Pricing in the music industry is crazy! We've sorted it out for you below with financial breakdowns of what a $10 album sale of original songs or cover songs might look like on Loudr's store or on external stores like iTunes.
Loudr takes 15.00% of all sales in order to support continued development of the platform. We take 30.00% on cover songs sold on external platforms simply because the costs associated with accounting for covers on third-party stores is much higher than it is directly on Loudr.
Loudr Fee is referred to as "Loudr Distribution Percentage" in the Music Services Agreement.
On Loudr, we use Amazon Payments or PayPal to accept payments. These processors take their own cuts which are called micro and macro transaction fees. For example, PayPal applies the following fees based on the gross amount of the customer transaction:
Macro - 2.9% + $0.30 per transaction for transactions of $10 or more.
Micro - 5% + $0.05 - per transaction for transactions of less then $10.
External stores accept payment in a variety of ways; the exact breakdown isn't known, but processing fees are included as part of each external store fee.
Royalties on cover songs are a fixed amount based on the number of compositions and overall length of the cover song track. The current rate is $0.091 OR $0.0175 per minute (rounded up), whichever is higher. Multiply this by the number of cover songs in the track to get the total royalty for that track.
The lowest ($0.091) royalty rate will be applied to cover songs of 5:00 or less, containing a single composition.
Album pricing model varies according to the external store's pricing policies.
Each external store will take its own cut at the time of sale before Loudr receives any of your revenue. Below is an estimation of each store's fee and a link to learn more about each fee.
The external store cut for cover songs and originals is referred to as "Third Party Distribution Percentage" in the Music Services Agreement.