Field guide
Music distribution with 100% royalties in 2026 — which distributors actually pay?
July 20, 2026
The '100%' fine print
Six major distributors advertise "100% royalties" in 2026. When we dug through their terms of service, only three actually deliver it end-to-end. Here's the truth.
The 100%-royalties honor roll
| Distributor | Streaming royalty cut | Payout fee | Currency conversion fee | Net royalty |
|---|---|---|---|---|
| DistributeMusic.AI | 0% | $0 | 0% (Stripe Connect at cost) | 100% |
| DistroKid | 0% | $0.50 PayPal | 3% USD→foreign | ~96% |
| TuneCore | 0% | Free ACH | 2.5% | ~97% |
| Amuse | 0% (Pro) | $0 | ~2% | ~98% |
| CD Baby | 9% | Free | 2% | ~89% |
| RouteNote (free) | 15% | 5% withdrawal | ~2% | ~78% |
What eats into your royalty (even at 0% cut distributors)
- Payout method fees — PayPal takes $0.50–4.99 per withdrawal at DistroKid; Stripe Connect at DistributeMusic.AI is $0.
- Currency conversion — receive USD royalties from Spotify but paid in EUR? Most distributors mark up FX by 2–4%. DistributeMusic.AI passes through at Stripe's mid-market rate (0.5%).
- Withdrawal minimums — some distributors require $50+ before you can cash out. DistributeMusic.AI is $5.
- Renewal cliffs — TuneCore removes your track if you stop paying the annual per-track fee. Your royalties then stop.
- Add-on royalty cuts — YouTube Content ID revenue is often 20% at DistroKid, 15% at TuneCore, 0% at DistributeMusic.AI Pro.
- DistributeMusic.AI: $400 gross - $0 cut - $0 payout fee - $2 FX (0.5%) = $398 in your pocket
- DistroKid: $400 - $0 cut - $0.50 payout - $12 FX (3%) = $387.50
- CD Baby: $400 - $36 (9% cut) - $0 payout - $8 FX (2%) = $356
- RouteNote (free): $400 - $60 (15% cut) - $17 payout (5%) - $8 FX = $315
- Free tier: $0 (loss-leader, we absorb the DSP delivery cost)
- Pro: $10/month × ~15,000 users
- Label: $50/month × ~800 labels
- "We retain a percentage for administrative purposes" — that's a cut.
- "Subject to periodic adjustments based on aggregate reporting" — that's a cut.
- "Free plan users receive X% of net royalties" — that's a cut on free tier.
- "Withdrawal fees apply" — that's a cut per payout.
Real-world example: 100,000 Spotify streams
Spotify per-stream rate: $0.004. Gross royalty: $400.
On a viral track (500k+ streams), the difference between DistributeMusic.AI and RouteNote free is $400+.
How DistributeMusic.AI can afford 100%
Our revenue comes 100% from subscription fees, not from your royalties:
That covers our infrastructure and QC team. Your streams belong to you.
Red flags in a distributor's terms
The clean move
Pay for a plan (Pro at $10/mo) instead of using a free tier that keeps 15% of your streams. Over any decent release, the paid plan pays for itself. Sign up →