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herecomesyourman · 10th November 2007

The other flaw of the old system is that people paid for the labels mistakes for far too long.

The labels would automatically charge 10% of earnings off of an artists contracted percentage to cover "Vinyl Breakage" whether it was a vinyl, CD, or cassette sold in a record store.

All CD sales were based off of the production cost of CD's Vs Cassettes when they were first introduced.

So a contract that gives you ten points or 10% on every song's mechanicals would backcharge you for "CD production costs" as if it was still 1987 or so leaving you with 7.5-8.5 cents or 7.5-8.5% on every dollar each song makes...THEN you of course would have to deduct Vinyl Breakage again...leaving you with 6.75-7.65 cents or 6.75-7.65% on ever dollar per CD sold.

(****This of course goes up to a total of ten songs...you won't recieve additional mechanicals for songs after number 10 in most contracts!!!!)

Then you have to pay out your producer royalties if the contract doesn't cover them from the label's end...and THEN you have to divvy up what's left between your band members.

I'd much rather sell something on my own, and keep the money after production costs without getting into debt to make the LP.

10th November 2007	#113
herecomesyourman Lives for gear Joined: May 2007 Location: Phoenix AZ. Posts: 716	The other flaw of the old system is that people paid for the labels mistakes for far too long. The labels would automatically charge 10% of earnings off of an artists contracted percentage to cover "Vinyl Breakage" whether it was a vinyl, CD, or cassette sold in a record store. All CD sales were based off of the production cost of CD's Vs Cassettes when they were first introduced. So a contract that gives you ten points or 10% on every song's mechanicals would backcharge you for "CD production costs" as if it was still 1987 or so leaving you with 7.5-8.5 cents or 7.5-8.5% on every dollar each song makes...THEN you of course would have to deduct Vinyl Breakage again...leaving you with 6.75-7.65 cents or 6.75-7.65% on ever dollar per CD sold. *(This of course goes up to a total of ten songs...you won't recieve additional mechanicals for songs after number 10 in most contracts!!!!)* Then you have to pay out your producer royalties if the contract doesn't cover them from the label's end...and THEN you have to divvy up what's left between your band members. I'd much rather sell something on my own, and keep the money after production costs without getting into debt to make the LP.