How Producers Can Receive Their Royalties Sooner? Part 1

Everyone’s heard about recouping.

The label spends $200K breaking and pushing the single of an artist and the artist is responsible for recouping $1M from revenue generated from the single. If the artist is in a 360 deal then the $200K can be recouped from live performances, merchandising deals, possibly publishing, and other revenue streams.
But when it comes to producers there are different levels of recoupment that you can be responsible for that will impact how quickly you receive royaltie

Album level — Album level recoupment means that you will not start receiving royalty payments until all of the recording costs for the album have been recouped. This works in the interest of the record label (and artist) because it delays the date at which you’ll get paid out royalties which should be paid retroactively to the first record sold and if the album never comes out then your payments can be delayed indefinitely.

Master-Level — Master-level recoupment is what you should be fighting for if you only produced a couple of tracks on an album. Master-level recoupment is when you are only responsible for recouping the recording costs associated with the specific masters that you produced. This is in the producer’s favor especially if the track is released as a single because the producer can begin receiving royalties sooner.