How and When Do I Get Paid?
Earnings reports and payments are available to you as soon as DistroKid receives and processes earnings from streaming services and stores. Streaming services usually deliver these reports monthly, and they reflect sales from about 3 months ago. So, if someone streamed your song yesterday, royalties for it won't show up in your DistroKid bank until about 3 months from now.
ALSO!! Not all streaming services report at the same time, or at the same frequency. Each store & streaming service delivers reports & payments on their own schedule. So, for example, you likely won't receive updated iTunes & Spotify numbers on the same day.
The same thing goes for different distributors--if you have other music online via a distributor other than DistroKid, that distributor may reflect your Spotify (and so on) numbers before or after DistroKid does. We're usually first! But not always.
When you request a withdrawal from your bank, your money will be sent within 1-14 days of the request.
How Much Do Streaming Services Pay Per Stream?
The short answer, it varies.
The rates streaming services pay aren't up to us -- and we have no control over changing them. We just send along the exact amounts that services send to us. DistroKid has and always will pass on 100% of the earnings that services send us for your streams/sales, minus banking fees/applicable taxes. 💯
Why do streaming rates vary?
There are many factors that services use to calculate what you’re owed and rate calculations vary from service to service. Some things that services use to calculate rates include (but are not limited to):
quantity of streams/downloads
subscription type (free vs paid subscription)
Pro Rata Model
Most stores distribute with the pro rata model. With this model, all the revenue from a product tier is pooled together and a % of that revenue is set aside for artists. That remaining revenue is then allocated to songs based on their share of the total streams that took place on that product tier.
Example (very not real numbers, each service varies!!!!):
A service has $1,000 to distribute for their paid subscription tier that accumulated 10 million total streams for the month. Of the 10 million streams in total, your song was streamed 1,500 times.
1,500/10,000,000*$1,000= $0.15 owed
Spotify has a great video that explains how earnings are calculated on their end: How Spotify Pays You
Sales vs Streams
For services that sell digital downloads for your release as opposed to offering a platform for streaming, it is a very common industry standard that up to 30% of each sale goes to the service, while the remaining 70% goes to the artist.
How Much of My Earnings Does DistroKid Keep?
DistroKid does not take any percentage off the top of what stores send us for your earnings. When stores send us earnings reports, we send 100% of the earnings allocated to you straight to your DistroKid bank. We feel strongly that you shouldn't give a percentage of your earnings for streams / sales to your distributor. You earned the money, not them.
When you withdraw earnings, you may be subject to applicable taxes and/or fees from our payment processor.*
The ONLY time we take a percentage, is if you opt into our optional "YouTube Content ID" service. That's the service where we find videos on YouTube that use your music-- and tell YouTube to monetize them. We keep 20% of the revenue from YouTube videos that we find, and send you the rest (80%). But you still keep the money you earn from streaming services and music stores like iTunes, Spotify etc. You always keep 100% of that, minus banking fees/applicable taxes.
*Note: Our payment processor, Tipalti, may charge a fee depending on the withdrawal method. You can find out which methods charge which fees by checking out this article: Is There a Fee When I Withdraw My Earnings?
Additionally, depending on your country of residency, you may be subject to tax withholding rates. Check out this article on Tipalti for more information: Withholding Rates. DistroKid can't provide any information about taxes, or anything related to taxes, tax forms, tax withholding, etc. We know that this stuff can be confusing, so if you do have any questions about anything tax-related, please contact a tax professional who will be able to provide advice and explanations to help you out.Go to article
When I Delete a Release, Do I Still Get My Earnings?
Yes. Let's say you decide to delete a release from availability for whatever reason. You will still get any earnings you may have earned while your music was live on streaming services, up until the point it disappears. The earnings will flow through to your account, as per the following reporting schedule.
Expect to wait up to 1-2 weeks for your deleted music to disappear from all streaming services, sometimes sooner.Go to article
When Will the Next Earnings Reports Arrive?
If you're not seeing the latest reports yet, don't worry! Rest assured that we're working to get them to you ASAP.
