Rights Organizations collect licensing fees from retailers who sold the song, and from the radio stations and venues where music was played or performed. Those rights fees are paid to the music publishers who own the publishing rights to the songs, who then pay the songwriters and lyricists.
3. Other Songwriting Payments
In some cases, an independent record company might offer a songwriter a percentage of the song's eventual earnings. But of course, songwriting royalties are still the #1 way songwriters & lyricists earn money writing songs & lyrics.
With many different payment scenarios that are possible today for songwriters and lyricists, it really makes a lot of sense to discuss and agree upon your payment terms up-front, in all of your songwriting projects and discussions, whether you're working with Record Companies, Recording Artists, Music Producers, Agents and Managers or Music Publishers.
After all, they're your songs and lyrics, and if you're smart, they can be like money in the bank for you!