Chart-Topping but Broke! The hidden Rules rehind a Hit Record

Once upon a studio session—one of those long, caffeine-fueled nights lit by LED strips and hope—a young artist laid down what would soon become a nationwide hit. The beat slapped, the vocals were clean like church shoes on Sunday, and the hook? Unskippable. Within weeks, the song caught fire. Radio spins, TikTok challenges, influencer reposts—it was everywhere.

The artist went to bed streaming and woke up trending. Fans were tagging, blogs were buzzing, and playlists couldn’t get enough. But amid all the noise, something else became painfully loud: silence in the bank account.

Streams? Countless.
Exposure? Endless.
Paycheck? MIA.

So, what went wrong?

This isn’t a fable. It’s a reality far too many talented creatives face. In today’s music industry, your contract—not just your talent—determines your income. The applause might be loud, but if the paperwork isn’t in order, your payday might whisper… or not come at all.

Unfortunately, many artists discover this truth the hard way: after the release, after the hype, and often, after everyone else has been paid—except them.

You see, behind every chart-topping single lies a tangled web of copyrights, contracts, and royalty streams. It’s less fairy tale, more legal thriller. And if you don’t understand how these systems work, you might unknowingly hand over the keys to your own kingdom—while someone else cashes the royalty cheques from your reign.

A beat might slap, but if the deal doesn’t—you won’t eat.

The harsh truth? You can write the hook, sing the chorus, fund the session, and carry the promo on your back… but if your signature lands on the wrong contract, you may just end up a ghost in your own success story.

Two Songs in One: The Composition and the Recording

The moment a song is written and captured in a tangible form—whether scribbled in a notebook or saved as a voice memo—a copyright is born. This is known as the compositional copyrightor publishing rights.

But there’s more.

The instant that song is recorded in a studio, a second copyright comes into existence: the sound recording copyright, often referred to as the Master. This recording unlocks its own world of royalties—streaming income, licensing deals, performance rights, and more.

Here’s where things get tricky.

In many cases, the record label owns the sound recording, not the artist. Unless you’re an independent act who personally funds and controls your recordings, your “hit” may not legally belong to you—even if you wrote and performed every note.

Where the Money Flows: Royalties & Rights You Should Know. Let’s break it down:

1. Artist Royalties

These are contractual. If you’re signed to a label, they earn from your recording—and may share a percentage with you. But how much (or if you get anything at all) depends entirely on your contract. A good contract = fair earnings. A bad one? You may see nothing but exposure.

2. Needle Time Royalties

This is a legal right—not a contractual one. When your track plays on the radio, it triggers royalties for the composer and the owner of the sound recording. In Ghana, for instance, GHAMRO handles this for both composers and performers.

Session musicians, backing vocalists, and producers who perform on a track are all eligible for a slice of this pie. Yet, many don’t even know it exists. If you contributed to a track’s recording, you may be owed money.

3. Producer Royalties

Producers aren’t automatically entitled to future royalties unless they negotiate for it. Many settle for an upfront fee, but top-tier producers often land both: a payment and a share in future income.

That said, most producers are also eligible for needle time, as their performances count. Know your worth. Put it in writing.

4. Sync Licensing: When Your Song Meets the Screen

Ever wonder how songs end up in films, TV shows, or ads? That’s called sync licensing, and it’s a goldmine—if you own the rights.

To legally use a song in visual media, two licenses are required:

Take the film Baby Driver, for example. Its music-to-action choreography was groundbreaking. But before a single scene could be cut to a beat, every track had to be cleared—twice.

If you don’t own the master, you don’t get that check.

5. Music Video Royalties: A Third Copyright Emerges

Turning your track into a music video creates yet another copyright: the cinematograph film. This opens additional revenue doors, like:

But here’s the catch: if you appear in a video, you don’t automatically earn from it—unless your contract says so. So, that cameo you did for free? It might be racking up plays without earning you a pesewa.

Beyond Copyright: Other Income Streams

Let’s not forget that some of the most lucrative earnings come from areas outside of copyright entirely:

Artists like Taylor Swift are famously meticulous with their contracts. It’s been reported that her touring deals let her take the lion’s share, while promoters earn from concessions. That’s not luck—it’s smart, strategic contracting.

The Bottom Line: Contracts Are Currency

In the music business, talent may get you heard—but contracts determine if you get paid. Whether you’re a singer, rapper, producer, or label owner, you need to know:

Copyright gives you power. Contracts turn that power into payment.

If you’re serious about your music career, don’t just learn how to create. Learn how to own. Invest time in understanding music business, copyright law, and contract negotiation. Programs like a Music Business Masterclass will offer artists and music professionals the tools to navigate this complex, evolving industry with clarity and confidence.

Create boldly. Own wisely. Get paid fully. That’s the new sound of success.

(Story: Richmond Adu-Poku)