How do I choose a distributor (flat fee vs. commission, hidden fees, contract length, preferred distributors list)?
TL;DR - Choose the distributor that keeps your three-year cost per release (CPR) under $10, pays you 100% of royalties, and lets you exit with 30 days’ notice or less. If you plan more than three singles a year, an unlimited flat-fee plan usually wins.
Case Study - “Neon Echo - 6-Single Roll-Out 2024-25”
Switched from pay-per-release to DistroKid Musician (Month 0) → CPR dropped $26.60 → $4.17 → 84% of distro budget freed
Added Social Media Pack only on a YouTube-heavy single (Month 2) → +12% UGC revenue → $4.95 recouped at 22k views
Used “Leave a Legacy” on an EP before cancelling plan (Month 14) → catalog stayed live → $49 one-off vs annual fee
Six releases cost $78.94 on DistroKid vs $160.94 on the previous distributor.
1 │ Why This Question Matters
Profitability: streaming margins are thin; renewal fees and commissions can erase profit.
Flexibility: long contracts or slow takedowns can trap you just as better options appear.
2 │ Step-by-Step Framework
Forecast releases for the next 36 months (singles, EPs, albums).
Run the three-year CPR rule: total plan fees, renewals, required add-ons → divide by planned releases.
Check royalty split: aim for 100%; accept less only if services justify it.
Scrutinize exit terms: look for ≤ 30 days’ notice and no punitive takedown costs.
Audit extras: add YouTube CID, cover licenses, or legacy fees only when ROI is clear.
Verify preferred lists: if courting labels, confirm your distributor is on their preferred roster.
3 │ Metrics & Traffic-Light Guard-Rails
3-Year CPR: green < $10 | yellow $10–25 | red > $25
Royalty retained: green 100% | yellow 85–99% | red < 85%
Exit notice: green ≤ 30 days | yellow 31–60 days | red > 60 days
4 │ Distributor Landscape (snapshot)
DistroKid
Strengths: unlimited releases, low annual fee, quick uploads
Watch-outs: add-ons (YouTube CID, “Leave a Legacy”) cost extra
TuneCore Unlimited
Strengths: tiered plans, built-in splits, strong brand
Watch-outs: album renewals $49.99 per year; pay-per-release is pricey
CD Baby
Strengths: one-time fee, no annual renewals, physical distribution
Watch-outs: 9% commission on digital revenue
AWAL
Strengths: no upfront cost, label services, playlist pitching
Watch-outs: 15% commission; invite-only
5 │ Common Pitfalls & Fast Fixes
Ignoring renewal fees → build a three-year spreadsheet before signing.
Paying for every add-on → enable extras only when ROI is proven.
Long lock-ins → negotiate a 30-day exit or choose non-exclusive terms.
“Free” plans with high cuts → flat fees beat commissions once you pass ~50k streams per month.
Key Takeaways
Switching saved Neon Echo 84% in distribution spend.
Break-even for flat-fee vs per-release is roughly three singles per year.
Validate every figure against current rate cards before you commit.
Track hidden costs (CID, cover licenses, renewals) so budgets stay realistic.
How to Use
List your planned releases for the next 36 months.
Plug each distributor’s numbers into the traffic-light checks above.
Choose the option that keeps CPR green and preserves your freedom to move as your career grows.