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.

Making Your Own Music-Record Computations

Making Your Own Music And Record Computations

Prices on albums vary in the music business, pending on an artists or bands status. There is a growing practice of releasing new artists at what's known as "new and developing artist prices." The theory is that people will fork ou some money to try something that is fresh and new at a bit of a steeper price. So what happens is a number of debut albums are released at mid-price. Because for the history showing that this work pretty well when pushing new artists, the labes have gotten tougher about controlling prices, and it is harder to get limits in your contractual deal. Some record labels will take this new release to the extreme and put out radically discounted Cd's, say $6.00 PPD to get a buzz going about a new artist or band and increase the initial sales. If the label does decide to do this, they will ask you to give up you royalties on under priced albums or what is called "cheapies." In your deal you should ask for a limit fun for units sold. Unfortunately a majority of the labels won't agree to unit limits. They say that they will just put enough out there to launch your career and it is in both of your interests to raise the price.

Music Making Software

Home Recording Software

I have found that as a band, solo artist, dj, rapper, you can make music beats and record from you very own computer with a few goods music software's on the market. No need for a professional music studio. Find more information on music making software. I personally recommend trying this music recording software.

Making Your Own Music-Mid Price And Budget Records

Mid-Price Records


Budget Records


When making your own music, you should know about record pricing. After a record/album has had an initial run in there current release, it is known as what is called a catalog item, meaning it's listed in the company's catalog of available titles, but isn't being currently being promoting to the public. Some catalog items are issued at mid-price, meaning a reduction in price that's designed to encourage consumers to buy older titles. Today, a typical mid-price for a CD originally released at $12.05 would be $7.75 to around $8.00. The contractual definition of a mid-price record is one with a PPD between 65% and 80% of the price for newly released top-line records. Some companies go as high as 85% for a mid-price.

Royalty

The royalty for mid-price is usually 75% of the U.S. basic rate. It is 7.5% if you have a rate of 10%. This sucks because the royalty rate is lower and the PPD is also lower. The record label can justify this because their wholesale price is less, and accordingly so is their profit margin. Their thinking is that a lower price will generate extra sales to more than make up the lost revenue. As you gain clout, you can get negotiate a period of time after initial release before a record can be sold at mid-price usually between 12 and 18 months. This provision use to be easier to get than in today's music industry. In recent years it's become routine to issue catalog items at mid-price, and also because of the developing artist. If you do get restrictions, it will be for the U.S. This is because in some foreign territories, mid-price is customary for the first release. Presumably, your interests and the record company's are the same, since they want to maximize their profits in that territory. Thus they won't put something out at mid-price unless they believe the reduced price will promote enough sales to justify the lower profit margin.

Budget Records

The next step down from mid-price is budget, which means the company doesn't think it can sell the stuff unless it knocks the price way down. these are records that are stuck in the bins of stores saying "Big Savings", or "Reduced Price." These are records sold around 8 dollars or less. The contractual definition of budget records is one with a price of less than 65% of the top-line price, but sometimes there is no mid-price definition and contract says everything under 80% of the top-line price is a budget record.

Royalty

The royalty on budget records is 50% of the top-line royalty rate, or 5% in our 10% rate. If you have any clout as an artist, you can hold back budget record prices for a period after initial release.

Music Software

Home Recording Software

To make music beats of your own, I recommend this product.
After you buy this software please send me your email in the comments box below for a chance to win $500 in music equipment!

Making Your Own Music-Video Devices

DVDS AND OTHER HOME VIDEO DEVICES

Video Devices

DVDS are treated like audio when it comes to royalties when making your own music. If there is a substantial video component, some labels will pro-rate your royalties between audio and video, meaning they pay your audio royalty on a portion, and your video royalty on a portion. Let's say that there is thirty minutes of music and ten minutes of video, you will get three fourths of your audio royalty rate. A purely audio or visual DVD your royalties are:

Manufactured Units

If home video units are manufactured and distributed by your record label, you will get a royalty that falls in the range of 10% to 20% of wholesale for U. S. normal retail top price sales. Companies and labels vary their royalties depending on the wholesale price. For a higher price, you get a higher royalty as you get from your CD with the exception of Canada at 85%. All royalties are reduced for very low priced videos, called a budget line and for free goods.

Licensed Sales

Smaller labels will usually license someone else to manufacture and distribute home video. In this case, that company pays a royalty to the label, and the label pays you 50% of its net receipts.