Streaming services usually deliver these reports monthly -- but please note that each store & streaming service delivers reports & payments on their own schedule. So, for example, you likely won't receive updated iTunes & Spotify numbers on the same day each month. Same thing goes for different distributors--if you have other music online via a distributor other than DistroKid, that distributor may reflect your Spotify (and so on) numbers before or after DistroKid does. We're usually first! But not always.
For more information about how and when you get paid, please check out this article.Go to article
Does DistroKid Have a Referral Program?
Thanks for asking.
To spread DistroKid to your friends and make some dough doing it:
- Sign into DistroKid
- Click on your profile picture in the top right
- Click "Referral Program"
You'll get $10 per customer, and your friends will all get 7% off of their first-year's membership.Go to article
Where Do I Enter My Payout Preferences So I Can Get Paid?
When you're owed money, DistroKid will ask you for you payout preferences in the "bank" tab. Until you're owed money, you won't be asked for your payout preferences.
DistroKid supports a large number of payout options through our payment provider, including PayPal, ACH, wire transfer, eCheck, or even a paper check! To select your preferred method, click on your profile icon in the upper right, and then select "Payout Method".
From there, you'll need to:
- Fill out all required contact information.
- Choose your payout method: Direct Deposit/ACH, Wire Transfer, Check or PayPal.
- Select and complete the required Tax Forms. If you have questions, click "Need Help? Start the tax form questionnaire"
Note: We're unable to help with any tax questions/issues. Please see the IRS website for more info or consult a tax professional.Go to article
Can I cancel a withdrawal?
If you made a recent withdrawal by mistake, you can cancel it right on your DistroKid bank page. Here's how you can cancel your recent withdrawal:
- Head over to www.distrokid.com/bank
- You will see an information box that says "You requested payment (via ACH)..."
- Under this info box, click the link that says "Need to cancel this withdrawal?"
- You will get a warning to double check you want to cancel your withdrawal. If you are sure you want to cancel, click the button that says "Yes, cancel it."
- You're done! Your withdrawal has been cancelled, and your earnings will remain in your DistroKid bank.
Note: If you do not see the link that says "Need to cancel this withdrawal?", this means your withdrawal has already processed and is on its way to your specified payment method. You can contact our artist relations team about a missing processed withdrawal by clicking this link.Go to article
What Withdrawal Methods does DistroKid Offer?
DistroKid supports a large number of payout options through our payment provider Tipalti, including PayPal, ACH, wire transfer, eCheck, or even paper checks!
To change your preferred payout method, click on your profile icon in the upper right, and then select "Payout Method". From there, you can specify how you want to receive your earnings.Go to article
Is There a Fee When I Withdraw My Earnings?
Yes, our payment provider charges DistroKid a small fee for sending money, which is automatically subtracted from your earnings when you withdraw.
- ACH (U.S. only) — $1 per payment
- eCheck (U.S.) — $1.50 per payment
- eCheck (non-U.S.) — $5.00 per payment
- Paper Check — $3 per check
- Wire Transfer (U.S.) — $15 per payment
- Wire Transfer (International in local currency) — $20 per payment
- Wire Transfer (International in USD) — $26 per payment
- PayPal (Non-US resident): USD 1.00 + 2% Up to USD 21.00
- PayPal (US resident): USD 1.00 + 2% Up to USD 2.00
The minimum payout amount is $2 USD. On your bank page, under "What we owe you", if the total amount is under $2, or the transaction fee for your preferred payout method is not met (whichever is higher), your request will not be processed until you have sufficient funds to pay the associated fees with your withdrawal request.
Depending on your country of residence, there may also be a maximum payout threshold. If you have hit the payout maximum threshold, your withdrawal request will be separated into multiple payouts.
Please be sure to triple check that you’ve selected your preferred withdrawal method, and are aware of the fees associated with your preferred method. A rejected withdrawal request may accrue a rejection fee from our payment processor, Tipalti.
