Know Your Craft: Understanding Royalties

Below is a link to an article that I find to be one of the most thorough explanations of how and where royalty monies go. If you ever wondered why groups like TLC or Toni Braxton or even James Brown have careers of hits and millions of units sold worldwide...but end up broke, here you go.

Also, knowing this information gives you a better insight into how songWRITING, not performing is where the "money" is. Whenever you hear a song on the radio, somebody gets paid. Whenever you hear a song used in a commercial, somebody gets paid. Remake? Somebody gets paid. For those of you who are obsessed with the idea of becoming the next American Idol...this might make you consider becoming the next Babyface, the next Jimmy Jam & Terry Lewis or Quincy Jones or David Foster if you're really trying to be Big Willy.

Read this and better understand the "whose" and "why" the money lands in the pockets it does.

How Stuff Works - Royalties