Fees and Royalty Credit in Velveteen
Updated June 12, 2026
Velveteen can apply fees and credits against royalty balances. Direct sales use plan-based platform fees, continuing distribution fees are recovered only from royalties, and users can convert part of their royalty balance into account credit.
Fees in Velveteen are accounting events. Some affect direct-sale proceeds. Some affect royalty balance. The UI labels the available balance after those effects.
Fee and credit types
Direct-sale fee
Plan-based fee taken from each direct sale before shareholder distribution.
Continuing distribution fee
Recovered only from future royalties while music stays on stores after a plan ends.
Payout fee
A fee associated with some payout methods and payout records.
Royalty credit
A user can convert part of available royalty balance into account credit.
Direct-sale fee rates
Current plan rates are Label 3%, Pro 5%, Artist 10%, and Free or unknown plan 15%. LegacyLabel, LegacyPro, and LegacyArtist follow their matching plan rates.
Frequently asked questions
Are continuing distribution fees charged to my card?+
No. The code describes them as recovered only from royalties.
Can I turn royalties into account credit?+
Yes. The Royalties page includes a convert-to-credit workflow.
Are direct-sale fees the same as DSP royalty fees?+
No. Direct-sale fees apply to direct purchases. DSP royalty accounting has its own records.
What is the Label direct-sale fee?+
Label and LegacyLabel accounts use a 3% direct-sale fee.
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