📉 Why is my balance negative?

Don't worry! Seeing a negative balance on your statement is a very common occurrence in the music industry. Here are the most likely reasons why your account might show a negative figure.

🔄 Unrecouped Balances

The most common reason for a negative balance is that your contract is currently "unrecouped." * What it means: Your label is still recovering their initial investment in your work. This includes things like your initial signing advance or specific costs associated with your contract (e.g., recording, marketing, or distribution). You can scroll down in your statement to the Costs section to view more details on these.

• Track your progress: You can click into your statement to see a percentage bar. This shows exactly how close you are to being 100% recouped. Once you hit that mark, your balance will turn positive!

⚖️ Statement Adjustments

Another possibility is that an adjustment was made based on a previous period. This usually happens in two scenarios:

• Previous Overpayment: A miscalculation in a prior royalty run was identified and corrected.
• Delayed Costs: A recoupable cost (like a travel expense or a late invoice) wasn't included in an earlier statement and has been applied now. You can scroll down in your statement to the Other Transactions section to see more information on these.

💬 Getting More Detail

Every artist’s contract is unique. While Tone provides the data, your label manages the specific terms of your agreement.

• Reach out: If you’d like a deeper dive into your specific situation, we recommend contacting your label representative directly. They can provide the specific details regarding your contract terms and historical costs. If you don’t know who your label representative is, please reach out to [email protected] and we’ll point you in the right direction!