Cost Reimbursement
If the demo deal is dead and the label does not want you, you're free to go elsewhere and shop and gain some interest from another label. Remember the little bit of front money that the label gave you for the demo deal? They are going to want that back. When you sign a full deal with the label that wants you during your demo time from the first label, they want the money back. In the music business the label that signs you is willing to pay back the advance from your demo deal to the label that signed you to the deal. The cost of the advancement will be recoupable from your royalties. However, here is how you can protect yourself:
1. The money should only be paid back if you sign with another label.
2. There is also a time limit. In your demo deal, try to make the time limit a year and no more.
Non-Record Company Demos
Keep in mind that you can sign deals with producers and engineers besides labels companies. Non-record companies can also distribute your record. Since they are not mainstream deals, the rules and clauses are much different.
1. If and when you sign with a label, you will have to pay the producer or engineer back. This term is called a "override". The label will take it out of your royalties about %1 to %2 on your records. Some cases the funder producer or engineer will get a bit of your advance paid to you.
2. The funder may ask for and override on every record. This is a bit much. On a override the funder should only make back twice there investment and no more. Make sure this is in your contract with the funder.
3. The funder's royalty should only be payable after recoupment charges are made to your records. Funders for recording cost don't get an override on.
4. Try to get the label you sign with to pay the override obligation to the funder.
* Here are two recording products that I highly recommend. They are a great value for an inexpensive price.
Check out music making software!
Tuesday, June 21, 2011
Deal Points With Record Advances
Demo Deal Advances
Demo deals can be a good way to go these days. How it works is a label will pay you for your demo. It is very little but it is a start. It exchange for the company giving you money for the demo, you have to wait some time usually 30 to 60 days to find out if the label wants to sign you to a full record deal. You need to know that you have to wait until the decision is made by the current label under your demo deal before you can go to another label. You can't shop while you are under a demo deal. A shorter deal the better. If the label wants you, you're required to negotiate a deal with them. If you don't make a deal this is called first refusal or a matching right. All this means if you can cut a nice deal with another label you can't just jump on the offer. You have to go back to the first label and they have the chance to match the offer you received by the second label. During the first refusal, you will not have to come back to the first label if the second offer is more front money. If the offer is less you have to go back to the first label. Just make sure you limit the time of the demo deal. Try to get 14 business days if possible.
Demo deals can be a good way to go these days. How it works is a label will pay you for your demo. It is very little but it is a start. It exchange for the company giving you money for the demo, you have to wait some time usually 30 to 60 days to find out if the label wants to sign you to a full record deal. You need to know that you have to wait until the decision is made by the current label under your demo deal before you can go to another label. You can't shop while you are under a demo deal. A shorter deal the better. If the label wants you, you're required to negotiate a deal with them. If you don't make a deal this is called first refusal or a matching right. All this means if you can cut a nice deal with another label you can't just jump on the offer. You have to go back to the first label and they have the chance to match the offer you received by the second label. During the first refusal, you will not have to come back to the first label if the second offer is more front money. If the offer is less you have to go back to the first label. Just make sure you limit the time of the demo deal. Try to get 14 business days if possible.
Monday, June 20, 2011
Recording With Production,Producer, Mixer Deals In The Music Industry
Recording With Production
When making your own music and recording, you can record under a label, for film, or a production company. You will have to protect yourself in the contract so here is what you do. Put a clause in your contract that says the independent must agree to distribute your records within a certain period of time. Six months in the proper time to release your album. If you have a little bit of clout make sure that the company distributes your album with a major distributor. You can actually get approval from the major distributor. A big one is to make sure that lets say your deal wit an indie is two albums firm, but the distributor drops the indie label after one album. Get a guaranteed release or you can terminate the deal if they hold on your second album if you have a two record firm deal. Make sure you get a six month release or terminate the deal if you have these mentioned clauses.
What's A Producer?
A record producer combines the roles of director and producer in album making process. He or she is responsible for maximizing the creative process. The decide what song goes on the album, deciding arrangements, getting the correct vocal sound. What a producer makes? Just like artist, there are three levels of producers. New producers, mid level, and superstar. Producers get advances just like the artist. Here is the breakdown.
New Producer:
Makes anywhere from zero to $7,500 per master. If the the producer is doing the entire album it ranges zero to $30,000.
Mid level:
$10,000 to $15,000 per master and $30,000 to $50,000 for entire album.
Superstar:
Can make up to $25,000 per track and about $150,000 to $200,000 for entire album.
Hip hop a producer can make more. They are very costly. Here is a post about record releasing in the music business. Click here.
*If you want a great music making software I highly recommend. Click here.
