Is DistroKid Worth It and What About 1099?

The music distribution landscape is continuously evolving, providing artists more avenues to share their work globally. Among the options available, DistroKid has positioned itself as a well-known player. But just how good is it, and what do artists need to know about receiving a 1099 form from DistroKid? This article delves into these questions and provides valuable insights for artists considering their distribution options.

Evaluating DistroKid: Is It Good for Artists?

When selecting a music distribution platform, artists must consider multiple factors such as pricing, features, ease of use, and revenue potential. Here's an in-depth look at these aspects in relation to DistroKid:

Pricing

DistroKid is known for its cost-effective pricing model. Artists pay an annual fee to upload and distribute an unlimited number of tracks. This can be particularly appealing for artists who frequently release new music. Unlike some competitors, DistroKid does not take a commission on the revenue generated from streaming services, meaning artists get to keep 100% of their earnings.

Features and Ease of Use

DistroKid offers several features that enhance the distribution experience for artists. These features include instant verification on platforms like Spotify, YouTube monetization, and the ability to distribute music to a wide range of digital streaming platforms. The user interface is intuitive, making it easy for even the least tech-savvy artists to get their music online quickly.

Revenue Potential

One of the key advantages of using DistroKid is the potential to maximize revenue. Since the platform does not take a commission on earnings, artists can see a higher return on their investment. This is vital for independent artists who rely heavily on every cent earned from their music to support their careers.

Additional Services

DistroKid also offers additional services such as cover song licensing, sync licensing, and a marketplace for promoting music. These can be valuable add-ons that provide more opportunities for artists to reach diverse audiences and generate additional income streams.

DistroKid and Taxes: Understanding the 1099 Form

When it comes to earnings, understanding tax obligations is crucial. In the U.S., the 1099 form is commonly used to report income received as an independent contractor or from non-employment sources. Here’s what artists need to know about receiving a 1099 form from DistroKid:

Why a 1099 Form?

If an artist earns over $600 from their music distributed through DistroKid, they will receive a 1099-MISC form to report their earnings to the IRS. This form is important for tax purposes and ensures that artists are accurately reporting their income.

What Information Is Needed?

To receive a 1099 form, artists must ensure that their tax information is up-to-date on DistroKid's platform. This typically includes providing a Social Security Number (SSN) or an Employer Identification Number (EIN), and a current address.

Filing Taxes

When filing taxes, the income reported on the 1099-MISC must be included. Artists may also need to consider deductions related to their music career, such as equipment purchases, studio time, and promotion costs. It’s advisable to consult with a tax professional to ensure all income and eligible deductions are properly reported.

Important Deadlines

It’s important to be aware of tax deadlines to avoid any penalties. The 1099-MISC forms are generally sent out by January 31st, and the income must be reported on the tax return filed by April 15th. Keeping track of these dates can help artists manage their tax responsibilities efficiently.

Conclusion: Is DistroKid Right for You?

Ultimately, the decision to use DistroKid depends on individual needs and goals. For many artists, the platform’s cost-effective pricing, comprehensive features, and potential for high revenue make it an attractive choice. However, understanding the tax implications, including the 1099 form, is equally important to ensure compliance and financial health.

If you're an artist evaluating different music distribution platforms, SoundOn offers a robust alternative. With SoundOn, you can access a wide range of digital streaming platforms, exclusive partnerships with TikTok and CapCut, and comprehensive marketing support to help you build your career. Register as a SoundOn artist today to start your journey in the music industry.