Selling your music on iTunes can cost anywhere from $5 a month to $100 a year if you are using ADED.US Music Distribution. ADED.US was voted as the best music distribution company by Indie Music Guide.
Understanding the difference between retail and wholesale rates is key on your part. The retail rate is basically the cost to the customer. The wholesale rate (royalty rate) is the ‘cut’ you receive from that sale.
If someone goes on iTunes and purchases your song for 99¢ then iTunes will pay you (actually your music distributor) 70¢ and iTunes will keep 29¢ out of that transaction. The same goes for albums that sell for $9.99. iTunes pays you $7 and keeps $3 for themselves.
Now, here’s the tricky part… is your distributor keeping a cut for themselves? Because most of them do (side note: ADED.US does not).