The following information refers to TuneCore Splits (distribution revenue only).
What are Priority Payouts?
Priority Payouts allow you to specify a dollar amount that should be paid to a collaborator before splitting the rest of the revenue based on percentage.
Let's say I agreed to pay my friend ₹4,000 for driving me to and from the studio, and I want them to get paid before I split the rest of the royalties with my musical collaborators. If I set up a Priority Payout for my friend, 100% of the revenue for that split will be paid to my friend until they've recouped the ₹4,000. After that, the rest of the royalties will be divided based on the percentages I added to the split!
How do Priority Payouts work?
The way you set up your split has not changed, but now you'll see the option to add Priority Payouts. You'll add any collaborators (in the order you want them to be paid) and the dollar amount they should be paid. Take a look at the confirmation to make sure it’s what you wanted, submit your split, and you’re all set!
For example, in the split below:
- email@example.com is the first Priority Payout, so they will receive all royalties where this split is applied until they have recouped ₹4,000
- firstname.lastname@example.org (the user who created this split) is the second Priority Payout. After the first Priority Payout is complete, they will receive all royalties where this split is applied until they have recouped ₹4,000.
- After both Priority Payouts have recouped their dollar amount, the regular split will take effect and they’ll each receive 50% of royalties for tracks where this split is applied
What happens if I don’t add myself as a Priority Payout?
If you don't add yourself to the list of Priority Payouts, you will not receive any royalties from that split until its Priority Payouts have been completely paid out.
Does the order of a Priority Payout matter?
Yes, the order of a Priority Payout matters! Priority Payouts will be processed in the order they are entered. The first name you enter for Priority Payouts will receive 100% of royalties for that split until they have recouped their dollar amount, then the second, third, and so on.
What happens if my collaborator hasn’t accepted their invitation when it's their turn for Priority Payouts?
If your collaborator is a Priority Payout and they have not accepted their invitation yet, their portion is considered pending and they will be skipped until they accept the invitation. Once they accept the invitation and the current in-progress Priority Payout is complete, the skipped collaborator will start receiving their Priority Payout!
Let's say Collaborator 2 didn’t accept their invitation until halfway through Collaborator 3’s Priority Payout. Once Collaborator 3 is paid out, it will return to Collaborator 2 for their payout.
Do my Priority Payouts have to be added as a collaborator on the regular split?
No, you do not have to make your Priority Payouts collaborators on the regular split!
If you add someone as a Priority Payout for ₹4,000 and do not add them to the split, once ₹4,000 has been paid to them, they won't receive any additional percentage because you didn't add them to the split!
Will my collaborators receive an invitation showing their Priority Payout amount and their regular split?
Yes, your collaborators will receive an invitation that tells them their Priority Payout amount and their regular split percentage, if applicable. The invitation will also tell them their spot in line for Priority Payouts.
Can I change a Priority Payout after I've submitted it?
You can make certain changes to a Priority Payout after you've submitted it, but there are some important things to keep in mind:
- If you're trying to change the dollar amount, you can only change it to greater than or equal to the amount that’s already been paid
- Example: Collaborator 1 is set to receive ₹2,000 and they’ve already been paid ₹1,000. You cannot change it to ₹750, but you can change it to ₹1,500 and it’ll stop paying them once they’ve been paid ₹1,500!
- If payouts have started, you can’t edit the order of the collaborators
- You’ll have to completely start over by removing the split from its tracks and then deleting it. After that, you can recreate the split, changing the order of the Priority Payouts as needed.
Can I give a Priority Payout to a collaborator who transacts in a different currency?
Yes, Priority Payouts can be applied across currencies!
If you are an artist creating a Priority Payout on tunecore.in (INR) to be paid to a collaborator on tunecore.fr (EUR) and you set the amount at ₹1,500, your collaborator will be paid out according to daily exchange rates until they have made the Euro equivalent of ₹1,500. This goes for any other domain/currency.
How do I see the progress of my Priority Payouts?
On the My Created Splits page (see below), there is an expanded view for each split with a Priority Payout tracker! You'll see the order of Priority Payouts, the amount of each Priority Payout, if it's still pending, and a status bar that shows how much of the Priority Payout has been paid so far.
Additionally, in your Balance History, you will see an entry titled ‘Splits Royalty Payout’. When you click it, you will see the details of any active splits that are being paid out to collaborators. Your Priority Payouts will be included in this.