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Friday, June 10, 2011

Royalties And Deals

Real Life Numbers And Escalations

It is very common to escalate royalties based on sales of records. Your royalty point usually goes up after certain amount of how many units are sold. For example, if your royalty is 12% it can go up to 13% for sales over 500,000 and 14% for sales over 1,000,000. The labels have put a cap on escalations which is maxed out at 19-20% range.

 "All In"

This means that the artist or band is responsible, out of his or her royalty, for paying the record producer and mixer. Producer are paid a U.S. royalty  in the range of 3% to 4% of PPD. If a producer becomes very successful they can demand 5-6%.


Back in the old days, artist would go to the studio, sing their butts off, and have nothing to do with the creative process. In those days the label set aside $10,000 for an album. The label paid all the recording costs. Remember that this is recoupable from royalties, just like an advance. It took two weeks to do an album back then. This was in the 1950's. Oh things have changed.


Today, most recording agreements are structured as funds. A fund is a set amount of money, which includes
both recording costs and any amounts that may be payable to the artist as an advance. Whatever the artist or band doesn't spend on recording costs goes into his or her pocket when making your own music.

1. New Artist Signing to Indie:
 You could get zero to $300,000. This sounds like a huge range, but this is based on if you want a bigger advance and a smaller royalty. Don't expect the $300,000. This is very rare. A majority of the advance ranges from $25,000 to $100,000.

2. New Artist Signing To Major:
It your a rock band the range is $175,000 to $300,00 but can be $500,000 if you are hot and wanted.

Mid level:
$500,000 to $750,000 but if you are particularly hot, it can kick up to $1,000,000.

You will get a minimum of $1,500,000 and up. At this level, funds are computed on the basis of your past record sales and future expectations and bidding.

This is all for today. Here is a great music making software! Click here.