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Thursday, June 9, 2011

Making Your Own Music-What Level Is Your Clout?

What Level Is Your Band's Clout?

I am going to post today about your band's clout and what this all means. This is not so much a big deal if you are new and just beginning in the recording business industry. This really means what kind of bargaining power you are going to have at the table. There are basically three levels that you should be concerned about when making your own music.

New Artist

This is a band or artist that is fresh and new and had never before had a record deal, or someone who has signed before but has never sold over 250,000 copies of there albums per release. This also means that an artist once successful but somehow lost his or her following and is finding it difficult to catch on with a label.

Mid level Artist Or Bidding Artist

(1) This level means that your last album sold 500,000 to a 1,000,000 copy range. (2) You are a new artist or band and have various labels interested in you. Knocking your door down. This is a rare occurrence.

Superstar Level

This comes down to the number of albums you sell. To reach this level the number is a minimum of 2,000,000 copies to unlimited. If you are between 1,000,000 and 2,000,000 your deal will be what is called a "Mid level Plus".  A deal that is in between mid level and superstar.

Variables And Combination Of Level

Here are a few examples of how some of the combinations work on this clout level. One example could be if you are a mid level artist and several labels are out bidding each other up, which means you will get a superstar level deal. On the other hand, you might be a successful artist that is clueless and naive and not get that superstar contract. Just have a great lawyer. 

I will give a point of reference on album status. A gold album is one that sells 500,000 U.S. units, and a platinum album is one that sells 1 million U.S. units. The sales figures are certified by the RIAA (Recording Industry Association of America). This organization is made up of record companies.

Range Of Royalties For Three

New artist status gets 13% to 16% of PPD. Mid level gets 16% to 17%, and superstar level gets 18% to 20%. If you reach the superstar status you can do a off-center deal or a distribution deal where the artist owns the masters. PPD is the wholesale price of a CD. If your royalty rate is 15% and the wholesale price is $12.05. You multiply the two and you make $1.81. Interested in making your own music? Click here.