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?

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You may be buying shares from the artist or any other user on our platform. Sonomo simply facilitates the exchange of shares and handles all following payout disbursement.

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

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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 cash up front by selling a share of future revenues.

Marketing: The more "shareholders" in a song, the more people that are incentivized in making that song get popular. By selling a % of a song, artists are able to create a bespoke "marketing team" that is truly invested in their music's success.

How are prices determined?

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The initial share price offering is determined by the artist/rights holders. The market cap 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?

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You're buying a share of the song's future 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?

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No. As an investor, you're buying the right to claim future revenues derived from master royalties - not the underlying royalties. For more details, refer to our terms and conditions.

Is this an NFT-based exchange?

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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?

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Simply connect your bank or Paypal account. Once your account is connected, Sonomo will automatically deposit funds into your account whenever a payout event occurs. You will receive one monthly deposit for each song you've invested in. We currently support all EU banks.

When do I get paid on my investment?

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On the 15th of every month. Sonomo will forward streaming payments to investors as soon as those are received from the song's corresponding distribution company.

Which countries is Sonomo available in?

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For investors: Available to residents / citizens of the European Union.

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?

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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.

What happens if Sonomo goes bankrupt or stops operating?

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If Sonomo goes bankrupt or stops operating, the music assets traded on our marketplace will be sold and all proceeds will be distributed to the respective investors, each according to their ownership percentage, less any fees associated with the sale transaction.

Do you support cryptocurrencies (like Bitcoin or Ethereum)?

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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?

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7 Digital
Amazon
Ami Entertainment
Anghami
Apple Music
Audiomack
AWA
Bmat
Boomplay
Deezer
Dreamus Company (FLO)
Facebook
fizy
Genie Music
Gracenote
Hungama
iHeartRadio
iMusica
Jaxsta Music
Jio Saavn
Joox
KkBox
Kuack Media
LINE Music
LyricFind
MePlaylist
Music Worx
Muska
Napster
Naver Music  
NetEase Cloud Music
Nuuday A/S  
Pandora  
Peloton
Phononet
Pretzel Rocks  
Qobuz  
Resso
Shazam  
SoundCloud
Spotify
Tencent
TIDAL
TikTok
TouchTunes / PlayNetwork Triller
YouTube Music
Zing MP3

Label Pro only:
Beatport
Juno Download
Traxsource
YouTube Content ID

Does the artist or rights holder maintain their Master rights?

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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?

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

What withdrawal methods do you support?

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If you are within the EU, we support bank transfers (SEPA). If you are located anywhere else, we support Paypal.

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

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No, it's completely free to use.

Do you offer royalty splits? Is it free?

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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?

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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?

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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 catalogue. It's really up to you.

Is it possible to try your service?

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Yes, with our unbeatable 90% discount on your first month, you can get access to an account immediately and try us out.