When making your own music and recording, you can record under a label, for film, or a production company. You will have to protect yourself in the contract so here is what you do. Put a clause in your contract that says the independent must agree to distribute your records within a certain period of time. Six months in the proper time to release your album. If you have a little bit of clout make sure that the company distributes your album with a major distributor. You can actually get approval from the major distributor. A big one is to make sure that lets say your deal wit an indie is two albums firm, but the distributor drops the indie label after one album. Get a guaranteed release or you can terminate the deal if they hold on your second album if you have a two record firm deal. Make sure you get a six month release or terminate the deal if you have these mentioned clauses.
What's A Producer?
A record producer combines the roles of director and producer in album making process. He or she is responsible for maximizing the creative process. The decide what song goes on the album, deciding arrangements, getting the correct vocal sound. What a producer makes? Just like artist, there are three levels of producers. New producers, mid level, and superstar. Producers get advances just like the artist. Here is the breakdown.
New Producer:
Makes anywhere from zero to $7,500 per master. If the the producer is doing the entire album it ranges zero to $30,000.
Mid level:
$10,000 to $15,000 per master and $30,000 to $50,000 for entire album.
Superstar:
Can make up to $25,000 per track and about $150,000 to $200,000 for entire album.
Hip hop a producer can make more. They are very costly. Here is a post about record releasing in the music business. Click here.
*If you want a great music making software I highly recommend. Click here.
Friday, June 17, 2011
Albums Guaranteed Release
Guaranteed Releases
A very important deal to know about as a recording artist is the release of a record. You want to make sure that a label is highly obligated to you. This is not always the case. When you first sign you do have limited bargaining power with your contract, however you can get a guaranteed release. A label can shelve your record pending the contractual agreement. Remember if you have a delivery clause, you could be in trouble. A label will shelve your record if they feel the timing or the specific sound is not the right timing. Everything is timing on what sells. Make sure you have a guarantee release in your contract. The delivery is between 90-120 days after recording. If this happens you have the right to a written notice saying that "you have not put out my album". After you have submitted the written notice the label has 60 days to release the album. If they don't you have the right to write a second notice. If they don't release within 30 days. If the record is still on hold, you can terminate the deal. The guarantee release clause only works if the record has not been released in the United States. You can negotiate a release provision for foreign territories. This is one of the most important clauses. Make sure you get a guarantee release in the United States.
The Independent Record Label
Over the last few years, deals with indie labels have become more prevalent. This is because lots of big wigs from the major go off and work for indie labels or create there own. Also, the major labels are signing less and less artists. Also, indie labels have better bands and solo acts. Commercial bands lack substance and just put out what sells to a younger audience which buys the majority of the albums these days. The good thing about the indie labels is that the deals with artist are looking more like the major deals. This is a plus when making your own music. If you sign with an indie label, you will get less of an advance than from a major. If you are willing to take a small advance they can offer you %50 of all profits instead of royalties. Make sure that your albums gets released when you are signed with an indie. Indies also want a big chunk of your merchandise rights. This is called a "360 Deal". I will talk about that later. Another clause to watch out for is a "label management fee". This is just another way for them to make money off of you. Make sure that the percentage is very low, or put a maximum limit on what they can take. Indie's will try to take away your manager. Again, a way to get another 15% off of you. Tell them, no way, stay away from my team members. You always have control of your team. Indie's will want to grasp of your publishing rights as well. This means anything you make as a songwriter as opposed to a performer.
*I make daily suggestions on products. This music making software is one of the best on the market. Click here.
A very important deal to know about as a recording artist is the release of a record. You want to make sure that a label is highly obligated to you. This is not always the case. When you first sign you do have limited bargaining power with your contract, however you can get a guaranteed release. A label can shelve your record pending the contractual agreement. Remember if you have a delivery clause, you could be in trouble. A label will shelve your record if they feel the timing or the specific sound is not the right timing. Everything is timing on what sells. Make sure you have a guarantee release in your contract. The delivery is between 90-120 days after recording. If this happens you have the right to a written notice saying that "you have not put out my album". After you have submitted the written notice the label has 60 days to release the album. If they don't you have the right to write a second notice. If they don't release within 30 days. If the record is still on hold, you can terminate the deal. The guarantee release clause only works if the record has not been released in the United States. You can negotiate a release provision for foreign territories. This is one of the most important clauses. Make sure you get a guarantee release in the United States.
The Independent Record Label
Over the last few years, deals with indie labels have become more prevalent. This is because lots of big wigs from the major go off and work for indie labels or create there own. Also, the major labels are signing less and less artists. Also, indie labels have better bands and solo acts. Commercial bands lack substance and just put out what sells to a younger audience which buys the majority of the albums these days. The good thing about the indie labels is that the deals with artist are looking more like the major deals. This is a plus when making your own music. If you sign with an indie label, you will get less of an advance than from a major. If you are willing to take a small advance they can offer you %50 of all profits instead of royalties. Make sure that your albums gets released when you are signed with an indie. Indies also want a big chunk of your merchandise rights. This is called a "360 Deal". I will talk about that later. Another clause to watch out for is a "label management fee". This is just another way for them to make money off of you. Make sure that the percentage is very low, or put a maximum limit on what they can take. Indie's will try to take away your manager. Again, a way to get another 15% off of you. Tell them, no way, stay away from my team members. You always have control of your team. Indie's will want to grasp of your publishing rights as well. This means anything you make as a songwriter as opposed to a performer.
