Royalties And Money
Now I will get to what is the big one. The money side of your bands royalties. The proceeds between the bands/artists and the record companies is a bit complicated and very detailed. I will mention here how computations use to work, and how it is structure today. The reason being that some deals today use the older structures which is the older system. So, I am going into the math side of this which you must know as a band or artist.
1. The artist royalty is a percentage of the wholesale price. This is referred to as PPD which means published price to dealers. Sometimes it is referred to as BPD, base price to dealers. Each royalty percentage is know as a point. Let's just say if you have 20% royalty, you would have earned 20 points. An example would be say CD wholesale price is $20 times 20% equals $2. This is the simple math to understand it. Royalties are paid for every single record sold. Keep in mind every record sold. Companies do give away free goods, known as special free goods. This free goods started when companies wanted to push a big amount of albums. To get the record stores to stock a lot of the records they may give away say 5% or 10% of all records shipped. Free goods are consider discounts but still cost the record company money so they don't count as royalties.
Making Your Own Music And Promotional Copies
Records that are given away for promotional purposes like radio station copies are also free goods. These are actually marked as "not for sale". These copies are strictly for DJ's and the radio station. So, the artist and the record labels don't make a dime on these marked promotional copies.
Return
Records are only sold on a 100% return privilege. This means if the record shop can't sell them they can ship them back and get a credit or refund for the albums that didn't sell. The reason for the return is so the record stores don't get stuck with product they can't sell. Remember that a record stores space cost them money because they pay rent for the space.
Next post I will talk about more on royalties with albums. If you want to record at home click here for a great music making software.
Thursday, June 2, 2011
Wednesday, June 1, 2011
Making Your Own Music-What A Record Is?
This post I will discuss what a record is when making your own music. As simple as it sounds, the answer to what a record is, not what you might expect. The term record is a compact disk with music on it. It also includes pre-recorded cassettes and vinyl disk that are dead. Since the 1960 their is an on going argument of a definition of what a record is. A record is both an audio-only and an audiovisual device(meaning one with sound and visual images), such as videocassettes and DVD's, which play video as well as audio material. Another definition is any other device that is capable of transmitting sound alone, or sound with visual images. Back in the day records were not duplicated in mass amounts. Records were made by musicians and singers perform for each record that was actually sold. Just think how much work that would be if you sold say two million albums back in the old days.
Making your own music a big factor in creating a record is the master
The term master has two meanings:
1. The original recording made in the recording studio is called the master, because it is the master from which all copies are made. Master recordings are now done mostly on computer hard drives. These recordings are a multitrack, meaning that each instrument and voice part is recorded on a separate track or channel. Drums on one track, guitar on another, voice on another, etc. When this process is recorded then the master is edited, mixed, and EQ'd. Just like in films, editing means to cut out the parts that you don't like. Mixing means getting the right level for each track, so that every instrument or part are at the correct volume. The sound can also be enhanced by the EQ process. The mixed multitrack is then reduced down to a two-track stereophonic master, which is then ready for the duplication process. So basically there are two maters-the original multitrack, and the finished two-track.
2. The word "master" also means a recording of one particular song. Thus, you might say an album has "ten masters", meaning ten separate selections. These individual recordings are also called "cuts".
Next post I will discuss royalty computation. Making your own music at home, click here.
Making your own music a big factor in creating a record is the master
The term master has two meanings:
1. The original recording made in the recording studio is called the master, because it is the master from which all copies are made. Master recordings are now done mostly on computer hard drives. These recordings are a multitrack, meaning that each instrument and voice part is recorded on a separate track or channel. Drums on one track, guitar on another, voice on another, etc. When this process is recorded then the master is edited, mixed, and EQ'd. Just like in films, editing means to cut out the parts that you don't like. Mixing means getting the right level for each track, so that every instrument or part are at the correct volume. The sound can also be enhanced by the EQ process. The mixed multitrack is then reduced down to a two-track stereophonic master, which is then ready for the duplication process. So basically there are two maters-the original multitrack, and the finished two-track.
2. The word "master" also means a recording of one particular song. Thus, you might say an album has "ten masters", meaning ten separate selections. These individual recordings are also called "cuts".
Next post I will discuss royalty computation. Making your own music at home, click here.
