BMI or ASCAP for Rappers: Which is Better?

Everything rappers need to know to decide between the two biggest performing rights organizations in the US.

BMI and ASCAP are two of the biggest and most popular performing rights organizations in the country. Although both organizations help artists track and collect their performance royalties from around the world, there are subtle differences that artists in every genre should know about when selecting the best PRO for their needs. In this article, we’ll look at some of the key differences that influence the choice between BMI or ASCAP for rappers.

Joining a PRO is important, but even the biggest organizations can drop the ball on collecting all the royalties an artist is owed. Trqk is here to help you find the payments PROs miss. To learn more, get in touch today.

Why should rappers belong to a PRO?

Performing rights organizations, or PROs, are the intermediaries that connect rights holders to the groups that perform and play copyrighted works in public, from live events to radio, TV, movies, and more. Whether you’re an independent artist or are signed to a major record label, performers and writers in the US must belong to PROs in order to collect the performance royalties they are owed. There aren’t any efficient ways for artists to collect their own royalties, so PROs fill that gap by tracking performances, checking for licenses, collecting royalties owed, and distributing them to artists.

Because all PROs are structured to perform the same basic service, deciding which one is best for your rapping career will come down to the details of what they offer, what they cost, and how they get you paid.

BMI or ASCAP for rappers: Which is better?

First, let’s look back through history at each organization’s founding to get a sense of their relationships to artists and their approach to getting artists paid. ASCAP — the American Society of Composers, Authors, and Publishers — was founded in 1914 by a group of artists. Writers and publishers wanted to pool their collective power and resources to better enforce copyright laws when their works were performed publicly. Today, ASCAP has over 825,000 members and represents over 16 million compositions.

BMI — Broadcast Music, Inc. — was founded in 1939 by leaders in the broadcasting world. Because BMI was founded and is still run by the broadcasting industry, it’s more focused on the broader business community of music than on the day-to-day lives of artists themselves. Although ASCAP is the oldest PRO in the country, BMI is the largest, with over 1.2 million members and 18.7 million musical compositions in its portfolio.

BMI or ASCAP for rappers: signing up

One of the biggest differences between the two biggest PROs is the cost of joining. ASCAP charges both writers and publishers a one-time fee of $50 to register, while BMI membership costs $0 for writers, $150 for independent publishers, and $250 for publishing companies. Doing the math of membership fees will depend on the specific needs of each artist and whether they are registering as writers, publishers, or both.

The paperwork that each organization requires is also quite different. BMI’s membership agreements lay out all the terms and conditions clearly in the contract upon signing, while ASCAP’s agreement depends on references to other external documents, like its articles of association. Because ASCAP retains the rights to amend or change its articles of association at any time, the details of artists' contracts are essentially a moving target.

Understanding contracts is important for rappers deciding between BMI and ASCAP because membership to each organization is exclusive. You can switch PROs (and transfer your catalog) once your contract expires, but you can’t bounce between organizations or hold multiple memberships while you’re under contract with one or the other. ASCAP offers one-year agreements and BMI’s contracts last for two years, so take that into account if flexibility is important to you as a rapper.

BMI or ASCAP for rappers: perks & benefits

Since artists can only belong to one PRO at a time, each organization offers benefits that help set them apart and make their memberships more appealing. In many ways, the different approaches BMI and ASCAP take make sense based on how they were founded and who is in charge. 

ASCAP offers benefits focused on making everyday life better for musical creators, including health, dental, and life insurance, instrument insurance, and a suite of marketing tools. ASCAP also offers discounts on hotels and rental cars, which may stand out for rappers who tour or travel to perform, and membership in the US Alliance Federal Credit Union. ASCAP also maintains a strong community presence in cities like Atlanta, Nashville, New York, and Los Angeles, so location should factor into rappers’ decisions as well.

BMI, on the other hand, prioritizes industry-level networking and creative tools. Because it is run by the broadcasters, it is able to offer members more glamorous benefits like tickets to award shows, conferences, and conventions, songwriting camps and workshops for musical artists, deals on apps and programs for songwriters, and discounted memberships to BMI-affiliated organizations. Both BMI and ASCAP offer discounted memberships to the Songwriters Hall of Fame.

BMI or ASCAP for rappers: getting paid

There are also subtle differences in the way BMI and ASCAP distribute the royalties that artists earn. If you have preferences about how you get paid, it’s worth studying up on each PRO’s distribution structure. 

• Direct deposit: While both organizations offer direct deposit, ASCAP requires a minimum of $1 in earnings and BMI requires a minimum of $2 before depositing funds into your account. 

• Check: If you’d rather receive a check, keep in mind that ASCAP’s minimum for check payments is $100 and BMI’s minimum is $250. That means that if you earn $99 as an ASCAP member, you won’t receive a check until you cross that $100 threshold. BMI does offer an additional benefit, though, in that if you’ve made at least $25 but less than then $250 minimum, you will receive a check for whatever you are owed at the end of the year.

The two organizations also operate on different payment periods that determine when artists get paid. Both BMI and ASCAP pay out quarterly, which means that as long as your earnings meet the minimum threshold for your chosen payment method you’ll receive royalties payments four times per year. But while BMI issues payments to writers and publishers at the same time, ASCAP maintains separate payment periods for writers and publishers with about one month between them. This is particularly important for rappers registered as both writers and publishers, since receiving payments at the same time may make it easier to reconcile your books and check that everything is correct.

In the end, the decision of which is better — ASCAP or BMI — for rappers comes down to personal artist priorities and circumstances. It’s a good idea to talk to other rappers and artists in your community about their PRO experiences and how they take advantage of the benefits on offer to determine how location plays a role in getting the most out of membership. 

Once you’ve joined a PRO and started collecting royalties, TrqkIQ Indie Edition will help you dive deeper into your royalty reports so you can identify trends and uncover opportunities. Get in touch today to learn more about how Trqk helps independent artists develop a better understanding of their data and empowers them to make informed decisions about their earnings.