
Music is an art, but when it comes to the music industry The music is about money!
If a person or company believes that music is not money, there will be absolutely no interest in your music. It is in the shell nuts. Remember, always remember. The music industry is money!
There are few sources of money to be made in the music industry. They include but are not limited to:
ท Record Sales
ท songs played on the radio
ท in films and television
ท Concerts
ท written song
Produce ท
ท Merchandising
ท Advertising
ท CD-ROMs/DVDs
If you are an artist and want to enter the world of music, you have 3 very important to very good people stick in your corner for you on a daily basis. They include:
Personal ท Manager – The most important of the three. They must have contacts in the music industry, keep an eye on your business, advise you on what to do, to help promote your music, the producers of the site, which was signed during the tour, etc. staff receive 15% and 20% of gross salary and the artists have good contacts with record companies A & R, marketing / sales, promotion and service.
ท Music Attorney – A lawyer who specializes in music will know how to negotiate the deals and the structure of an artist. They must have good contacts and are reliable. Expect to pay between 100 and 200 per hour for a good music lawyer. If a lawyer believes that you sign up, they give a fixed amount and a percentage of the salary of the artist. In large cities, you have to pay more than small towns.
ท Music Agent – Book of concerts and performances. A Personal Manager, the artist with the selection of a good agent.
If you explode and start to generate the large sum of money, a good manager and the auditor will be asked to manage your tax situation, the statements of fees, the financing of the visits, advice and how to invest managing your money.
Increasingly recognized by your demo disc is not impossible, but 99.9% of the time, your material will not be heard. Even if the best song on the planet, it will not be heard. Record companies want to limit their liability, so you do not listen to unsolicited music. Record labels do not want to listen to many songs and then be held responsible if someone says their material is copied.
If you choose to send your CD label, send it “found” materials. First find a contact person, preferably someone from the artists and repertoire (A & R) department. Call first and talk to someone. After sending your CD monitoring to determine whether the targeted individual receipt of your equipment and followed by another call to determine whether it is played. Submit 3-6 songs and post a bio and image. Again, this is not the best way to get your work on major labels.
Until the music business advisers in your corner, you’re trying to promote and there is a “buzz” is around you, your demo is not the decision makers at the labels. Registration of companies on a daily basis to receive thousands of unsolicited CDs. Most likely your CD will be thrown in a garbage can located in a room filled with overflowing bins external CD.
Record companies deal with artists who have a history of record sales. These are artists who have produced and sold in May, their own CD at the local or regional level. Record companies want to meet the artists who have their equipment and there is this “buzz” in progress on them. MC Hammer before he became famous with his own equipment and its own administration sold to a major label signed him. MC Hammer had much influence in negotiating a good contract because he has shown on a local basis, could sell records.
Record companies want to limit their liability. If you’re logged in, you are considered an investment of money and they want a premium return on their money invested in you. The more you can prove that you can record sales, the best chance, you can enroll.
If you are on a record level, the artist ga you in the studio and record songs for the record. The company makes a copy of the registration and the captain of the ship to a distributor. The distributor is a wholesaler who then sells the CDs at the retail level, such as Best Buy, Sam Goody and Tower Records. The record company then pumps money into the marketing of advertising and promoting your music with the hope to sell records, so you have a superstar and become rich!
It is not as easy as it sounds. It takes a lot of work by a group of people. Everyone must work together to this event. There are many people behind the scenes work of an artist to a superstar.
Record companies often divided into 4 groups: ท major record label – the registration and use of resources for all features to sell records. Major label record companies are integrated in that they can manage the promotion, sales, marketing and distribution for the sale of music. The key is the label Arista, Atlantic Ocean, the capital, and Sony.
ท Major label affiliated labels – have special agreements with major record label, where the deep of the label in May small recording labels and operating costs in exchange for some of the smallest label profit.
ท labels – to distribute documents through major labels. Independent labels have a few employees. They have a tendency for talent, signing talent, it provides music and contracts with major labels to do the promotion, marketing and other functions.
