Standard Royalties

dc80 · 9th May 2007, 09:29 PM

What is a standard royalty rate for a producer in the hip hop industry? Say I do a bunch of beats for a guy and charge no money up front. However, I make him sign a contract stating that I retain all rights and that I receive royalties on each track sold. What is fair percentage?

Igotsoul4u · 10th May 2007, 03:41 AM

You really need to get a music biz lawyer. Its worth the money and you will make more money in the long run. Its really nothing you want to try to negotiate yourself. In the meantime, check this link....

What are the main deal points in a music producer's agreement?

bknot1 · 10th May 2007, 11:28 AM

3-4% is pretty standard ..

Stitch333 · 10th May 2007, 10:12 PM

Quote:

Originally Posted by dc80

What is a standard royalty rate for a producer in the hip hop industry? Say I do a bunch of beats for a guy and charge no money up front. However, I make him sign a contract stating that I retain all rights and that I receive royalties on each track sold. What is fair percentage?

It really deepends on where this artist is at in there career. If its a no name, whats 5 points of 100 records worth? On the flip side, if its an established artist who can do something for you (even the clout of having that name on your resume) whats that worth to you? That said, when I do a record for an independent artist who is selling the music themselves, I take 50% of the gross sale price for that track. Maybe if Im seeing benefit in someother angle or the artist is semi-successful or gunning for a deal, I'll put a sales trigger clause in the agreement. Give them 1000 or 5000 units to recoup themselves, THEN take my 50% gross. If they're on a label, I'll take my points and a buyout fee from the label. Make sure you get your proper credits too. Magic word of the day....'recoupables'

parkay909 · 11th May 2007, 04:33 PM

There really is no standard. A lot of cats just sell their beats for a flat rate because 95% of what gets recorded, especially for the major lables, never hits the streets. Unless you are selling to an established artist asking for points will most likely backfire on you and get you little or nothing. You also have to worry about collecting from them and looking at their books, etc.

Also unless you are established a percentage point is pronbably out of the question.

If you are established its all about how much you can negotiate. You have to argue exactly how much of what you did is part of the song (beat 50%, hook 50% lyrics 50-100% of the 200% pie). So some producers that write the beat and the lyrics to the hook cop an easy 75% (150% of the 200% pie) of the publishing royalties based on that arguement.

A good book to get you started in your publishing knowlege is "The Recording Industry by: Geoffrey P. Hull"

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
How do you agree Royalties !!	clivek	Work in progress / advice requested / Show & Tell / Artist showcase	3	31st March 2007 07:53 PM
SonyBMG royalties	gainreduction	So much gear, so little time!	11	7th December 2006 10:42 AM
Producer Royalties - TV	Nik	The moan zone	8	24th October 2006 06:41 PM
Points / Royalties	Prickstein	So much gear, so little time!	48	24th October 2006 08:23 AM
When is it fair to ask for royalties?	osci	Electronic Music Instruments & Electronic Music Production	3	2nd October 2006 03:09 AM

9th May 2007, 09:29 PM	#1
dc80 Gear interested Join Date: Jan 2007 Posts: 18	Standard Royalties What is a standard royalty rate for a producer in the hip hop industry? Say I do a bunch of beats for a guy and charge no money up front. However, I make him sign a contract stating that I retain all rights and that I receive royalties on each track sold. What is fair percentage?

10th May 2007, 11:28 AM	#3
bknot1 Gear nut Join Date: Dec 2006 Location: Maryland Posts: 142	3-4% is pretty standard .. __________________ B Knot 4 bars is hip hop, no need for more if it's a hit!! Trunks poppin'... B Knot hits.." Boss Recordings on SoundClick http://www.jamwave.com/bossrecordings

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes	Rate This Thread
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode	Rate This Thread:

10th May 2007, 03:41 AM	#2
Igotsoul4u Lives for gear Join Date: Mar 2005 Location: New York, NY Posts: 1,610	You really need to get a music biz lawyer. Its worth the money and you will make more money in the long run. Its really nothing you want to try to negotiate yourself. In the meantime, check this link.... What are the main deal points in a music producer's agreement?

11th May 2007, 04:33 PM	#5
parkay909 Gear nut Join Date: May 2007 Location: Souf of Philly Posts: 125	There really is no standard. A lot of cats just sell their beats for a flat rate because 95% of what gets recorded, especially for the major lables, never hits the streets. Unless you are selling to an established artist asking for points will most likely backfire on you and get you little or nothing. You also have to worry about collecting from them and looking at their books, etc. Also unless you are established a percentage point is pronbably out of the question. If you are established its all about how much you can negotiate. You have to argue exactly how much of what you did is part of the song (beat 50%, hook 50% lyrics 50-100% of the 200% pie). So some producers that write the beat and the lyrics to the hook cop an easy 75% (150% of the 200% pie) of the publishing royalties based on that arguement. A good book to get you started in your publishing knowlege is "The Recording Industry by: Geoffrey P. Hull"