Record labels are generally the ones financing the recording, mixing, and mastering a musician’s recordings, and they’ll often provide feedback and suggestions along the way. They’re also the ones handling distribution, promotion, and marketing -  from producing music videos to planning album rollouts and tours alongside publicists and management teams.

Record labels will often own the master recording of a work and all associated sound recording rights, but agree to pay the artist(s) a percentage of net sales (royalties). Or if it’s a 360 deal, the label will take a percentage of everything the artist is involved in — books, movies, merch, you name it — not just record sales.   

The master recording and composition (the song itself) have separate royalty streams. In order to collect royalties on the composition, you would need a publishing administrator like B.E. RELATIONS PUBLISHING  to go collect your global publishing royalties, whether or not you have a record deal.