DistroKid Music Revenue Certification! Revenue Generation from YouTube Shorts Music
In recent posts, it was explained that by using SUNO AI to create music and distributing it through DistroKid, monetization can be achieved via Content ID on YouTube Shorts.
For detailed information on the music creation and distribution process, please refer to the post below.
In December 2024, after attempting monetization via DistroKid, I checked back three months later in February 2025 and found that actual revenue had generated.
While using DistroKid incurs some costs, you can receive an additional 7% discount via the link below.
DistroKid Revenue Status
Upon logging into DistroKid, I found that my album containing 20 tracks had been registered. In the lower section, I could also check the revenue generated through Content ID. This became a meaningful experience for me.
The total revenue for December 2024 was $3.95.
Total views reached 5,889.
The converted revenue in Korean Won was approximately 5,680 KRW, subject to fluctuations based on exchange rates.
The average music revenue per premium view on YouTube Shorts is approximately 1 KRW.
As the number of views increased, I was able to directly experience the structure through which revenue is generated. If views continue to accumulate on platforms like Shorts and Reels, meaningful revenues can be generated in the long term.
In particular, for YouTube Shorts, achieving 10 million views within the required 90 days for monetization is not easy. However, it is still advisable to continuously challenge yourself as revenue can still be generated through music revenue.
How to Fill Out DistroKid Tax Information
To receive income from DistroKid, you must fill out the US tax form (W-8BEN). First, navigate to the BANK section and prepare the tax form. It may seem complicated, but it is not difficult if you proceed step by step.
You must proceed with your personal account during the personal information input stage. Name and address must be entered in English; Korean input is not allowed.
When selecting a method of receiving payment, PayPal is the most convenient option.
To use PayPal, enter your account email and profile name, then select USD as the currency.
Choosing a tax form is extremely important. As a non-resident foreign individual, you should select the W-8BEN form. This allows for smooth tax processing on income earned within the US.
Using the tax form questionnaire will help you easily find the appropriate options.
In particular, simply selecting the W-8BEN form is sufficient. Conversely, the W-8BEN-E form is for entities registered in countries outside the US and targets corporations or institutions rather than individuals. Thus, individuals can process their forms simply with W-8BEN.
You can confirm the needed information via the tax form questionnaire. This process is not mandatory, but the five questions help assess your tax situation.
The first question is "Are you an individual?" This is a basic question to determine individual status in filling out the tax form.
The second question is "Do you fall under any of the following categories?" It includes various conditions, such as whether you are a US citizen, a resident of the US, a dual citizen with US citizenship, whether you are taxed as a US citizen, or whether you were born in the US and have not officially renounced US citizenship.
The third question is "Is your income effectively connected to a business or commercial activity within the US?" This is an important question to determine if the income was generated in the US.
The fourth question is "Are you acting as an intermediary?" Intermediaries can be qualified or non-qualified agents.
Finally, the fifth question is "Are you claiming tax treaty benefits for personal services performed in the US?" This confirms whether you can receive tax benefits if specific conditions are met.
Through these questions, you can gain a clearer understanding of your tax situation and take additional actions as necessary. Because tax-related matters significantly impact personal finance, it is important to verify your situation using these questions.
Filling out the tax form (W-8BEN) is an essential process.
First in Part 1, you need to enter basic information. After writing your name and address, enter your Foreign Tax ID Number in the ID beneficial Owner section.
Lastly, you must also enter your Social Security Number. This is a crucial step in tax-related matters.
Tax treaty benefits can be availed between countries with signed treaties. Korea and the US have a tax treaty to prevent double taxation, allowing for reduced tax rates or tax exemption on specific incomes in the US.
If residing in Korea, you can use your Resident Registration Number or Business Registration Number as your foreign tax identification number. When applying for tax treaty benefits, a standard individual should enter their Resident Registration Number. Utilizing this system can provide opportunities to reduce various tax burdens.
Let’s learn about applying for tax treaty benefits.
First, select "South Korea (대한민국)" under country selection. This can apply a withholding tax rate of 10% on copyright royalties.
When applying, ensure that you can certify your residency as a taxpayer in Korea. Failure to confirm this may result in a 30% withholding tax rate, which requires careful consideration.
Therefore, completing both checklist items to apply for tax treaty benefits and receiving a 10% withholding on copyright royalties is advisable. This process can help reduce tax obligations.
Part 3: Verify tax documents and submit your electronic signature
All checkboxes must be selected. If signing for yourself, select the "I am signing for myself." option and then enter your digital signature name and email before submission. The digital signature entered at this point is considered a legally binding electronic signature.
Criteria for Withdrawing DistroKid Revenue
After submitting the tax documents, you can only withdraw funds once the minimum payout threshold of $11 has been reached. Therefore, it's important to continuously distribute music until a certain level of revenue is accumulated.
Comparison of DistroKid and Domestic Music Revenue Platforms
Currently, there are opportunities to generate music revenue through various platforms such as Shorts and Reels in Korea. However, DistroKid's profitability is relatively high.
DistroKid has a Content ID system linked with YouTube Shorts that generates continuous revenue, allowing earnings of approximately 0.9 to 1 KRW per instance.
In contrast, domestic platforms such as JjalStudio, Shorts Music, and ConSalad often have convoluted settlement processes or unclear revenue structures, leading to earnings of only 0.03 to 0.09 KRW per instance. This demonstrates a significant difference in profitability.
In domestic platforms, one often must reach a certain amount before revenue can be settled. However, DistroKid has the advantage of not letting revenues expire and allowing them to accumulate.
If you join DistroKid through the link below, you will receive a 7% discount.
In the next post,
I will compare the profitability of domestic music revenue platforms and DistroKid.
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