Question 886502: Ziam wants to know how much his royalty will be for a song he has written. How will it be calculated? Write the steps or the formulas that will be used to calculate his royalty payment.
Answer by JulietG(1812)   (Show Source):
You can put this solution on YOUR website! First, determine the rate of pay per play. Let's be realistic and say that it's .003 (3/10 of a cent per play).
Next, he needs to know how many times it's been played. Radio stations actually report this so artists can be paid.
rate * frequency = royalty
.
Now, if he had a co-writer or co-writers, he would also need to have an agreement over how the royalties would be split. In that case:
rate * frequency = royalty / number of writers (assuming they are paid the same)
.
Let's say his rate is .003 and his song is a hit, being played 1,000,000 times last year.
.003 * 1000000 = 30,000
It adds up when it's in frequent rotation.
I'd bet the guy who penned "Grandma Got Run Over by a Reindeer" never thought it would make him a lot of money!
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