Hey, where's my money?
Is that what you're wondering, hit songwriter? Well, if your royalty check is looking a little lighter than anticipated, then you might not be too familiar with a little thing known as reserves. Record labels hold reserves from royalties so they don't pay out a bunch of money for sales that might come back as returns, and for songwriters, mechanical royalties are often subjected to the same sort of thing. In fact, publishing reserves are often higher than other reserves because overpayments can only be recouped from the composition that generated them, unlike overpayment on sales - they'll just hold that money back from your next album.
Confused? Don't be. Here's a simple breakdown of how it works. Arm yourself with the knowledge to manage your music income, and you're all to the good.
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