A recoup is a repayment of an investment someone made in your release. Their money is paid back first from the royalties the release earns.

For example, let's say you borrowed $5,000 from someone to create an album. You could set up a recoup so the first $5,000 your album earns would be paid directly to the person who lent you the money. After that money is repaid, your royalties would be paid normally to you and any collaborators you split royalties with.

You can only set up a recoup on a full release, not on individual tracks.

If you set up more than one recoup to a release, they will be added in a priority order, so make sure the person who should receive money first is at the top of the recoup list.

Can I make changes to my Recoups?

Yes, you can always change the order of priority after the recoup recipients have been added, you can at any time also remove and add recipients. Just keep in mind that if any funds have been paid out to a recipient, it’s not possible to reclaim the funds, instead the updated list of recipients will be applied at the next royalty reporting cycle.