Music Business -Beat Making Producer

After reading Lease Beats Make Money a gentleman had a few questions for me. Below are my responses to the composers music business questions.

THE PRODUCER ASKED:

"is requesting 1/100th of the profit for producing a track [for a recording artist] on an album asking too much if the license fee is low?"

ANSWER:

No, asking for 1/100th of the profit for producing a track on an album is not to much if that is what you are believing you are valued at and what you're worth as a music producer. On the other hand the answer is YES, if the person you're negotiating the terms with thinks so and they are not willing to pay you the money.

THE PRODUCER STATED:

"10 cents a copy would only make me as much as the license fee if the sales reached 20,000 units (on a $200 license), so I didn't see what the big deal was, he would have to go platinum for me to even see a hundred g's out of 10 million in sales."

RESPONSE:

At .10 cents a copy this is what the math translates into.

(.10cents X 2,000/units =$200)
(.10cents X 1,000/units =$100)
(.10cents X 20,000/units =$2,000)
(.10cents X 1,000,000/units = $100,000)

If an artist is signed to a major label and had 10 songs produced by ten different producers using your production royalty rate they would have to pay $1,000,000 in royalties in total if they were to sell 1,000,000 units (.10cents X 1,000,000/units = $100,000/music producer) then you would multiply ($100,000/music producer X 10 PRODUCERS= $1,000,000)
Given the way major label deals are structured this would not be practical from a royalty perspective for a recording artist, as they may see $100,000 or so at best after recouping the initial investment made by the major label for the project.

However, the royalty rate may be significantly different given the artists is the owner or one of the owners of the label they are signed to and are using an independent distributor where they burden the marketing and advertising cost.

My suggestion is that you see what there counter offer is. If the artist and their team don't have a counter offer and are firm on only paying you $200 for an exclusive track then you need to consider what they bring to the table. For instance, perhaps this artist is well known A level or B level artist and you know they are going to market and promote the song adequately. In this case you'd ensure that you are given proper credit for producing the track and seek for them to get in writing that they are going to push the song to radio and release it as a single. Given, an artist is thinking about releasing 1,000 units they wouldn't fit the A or B level criteria, as artist at these level typically will release several thousand at least in addition to digital singles.

Additionally, if the artist is not an A or B level artist and their team is set on only paying you $200 for an exclusive track and are not willing to submit to you a reasonable counter offer it may be time to step away from the table and look for new clients, as this doesn't seem to be a mutually beneficial arrangement (win/win) based on the information you've provided and what you are seeking.

THE PRODUCER SAID:

"it seems to me that there should be more producers requiring back end money along with the front end money, this would make it easier for a producer like me to cheaply license beats and not feel like we are gonna get shorted on the profits if the artists actually press up units and sell them."

RESPONSE:


Cheaply licensing beats and producing tracks is a bit different and should be approached from different vantage points. While I want go in-depth here I will say that licensing tracks is typically done on a non-exclusive basis and usually cost lower monies. Producing tracks typically takes more work on the part of the producer and this is where getting paid more front and "back-end" money becomes more paramount. I'd strongly suggest re-reading Lease Beats Make Money, as there's some wisdom that may help you. You'll also want to download the Los Angeles Music Industry Connection Ebook

THE PRODUCER MENTIONED:

"also [I] have worked with a lot of lyricists over the years and for the most part it has been on a volunteer basis."

RESPONSE:

Perhaps it's time to find you one to three artists at the most that you truly believe in and start to develop their talent and craft. Additionally, you'll cultivate their sound while providing your signature touch to their music. You'll in fact become the A&R by doing artist development. This requires a different level of sacrifice and dedication, but the rewards may be gigantic and may push you to the next phase of your business and career as a seasoned music producer. You'll also want to consider becoming more selective as to the artist that you produce music for on a volunteer basis.

Should you need, want or require additional assistance I'd me more than happy to discuss my consulting retainer, so we may get started immediately to ensure we do our best to help you achieve your goals and realize your potential. You may call 678-887-4656.

SPECIAL NOTE: This part was not included in the original response, but emerging music producers should seek to have their music used in tv and other sources and not just recorded by singers and rap artist.

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