ท True independent labels – has no association with a major label and distribute their music through independent distributors.
The A & R (Artists & Repertoire) Department
The service is A & R talent scout. They are responsible for finding new talent. They are the eyes and ears of the record. However, it is not because you are at a record label, as a representative of A & R, he loves you does not mean that your CD will ever be produced and published. Executives of the company could cancel your offer if they believe that the CD will not sell. A record company is investing several hundred thousand dollars for your CD, very cautious about who they release.
The Department of Marketing and Sales
This department is responsible for the public excited about your music and the first retail sale is the idea of carrying your CDs. They are responsible for the promotion of goods, promote your CD, in stores, advertising, coverage of your CD, etc.
The Promotions Board Section
This department is responsible for playing your music on the radio. The persons in this section a visit to the different radio stations to convince them to play your material. If your hardware is not played, no one will now how you are. People will look at your CD in the store and ask who you are. There is also a direct correlation with the sale of CDs or how often a song for the CD is played on the radio. More airtime on the radio is equivalent to more CD sales for the registration of new companies.
Remember music is art, but the registration of the society, it is about money. Keep in mind that this is a business. Keep in mind everyone money. The original numbers people think that you no money for them, you will be deleted and that these same people will themselves to others looking for new artists that they believe they money. Unfortunately, the record industry does not believe in the toilet of the people. If your CD is not successful, you’re on the go. There are rarely second chances. There are always other talented people behind you who made their fame.
Distribution
Most large retailers such as Tower Records CD will not unless the record is a distributor. A distributor must ensure that your CD will be enough places to sell your CD finally money. The major labels use large distributors who are better able to stock the shops. After years of consolidation, there are only 5 major national wholesale distributors in the United States are owned by conglomerates that also own major record companies. They are:
ท BMG (distributor Arista, BMG and RCA)
ท EMI (principal and distributes virgen.)
Sony Music ท (distribution Columbia, Epic and Sony)
ท Universal Music Group (distributes Interscope, Island / Def Jam, and MCA)
ท WEA (distribue Atlantic, Elektra and Warner Bros.)
Distribution via the Internet record labels and artists are increasingly using the Internet to disseminate their music. Unknown artists can also use sites like this mZeus.com, http://www.mZeus.com, generating buzz about their music. However, unknown artists will work hard to maintain the current excitement about their music. Ultimately, the signing of a contract with a major label, is the way to go. The major labels have the financial strength and people give you a good shot at becoming famous.
Let’s face it. This is money! Yes, the entertainment industry seems fun and exciting, but people are making money. As an artist the most important contract in the music industry, recording contracts. The fee is part of the money from record sales paid to the artist for his music. The file is an agreement on a legal agreement between label and artist fees will be how an artist is entitled to, among other things.
An artist must have a good understanding of how fees are calculated. A good music lawyer will support this process by ensuring that the artist paid what he deserves. A 13% royalty for an artist, a lot of money, but a 13% royalty for another may be “the tip change.”
So how the numbers work. A successful artist signs a record deal. The artist goes to the studio and working hard for a CD that the company fully supports. The record company, through its distributor sells the CD for a suggested retail price (SRLP) from $ 17.99 to a retailer for about $ 10.99. The distributor takes 10% – 14% of $ 10.99. Therefore, the company on the SRLP ฝ of $ 17.99. May independents less than ฝ SRLP. Majors pay royalties as a percentage of the artist SRLP.
The rates vary for each artist, depending on the degree of successful sales record. For a new artist who has never had a disk or has sold more than 100,000 albums will get a typical royalty rate of 12% to 14% of SRLP. For an independent label, may contain 10% to 14% of SRLP. For artists who have a background in sales of 200,000 to 500,000 albums the royalty rate from 14% to 16%. For artists who have sold more than 750,000 albums the royalty rate may be 16% to 18%. As you can see, the more successful an artist is, the higher the fee. In addition, fees may be based on how the record sells. For example, the May contract record indicates that the artist gets 12% for the first 100,000 units sold, 14% for 100,001 to 300,000 units sold, and 16% for more than 300,000 units sold.
