Selling beats: licences, copyright and where to sell them

How selling beats works

When you sell a beat, you rarely sell the audio file itself. You sell a licence: a contract that says what the buyer may do with your instrumental, for how long and in which formats. The buyer is usually a rapper, singer or content creator who records over the beat and releases the result.

There are two kinds of licence. A lease, also called a non-exclusive licence, can be sold to any number of artists. On BeatStars, a non-exclusive licence works like this: You keep ownership of the beat and can continue selling it to other buyers. An exclusive licence is sold once. On BeatStars, an exclusive licence transfers your rights in the master recording to the buyer, as set out in the agreement.

So the business has three parts: making beats you own outright, writing licence terms that match what you want to sell, and running a store that takes payment and delivers the files and the contract without you being online.

Beat licensing: lease versus exclusive

A common way to price beats is a ladder of leases at rising prices, with an exclusive at the top. Cheaper tiers send a tagged or compressed file with tight limits. Higher tiers add an untagged WAV, then trackouts (stems), and raise the limits on streams, sales and performances. On BeatStars you set the beat price, usage limits, streaming caps, distribution copies, performance rights for each licence, and BeatStars fills them into the contract for each sale.

The table shows what each licence type grants. The terms are set by you, the producer, so read your own contract before a buyer does.

Because earlier leases survive an exclusive sale, say so in the exclusive contract and tell the buyer before they pay. An artist who buys an exclusive expecting that nobody else has the beat will be surprised to find it on someone else's release.

Free downloads need their own terms. On BeatStars, Free downloads do not allow commercial use; an artist who wants to release a song must buy a licence.

Samples: clear them or leave them out

A beat that uses a sample from someone else's record contains two works you do not own: the original sound recording and the composition inside it. A licence you sell cannot give the buyer rights you never had. The Copyright Office's FAQ is direct about samples: if you use a copyrighted work without authorization, the owner may be entitled to bring an infringement action against you. It adds that in cases of doubt, the Copyright Office recommends that permission be obtained.

In practice you have three options. Clear the sample by getting written permission from both the label that owns the recording and the publisher that owns the composition. Replay the part yourself, which removes the recording owner but still needs the publisher's permission for the composition. Or use royalty-free sample packs whose licence allows use in commercial beats, and keep a copy of that licence.

If you register a beat that contains preexisting recorded sounds, the Copyright Office treats it as a derivative sound recording: identify the preexisting material in the “material excluded” field, and claim only the new material.

This section is general information, not legal advice. Sample rules depend on the contracts involved, so speak to a music lawyer before you sell an exclusive on a sampled beat.

How to copyright a beat

A beat is two works: the musical work (the composition) and the sound recording (your produced track). The Copyright Office says two separate works are involved. Protection is automatic: All sound recordings created after January 1, 1978, are automatically protected by copyright, and Neither registration in the Copyright Office nor publication is required for protection. Registration is still worth doing for beats you sell, because it creates a public record of your ownership before a dispute.

1. Decide what you are registering

   If you wrote and produced the beat yourself, you own both works. The Copyright Office allows one standard application for both when they are on the same recording and the claimant for both the musical composition and sound recording are the same.

2. Pick the application

   The Single Application costs $45 online. It fits only when the author is the only performer featured in the recording and the author is the only copyright owner of both works. Co-produced beats, or tracks with a featured vocalist, use the Standard Application, which costs $65.

3. Choose sound recording as the type of work

   When one application covers both works, the Copyright Office says to select the “Sound Recording” option on the “Type of Work” screen, then claim both the sound recording and the music.

4. List anything you did not make

   Name any sample or preexisting sound in the material excluded field, and claim only your own production.

5. Upload the deposit and pay

   The Copyright Office encourages you to upload the deposit as a digital file through the online registration system rather than mail a CD. Keep the registration number with the beat, so you can add it to an exclusive contract.

Splits and PRO registration

A split is the share each writer owns in the composition of a song. When an artist records over your beat, the new song has at least two writers: you for the music and the artist for the lyrics and melody. Put the split in your licence, and sign a split sheet with any co-producer before the beat goes on sale. Airbit lets co-producers record the revenue split for sales of a shared beat.

Public performance royalties for the composition are collected by performing rights organisations (PROs). Two US PROs are ASCAP and BMI. ASCAP says it is FREE to join as a writer. BMI lists A valid email address among its application requirements for songwriters. Join one as a writer, then register each song your beats appear on once the artist releases it, with the agreed split.

If you join a publishing service through a marketplace, check how it handles registration first. BeatStars says that for its publishing members it will automatically register your songs with BMI/ASCAP, and that you do not need to register your songs with your PRO; registering the same songs twice puts them in conflict.

Where to sell beats online: marketplaces or your own store

Beat marketplaces bring buyers who are already looking for instrumentals, and they build the licence and delivery system for you. Your own store gives you your own brand and customer list, but you have to bring every buyer yourself through YouTube, Instagram, email or paid ads.

You can use both: a marketplace profile to be found, and a store on your own site for buyers who already know you.

Check how each marketplace pays you. BeatStars says beat sale funds go to the applicable payment account you connected, while BeatStars Pay sales carry a 10% transaction fee and can be held up to 180 days.

A general store builder such as Shopify is another option, but you set up file delivery and the licence PDF yourself. In the US, the Basic plan billed monthly costs $39 a month, and online card payments through Shopify Payments cost 2.9% + 30¢ each.

How to sell beats online, step by step

1. Finish and own the beat

   Export a mixed WAV, the trackouts and a tagged preview. Clear or replace any sample before the beat is listed.

2. Write your licence tiers

   Decide the files, limits and price for each lease tier and for the exclusive. Example: a basic lease at $30 with a tagged file, a premium lease at $100 with an untagged WAV, and an exclusive priced on request.

3. Register the beat

   Register the composition and recording with the Copyright Office, and join ASCAP or BMI as a writer so you can register songs made with the beat.

4. Set up automatic delivery

   Upload the files to each tier, so the buyer gets the right files and a contract filled in with their name, the beat title and the terms the moment payment clears.

5. Publish and promote

   List the beat on a marketplace, embed your store on your own site, and post previews on YouTube and social platforms with a link to buy.

Where Nation fits

Questions about selling beats