Upstream Deals-Learning Guitar

Upstream Deals

Here is a new topic in the industry when making your own music. It has been around for the last few years now. It is called an upstream deal. This is a cross between an independent distribution deal and a production deal. This is how it works:

An indie label goes to a indie distributor that's owned by a major label. It makes a standard distribution deal, but also gives the major label a right to upstream the artist, meaning the deal transforms from a distribution deal with the indie distributor into a production deal with the major label. The upstream deal is made with the major label who supplies the distribution. In other words, the pure distribution part of the deal is in a contract with the major label, not a separate contract with the distributor.

When an artist is upstreamed, the distribution label moves the records from one distributor to its major distributor. It stops paying over the gross sales monies less a distribution fee, and instead pays the indie a royalty. or if the indie has clout a percentage of profits.Whether it's a royalty or profit share. the indie gets less money than it would under a distribution fee. That's because the distributing label is taken a big risk. As part of the upstream, it takes over the costs of marketing, promotion, videos, etc. The distributor also takes a risk on record units being returned. The idea behind the upstream deal is that when an artist's sales gets to a certain point, it takes the clout and money of a major to move those sales to the mega level.

Learning Guitar

Learning Guitar

Everyone at some point in there life is attracted to music in some shape or form. Making your own music,
is something that millions want to do for just sure fun or as a career. I usually recommend products that help with learning an instrument. I am a big fan of online guitar lessons. It saves time, money and more effective than private lessons. If you are seeking learning guitar,
check out: Jamorama Guitar.

P&D Deals-Learning Guitar

P&D Deals

If you are truly a record company in your own right, then this is the deal for you. It gives you the most autonomy and control of your life, as well as highest profit margin. This is the deal that true independent labels make. A pressing and distribution agreement of P&D is exactly that-the company agrees to manufacture records for you, although in some situations this isn't even so; the product is manufactures elsewhere, and then to distribute them solely as a wholesaler. This means you sell the records to the distributing entity for a wholesale price less a negotiate distribution fee. The distribution fee ranges in the 20% to 25% range and less if you are a big label, with the bulk of the deals around 24% to 25%. For example, if a CD wholesales for $10, under a deal with 20% distribution fee, the independent company gets
$8.00 per unit. Out of this, the independent pays manufacturing, mechanicals, artists royalties, promotion, overhead, salaries, and everything else.

In these deals, the entire risk of manufacturing falls entirely on the independent company. Remember how records are sold on a returnable basis. This means that, if you guess wrong, the returns come back home to roost. So not only are you losing your potential profit on the sale, but you're also coming out of pocket and losing the cost of manufacturing and shipping records you can't sell. Many deals also require you to pay a distribution fee even if the record is returned, adding injury to insult. The distribution company typically offers no services whatsoever in term of marketing, promotion, accounting, etc. For example they might help you with marketing, sales, or promotion, and charge an extra 3% to 5% distribution fee.

These type of deals can be made at the highest level like A&M Records was distributed by BMG ins such an arrangement. Small indie labels make these deals with smaller independent distributors.

Learning Guitar

Learning Guitar

These day with the computer crazed world, obtaining information and access to everything and everything is instant. This also applies to learning guitar.
There are several benefits to online guitar lessons, than private lessons. A few are: Much cheaper than private lessons that cost anywhere from $20 to $60 per hour. The cost of getting to your private lesson(gas) for your car. The time inefficiency. With learning guitar lessons online is overall a much more efficient and effective option. If you are seeking to learn to play the guitar, check out Jamorama Guitar. I highly recommend it.

Arian Collin, author of this blog is a music manager for bands and solo artists in the music industry.

