Making Your Own Music-Royalties U.S. Sales

Royalties For United States Sales

Today I will discuss first with your record sales in the United States. Here are the royalty breakdown when making your own music:

1. A CD sold in the United States;
2. At full price, wholesale price(PPD);
3. Anything through retail channels (record stores);
4. Company's normal distribution channels like wholesale distributor

Sales are complied 1 through 4 are know as United States Normal Retail Sales (USNRC). The royalty rate for these sales is usually defined in record deals as something like the U. S. basic rate.

Foreign Royalties

In the music industry, the royalties for sales outside the United States varies widely from company to company, and artist to artist. Companies usually gives a higher rate in territories where they have an ownership with the distributor. Canada has evolved into %85 of the United States rate with most companies. So if the U.S. rate is %10, an %85 rate means you get %8.5 for normal retail sales in Canada.

*Here are some recommended recording equipment:

Alesis iMultiMix 8USB

Tascam DP-02 Digital Portastudio - 8 Track

Audio-Technica AT2020 USB Condenser USB Microphone

Want to make music beats?

Home Recording Software

Making Your Own Music-Distributing Methods!

Distributing Methods

When making your own music and recording, I will discuss more about distribution. Distribution is the same whether it is rock music or if you make music beats as a DJ. All digital records are sold electronically. The major business is downloads of full masters on the internet like iTunes, thirty second song samples through cell phones like ring tones, and internet streaming. In the near future sales will be made with full length masters through cell phones. Even though digital sales is a bug buzz it is still only about %10 of total sales. So %90 is still CD's. Here is how records are distributed:

Wholesale Distribution

Record wholesalers are the major way of distribution. They buy from the manufacturing company and sell to retail stores. There are major and independent distributors.  One stops is a term that means records are purchased from major distributors and sold to mom and pop record stores. They buy in bulk and then add a markup to make a profit. Rackers are people that leave floor space from department stores like Wal-Mart and Target. Licensees distribute records. They sign a license agreement with the record company and manufacture and distribute the records.

Make Music Software

Here are a few great music making software where you can record from home:

Music Maker 17

Sony Creative Software ACID Music Studio 8.0 - 2011

Cakewalk Music Creator 5 Software

Dub Turbo

Sonic Pro

Making Your Own Music-Audit Rights!

Audit Rights With Your Record Label

This is very important to know as a recording artist. After your accounting clause in your contract, should be an audit clause that immediately follows. This means you have the right to send an accountant to verify every penny brought in by the record label on your behalf. In the music industry, I can not stress how vital this clause is. This is a way of assuring that you're getting a fair reporting of all the reporting money going in and out of your band. Make sure that you have this, because most artists get shafted and can lose on profits and take a hit on your royalties if you don't. If this clause is not in your contract, the label will take advantage of you and will nickel and dime you. Keep in mind that this is not free to do. This will cost you money to have an audit. Make sure that you require quarterly reports and file them for your own records. An audit cost can run $25,000 to $50,000. When making your own music, most of the record labels have a built in right to audit. Ask anyways. You can only audit once a year.

Recommended Recording Equipment:

Pro Tools Make Music Now Recording Studio

Tascam DP-02 Digital Portastudio - 8 Track

Sony Creative Software ACID Music Studio 8.0 - 2011

Acoustica Mixcraft 5 Audio MIDI Music Recording Software V 5

Dub Turbo

Making Your Own Music And Special Packaging Costs

Special Packaging Costs

Most of the record companies believe that inner sleeves an special inserts add a little more album sales in the music industry. Since vinyl has gone, special inserts have become a non issue. CD's still have inserts. Say, you write thank yous for your parents, etc, this is a added page. You have to negotiate for extra panels for your CD. If you are at the superstar level, you can get more pages. If you are not at the superstar level and want extra pages, this provision will reduce your royalty by 5 to 10 cents per unit. Just be aware of this and save your money. Are special insert really needed? It's about the music anyway.

Here are some bargain recommended recording products:

Pro Tools Make Music Now Recording Studio


Tascam DP-02 Digital Portastudio - 8 Track


*Dub Turbo

Making Your Own Music And Controls

Controls

In making your own music in the music business, their is something called control. These are various clauses and consent that you must ask for. These are some of the controls that you should actually get and ask for:

1. Consent of coupling and the specific details on controlling it.
2. Consent on use of your master recordings in commercials.
3. Consent of licensing your master recordings for film and television.
4. Approval of your photographs and biographical materials used in advertising and promotion.

If you can't get this in your contract, don't sign. This is income that is big profit for you and you hear a lot of songs on television and movies.

Soundscan

In the record industry people wonder how record sales are tracked? A company called Soundscan. They began in 1991. They track by reading register tapes of reporting stores. Soundscan data is also used for Billboard charts. Keep in mind that they are not %100 accurate. Soundscan is not set up for independent record stores, so there are some missing profits. Sometimes labels will agree that reserves can't exceed their shipments less the Soundscan numbers. Here is an example: If 100,000 albums were shipped and Soundscan showed 80,000 sold, the reserve couldn't exceed 20,000.

Recording Products

Here are some recommended recording products:

Dub Turbo

Sonic Producer

Pro Tools Make Music Now Recording Studio

Alesis iMultiMix 8USB

Making Your Own Music At Home

Making Your Own Music At Home

In the music business, trying to succeed at it takes time, energy, patience, and can be expensive. What I mean by expensive? Well, think about if you are serious about a career as a recording artists. You might pay for rehearsal time for a space. Everyone needs to record and put out some songs. If you are just starting out, you should know that you can cut costs by recording at home. These days the quality of recording from home is very good. You can produce the same quality from home as most studios and not spend tons of money on studio time. Here are some products to check out:

Sony Creative Software ACID Music Studio 8.0 - 2011

Pro Tools Make Music Now Recording Studio

Image-Line Software Image-line Fl Studio 9 Fruity Edition V.1


I have become a fan of ebooks. Here are a few of the better beat creating software's out there.

Dub Turbo

Sonic Producer

These two products are great for recording from your home and both cost under $30! This is a bargain for what they can do for your song creation. I highly recommend!

Making Your Own Music And Album Cover Artwork

Album Cover Artwork

When making your own music as a musician, whether it's new artist, midlevel, or superstar, you have a big involvement your your album cover artwork. You still have to ask for it. This means in your contract when you sign with a record label. In the music industry, this process is called consultation. The label and you or your band have to go through an approval process. The next step is approval. This means you can approval the artwork that the label prepares. When you have approval rights, the label has to please you with submitted artwork or you can stop them from using it. Remember that every little detail in the music business maters. When you get the rights to creative artwork, make sure that you have an adequate budget. If you are at the superstar level you get %100 creative control on your cover artwork. A normal budget for artwork for your cover is between $20,000 to $25,000. Some cases, the label will exceed the maximum amount of your budget. If they do make sure, that in your contract you are not charged against your royalties.

Check out these recording equipment products:

Pro Tools Make Music Now Recording Studio

Tascam DP-02 Digital Portastudio - 8 Track

MXL 990 Condenser Microphone with Shockmount