Additionally, an FX fee of up to 3% may apply if payment currency is different than the country you select. Visit DistroKid.com/payouts > Step 2 for details.Go to article
Is There a Minimum Payout Threshold?
Our payment provider requires the following minimum thresholds depending on your selected payout method:
- PayPal — $2 minimum.
- ACH (U.S. only) — $2 minimum.
- eCheck (U.S.) — $2 minimum.
- eCheck (non-U.S.) — $5.00 minimum.
- Paper Check — $3 minimum.
- Wire Transfer (U.S.)— $15 minimum.
- Wire Transfer (International in local currency) — $20 minimum.
- Wire Transfer (International in USD)— $26 minimum.
For more info about Payment Thresholds please see this table.
Note: You'll keep more of your earnings if you withdraw larger amounts, since you'll save money on fees.Go to article
Can DistroKid Help Me With My Taxes?
DistroKid is unable to help with any tax issues, as we are not tax professionals.
You'll want to consult a tax professional for help with anything tax-reated, but here is some information that you might find useful:
You can find detailed information about all charges by going to More (top right on the upper menu bar) > Account Settings > Receipts.
You can also find details about all earnings under Bank > See Excruciating Detail.
You might also check out your PayPal account, or Bank Tab which shows your earnings. We pass along 100% of earnings from stores, minus banking fees/applicable taxes, to you.Go to article
Why Does DistroKid Collect Tax Information?
US-based artists are asked to complete Form W-9, and non-US-based artists are asked to complete Form W-8BEN. We're required to collect this information once per year, and all DistroKid users are required to complete the required tax documents in order to receive earnings from DistroKid.
For any help completing the forms, please consult a tax professional.
Note: US-based artists are asked to complete Form W-9, which asks you for your TIN/EIN. As an individual, your TIN is your social security number (SSN). If you have registered as a business, your TIN is your EIN. For help with additional questions related to the tax forms, please consult a tax professional.Go to article
Information about tax withholding for non-U.S. residents
DistroKid cannot give tax advice, so we must state that this is not tax advice. Please consult a tax professional if you have any questions about the information here.
If your country of tax residency is not in the United States, up to 30% of your earnings may be subject to tax withholding. If there is a tax treaty between your country and the United States, and if you qualify for the benefits of that treaty, withholding may be reduced or eliminated.
Depending on the rules and regulations in your country of tax residence, you may be able to credit some or all of the United States tax withheld (if any) against your taxes.
A detailed list of applicable withholding rates per country can be found in the column labeled “Copyrights” here:
These instructions don’t constitute tax advice. Please consult with your tax advisor before completing a tax form.
Will I receive a 1099 or 1042 for my earnings?
If you made a withdrawal in in the previous fiscal year, you'll receive your tax information from email@example.com.
- 1099s will be made available for US-based users by February 1st.
- 1042's will be available by March 15th for Non-US users.
For more information on how to access your 1099 or 1042 forms, including the password generated for you, please read this article.
DistroKid does not provide W-2 forms at this time.
Please note that DistroKid can't provide any information about taxes, or anything related to taxes, tax forms, tax withholding, etc. We know that this stuff can be confusing, so if you do have any questions about anything tax-related, please contact a tax professional who will be able to provide advice and explanations to help you out.
What is the password for my Form 1099 or Form 1042?
Your password is 8 characters.
Please enter the first 4 letters of the name listed after the word 'Dear...' at the beginning of this email, all lowercase, and the last 4 digits of the tax ID (either SSN/EIN or ITIN).
- If your name appears on the form as Mary May with an SSN of 711223456, then the password would be mary3456 (first 4 characters of your Full Name / Business Name + last 4 digits of your SSN/ITIN number).
- If your business name appears on the form as A & D with ITIN as 012847934, then the password would be ad7934 (first 2 characters without spaces and special characters of your organization name + last 4 digits of your ITIN/EIN number).
- If your business name appears on the form as Mary May PLLC with ITIN as 012847934, then the password would be mary7934 (first 4 characters of your organization name + last 4 digits of your ITIN/EIN number).