*I make daily suggestions on products. This music making software is one of the best on the market. Click here.
Thursday, June 16, 2011
Greatest Hits Albums
Greatest hits albums are a compilation of songs from your albums prior.
Greatest Hits Advances
You should be able to get an advance for your Greatest Hits albums. The amount of the advance will depend on how much bargaining power that you have. A new artist on a major label will be 75k less the unrecouped deficit. If you are a mid level, the deal with often have a "floor" on the Greatest Hits advance regardless of the deficit. This is how it works:
1. If the artist was recouped, the advance would be $400,000.
2. If the artist was unrecouped $100,000, then $400,000 minus the $100,000 deficit equals a $300,000 advance for the Greatest Album.
3. If the artist's was $350,000, then $400,000 minus the $350,000 deficit equals $50,000, but the floor is $150,000, so the artist would get a $150,000.
New Songs for Greatest Hits
Now and days it is becoming more common for companies to require two or three new songs for Greatest Hits released during the term. This is good for everyone because a hit single will pump up your sales on Great Hits album. You will get a higher advance for Greatest Hits album with new tracks on it when making your own music.
*If you want to record at home, this is a great software. Click here.
Greatest Hits Advances
You should be able to get an advance for your Greatest Hits albums. The amount of the advance will depend on how much bargaining power that you have. A new artist on a major label will be 75k less the unrecouped deficit. If you are a mid level, the deal with often have a "floor" on the Greatest Hits advance regardless of the deficit. This is how it works:
1. If the artist was recouped, the advance would be $400,000.
2. If the artist was unrecouped $100,000, then $400,000 minus the $100,000 deficit equals a $300,000 advance for the Greatest Album.
3. If the artist's was $350,000, then $400,000 minus the $350,000 deficit equals $50,000, but the floor is $150,000, so the artist would get a $150,000.
New Songs for Greatest Hits
Now and days it is becoming more common for companies to require two or three new songs for Greatest Hits released during the term. This is good for everyone because a hit single will pump up your sales on Great Hits album. You will get a higher advance for Greatest Hits album with new tracks on it when making your own music.
*If you want to record at home, this is a great software. Click here.
Wednesday, June 15, 2011
Tuesday, June 14, 2011
Delivery Requirements Under Contract
Today I will discuss delivery requirements for your album under contract.
Delivery Requirements
Apart from the numbers of your recordings, contracts also talk about the kind of recordings you can delivery. Delivery means much more than just dumping material to someones doorstep. It means the company accepts the recordings as complying with your deal, and the contract will specify what standards the label can use in deciding whether to accept. These standards depend on your bargaining power. Two major requirements are
1) Commercial Satisfactory
This basically means that the label will take recordings that they believe will sell. Records that the label really likes. This will be in your contract as well. If you have not delivered a good album that is required by the deal then the label can terminate your contract.
2) Technically Satisfactory
This means if the record is produced as is high quality technically, then the label has to accept the recording if under contract. This clause is very rare, because it is all about money and how many millions the label can make. The label rather have a average making album that sells than a high quality made album that doesn't sell.
Controlled Composition
One of the most important provisions when making your own music. This limits how much you can make as the songwriter. This means you and your lawyer need to know the extensive knowledge of publishing. I will get into that another time.
If you want to record at home and save money, I recommend a great music making software. A great software for under $30. Click here.
Delivery Requirements
Apart from the numbers of your recordings, contracts also talk about the kind of recordings you can delivery. Delivery means much more than just dumping material to someones doorstep. It means the company accepts the recordings as complying with your deal, and the contract will specify what standards the label can use in deciding whether to accept. These standards depend on your bargaining power. Two major requirements are
1) Commercial Satisfactory
This basically means that the label will take recordings that they believe will sell. Records that the label really likes. This will be in your contract as well. If you have not delivered a good album that is required by the deal then the label can terminate your contract.
2) Technically Satisfactory
This means if the record is produced as is high quality technically, then the label has to accept the recording if under contract. This clause is very rare, because it is all about money and how many millions the label can make. The label rather have a average making album that sells than a high quality made album that doesn't sell.
Controlled Composition
One of the most important provisions when making your own music. This limits how much you can make as the songwriter. This means you and your lawyer need to know the extensive knowledge of publishing. I will get into that another time.
If you want to record at home and save money, I recommend a great music making software. A great software for under $30. Click here.
Subscribe to:
Posts (Atom)