Frequently Asked Questions (FAQs)

Investor FAQs
Artist, rights holders, and labels FAQs

Investor FAQs

Am I buying shares from Sonomo or from the artist/rights holder directly?

keyboard_arrow_down

The artist/rights holder. Sonomo simply facilitates the exchange of shares and handles all following payout disbursement.

Why would an artist sell me a portion of their shares?

keyboard_arrow_down

Raise money: Artists may need cash to invest in new releases today. Instead of waiting for years to collect money from older releases, Sonomo allows them to collect up cash up front by selling a share of future revenues.

Marketing: The more "shareholders" in a song, the more people involved in marketing the song in order to increase the number of streams and subsequent revenue. By selling a % of a song, artists are able to create a bespoke "marketing team" that is truly invested in a campaign's success.

How are prices determined?

keyboard_arrow_down

The initial share price offering is determined by the artist/rights holders. The valuation must fall within a range set by Sonomo in order to ensure financial sanity and protect both artists and investors. Secondary market traded shares are driven by market bid / ask offers.

What am I buying a share in when investing?

keyboard_arrow_down

You're buying a share of the song's digital streaming revenues (payouts from Spotify, Apple Music, Amazon Music etc.). If you own 1% a share, then Sonomo will deposit 1% of the songs earnings into your account each month. Unless your stake is sold to a different investor, your ownership is perpetual and will not expire, meaning you have the right to receive a % of all future earnings paid.

For example:
If you own 1% of a song that has generated 100,000 streams last month at a rate of €0.004/stream, we would deposit €4 into your account, calculated as such: 0.01 * 100,000 * €0.004 = €4

Am I buying royalties?

keyboard_arrow_down

No. As an investor, you're buying the right to receive future revenues derived from master royalties - not the underlying royalties.

Royalty transfer is a lengthy and expensive process that adds no value to both the artist or investor.

Our royalty derivative on the other hand, allows you to invest as little as €1, transfers in real-time and incurs minimal transaction costs.

Is this an NFT-based exchange?

keyboard_arrow_down

No. We are not an NFT-based exchange. We do not use a cryptocurrency decentralized blockchain to record or to process transactions.

How do I receive my share of earnings?

keyboard_arrow_down

Simply connect your bank account. Once your account is connected, Sonomo will automatically deposit funds into your account whenever a payout event occurs. You should typically expect one monthly deposit for each song you've invested in but keep in mind some songs pay on a quarterly basis (as indicated in the song's asset page).

Supported banks:

Keep in mind that we're continuously adding more banking partners within the UK and EU, so if you don't see your bank just yet, don't worry! we'll be there soon.

Monzo
Revolut
Lloyds
RBS
Natwest
TSB
Santander
Barclays
Bank of Ireland
Allied Irish Bank
Nationwide
Danske
Starling
Halifax
Tesco Bank
ING
ABN Amro
Rabobank

When do I get paid on my investment?

keyboard_arrow_down

Typically on a monthly basis but some songs process payouts on a quarterly basis (as indicated in the song's asset page). Sonomo will forward streaming payments to investors as soon as those are received from the song's corresponding distribution company (indicated in the song's asset page).

Which countries is Sonomo available in?

keyboard_arrow_down

For investors (EU+UK): Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

For record-labels and artists: Available worldwide (except for countries sanctioned by the EU, UN, United States, UK, and Canada).

Does Sonomo guarantee a return on my investment?

keyboard_arrow_down

No. You invest at your own discretion without any guarantees. In theory, a song may never generate any streams and therefore produce no revenue for all investors (including the artists themselves). While music does present great investment opportunities, predicting commercial success is difficult and you should therefore exercise caution when investing.

Do you support cryptocurrencies (like Bitcoin or Ethereum)?

keyboard_arrow_down

No, we do not support cryptocurrencies.

Still have questions? Email us at support@sonomo.com

Artist, rights holders, and labels FAQs

What streaming platforms do you support?

keyboard_arrow_down

7 Digital
Amazon
Ami Entertainment
Anghami
Apple Music
AWA
Bmat
Boomplay
Deezer
Dreamus Company (FLO)
Facebook Audio Library
Facebook Fingerprinting
Facebook Video
Facebook Video Fingerprinting
fizy
Genie Music
Gracenote
Hungama
iHeartRadio
iMusica
Jaxsta Music
Jio Saavn
Joox
KkBox
Kuack Media
LINE Music
MePlaylist
MonkingMe
MoodAgent
Music Worx
Muska
Napster
Naver Music  
NetEase Cloud Music
Nuuday A/S  
Pandora  
Peloton
Phononet
Pretzel Rocks  
Qobuz  
Resso
Shazam
Slacker
SoundCloud
Spotify
Tencent
TIDAL
TikTok
TIM Music
TouchTunes / PlayNetwork Triller
United Media Agency (UMA)
Yandex Music
YouTube Music & Content ID
Zing MP3
ZVOOQ

Label only:
Beatport
Traxsource

Do you really offer free music distribution services? What's the catch?

keyboard_arrow_down

There's no catch whatsoever. We offer 100% free music distribution service. No hidden or upgrade fees. In fact, we will never ask for your credit card or try to deduct any fees from the royalties we collect on your behalf.

Does the artist or rights holder maintain their Master rights?

keyboard_arrow_down

Yes. If you're an artist or a Master rights holder, you will retain 100% ownership of your rights.

Do you only distribute and collect from online streaming apps and stores?

keyboard_arrow_down

Yes, we only distribute to and collect royalty revenue from online streaming stores on your behalf.

What online music streaming apps and stores do you work with?

keyboard_arrow_down

We distribute your music to all the major streaming stores including Spotify, Apple Music, Tidal, Deezer, Prime Music, and 120 more.

How are you able to offer free music distribution? How do you make money?

keyboard_arrow_down

We don't charge the artists to distribute music or to process their royalty revenue. Our business generates money by allowing music investors to invest in your music (with your approval of course!) and we make money by charging these investors fees to invest and access our music royalties marketplace.

Do you charge any fees for depositing royalties to my bank account?

keyboard_arrow_down

No, we don't charge for that service. It's completely free to use.

Do you offer royalty splits? Is it free?

keyboard_arrow_down

Yes, we offer automated royalty splits on a track by track basis. We don't charge any fees to use this service. You can invite as many collaborators as you want.

Can I stop using your services at any time?

keyboard_arrow_down

While that would make us really sad, you can stop using our services at any time. There are no minimum commitments to using our distribution services. Just make sure you move out all of your music to the distributor you are moving to (if you already have music distributed through us). Our support team can help you with moving out when needed.

Can I start by distributing just a few of my songs with you?

keyboard_arrow_down

You can choose to distribute as little as one song if you wish. We're not pushy. A lot of artists start testing us out using one song. Then they end up moving their entire catalog. It's really up to you.