giving artists "deals"

[shaneoconnor]

i would like to strike up a discussion about the idea of giving select artists "deals"

i am a studio owner. its a small studio and there are only a couple of engineers that work there.

my experience has actually been very negative when giving people deals for whatever reason. it usually creates a strange atmosphere about payment, and the word would get around about being soft in regard to pricing.

out your experience with this kind of thing.

[gallerytungsten]

If you're talking about making a deal for less cash, because the artist has none, then perhaps the approach you need to start thinking about is that of the "production deal" or "development deal." In which you have a piece of the back end, when they either sell it as their own release or sell to a record company.

Naturally, this is not a casual undertaking, and you probably need an attorney to make your contract hold up.

If you're keeping it in the realm of "fee for service" then I suggest NOT giving out "deals" for exactly the reason you mentioned; it erodes your prices and makes collecting payment more difficult. If you can, establish some competitive advantages for your studio and raise your prices instead of lowering them. You may find you achieve the same revenue with less work, which means greater profits, and incidentally, a better class of clients.

[narcoman]

It never ever ever works UNLESS you already have a reputation for breaking acts. I do have (well only for indie acts) and even then, when push comes to shove and the money decisions start having, you find yourself getting pushed out quite quickly. The most i've ever achieved was 50% of an initial record company advance. Record companies seldom buy albums off production houses - remember they like to have an involvement!

Ive just come out of a years worth of development with an act that has just gone on to working with one of the top producers / act breakers in the world and despite all the promises of being in the team and even being under "heads of agreement" contract (swept away and ignored with seven figure sums, believe me - sort of "make i go away") ive come out with £7500. £7500!!! My overheads for two weeks!! I wouldn't take a job for that money (unless it was a quickie!) - ah well. The band is still god though and they'll go far. they deserve it.

The only way it does work is with my current project. We;ve got venture capital money involved and have set up a seven way partnership with management, production, act, writer, marketing, distribution and the money men.

[Igotsoul4u]

i used to have favor prices, but then one of my favorite clients slipped up and shared their price with another client. Lets just say it didn't go over well.