Royalty Points
Definition
Percentage points of revenue allocated to producers, mixers, or engineers on a recording. Standard producer points range from 3–4%, up to 5–10% for top-tier producers. Points are typically calculated as a percentage of the artist’s royalty, not of gross revenue.
Context
The biz-talk community’s consensus is that royalty points should be treated as a potential bonus, never as a substitute for upfront payment. oaklandmatt’s pinned advice — “ALWAYS GET YOUR MONEY UP FRONT” — reflects the reality that only a tiny fraction of projects (roughly 30 out of hundreds or thousands) ever generate meaningful royalty income. Mixer points (1–2%) are less common than producer points, and engineer points are rare.