How can you determine the fair market value of your music?

1 What is fair market value?

Fair market value is the price that a willing buyer and a willing seller would agree on for a product or service, in a competitive and open market. For music, this means the amount that a music user, such as a record label, a publisher, a film producer, or a streaming platform, would pay to a music owner, such as a songwriter, a composer, or a performer, for the right to use their music. Fair market value depends on the supply and demand of the music, as well as the quality, popularity, and uniqueness of the music.

2 What factors influence the value of your music?

The value of your music can vary greatly, as it is subjective and dependent on the preferences, needs, and budgets of music users. Several factors can influence the value of your music, such as the type and scope of its use, the duration and frequency of its use, the territory and media of its use, the genre and style of the music, the reputation and track record of its owner, and the quality and originality of the music. For instance, a sync license for a TV show may pay more than a mechanical license for a CD; a global use for multiple platforms may pay more than a local use for a single platform; and a well-known and established artist may pay more than a new and emerging artist.

3 How to research the market rates?

In order to determine the fair market value of your music, it is beneficial to research the market rates for similar music uses. Sources of information you can use include industry databases and guides, such as the Rate Cards published by the Music Publishers Association, the Rate Sheets published by the American Federation of Musicians, or the Rate Calculator provided by the Harry Fox Agency. Additionally, professional associations and networks, such as the Songwriters Guild of America, the American Society of Composers, Authors and Publishers, or the Recording Academy can be consulted. Moreover, websites such as Songtradr, Music Gateway, or Tunefind can be used to find and compare licensing opportunities and fees for your music. Lastly, talking to other musicians, managers, lawyers, or agents who have experience and knowledge in the music market can provide advice on the best rates and terms for your music.

5 How to protect your music rights?

Finally, you should take steps to protect your music rights and interests, both before and after you determine the fair market value of your music. It’s important to register your music with the U.S. Copyright Office and a performing rights organization, such as ASCAP, BMI, or SESAC. Additionally, you should license your music with a clear and written agreement that includes all relevant clauses, such as fees, royalties, credit terms, control rights, duration of use, warranties, indemnities, and termination rights. Lastly, you should monitor your music use and performance to make sure that you are paid and credited correctly and that your music is not used without your permission or beyond the scope of the license.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?