Everything you need to know about online beat licensing

In this guide we will dive into the world of online beat licensing. From the type of licenses to how the royalties are divided, you can find it all in here. 

New to all of this? Try reading our guide on samples, copyright and covers first. If you’re ready for a deep dive, let’s get started!

#Beats
#Licensing
#Copyright
7 min

What is beat licensing?

Beat licensing is the process of obtaining permission from a music producer to use their instrumental track—commonly referred to as a beat—under certain legal terms. When using a pre-made beat, you generally have two options:

  • Lease the beat (non-exclusive license)
  • Buy the beat (exclusive license)
  • Free beats

In the first two options, the buyer receives a license that outlines what they can and cannot do with the beat. This license is your legal proof that the producer gave you permission to use their work in your own music. With free beats it works a little differently. Since the beat is available for free, you won’t receive a license. In the next section we will cover all three options one by one.

Non-exclusive licensing

Non-exclusive licensing is the most common form of beat licensing. It allows multiple artists to lease the same beat simultaneously. This type of license typically includes limitations, such as:

  • A cap on the number of streams or downloads

  • Restrictions on public performances or radio play

  • A time limit before the license must be renewed

Prices for non-exclusive licenses generally range from $20 to $300, depending on the platform and the producer. For emerging artists or those testing their sound, this is a budget-friendly option. However, if you're planning a major release or aiming for mass exposure, this might not provide the control or exclusivity you need.

Please note: Non-exclusive beats can't be delivered to the UGC stores (Meta, TikTok and YouTube) due to their monetising system. Only content to which artists own 100% of the rights are eligible to be delivered to the UGC stores. 

Exclusive licensing

Exclusive licensing means you're the only artist who will be allowed to use that beat. Once the license is sold, the producer cannot sell the same beat to anyone else. This type of license is typically chosen for:

  • Major label releases
  • Albums or singles with strong commercial potential
  • Artists expecting high streaming numbers (50,000+)

Exclusive licenses usually offer full commercial rights and fewer usage restrictions. Since the beat is sold only once, the cost is higher—typically ranging from $200 to several thousand dollars, depending on the producer’s reputation and the perceived value of the beat.

Free beats

Some producers offer beats for free, allowing you to use them commercially without payment. In these cases, no license is required, as the beat can simply be downloaded and used. However, it's important that you can prove the beat is in fact free for commercial use. At Make Waves, we’ll ask you to provide the source of the beat so we can verify this.

Keep in mind that the same rules for UGC platforms apply to free beats as they do to non-exclusive beats.

Copyright

Copyright protects the original creator of a work—in this case, the producer. Regardless of whether you lease or purchase a beat, the producer remains the legal owner of the beat. They hold the copyright to the composition, unless a specific agreement states otherwise.

As an artist, when you add lyrics and vocals to the beat and record a track, you own the copyright to the lyrics and the recording itself. This means both you and the producer have rights in the final song:

  • The producer owns the composition (beat)
  • You own the recording (vocals and mix)

Royalties, who gets what? 

Whenever a song earns money through streams, downloads, radio play, sync deals, or live performances—royalties are generated. These royalties are typically divided into two parts:

1. Master Royalties (Sound Recording)

These belong to whoever owns the final recording, typically the artist. If you create a song using a leased or purchased beat, you usually own the master unless the producer retains a stake.

Important: The exact split should be outlined in your license agreement. Be sure to read it carefully or consult a music lawyer if you're unsure.

2. Composition or Publishing Rights

These go to the original creator, usually the producer you bought or licensed the beat from. Even if you bought an exclusive license, the producer may still retain (a portion of) the publishing unless stated otherwise.

Royalty splits: Think about if you need to payout royalties to other collaborators, you can just use the Make Waves splits functionality to pay out any collaborators. 

Where can I buy beats?

While the internet is full of platforms where you can buy or lease beats, here are some trusted platforms:

  • BeatStars
  • SoundClick
  • Airbit

Final Tips

  • Always read the license agreement before buying a beat.
  • Know whether the license is exclusive or non-exclusive—and what rights are included.
  • Understand how royalties and copyright apply to your music.
  • Consider negotiating royalty splits, especially for exclusive deals.
  • Be aware that you can’t deliver non-exclusive- and free beats to the UGC stores

Online beat licensing can be a powerful tool for independent artists, but only if you understand the rules. With the right knowledge and agreements in place, you can legally create, release, and earn from your music with confidence!

Online Beat Licensing Explained
Last updated in October 2025
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