Tuesday, May 31, 2011
Making Your Own Music-Record Deals
Today I will provide informative information on record deals
In the past several posts I have covered what every band or solo artist needs when making your own music. Keep in mind that in the music industry there is what is called industry structure. These are several designer methods to choose from:
Major Record Companies
This is one of the ways that most of the records are made. An artist signs a recording contract with a major label like (Warner Bros., Columbia, etc). You record your material and hand it off to the label. The company then turns these into records, but it is not that easy. This procedure is not as easy as it sounds and takes many steps and people involved in making this happen. After songs are recorded and shaped into a record it is then shipped to a distributor. The distributor is the whole-saler that sells your records to the music retail stores and distributes your music digitally as well. The company them gears up its advertising, promotion, marketing, etc., and hopefully with the hard work and effort makes you a star. Every major label has major divisions within there company and play a vital role in the entire process.
Record Companies major divisions and departments
A&R. These are the people and individuals that are the people with "ears" who find and nurture new artists and new bands, and who work creatively with the artists.
Sales. These people get your records into the stores
Marketing. They handle advertising, publicity, album cover design and artwork, promotional videos, in-store displays, promotional merchandise, etc.
Promotion. These folks live solely for the purpose of getting your records played on the radio. They spend their day what we call "jamming" the radio stations and telling the stations play the songs from this band. It is a method of kissing up to the stations so you get played on the air.
Product Management. Product managers are in charge of motivating all the other departments and divisions and getting them to work together as a team and push those records you have produced.
New Media. They are responsible for delivering the music electronically.
Production. They are in charge of manufacturing, cover printing, assembling, and shipping to the distributors.
Finance. This department computes and pays out your royalties and keeps track of the labels income and expenses.
Business Affairs/Legal. These are executives are responsible for the company's contracts, not only with the artists, but with record clubs, foreign licensees, etc. These business affairs people negotiate the deals with other executives, make decisions as to what to get. The legal department gives legal advice and drafts certain contracts.
International. They coordinate the release of your records around the entire world and oversee all functions to foreign territories.
Making your own music and the distribution of your record
All of the major record labels are all distributed by major distributors, which are gigantic networks that move the record from the manufacturing plants into the stores and onto the shelves. After years of consolidation, there are only four major distributors left , and they are owned by the major labels. They are EMI, they distribute to Capital and Virgin Records; Sony BMG to Cloumbia, J, Geffen, MCA, Island, Def Jam and Motown; and WEA to Warner Bros., Elektra and Atlantic.
Independent Record Labels
Independents are not owned by major labels and they are divided into two flavors. One is what is called Major-Distributed Independent. They usually have little or no staff. They sign an artist with a major label to perform all function except recording the records. These companies look for talent but are not seasoned for stardom right away.
True Independent
They are not owned by a major label, but are financed by its owners and investors. A few names are: Ryko, Sub Pop, Epitaph, Rounder Records, Flying Fish, and Victory.
In making your own music this is the rundown of record companies and how they operate. Next post, I will discuss what a record actually is? If you want to record from home click here.
In the past several posts I have covered what every band or solo artist needs when making your own music. Keep in mind that in the music industry there is what is called industry structure. These are several designer methods to choose from:
Major Record Companies
This is one of the ways that most of the records are made. An artist signs a recording contract with a major label like (Warner Bros., Columbia, etc). You record your material and hand it off to the label. The company then turns these into records, but it is not that easy. This procedure is not as easy as it sounds and takes many steps and people involved in making this happen. After songs are recorded and shaped into a record it is then shipped to a distributor. The distributor is the whole-saler that sells your records to the music retail stores and distributes your music digitally as well. The company them gears up its advertising, promotion, marketing, etc., and hopefully with the hard work and effort makes you a star. Every major label has major divisions within there company and play a vital role in the entire process.
Record Companies major divisions and departments
A&R. These are the people and individuals that are the people with "ears" who find and nurture new artists and new bands, and who work creatively with the artists.
Sales. These people get your records into the stores
Marketing. They handle advertising, publicity, album cover design and artwork, promotional videos, in-store displays, promotional merchandise, etc.
Promotion. These folks live solely for the purpose of getting your records played on the radio. They spend their day what we call "jamming" the radio stations and telling the stations play the songs from this band. It is a method of kissing up to the stations so you get played on the air.
Product Management. Product managers are in charge of motivating all the other departments and divisions and getting them to work together as a team and push those records you have produced.
New Media. They are responsible for delivering the music electronically.
Production. They are in charge of manufacturing, cover printing, assembling, and shipping to the distributors.
Finance. This department computes and pays out your royalties and keeps track of the labels income and expenses.
Business Affairs/Legal. These are executives are responsible for the company's contracts, not only with the artists, but with record clubs, foreign licensees, etc. These business affairs people negotiate the deals with other executives, make decisions as to what to get. The legal department gives legal advice and drafts certain contracts.
