending on the stature of the artist, producer, or contributors involved. For example, high-profile producers or collaborators may negotiate for multiple points, while lesser-known individuals might receive fewer or none at all.

Points are a critical aspect of compensation in the music industry, especially for individuals who may not receive large upfront payments. Over time, points can generate significant revenue if a song or album becomes successful. This is why many contributors closely negotiate for fair point allocation to ensure they are properly compensated for their work.

In MusicTeam®, points are used to streamline royalty splits among contributors. Each contributor is assigned a specific number of points, representing their percentage share of the net royalties generated (or royalty split) from our distribution service.

For example, if a recording generates $10,000 in royalties from our distribution and a contributor has 3 points, they would receive 3% of that amount, or $300. MusicTeam® ensures transparency by providing detailed breakdowns of royalty distributions, making it easier for all contributors to understand their earnings and verify payment accuracy. This system helps maintain clarity and fairness in royalty splits.

At the moment, you can only add points for a Contributor, not a rightsholder (Artist or Business). Once you set points for a Contributor, the royalty split will be automatically applied to the Recording.

🔊Heads-up: Anyone that has been given points will need to sign-up and provide their PayPal email in order for a release to be eligible for distribution.

Check out this article to learn how to add a Contributor.

Wondering how to manage your royalty splits?