1. Distribution Fee for the record company which is a percentage of gross and therefore taken first. This is a way to cover the labels overhead in handling the license.

2. Distribution Expenses, meaning the cost of duplicating, shipping, etc.

3. Third Party Payments, to unions and guilds, though many companies now try to charge these against the artists 50%.

Home Recording Software

Here are two home recording software that I recommend:

Sonic Pro

*After purchasing one of these softwares, please leave your email in comment box on this blog for a chance to win $500 in music recording equipment.

Making Your Own Music-Multiple Albums

Multiple Albums

Making Your Own Music

Today I will talk about multiple albums and have changed now that vinyl is dead and Cd's took over. When making your own music Cd's can hold a lot more songs that vinyl. In the era of vinyl records, they only had about 50 minutes of playing time on them. This includes cassettes to. Now there are box sets that are three or four Cd's in one package. There are also two-in-one sets as well. These do not sell well as single Cd's.  They are also expensive to make. Anytime you want to sell a multi album, you have to get the consent of the record label. If the label does consent, your royalties will be reduced. The royalty is adjusted downward in the ratio that the selling price of the double album is less than two times the price of a single album price. Regardless of how you define it, and no matter how your royalty gets computed, all record companies treat multiple albums as only one album for purpose of the artists delivery commitment.

Box Sets

Box set are sold as three or four Cd's and are sold in a single package. Some of these box set are valuable because some sets have songs that were unreleased from past albums. When making your own music, royalties on box sets are negotiated in the signing of the deal. They will depend on the selling price, the number of selections, the size of the artists royalty rate, and your leverage.  These are a few different ways that albums can be offered to the consumers. I hope you have a little bit more of an understanding on how multiple albums work.

Music Making Software

Here are two good home recording software that you can use to record quality songs from your computer. They are a music recording software download.

Home Recording Software

Sonic Pro

Music Recording Downloads

Music Making Software

In today's society it has become easy to obtain access to record and making your own music. Instead of spending endless amounts of money on studio time, you can record music from home without a professional recording studio. A alternative is software that you can buy as a e-book which is becoming more efficient  for the user. If you are into creating techno beats, Dub Turbo is a good software and very inexpensive. It is a unique piece of software that contains a plethora of sample beats and preloaded data base. Not only can other professional audio suites cost upwards of $1000, but it can take weeks of intense studying before you learn how to use them to make something that is high quality. For anyone who’s just getting started, or looking to have some fun making beats… there is a much better way, such as Dub Turbo. Dub Turbo works on PC or MAC, it’s extremely intuitive but still reasonably powerful: it comes preloaded with a database of over a thousand pre-set beats and sound samples that you can easily put together to make your own original beats… and you can get this software here for under $30! You control everything from your computer keyboard and is easy to use. This is a top make your own music software. Here are some of the features:

1. 16 tracks of stereo system boomin’ seem to construct your hot beats with
2. Easily attract or trigger sounds with keyboard cutting corners
3. Attract bars and build by 50 percent clicks – change sounds/designs fast
4. Drag and copy your bars around – then easily edit them
5. Jog through a large number of sounds and drums
6. Record live towards the metronome or draw or tap inside your beats
7. Edit volumes, go solo, mute, save, edit the tempo
8. Export your 44.1 studio quality .wav Master – this really is industry standard!

This is a great music recording software.Click make your own music to try today!

Greatest Hits Album And Best Music Making Software

Greatest Hits Album

I have discussed a lot about how royalties work in the music industry. When writing songs, recording and making your own music, your Greatest Hits album is considered as a pro-rata royalty. Here is how it works. If your first two albums were %12, and the other albums %13 and half the Greatest Hits album is the royalty rate of the first two albums, it will be a %12.5 royalty rate. Suppose that some of your earlier albums had royalty escalations because sales success. What royalty is used?

1. You will get the lowest royalty for the album from which each selection is taken before escalations based on sales of that album. The starting royalty is pro-rated based on non-escalated rates.

2. You will get the highest royalty rate achieved by the album from which the selection is taken based on sales of the album. These rates are pro-rated.

3.You get the lowest possible rate and no escalations at all.

Best Music Making Software

I never recommend any products, however here are two great music recording software. If you want to record songs and beats at home, I suggest these two programs:

Dub Turbo

Sonic Pro