International. They coordinate the release of your records around the entire world and oversee all functions to foreign territories.
Making your own music and the distribution of your record
All of the major record labels are all distributed by major distributors, which are gigantic networks that move the record from the manufacturing plants into the stores and onto the shelves. After years of consolidation, there are only four major distributors left , and they are owned by the major labels. They are EMI, they distribute to Capital and Virgin Records; Sony BMG to Cloumbia, J, Geffen, MCA, Island, Def Jam and Motown; and WEA to Warner Bros., Elektra and Atlantic.
Independent Record Labels
Independents are not owned by major labels and they are divided into two flavors. One is what is called Major-Distributed Independent. They usually have little or no staff. They sign an artist with a major label to perform all function except recording the records. These companies look for talent but are not seasoned for stardom right away.
True Independent
They are not owned by a major label, but are financed by its owners and investors. A few names are: Ryko, Sub Pop, Epitaph, Rounder Records, Flying Fish, and Victory.
In making your own music this is the rundown of record companies and how they operate. Next post, I will discuss what a record actually is? If you want to record from home click here.
Monday, May 30, 2011
Making Your Own Music-Agents Role
Making Your Own Music And The Role Of Your Bands Agent
Agents in the music business are very different from agents in the film or sports business. While agents i sports and fil are the major power broker in the industry, controlling many imprtant aspects of it, agents in the music industry are involved exclusively in booking live shows, gigs and personal appearances. Music agents are sometimes involved in commercials, tour sponsorship, television specials, and other areas, but they don't participate in records and songwriting and thus are not big players in the way a film agents is. They are still viatally important.
Making Your Own Music Agent Fees
Because agents aren't involved in your recording or songwriting process with the exception of music in film, you or your band should never ever give the agent a piece of the income from these areas. The agents don't usually ask for a cut on film music.
Making Your Own Music Agent Unions
All agents are or should be regulated by unions like AFM (American Federation of Musicians) for musicians;
AFTRA (American Federation of Television and Radio Artists) for vocalists and taped or live television actors and actresses; SAG (Screen Actors Guild) for film; and Actors Equity for live stage actors. These unions put a cap on how much the agents can charge, namely 10% for personal appearences inder AFM. The unions regulation of agencies is called franchising, and unions only allow their members to be represented by "franchised" agents, meaning those who agree to the union's restrictions. One of these restrictions is that the agency can only use contracts approved by the union, which results in any union having its own pet form, spelling out the union's particular requirements. So your bands agents contract is a big one with lots of clauses and is what is called a "stack contract", which are specific content for the three federations mentioned earlier. Some agents will take 5% for artists and bands generating major revenues. This only applies to concerts. They stay at 10% for fim, TV, etc. Keep in mind that there can be a sliding scale, so that your income goes up, the percentage goes down.Born This Way (Special Edition).
Agents in the music business are very different from agents in the film or sports business. While agents i sports and fil are the major power broker in the industry, controlling many imprtant aspects of it, agents in the music industry are involved exclusively in booking live shows, gigs and personal appearances. Music agents are sometimes involved in commercials, tour sponsorship, television specials, and other areas, but they don't participate in records and songwriting and thus are not big players in the way a film agents is. They are still viatally important.
Making Your Own Music Agent Fees
Because agents aren't involved in your recording or songwriting process with the exception of music in film, you or your band should never ever give the agent a piece of the income from these areas. The agents don't usually ask for a cut on film music.
Making Your Own Music Agent Unions
All agents are or should be regulated by unions like AFM (American Federation of Musicians) for musicians;
AFTRA (American Federation of Television and Radio Artists) for vocalists and taped or live television actors and actresses; SAG (Screen Actors Guild) for film; and Actors Equity for live stage actors. These unions put a cap on how much the agents can charge, namely 10% for personal appearences inder AFM. The unions regulation of agencies is called franchising, and unions only allow their members to be represented by "franchised" agents, meaning those who agree to the union's restrictions. One of these restrictions is that the agency can only use contracts approved by the union, which results in any union having its own pet form, spelling out the union's particular requirements. So your bands agents contract is a big one with lots of clauses and is what is called a "stack contract", which are specific content for the three federations mentioned earlier. Some agents will take 5% for artists and bands generating major revenues. This only applies to concerts. They stay at 10% for fim, TV, etc. Keep in mind that there can be a sliding scale, so that your income goes up, the percentage goes down.Born This Way (Special Edition).