But hold your horses. If you sell 500,000 albums and have a royalty of 12% does not mean you get 12% of 500,000 to a SRLP of $ 17.98, which equals $ 1,078,800. This is because, as specified in the contract recording, there are deductions (expenses) are deducted.
To start with the stick, the record company will deduct “packaging charge” of SRLP which is generally 20% for cassettes and 25% for the CD.
Secondly, usually the artist is responsible for payment of the record producer of some of its fees. Typically, a producer will be 3% to 4% of the SRLP.
Third, in the recording industry, the May contract claim that the artist generates only 85% of royalties on sales. For every 100 albums sold, 15 albums sold, the artist receives no royalties.
Forth, the company, part of the compensation money because the distributor is generally consistent with the sale of the collection and retail lending money from unsold units. This is very important because a large part of your album could be returned to the record, if the album does not sell! The money that is holding a reservation. Reservations can be held for 2 years before it is paid to the artist. Usually a label has a reserve of 25% to 40% royalties.
Fifth, the advances paid by the record of the artist are deducted from the artist fees. Advances include but are not limited to:
ท registration fees in the studio (new artists to the independence of my will receive a promotion of $ 0 to $ 80,000, new artists on a label $ 150,000 to $ 400,000
ท Hiring independent promoters to help sell albums
ท cost of making a video (music promotions and a little video can cost $ 150,000 to $ 200,000.
When the money is made for record sales, these costs are deducted from the artist royalties. This is called re coup ment. Therefore, if the record for the artist is not successful, the artist should never be a room. If the costs are lower than the deduction, they should of artists in May, the record company money by being in the red! These costs can be negative reports on the next album. A good contract will not allow a negative cost of an album that should be transferred to another album (the guarantees). If there is not another album of the record company usually eats the loss.
There are many other costs that the record will not support the artists. This includes marketing and promotions at home (without CD’s, etc.).
So what is the artist for a gold album (500,000 albums sold).
Check out:
CD (SRLP recommended selling price) = $ 17.99 CD Packaging for Less 20% = $ -4.50 $ 13.49 = net Times: Net artist royalty rate (12% – 3% of production) X = 9% gross royalties per CD (9% to $ 13.48) = $ 1.21 albums Times = $ 500,000 $ 500,000 SUB-TOTAL = 605.00 Times: Royalty on% (15% o = no fee) x 85 = Royalty% = Gross $ 514,250 Less advanced registration, promotion, music video, tour = -350,000 TOTAL FEES $ artist = $ 164,250 – reserves (35%) offered by the retailer) = $ -57,487.50 (1) ACTUAL ROYALTIES TO ARTISTS = $ 106,762.50
(1) The reserves will be paid to the artist in 2 years if no CD returned by the retailer
Remember the artist has to pay taxes! Remember that Uncle Sam is to be cut! Do not forget to eat the staff, lawyer, accountant, agent and many other expenses.
However, there are many other fees that the artist can acquire. These include the registration of clubs, compilation CD, Samplers (at low cost in the albums of some artists to be presented), premiums (albums sold to other products such as cereals), the album Film Soundtrack Music Video Sales, Greatest Hit’s Album, Foreign Royalties (song played in some of the radio stations pay royalties, unlike the United States), Master License Agreement (the music used in film, television, commercial, Internet, CD-ROM and DVD), etc.
Of course, because of the Internet, the rules change fees. Many people buy their music over the Internet. Think no packaging required and no division of the traditional outlets needed. Some websites of customers to purchase songs to object to an album. Changes are currently underway on how fees are calculated as a result of the Internet. Many lawyers are pushing for royalties based on each song sold, in contrast to each album sold. So stay tuned!
Music is an art, but when it comes to the music industry The music is about money!
If a person or company believes that music is not money, there will be absolutely no interest in your music. It is in the shell nuts. Remember, always remember. The music industry is money!
There are few sources of money to be made in the music industry. They include but are not limited to: Read the rest of this entry »