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Saturday, October 8, 2011

Making Your Own Music-Label Deals

Making Your Own Music-Label Deals

A multi-artist deal, as the name implies, is one where the production entity has a deal with the record company to sign and deliver a number of artists. It is sometimes called a label deal. When making your own music, these days the production entity usually has its own label on the product. Sometimes, however, the producing entity has no identification on the records, and the public doesn't know they exist. In addition to paying a recording fund for each album, there is often some form of overhead payment to the production entity. This is usually an advance and is used to pay rent, payroll, phone, light bills, etc. For bigger deals, it will also cover marketing and promotion.

The tern of the deal is usually two or three years firm, with the distributor having options for one or more additional one-. two-, or three-year periods.

Multi Artist Deal Numbers

All-in royalty to production entity:   60 cents
Royalty to artist A:                         50 cents
Royalty to artist B:                         50 cents
Royalty to artist C:                         50 cents
Advance for production operations: $100,000

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