Friday, May 27, 2011
Making Your Own Music-Lawyer Fees
Making Your Own Music-Lawyer Fees
Today I will discuss how much a music lawyer can charge your band. It will vary and fees can jump all over the place when searching for the right fit for your band. When making your own music, you will find that you will have to pay a bit for your team members. Most of the lawyers in the music business will and should not charge you for hourly rates. The very few that do exist, they can charge you anywhere from around $150 to $650 dollars per hour. The few that charge on the higher range, these are usually the big boys in the business with big named commercial artists or bands. Some charge %5 percent of what they negotiate in your contract containing to everything and anything that you and your band make. The most standard fee is called value billing. Value billing is when a contract is done and the lawyers gets a fee based on the size of the deal. If the lawyer had not much to do in the way of the structure set up or clauses that you requested, than the lawyer should only get %5.
Making Your Own Music And Conflicts Of Interest With Your Lawyer
A lawyer has a conflict of interest when hos or her clients get into a situation where their interest are adverse. Lawyers are ethically required to disclose their conflicts of interests with you and your band members. Your choice is to hire another lawyer, or you may waive the conflict, and continue to use the same lawyer. When you seek a lawyer make sure that during the interview process, make sure that they mention the conflict of interest clause. Why? The lawyer might represent your label or manager.
Today I will discuss how much a music lawyer can charge your band. It will vary and fees can jump all over the place when searching for the right fit for your band. When making your own music, you will find that you will have to pay a bit for your team members. Most of the lawyers in the music business will and should not charge you for hourly rates. The very few that do exist, they can charge you anywhere from around $150 to $650 dollars per hour. The few that charge on the higher range, these are usually the big boys in the business with big named commercial artists or bands. Some charge %5 percent of what they negotiate in your contract containing to everything and anything that you and your band make. The most standard fee is called value billing. Value billing is when a contract is done and the lawyers gets a fee based on the size of the deal. If the lawyer had not much to do in the way of the structure set up or clauses that you requested, than the lawyer should only get %5.
Making Your Own Music And Conflicts Of Interest With Your Lawyer
A lawyer has a conflict of interest when hos or her clients get into a situation where their interest are adverse. Lawyers are ethically required to disclose their conflicts of interests with you and your band members. Your choice is to hire another lawyer, or you may waive the conflict, and continue to use the same lawyer. When you seek a lawyer make sure that during the interview process, make sure that they mention the conflict of interest clause. Why? The lawyer might represent your label or manager.
Thursday, May 26, 2011
Make Your Own Music-Picking A Lawyer
Over the past few posts I have covered the roles of your team members. Today I cover the lawyers clout. Attorneys in the music industry do much more than just look over contracts and advise clients about the law of music. Your lawyers should be very involved in structuring deals and shaping the band or artists business lives. Music lawyers have evolved into one of the most powerful groups in the industry, as strange as this may sound. Remember when making your own music your team members are key!
Clout
A music lawyer with clout can get through to people much faster than a lawyer without any clout. Record companies screen phone calls unless you are an important lawyer. They will treat the lawyer like a god to keep a good re pore. Reason being is because a lawyer with a big name will usually get the big name bands, so the record companies will kiss the rears of the important lawyers. So a lawyer with a good relationship
will get your deals done much quicker and can get you the maximum that legitimately be had. Your band should also know what clout doesn't do. There is only so much you and your band can get from a particular deal, regardless of who is asking. If a record company doesn't like your music, they're not going to sign you
because of your lawyer that represents you. If they're hot for you, you'll get a deal even if you lawyer is a joke.
Tomorrow I will get into the fees. Good bye for now.
Clout
A music lawyer with clout can get through to people much faster than a lawyer without any clout. Record companies screen phone calls unless you are an important lawyer. They will treat the lawyer like a god to keep a good re pore. Reason being is because a lawyer with a big name will usually get the big name bands, so the record companies will kiss the rears of the important lawyers. So a lawyer with a good relationship
will get your deals done much quicker and can get you the maximum that legitimately be had. Your band should also know what clout doesn't do. There is only so much you and your band can get from a particular deal, regardless of who is asking. If a record company doesn't like your music, they're not going to sign you
because of your lawyer that represents you. If they're hot for you, you'll get a deal even if you lawyer is a joke.
Tomorrow I will get into the fees. Good bye for now.