- If your name appears on the form as Al & D with ITIN as 517223355, then the password would be ald3355 (first 3 characters (ignore special characters and spaces) of your Full Name / Business Name since the Full Name / Business Name is shorter than 4 characters + last 4 digits of your SSN/ITIN number).
- If your name appears on the form as Mary May without an SSN/ITIN number, then the password would be mary (first 4 characters of your Full Name / Business Name).
- If your name appears on the form as Al & D without SSN/ITIN number, then the password would be ald (first 3 characters (ignore special characters and spaces) of your Full Name / Business Name since the Full Name / Business Name is shorter than 4 characters).
DistroKid can't provide any information about taxes, or anything related to taxes, tax forms, tax withholding, etc. We know that this stuff can be confusing, so if you do have any questions about anything tax-related, please contact a tax professional who will be able to provide advice and explanations to help you out.Go to article
What is Artists for Change?
Artists for Change allows artists to automatically donate a percentage of royalties to charitable organizations and causes.
Artists are donating a percentage of their royalties to:
It’s easy to get started! Pick an organization or cause you want to support from the list above, or here, to find the Auto-donate instructions. You’ll get an email address you can use to sign into DistroKid, click “Splits” and add to start donating any percentage you like!Go to article
Can I Pay My Collaborators Automatically?
DistroKid can split earnings from any song or album, and automatically send those earnings to other DistroKid users. Add your collaborators, producers, bandmates, managers and more. We'll pay them directly, so you don't have to think about it. To get started, sign into DistroKid and click "Splits", or navigate to the album page you wish to setup a split on - halfway down there will be an option to create a split directly from your album page.
Some other cool things about Splits:
- You can change the splits any time.
- You can add or remove collaborators any time.
- You can go back in time and see any previous splits.
- For privacy, collaborators can only see what percentage they get. They can’t see who your other collaborators are, or what percentage other folks are getting.
- Your release won’t be delayed if your collaborator is slow to sign up. Instead, we’ll just hold the money for them until they join.
- If your collaborator never joins, you can easily cancel their invitation and earnings set aside for them will come back to you.
Note: Each collaborator will need to have a DistroKid account to collect their earnings. If they're not already using DistroKid, they'll get a 50% discount to sign up! If they don't want to sign up, you can even pay for the "Split subscription" ($10 per year) on your account, so that they can directly receive your earnings and all of the accounting is automatically done for you!
Until they accept your invitation, your collaborator's assigned split of the earnings will be held in DistroKid's bank. Once they accept and create an account, the held earnings will be available in their own Bank within 24 hours.
For a quick how-to on splitting earnings, check out this video:Go to article
Recoupments, How Do They Work?
With DistroKid's Splits feature (which allows collaborators to automatically split earnings on any release!), artists can set up Recoupments for any individual collaborator per Track.
Let’s say one of the collaborators, Hayden, paid $2000 for the beat, or music video, etc. Hayden can now be paid back first — before the normal splits kick in for everyone else.
Once the initial funds have been Recouped, the Splits will automatically go into effect for all other collaborators on the Split.
Go to article
I sent a Splits invite, but it was never accepted. Can I remove that email from my Split?
To remove someone from a Split, go to 'Show Split History' on the release page, and then click 'Show Options' --> 'Remove' next to the email you want to delete.
Once they're removed, any earnings that were held will appear in your Bank within 24-48 hours.
(If you still want to split earnings with them, but they just need a nudge, then click 'resend invite' instead!)
“Invalid” Splits Email?
Check to see if there’s an extra space after the email. There probably is!
Please fix and try again.
Go to article
I'm on a Split for a song. What percentage of the *album* earnings do I get?
DistroKid makes it possible add collaborators to any track.
When someone buys the entire album (as opposed to buying or streaming an individual track), we'll automatically calculate pro-rata revenue split.
Example: if an album has 2 tracks, and you're owed 50% of one track, then you'll receive 25% of a full album sale.
The Split manager can see this by clicking "Edit Split" > "Review Changes", and scrolling to the bottom.