Is It Possible for 'One-Hit Wonders' to Sustain Themselves on Royalties Indefinitely?

Even if the New Wave rock group The Knack isn't familiar to you, their 1979 smash "My Sharona" certainly is. Allegedly composed in just 15 minutes, this track catapulted the previously unknown band to fame, dominating the "Billboard Hot 100" for six weeks and driving the sale of 500,000 copies of their debut album within a mere 13 days.

Over four decades later, "My Sharona" remains a classic rock radio favorite and has been prominently featured in films and television advertisements. Despite releasing several more albums, The Knack never replicated the monumental success of "My Sharona."

Indeed, The Knack epitomizes the concept of a "one-hit wonder," yet that single hit has proven to be a financial powerhouse. Berton Averre, the band's guitarist and co-writer of "My Sharona" alongside the late lead singer Doug Fieger, can attest to this.

"When people ask, 'What do you do for a living?' I respond, 'I visit my mailbox a few times a month,'" Averre shared with The Washington Times in 2015. "That song has been incredibly generous to me."

Another track that has been exceptionally "generous" to its one-hit wonder creator is "Where Everybody Knows Your Name," the iconic theme song for the TV series "Cheers," penned and performed by a struggling young songwriter named Gary Portnoy in 1982.

Portnoy not only wrote and performed the song (including the backing vocals) but also continues to earn royalties every time it is played. To put it into perspective, "Cheers" produced 275 episodes, which are now syndicated in 40 countries, streamed on Peacock, and available for digital download.

In a 2012 interview, when asked if he could have sustained himself solely on "Cheers" royalties without ever working again, Portnoy chuckled and replied, "Yes, it has provided a very comfortable life."

That Was Then. What About Today?

Artists like Portnoy and Averre from The Knack, who achieved one-hit wonder status, are incredibly uncommon. They hit the jackpot in the 1970s and '80s by creating global hits that have consistently delivered significant royalties over the years.

They aren't alone, though. According to Celebrity Net Worth, Don McLean, known for "American Pie," reportedly earns $300,000 annually in combined royalties, while Gerry Rafferty made $100,000 a year from his 1978 hit "Baker Street."

The real question is whether modern artists can still dream of achieving wealth with a single massive hit and enjoy a lifetime of royalties. With streaming platforms now dominating the music industry and paying mere fractions of a cent per play, is it even possible for musicians to earn a livable income from royalties alone?

To navigate the complex world of music royalties and explore how today's artists can still profit from a major hit, we consulted Randy Chertkow and Jason Feehan, co-authors of "Making Money with Music," for their expert insights.

rights and Royalties - Why It Pays to Be the Songwriter

According to Chertkow and Feehan, the music industry is among the most tightly regulated sectors, and the complex and convoluted system of music royalties serves as clear evidence. Multiple parties take a share of every song's earnings, and being the lead singer doesn't guarantee substantial income, even from a hit.

In basic terms, each song has two copyright categories: the sound recording and the composition. Each of these copyrights generates distinct royalty streams. Unfortunately, artists are frequently at the bottom of the payment hierarchy.

First, consider the sound recording. Whenever a song is streamed, downloaded, or sold in a physical format (like vinyl, cassette, or CD), the owner of the sound recording copyright receives payment. However, for most bands under a record label, the rights holder is the label itself, not the artist.

Chertkow explains that sound recording royalties are only accessible if you own the masters (original recordings) of your music, which is rare for emerging artists. Many are fortunate if their contract grants them even a minor share of these royalties.

Composition rights operate differently. The songwriter owns the copyright for the composition. Therefore, if you write a hit song (as opposed to recording someone else's work), you can earn substantial royalties, depending on how much you must share with the record label, publishers, and other rights holders.

"In the past, the songwriter was the one who could truly make a living and retire comfortably," Feehan explains. "However, this often led to intense disputes. If you performed on an album and your guitar solo became iconic in a massive hit, you still wouldn't earn anything from the songwriting. This is why many bands split over financial disagreements."

Below are the various types of composition royalties that songwriters receive:

Why Streaming Alone Won't Make You Rich

In the past, when fans purchased physical records, tapes, CDs, or paid $1.99 to download a song from iTunes, songwriters at least earned a few cents. However, with streaming now dominating the music industry, royalty earnings have drastically declined.

The Recording Industry Association of America (RIAA) reports that streaming makes up 84 percent of all music revenue in the United States. Physical CDs and records account for just 10 percent, while digital downloads have dropped to 5 percent.

While it's difficult to determine exact figures for artist earnings per stream—since payouts vary based on factors like whether the listener is a paid subscriber and their location—the highest rates are approximately half a cent per stream. In reality, most signed artists receive only a small fraction of that amount.

"The truth is, a significant portion of that revenue goes to the labels, and artists receive only a small fraction," Feehan explains.

Even if an unsigned, independent band achieves a viral hit, earning the equivalent of minimum wage from streaming alone would be a struggle. According to Digital Music News, a musician in California would need over 455,000 monthly streams (5.46 million annually) to match the state's minimum wage of $14 per hour.

"Even as an independent artist, it's still quite difficult to generate sufficient income solely from royalties, even with a massive hit," Chertkow notes. "We strongly recommend diversifying income streams."

In Some Ways, It's a Great Time to Be a One-hit Wonder

One-hit wonders like The Knack are exceptionally rare because they emerged during a time when a few dominant record labels controlled the industry. While today's mega-artists like Adele and Drake still earn substantial income from music sales and downloads, they are outliers in the current landscape.

While modern artists may not retire solely on royalties, they now have numerous platforms to connect directly with fans, bypassing traditional intermediaries like record labels and publishers.

"Today's independent musicians have greater chances of becoming successful 'one-hit wonders' by leveraging current technology to distribute their music," Feehan states.

Fully independent artists act as their own record label and retain ownership of their masters, allowing them to collect all royalties, including those from sound recordings.

Feehan and Chertkow emphasize in their book that the key is twofold: 1) register for all applicable copyrights and royalties (a process involving 17 steps across various agencies), and 2) transform the fleeting fame of a viral hit into sustainable income from diverse sources.

Touring remains a major revenue stream. Historically, this is where musicians earn the most. According to a former executive at MCA/Universal Music, a band with just one hit can earn between $10,000 and $50,000 per show, retaining 85 to 95 percent of the earnings after paying their manager.

A 2013 Northwestern University study on musicians' income revealed that, on average, live performances contributed 28 percent of their earnings, while teaching accounted for another 22 percent. Songwriting and recording made up just 12 percent of their income (likely because most respondents never had a major hit). Approximately 70 percent of those surveyed earned less than $50,000 annually.

In their book and on the Making Money with Music website, Chertkow and Feehan outline over 300 additional income streams for independent musicians aiming to turn their passion into a profitable career. While today's one-hit wonders may not rely solely on royalties like The Knack, they can cultivate a dedicated fanbase and manage their finances more effectively than ever.

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