CD Baby charges a one-time fee of $14.99 per cover song to secure the proper mechanical licenses. There are no other out-of-pocket costs beyond that point, since we take the mechanical royalties you owe to the publisher/s for each sale of that cover song directly out of your sales revenue.
Every time you sell a cover song, you owe the publisher/s of that song a mechanical royalty of $.091**. With CD Baby’s Cover Song Licensing service, we’ll take that owed royalty amount out of your earnings for each sale and pay it directly to the publishers for you, so you never have to worry about mechanical royalty payments again.
Remember, CD Baby still takes a 9% cut of your net digital distribution earnings, but we do not keep ANY additional cut for taking care of your mechanical royalty payments. That’s what the initial setup fee is for!
Your earnings for a cover song sale will look like this:
Cover Song Sale earnings (after the store takes its cut) - CD Baby Commission (9%) - $.091 = Artist Share
**• $.091 is based on the length of the song being 5 minutes or less. Royalty rate collected is the greater of ($0.091) OR ($0.0175 x minutes rounded up).