Free Copies

The primary motivation for buyers to purchase your music is for the right to use that music to make a profit. You can offer them a certain amount of "free" copies to be sold or distributed without the requirement to pay royalties to you.

When selling a license through Beat Brokerz, the "Royalty Free Copies" amount can be set anywhere between 0 and Unlimited. As outlined in the Beat Brokerz licensing agreement, the licensee is permitted to sell or give away an amount of copies up to this limit without the obligation to pay any royalties on those copies.

Breakdown

When you sell a license with a 2,000 Royalty Free Copies limit, this means that the buyer will be able to record and distribute 2,000 copies of his music without the need to pay you any royalties. This copies limit includes all copies distributed, whether they were given away as promotion, or actually sold. So if the artist is offering the music for download on a website, whether paid or not, this limit would be exhausted after 2000 downloads.

After the royalty free copies limit has been exhausted, that does not mean that the buyer has to stop selling or distributing the music, it only means that they are legally obligated to account for and pay royalties on those distributed copies.

How To Use It

Tracking down and getting your licensees to pay royalties could prove to be a difficult task and may not even be worth it in most cases, so a healthy royalty free allowance on your license in exchange for a little more up front cash may be an acceptable compromise for you.

At the time of this writing, the statutory royalty rate for mechanical licensing is 9.1 cents per copy. If you sell a license for 5,000 royalty free copies at a price of $65.00, it's like the customer is paying you up front for the sale of those first 5000 copies at a rate of 1.3 cents per copy.

It's pretty common for a producer to settle for a reduced royalty rate on a certain amount of copies for up front cash, while still retaining earning potential if the music was ever to sell past that limit.