We are very excited to officially introduce the new Label Engine payment system that aims to speed up the process of Labels getting their hands on royalty reports and when they are able to collect the money.
We are switching from Quarterly reports to Monthly reports and with the new system you can collect your earnings virtually anytime you want.
1) Why monthly reports now?
We understand the value of sales data to allow users/labels to better measure a track/release success, which is key to be able to create a balanced budget for your company. We want to make sure labels can access as much information as often as possible.
2) How does it work?
The first Monday of every month you will receive the report for the previous month, for example on July 7 2014 you will receive your June 2014 report. Keep in mind this does not mean the exact sales from June necessarily, it means anything we have been accounted and payed for up until June will be included in the report.
3) How do stores account?
Some stores report to us monthly but 2 months off, for example, we may received the payment from Spotify’s May report in July which would then be included in the report you receive on August (Stay with me here), some other stores like iTunes are usually only one month off, so May’s payment most likely will be received at the end of June and will probably make it to the report you receive in July.
Beatport is an example of a store that account to us quarterly and pays usually between one to two months off, for example, Quarter 2 includes April, May, June 2014, we would get the payment an the end of July or beginning/midway through August. It will then get included in the next available monthly report.
4) What do you mean we can collect royalties anytime we want?
One of the best changes we made is that you no longer have to wait for your quarterly report to collect your royalties. The switch to monthly reports will improve how fast you are able to see the revenue your company generated and therefor you can much faster collect the money.
Now, if you are used to collecting and doing your accounting quarterly, don’t worry, the system will accumulate your earnings and you can request a payment at any point. You can collect every month, every 2 months, every 3 months, every 4 months or anytime you feel is best for you!
There are no invoicing periods, timetables or deadlines to meet, period.
5) What method of payments will you support?
Paypal and Wired Bank transfers will remain options while we introduce two new options, Check/Cheque and Label Engine Credits.
6) What are Label Engine “Credits”?
Label Engine credits is basically the money in your account (balance) that can be used for features within the system. Whether you are paying for a subscription or using it to protect your tracks via Topple Track you can find good use for your “credits”. Other features will be introduced soon!
It’s instant and no fees are deducted to process the payment, it is currently limited to a maximum of $500 dollars with no minimum threshold.
7) What are the processing fees and minimum thresholds for each payment method?
– Label Engine Credits: no processing fee – No threshold
– Paypal: No processing fee (Paypal may deduct a fee for their service) – $100 threshold
– Bank Transfer: $20 in the United States – $40 outside of the USA (Your bank may also charge a fee) – $100 threshold
– Check/Cheque: $5 processing fee (It may take up to 4 weeks to receive) – $100 treshold
Any additional questions feel free to send them to support(at)label-engine.com