Do Ghost Producers Get Royalties? 5 Key Facts You Need to Know

Do ghost producers get royalties? This is a common question in the music industry, and the answer depends on various factors, including contract terms and rights agreements. Do ghost producers get royalties? Ghost production is an integral part of the modern music industry, yet it remains shrouded in mystery. Many aspiring producers wonder whether they can earn royalties from ghost-produced tracks or if they forfeit all future revenue once the track is sold. In this article, we’ll take a deep dive into the financial aspects of ghost production, breaking down the different types of royalties, contract structures, and strategies for maximizing earnings as a ghost producer.

What Is Ghost Production?

Ghost production refers to the practice of creating music for another artist, DJ, or record label without receiving public credit. The buyer releases the track under their name, while the ghost producer remains anonymous. In exchange for this anonymity, ghost producers typically receive an upfront payment, but the question remains—do they get royalties?

Do Ghost Producers Get Royalties? Types of Royalties in Music

Before understanding how royalties apply to ghost producers, let’s break down the main types of royalties in the music industry:

1. Mechanical Royalties

Mechanical royalties are generated when a song is physically or digitally reproduced and distributed. This includes streams, downloads, CDs, and vinyl sales. These royalties are typically collected by mechanical rights organizations (MROs) like The Harry Fox Agency (HFA) in the U.S. or MCPS in the UK.

2. Performance Royalties

Performance royalties are earned when a song is played publicly, such as on the radio, in a club, or through streaming services. Performing rights organizations (PROs) like ASCAP, BMI, and SESAC collect these royalties on behalf of songwriters and publishers.

3. Sync Royalties

Sync royalties are generated when a song is used in visual media, such as films, TV shows, commercials, and video games. Sync deals usually involve a one-time licensing fee, and the songwriter may also earn backend royalties.

4. Producer and Master Royalties

Some producers negotiate royalties from the master recording, meaning they receive a percentage of sales and streams in addition to their upfront payment. This is more common in traditional music production than in ghost production.

Do Ghost Producers Get Royalties?

The answer depends on the agreement between the ghost producer and the buyer. Here are the different scenarios:

1. Full Buyout (No Royalties)

A full buyout agreement means the ghost producer sells the track outright for a one-time fee, forfeiting any future royalties. This is the most common type of ghost production deal because buyers want exclusive rights to the track without any ongoing obligations.

• Pros: Immediate payment, no waiting for streaming or sales revenue.
• Cons: No future earnings, even if the track becomes a hit.

2. Revenue Sharing (Royalties Included)

Some ghost producers negotiate a percentage of the royalties in addition to an upfront payment. In this case, the producer may receive mechanical and performance royalties if properly credited through a PRO or a private contract.

• Pros: Potential for long-term earnings, especially if the track gains popularity.
• Cons: Requires legal agreements and trust from the buyer.

3. Publishing & Songwriting Credits

If a ghost producer contributes to the composition (melodies, lyrics, or chord progressions), they can negotiate a publishing split. This means they would be entitled to a portion of performance and mechanical royalties.

• Pros: Retains ownership of part of the composition.
• Cons: Not all buyers agree to this, as they prefer complete anonymity.

How to Secure Royalties as a Ghost Producer

One of the biggest concerns for ghost producers is the question: Do Ghost Producers Get Royalties? Securing royalties requires careful negotiation and clear contract terms.

1. Negotiate Before Selling the Track

Many producers fail to discuss royalties before finalizing a deal. If you want a cut of future earnings, negotiate this upfront. Be clear about what percentage you expect and ensure it is included in a written agreement.

2. Use a Contract

A well-drafted contract is essential for any ghost production deal. Clearly define whether royalties are included, who collects them, and how payments will be distributed. Consider hiring a music lawyer to ensure fairness.

3. Register with a PRO

If you manage to retain songwriting or publishing rights, register with a performing rights organization (PRO) like ASCAP, BMI, or PRS. This will allow you to collect royalties whenever the track is played publicly.

4. Work with Trustworthy Buyers

Reputation matters in ghost production. If a buyer agrees to pay royalties but fails to do so, it can be difficult to enforce. Work with reputable labels, DJs, and artists who honor their agreements.

5. Consider Partial Rights Deals

Instead of a full buyout, some producers negotiate a partial rights deal where they retain a small ownership percentage. This ensures they receive long-term revenue without interfering with the buyer’s brand.

Common Challenges in Receiving Royalties as a Ghost Producer

While the answer to ‘Do Ghost Producers Get Royalties?’ can vary, those who seek royalties often face multiple challenges.

1. Lack of Transparency

Since ghost production operates in secrecy, tracking streams and earnings can be difficult. If the buyer doesn’t disclose revenue, the producer may never know if they are owed royalties.

2. Difficulty Enforcing Contracts

Even with a contract, enforcing royalty payments can be tricky, especially if the buyer is based in another country. Legal action may not always be worth the time and expense.

3. Industry Standard Practices

Most ghost production deals are full buyouts, meaning producers must fight against industry norms to negotiate royalties. Buyers may prefer upfront deals without ongoing obligations.

Do Ghost Producers Get Royalties? Upfront Payments vs. Royalties

There’s no right or wrong answer—each option has pros and cons:

Upfront Payment (Full Buyout)

• Guaranteed money.
• No waiting for streaming revenue.
• Best for producers who want quick income.

Royalty-Based Payment

• Potential for higher long-term earnings.
• Best for producers who believe in the track’s potential.
• Requires trust and proper agreements.

Many successful ghost producers take a hybrid approach—charging a high upfront fee while retaining a small royalty percentage.

Do Ghost Producers Get Royalties? Final Thoughts

Yes, ghost producers can earn royalties, but only if they negotiate it upfront. The default industry standard is a full buyout, meaning no royalties are paid after the sale. However, with the right contract, trust, and negotiation, ghost producers can secure long-term earnings from their work.

For those entering ghost production, it’s crucial to understand how royalties work and to protect their financial interests. Whether you choose an upfront payment or a revenue-sharing model, always ensure clarity in your agreements to avoid losing out on potential income.