Royalty management used to be a fairly straightforward business. In the past, royalty management payments could be tracked manually, ensuring intellectual property rights were protected. The music industry of today is a fragmented one, with a shift to online making the business of royalties even more complicated.
However, it’s never been more important for independent musicians and artist managers to protect their creative assets and revenue streams. This is where royalty management contracts come into play. What is a royalty management contract? Essentially, it’s an agreement between the owner of intellectual property and a licensor.
But how does a company management royalty contract? Different companies approach royalty management with a variety of practices, although most have shifted away from manual methods. Nowadays, royalty management software is the way forward. It frees up artists and managers from tedious tasks, allowing them to refocus their efforts elsewhere.
In this article, we’ll explore the drawbacks of manual royalties collection and how embracing royalty management software can streamline the process.
Challenges of Manual Royalty Management
Even with the best practices, manual royalty management is fraught with issues. It's an incredibly time-consuming process. Keeping track of all those royalty statements and payment deadlines is resource-intensive. Even a minor delay can result in major backlogs, leading to missed payments and revenue bottlenecks.
As with any manual process, there's also scope for human error. If you're relying on multiple input sources and sprawling spreadsheets, the risk of error is even higher. Just a single wrong digit or misplaced decimal point can skew reporting.
Some people are resistant to automation. However, an optimized process is always a better one. Rather than putting a human who knows how to manage royalties out of a job, the best royalty management software can free up man-hours. This allows musicians to focus on creating new music and artist managers to nurture the talent they're looking after.
Benefits of Royalty Management Software
In the digital age, music royalty management software is the only way to go. It streamlines reporting, providing musicians with complete transparency about revenue streams and commercial performance.
The best royalties management software also simplifies payment processing. By supporting integrated payments, royalties are managed more quickly, eliminating the chance of outstanding revenues. What's more, management software supports payments in multiple currencies.
Standardized data processing is a staple of good royalty management software. This naturally results in improved levels of accuracy and error-free reporting.
Features of Royalty Management Software
Royalty management software makes it easy to track incoming royalties from multiple sources. What's more, with in-depth analytics and advanced reporting, you can access detailed royalty breakdowns and performance metrics.
You can also count on secure payment processing. This not only safeguards your revenues but eliminates the chance of fraud. This is vital for establishing trust with third parties.
Great software also needs to be user-friendly. An accessible interface isn't just simple to use, it makes the entire process of collecting royalties more transparent for all involved. Struggling with royalty splits? Royalties management software should be flexible, allowing you to assign royalty splits to individual assets.
If you're looking to monetize recording assets, IndieFlow is an ideal choice. IndieFlow’s Royalty Management feature makes it easy to register with royalty collection societies and start receiving payments. What’s more, this all-in-one music management platform lets you take control of creative projects and distribute content.
Manual Royalty Management vs Software Solutions
There's no place for manual royalty management in today's music industry. Having to contend with multiple licenses and royalty agreements with multiple platforms can prove confusing. Independent musicians and artist managers might not be caught up on the latest changes to royalty rates. This is even more of an issue if you're dealing with many different streaming platforms and licensing agreements.
When you use software, you can rest assured that the royalties you receive are reflective of the latest changes to payout models. Ultimately, software is the only reliable way of keeping track of all revenues you're owed.
Choosing the Right Royalty Management Software
Looking to simplify royalties management? When selecting your software, consider what's most important to you. Some of the key questions to ask when choosing royalty management software include:
- Does the software allow you to manage complex contracts and agreements?
- Does it simplify different revenue streams and royalty types?
- How much of the process does the software automate?
- Are they any useful analytics tools included that let you see where your income is coming from?
- Does the software include a royalty splits feature to ensure everyone’s getting their fair share?
Finally, take the time to experiment with software. Some solutions might be too basic for your needs, while others may be charging you a premium for advanced features you'll never need. However, it's always worth thinking about the future. A flexible and scalable solution is always worth considering.
Simplify Your Royalty Management Today
Many independent musicians rely on royalties to stay afloat. However, keeping track of what's owed and by who can be a tall order. In the past, manual royalty management might have worked for independent artists. However, in an age of downloads, streaming, and synchronization rights, this is no longer the case.
Any artist serious about monetizing their music needs to embrace many different licensing agreements and income streams. Royalty management software might lack the human touch, but it also removes the chance of human error. As well as ensuring everyone is receiving a fair cut, royalties management software brings added analytics that can be used to track commercial performance.
Unsure about how to manage royalties? Looking to simplify payment processing and access invaluable analytics? It's time to think seriously about royalty management software. Use IndieFlow to lighten your music management workload, whether you're tracking data and distributing to streaming platforms, or looking to collect payments and outstanding royalties.