How Is My Advance Offer Amount Determined?
How Is My Advance Offer Amount Determined?
Your advance offer is based on your streaming income and a few details you provide during the application, not a fixed amount for everyone.
What determines your offer range
- Your monthly streaming income — specifically your average earnings on HyDistro, which forms the basis for your annualized income.
- Term length — the length of the recoupment term you choose. Longer terms generally allow for a larger advance range, since recoupment has more time to happen. Your offer range is calculated as a percentage of your annualized streaming income, based on term length:
| Term Length | Range (% of annual income) |
|---|---|
| 1 Year | 3% – 5% |
| 2 Years | 5% – 8% |
| 3 Years | 8% – 15% |
| 5 Years | 12% – 22% |
- Rights type — whether the advance is against Sound Recording royalties, Song Writing (publishing) royalties, or both.
- Included works — whether the advance is based on your existing catalog only, or your existing catalog plus new music you plan to release.
- Pass-through percentage — the portion of your royalties allocated toward recoupment.
Eligibility requirement
To qualify for an advance, you need an average monthly streaming income of at least $100/month over a 6-month period.
What you’ll see
When you apply, you’ll be shown an estimated range, not a fixed number — this range narrows down to a specific offer once your application is reviewed and your reports are verified.
Important note
The estimate shown before applying is non-binding — it’s a guide based on the numbers you enter, not a guaranteed offer. Your final offer is confirmed after review.
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