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Why a recurring fee for Digital Distribution of a release?

Once an album has been released through ReverbNation, why charge a renewal fee the following year? On CDbaby, you release it once and it's distributed without a recurring fee. Nothing has to be done on by RN to renew with the digital distributors like iTunes so why is there a fee to renew?
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  • Marcell,

    There are two basic ways that companies handle distribution subscription fees:

    1. Yearly recurring charges -- 0% of royalties taken by distributor -- Like ReverbNation
    2. No yearly recurring charge -- percentage of royalties taken by distributor -- Like CD Baby

    There is a yearly recurring fee simply because there is a human cost t maintaining that album for sale in the retailers.
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