Uncovering Hidden Royalties: Financial Tips for Independent Artists from Wendy Day’s "No Standing Zone"

In the murky waters of the music industry, financial transparency remains one of the most elusive goals for independent artists. On a recent episode of the No Standing Zone podcast, hosted by industry veteran Wendy Day, forensic accountant Gangu shed light on the financial traps artists face and offered invaluable advice on how they can protect their earnings.

The Hidden World of Music Royalties

Royalties are often the lifeblood of an artist’s income, yet they are notoriously difficult to track. Gangu, who specializes in uncovering royalty discrepancies, described a music industry riddled with flawed accounting systems, deliberate deception, and overwhelming complexity.

"I had a Sony publishing client who was missing 149 songs on his publishing statement," Gangu revealed. "It went unnoticed for over a decade until I stepped in and fixed it. Now he’s getting three times his usual biannual payments."

The story isn’t uncommon. Many artists assume that their royalty statements are accurate, but discrepancies often go unnoticed. Missing payments, incorrect calculations, and fraudulent activity are rampant.

"These companies have too many copyrights to manage properly," Gangu explained. "There’s no financial incentive for them to juggle everything accurately."

Black Box Royalties: Millions Lost in Limbo

One of the biggest pitfalls for artists is the concept of black box royalties—unclaimed funds that sit in a metaphorical financial purgatory due to incomplete metadata or expired collection periods.

"I’ve recovered seven-figure sums from the black box just in the past few months," Gangu said.

Wendy Day emphasized the importance of artists understanding this reality. "There’s so little money for artists anyway," she said. "It drives me nuts that people want an even bigger share when they already have most of the pie."

Artists must realize that without oversight, their royalties could end up in someone else’s pocket—or vanish entirely.

The Scams Artists Face

Fraud isn’t always committed by faceless corporations—it’s often perpetrated by people close to the artist. Gangu detailed a particularly egregious scam involving alternate IPI accounts.

"At one point, scammers could create fake IPI numbers using slightly altered names," he explained. "They’d siphon international royalties without the artist even realizing it."

Even something as simple as a third-party signing up an artist for BMI or SoundExchange without their knowledge can result in lifelong losses.

Wendy added, "I’ve seen promotion guys sign artists up for SoundExchange and BMI and then cash their checks for years without the artist ever knowing."

These stories serve as a sobering reminder that the music business isn’t just about creativity—it’s about vigilance.

Copyright Termination: Reclaiming What’s Yours

For artists who signed contracts decades ago, U.S. copyright law provides a lifeline in the form of copyright termination. After 35 years, artists can reclaim their rights to their music. However, this process is complex, time-sensitive, and often misunderstood.

"Copyright termination has a two-year window," Gangu explained. "If you miss that window, you could lose the opportunity forever."

Wendy highlighted the importance of legal guidance during this process. "Artists need someone on their side who understands copyright law—it’s not something they can figure out on their own."

Practical Tips for Independent Artists

To navigate the financial labyrinth of the music industry, Gangu offered several actionable tips:

Hire a Forensic Accountant: Regular audits of royalty statements can uncover discrepancies that might otherwise go unnoticed.
Don’t Rely Solely on Domestic Collection Agencies: Use neighboring rights deals for international royalties, as domestic agencies often fall short in foreign markets.
Educate Yourself: Familiarize yourself with financial terms like recoupable expenses, perpetuity, and copyright termination.
Avoid Being Lured by Advances: Large advances might seem appealing, but they often come with long-term financial consequences.
Stay Organized: Keep track of contracts, royalty statements, and payment records.

"Artists are running faster than the speed limit on the highway," Gangu said. "The faster you go, the harder it is to see the signs."

A Treacherous Industry with a Glimmer of Hope

Despite the grim realities of financial mismanagement in the music industry, Gangu remains committed to fighting for artists.

"This is what wakes me up every day," he said. "It’s like being a detective—finding the lies, uncovering the truth, and putting money back in the hands of the artists."

Wendy Day, who has spent decades advocating for artist rights, echoed the sentiment: "There’s enough money for everyone. But without oversight, too much of it ends up in the wrong hands."

The Road Ahead

The conversation between Wendy and Gangu underscores a harsh truth: financial literacy in the music industry isn’t optional—it’s essential. Independent artists must equip themselves with the right tools, allies, and knowledge to safeguard their earnings.

In an industry where millions can disappear into spreadsheets and black boxes, vigilance is key. And as Wendy Day and Gangu remind us, transparency isn’t just a goal—it’s a fight worth showing up for.