Flow-Through: Partner Payouts During Advance Recoupment
What Changed
Until now, you could not set up revenue share deals on releases that were attached to an advance contract. The system blocked it. If a producer needed to get paid, you had to wait until the advance was fully recouped.
That's no longer the case. You can now create rev share deals on releases with active advances, even while recoupment is still running. Two options:
- Without flow-through: The deal is set up, but partners only get paid once the advance is fully recouped. Their splits are deferred.
- With flow-through: Partners get paid immediately, even during recoupment.
Set up your producer splits as usual. Then decide per track whether flow-through should be on or off.
📣 Available now for all admin users. Flow-through is off by default. Existing deals are unaffected unless you enable it.
How It Works
1️⃣ Set up the split deal on a release as usual. Add your producers to the tracks they worked on. Set the percentages. Nothing changes in this step.
2️⃣ An admin activates flow-through on the tracks that need it. This is done directly in the deal track list. Toggle it on for a track, and all participants on that track are automatically entitled to be paid during recoupment.
3️⃣ The system handles the rest. During advance recoupment, the system holds back a percentage of the release's total royalties based on the highest partner share across all flow-through tracks. After revenue share payouts are calculated, a correction step compares what was held back versus what was actually needed per track. Any excess is returned to the advance contract, speeding up recoupment. Non-flow-through tracks are completely outside this logic — their entire royalty is consumed by advance recoupment automatically.
💰 Example
The deal:
- 50/50 split between label and artist
- Artist has a $10,000 advance still being recouped
- 4 track release
- Track 2 has a producer deal: Producer A gets 10% of the artist's share
- Tracks 1, 3, 4 have no producer
Monthly revenue: $8,000 gross
Who Gets What
| Track | Artist Share | Producer Gets | Goes to Advance |
|---|---|---|---|
| Track 1. No producer | $1,000 | — | $1,000 |
| Track 2. Producer A (10%) | $1,000 | $100 ✓ | $900 |
| Track 3. No producer | $1,000 | — | $1,000 |
| Track 4. No producer | $1,000 | — | $1,000 |
| Total | $4,000 | $100 | $3,900 |
✅ Producer A gets paid $100 during recoupment. The advance drops from $10,000 → $6,100. Only Track 2's share is reduced. The other three tracks recoup at full speed.
Why this matters: Without flow-through, you would have to set 10% aside on the entire contract. That would hold back $400 across all 4 tracks, but only $100 goes to the producer. The other $300 just sits there, slowing down recoupment for no reason.
🖥️ What It Looks Like
A new "Flow-Through" column appears in the track list when editing a revenue share deal:
Flow-Through checkbox in the deal track list
Each track has a checkbox. Only admins can change this setting. Clients can see it but cannot modify it.
⚠️ Rules
| Rule | What It Means |
|---|---|
| Investments and flow-through cannot be combined | A track cannot have both an investment and flow-through enabled. Investments have their own recoupment mechanism. Remove the investment first to enable flow-through. |
| Revenue share releases cannot be on backup contracts | A release with a revenue share deal cannot be attached to a backup contract. Backup contracts act as safety nets. Adding revenue share would create unpredictable recoupment behavior. |
| Admin only | Only admins can enable or disable flow-through. Clients can see the checkbox but cannot change it. |
| Release-level processing with correction bookings | Flow-through is applied at the release level. The system holds back a percentage based on the highest partner share across all flow-through tracks. A correction step then compares what was held back versus what was actually needed per track and returns any excess to the advance. Non-flow-through tracks stay completely outside this logic — their royalties are fully consumed by advance recoupment. Native track-level processing is coming in a future update. |
Questions or Walkthrough
If you want to see flow-through in action, discuss a specific deal structure, or have questions about how it applies to your contracts, reach out to [email protected].