Web directories Web Analytics Learning Guitar-Making Your Own Music Learning Guitar-Making Your Own Music: Jun 7, 2011Learning Guitar-Making Your Own Music

Tuesday, June 7, 2011

Making Your Own Music-Advances and Recoupment

Advances For Bands And It's Basic Concept

Today I will discuss how advaces for bands or a solo artist works when you sign to a record label.
This is a bit deifferent form say when a professional athelete signs a contract. I will get into the differences in a bit. I will mentioned it now so here we go. An advance works when the label gives you a bunch of money right on the spot when you sign with them. There are many terms but I call it "upfront "money". Let's say you get a million dollars upfront. It works sort of like a loan. The label will than keeps your first million dollars you earn through all income and royalties until that million is recovered. This is called "recoupment". If you hace an amount of money that has not been recovered is your deficit or called red position. It is as simple is that when making your own music.

Other Details To Know About Recoupment

Monies paid directly to the artist or band are not the only recoupable monies. Recording costs are also considered recoupable from your royalties, and some portions of video production costs, independent promotion such as, monies paid on behalf of the band or artists to buy equipment or to support a personal appearance. It is not just recording time. Equipment rental, travel, arranging instrument transportation, etc. There is something called a union scale that means the minimum amount a union requires everyone to pay all it's members paid to you and others that perform at recording sessions. A contract will have general provisions that indicate all amounts paid to you or on your behalf or others in connection with the agreement are recoupable unless it states otherwise.

Next post I will get into more about recoupment and some other terms that you need to be familiar with.