We're the first music company to introduce fan-powered royalties, where independent artists can get paid more because of their dedicated fans. More info here .

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Fan-powered Royalties

What are fan-powered royalties?

Replacing the old model on April 1, 2021, fan-powered royalties are a more equitable and transparent way for independent artists who monetize directly with SoundCloud Monetization to get paid. The more fans listen to your music on SoundCloud, the more you get paid.

Under the old model, money from your dedicated fans goes into a giant pool that's paid out to artists based on their share of total streams. That model mostly benefits mega stars.

Under fan-powered royalties, you get paid based on your fans' actual listening habits. The more your dedicated fans listen to your music, the more you get paid. This model benefits independent artists.

How can I qualify for fan-powered royalties?

To qualify for fan-powered royalties, you can monetize your music by joining SoundCloud for Artists. Both Artist and Artist Pro subscriptions give you access to the SoundCloud for Artists dashboard, where you can distribute your music to major music services. There are no specific eligibility requirements for monetizing and distributing with SoundCloud for Artists.

How do fan-powered royalties work?

SoundCloud Monetization pays royalties based on a fan's plays, considering:

1. The fan's listening time for an artist compared to their total monthly listening

2. The number of ads the fan has viewed

3. Whether the fan has a SoundCloud Go+, Go, or DJ subscription

4. SoundCloud’s share of advertising and subscription revenue

This system benefits independent artists with loyal fans, ensuring most subscription or ad income from a fan goes directly to the artists they listen to, even if they’re emerging talents.

Does SC4A Distribution follow the same payout model?

No. Distribution through SoundCloud for Artists (SC4A) delivers your music to external platforms like Spotify, Apple Music, and Amazon Music, which have their own separate royalty systems. However, we pay out 100% of the royalties paid to us by distribution partners, only taking a small payment processing fee. SC4A distribution earnings are based on the payout models of each partner platform, not the fan-powered royalties system on SoundCloud.

How do fan-powered royalties address fraud?

In a pooled royalties model, it’s easy to game the system with vanity accounts that exist to blindly play certain tracks over and over, commonly supported by bots. In contrast, fan-powered royalties tie royalties directly to the contributions made by real listeners. Fan-powered royalties are attributable only to listeners’ subscription revenue and ads consumed, then distributed among only the artists listeners streamed that month. No pooled royalties means bots have little influence, which leads to more money being paid out on legitimate fan activity.

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