Wednesday, May 25, 2011
Role Of Business Manager
Business Manager
The business manager is the one person on your team who handles all your money and earnings. This person collects it, keeps track of it, pays your bills, invests it if you want and makes sure you file tax returns. This team member you must make sure this person is legit and has experience because it is your money. The state of California has no rules and you need no creditials whatsoever to be or become a business manager. You also don't need to be a certified accountant either. You are probably thinking that you didn't go into the music business to become this big time investment wizard. This means you are turning your money that your band has earned over to someone who has no more finachial training than yourself. However, you should be focused on your music and winning millions of fans and keeping them happy with your material. Numbers and money can and are intimidating and this makes anyone nervous. This is why you hire a team to deal with the daily issue of the business. This is why I urge everyone to put the effort into hiring the correct team members. Remember that everyone you choose for your team is a major investment and hiring the correct people can effect how successful your band becomes. Just be careful when it comes to business managers!
When picking a business manager it is vital that you check this person out and make sure they have references and don't choose someone brand new. Make sure that they have a successful track record. Make sure that they have some sort of certification. When making your own music, your manager is vital!
Business Manager Checklist
1. Make sure that you request and get finacial reports often. I would highly recommend monthly reports form the business manager. Make sure that you and your band members can understand the reports and they track every single penny that your band earns.
2. Make sure what the business managers philosophy is? Are they conservative or wreckless.
3. If he or she is a CPA(certified public accountant)? I would advise you that they are.
4. How much do they charge and fees? They can be paid two ways. They can get %5 of everything you make or hourly. This will have to be agreed upon by both parties. One or the other but never both of them.
5. Make sure you find out exactly what this person is going to do for you besides just pating the bills. Make sure that they do your tax returns. Some will charge you extra for this. I would make sure that this is included in the contract and this is included in the %5 or the hourly rate, not an extra fee. This can be pricey.
6. Does the business manager want a written agreement? Yes, have one to cover your butt.
7. Do they represent music clients? Make sure that they do. This shows you that they are specialized.
8. Make sure they have what is called E and O insurance. This stands for errors and omissions insurance. Get a copy.
9. Hire someone in the United States. To many loopholes and different rules and regulations.
10. Will this person object being audited? You should be able to audit this person to see if everything is fine with your money and there are no issues.
These are some of the major factors to connsider when hiring a business manager. This is all for today. To record your own music at home click here.
The business manager is the one person on your team who handles all your money and earnings. This person collects it, keeps track of it, pays your bills, invests it if you want and makes sure you file tax returns. This team member you must make sure this person is legit and has experience because it is your money. The state of California has no rules and you need no creditials whatsoever to be or become a business manager. You also don't need to be a certified accountant either. You are probably thinking that you didn't go into the music business to become this big time investment wizard. This means you are turning your money that your band has earned over to someone who has no more finachial training than yourself. However, you should be focused on your music and winning millions of fans and keeping them happy with your material. Numbers and money can and are intimidating and this makes anyone nervous. This is why you hire a team to deal with the daily issue of the business. This is why I urge everyone to put the effort into hiring the correct team members. Remember that everyone you choose for your team is a major investment and hiring the correct people can effect how successful your band becomes. Just be careful when it comes to business managers!
When picking a business manager it is vital that you check this person out and make sure they have references and don't choose someone brand new. Make sure that they have a successful track record. Make sure that they have some sort of certification. When making your own music, your manager is vital!
Business Manager Checklist
1. Make sure that you request and get finacial reports often. I would highly recommend monthly reports form the business manager. Make sure that you and your band members can understand the reports and they track every single penny that your band earns.
2. Make sure what the business managers philosophy is? Are they conservative or wreckless.
3. If he or she is a CPA(certified public accountant)? I would advise you that they are.
4. How much do they charge and fees? They can be paid two ways. They can get %5 of everything you make or hourly. This will have to be agreed upon by both parties. One or the other but never both of them.
5. Make sure you find out exactly what this person is going to do for you besides just pating the bills. Make sure that they do your tax returns. Some will charge you extra for this. I would make sure that this is included in the contract and this is included in the %5 or the hourly rate, not an extra fee. This can be pricey.
6. Does the business manager want a written agreement? Yes, have one to cover your butt.
7. Do they represent music clients? Make sure that they do. This shows you that they are specialized.
8. Make sure they have what is called E and O insurance. This stands for errors and omissions insurance. Get a copy.
9. Hire someone in the United States. To many loopholes and different rules and regulations.
10. Will this person object being audited? You should be able to audit this person to see if everything is fine with your money and there are no issues.
These are some of the major factors to connsider when hiring a business manager. This is all for today. To record your own music at home click here.
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