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Wednesday, August 3, 2011

Making Your Own Music-Record Clubs

Record Clubs

Record Clubs
In the music industry, there are what is called "Record Clubs". This are done by mail orders when you join, you buy a certain number of records at one time. Royalties are much less for record club purchases. It is half of your own royalty rate, or 50% of your labels net license receipts from the record club. These sales are licensed to record clubs, who manufacture and distribute the records. and pay license fees to your label. Usually by asking, you can get a straight 50% of the labels net license receipts. However, since the label doesn't get such a high rate from the record club, this is what you will get anyway. The net is less than half your royalty rate. The labels say that lower royalties for the record clubs are justified on the grounds that the marketing cost is higher and there are a lot of bad debts, meaning people who don't pay for the records the ordered. Also, the labels say they make less on these sales than if they sold the records themselves, and so they only do it because they believe these are sales to people who wouldn't buy at retail. Record clubs give free goods away as well. remember that retail sales is 5 to 10% for free goods. With clubs it is a bit more. So every two hundred sold, one hundred are free. So ask for a limit on your contract of one free record for ever sale. Wrong. The one-to-one limit is for the company's entire catalog. This means they could give away more of your records that some other artist or band. At the superstar level, you can get your own one-to-one limit. Unfortunately, without a lot of clout, you'll have to live with what is offered. As your leverage grows, you can control the company's right to put your records in clubs, or at least delay the club release say six months from release in stores. Club sales won't compete with retail sales during the hottest period of sales.

Music Recording Software

In each of my posts, I always recommend top music recording software, when making your own music.
Here are two that are great for recording music right from home:

Home Recording Software
Dub Turbo

Sonic Pro

*If you purchase one of these products, send me an email at the bottom of the page for a chance to win $500 in music recording equipment.