Hey Peggy,
I'll give you my two cents: of course "money" is nill these days but it's still fun to make a few bucks on your work. Obviously that's not the driving factor, I learned that soon after I was properly Mabbed lol. If someone wants to really "RECORD" one of your songs... and put it on wax, than yes you need to have them and you and any cowriters sign a very simple piece of paper. Very cut and dried. As a general rule I only issue non-exclusive license agreements to those who want to put my songs on records. $91 per 1,000 copies printed. If you have a co-writer, $45.50 a piece. If publishers are involved there are more splits, but as "Peggy the Standalone Writer" you are your own publisher until you sign with one. I don't have a publisher, so I am my own. It's writers splits only. If you should ever be blessed with the day a Martina McBride, Carrie Underwood, etc. wants to "cut" one of your songs MY two cents as to what I would do is not bat an eye and sign an EXCLUSIVE license to someoe like them.
Keep in mind I am in a very different horse of a market here in Texas, getting a "cut" here in Texas in not like getting a "cut" in Nashville, now don't get me wrong I am honored as all get out someone likes my song but no disrespect to my state, we are just SUCH a big market, SATURATED with so MUCH music people WILL "cut" it's alot easier than shooting for the Nashville stars. But again know your market first.
Granted, I let more of my songs be played for free long before I ever started signed contracts. For a number of reasons number one, i didn't feel worthy of "charging" but more so you gotta make friends and not be someone who comes across as just "out for a cut" so I let alot of people play my songs out in public in venues where PRO's were reported, and just counted it as "getting my foot in the door" i.e. if you are new in an area be nice to people, do favors, let them play your stuff, don't be a penny pincher, I didn't start "charging" if you will and signing dotted lines until people I DID NOT know began to approach me... I let enough friends play my stuff, and people I liked play my stuff out just for the great feeling of having a meal with my wife at a restaurant and hearing my song being played and the look of her being proud of me was my reward. After all that's what songwriting is about, making friends, hearing your stuff, is payment enough.
Just remember odds of any of us getting rich on our songs, well like getting struck by lightning, nothing wrong with dreaming though. Just keep your expectations low like mab says so you won't be disappointed. But yes if someone wants to record your song, you can make a bit of pocket change.
As for your PRO, ASCAP, BMI, whatever... you'll find people arguing them all, my opinion. I think MAB would agree. You could close you eyes spin around and pick one and roll with the one you land on. No difference really. But you seem to have a good problem on your hands. Keep on writing!
BTW... HAVE ANY OF YOU FREQUENT PERFORMERS REGISTERED WITH SOUNDEXCHANGE???