Learning Guitar

Learning Guitar

Learning Guitar

With all the options we have today with the Internet, there are so many products and services for learning guitar. I have spent a lot of time researching and looking into over one hundred products for guitar lessons. My conclusion is that I found Jamorama Guitar is a great learning tool for learning to play guitar. It offers a very personal and specific instructions with over thousand of hours of instructional video. This product is a great value. Keep in mind that when you take private lessons it will cost you a minimum of $20 an hour fee and can range anywhere from $20 to $60 an hour. Jamorama is by far a fantastic online guitar lessons teaching guide.  Who does this benefit? This program is specific instruction for beginners to intermediate for any age. It also is a learning guide for acoustic guitar and electric. The course also consists of four videos with an abundance of illustrations and photos all in an ebook form.
148 short videos with sound to illustrate each lesson. These short audio/video illustrations are well produced with split screens showing the right and left handed positioning separately as well as other illustrations without fingers blocking the view. These videos make learning a new technique or chord so much simpler than regular static photos. You will have access to playing with a backup band when you play. This is my favorite part of the product. Another bonus part is the guitar tuner, that will tune your guitar. Nothing compares to Jamorama Guitar. It is a great value for only $39.95! Enjoy and have fun. To purchase Jamorama click here on learning guitar.

Making your Own Music-Royalties Verses Joint Ventures

Making Your Own Music-Royalties Versus Joint Ventures

Keep in mind when making your own music, there is a difference between royalty and a joint venture. So, are you better off with a joint venture or have a royalty arrangement? To answer this requires a crystal ball. If you're extremely successful, you're better off with a joint venture. With modest success, you're better off under a royalty arrangement. As I discussed, you're charged for more costs in a joint venture than under a royalty deal, and thus with only modest success. you're behind. However, many of these costs are not "per unit" when making your own music. This mans that there only paid at the beginning, as opposed to "per unit" costs that are incurred for each record made. Examples for per-unit charges are costs of manufacturing, mechanical royalties, union per record charges, freight, etc., which must be paid to manufacture and ship each unit. Costs that are not per-unit are such things like, artwork, videos, promotion, marketing, advertising, which are unrelated to specific units. Thus, with a great deal of success, the non-per-unit costs are eaten up by the first dollars that  come in, and thereafter the profit per unit is far greater than any royalty arrangement is ever likely to be.

Simple Guitar Lessons

If you are seeking online guitar lessons, I highly recommend Jamorama Guitar.

For all you music equipment at low prices, I recommend American Musical Supply.

See you next time!

Making Your Own Music-Joint Ventures

Making Your Own Music-Joint Ventures

When making your own music, a joint venture is the same as a multi-artist or label deal except the production entity doesn't get a royalty. Instead, the production entity and the distribution record company are in effect "partners." This means they take all the income which comes in gross wholesale price of records and all licensing income and put into one big pot. Then they take all the expenses of operations out of the pot, and whatever is left over is split between the two entities. Historically, the split was 50/50, but over recent years this has become increasingly difficult to get. Record labels are shying away from joint ventures altogether, and when they do them, they're trying to pay less- %40 times lower. A true partnership or joint venture means one partner can commit to both of them to legal obligations. For example, if one partner signs a bank loan for $200,000, both partners can be sue if it isn't paid back. Neither you nor the record label wants this, so the agreements sometimes specifically state they aren't legally partnerships or joint ventures. Thus, the name :joint venture" is not technically correct. It just describes a multi-artist deal where the profits are shared as if a joint venture existed.

Daily, I recommend some music related products:

Need online guitar lessons: Jamorama Guitar

Record your own music: Dub Turbo

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

Simple Guitar Lessons

*If you are seeking online guitar lessons, I recommend: Jamorama Guitar

Making Your Own Music-Production Deal Points

Music Production

Production Deal Points

In previous post I talked about computations when making your own music. I have found it worth while to recompute royalties. First of all it's difficult, complex, time consuming and usually given to a low level bookkeeper. Second, even when done correctly. the advantage you pick up is often very minimal. Third, if and when the artist finds out this looks bad for the artist.

Make sure you don't give the artist any rights you don't have in the first place. I remember where one production company gave an artist approval of coupling, approval of album cover artwork. guaranteed release, etc, when they didn't have those things from the record company. If you fall into this trap, at best it will be embarrassing, and at worst the artist could walk away from your deal when you don't deliver. The artist will still record with the label. However, this doesn't do you any good cause the record label won't pay you royalties if you lose the artist because of the screw-up.

*Get All Your Music Supplies And Gear At: American Muscial Supply

Simple Guitar Lessons

*Need Online Guitar Lessons: Making Your Own Music