If you decide to broadcast with Live365, they cover your royalties. It's built into the price you pay.

If you endeavor to be a profit-making webcaster, depending on your status you might qualify to pay royalties based on a percentage of your revenue. For instance: qualifying small webcasters pay 10% of the first $250,000 and 12% on revenues exceeding $250,000 in royalties. Larger commercial broadcasts fall under other guidelines. For a complete explanation of the currently royalty situation that applies to webcasters go Here

Expenses

Your expenses are going to vary greatly depending on how big of a broadcast you plan to create. Aside from fees paid to a third party to host your broadcast, you may decide to invest in a computer to act as a server which can cost up to several thousand dollars. Then, again, you might just decide to to use Pirate Radio software and do a nightly webcast from your home computer. In that case, your only additional expense will be for the software - which is under $30 dollars.

Other potential expenses you might incur include the cost of electricity, the cost of CDs, a microphone, a mixer board, DJ talent fees and even promotional expenditures should you decide to create a live, revenue-generating online Radio station.

Whichever direction you should decide to go in, remember: your first priority is to please your listeners and always try and keep it fun!