Music biz question(s)

[MichaelT]

So I'm really trying to read some good music business books and at least develop some sort of sense as to how things work. I had a question or two that I've been wondering from various things I've read...I'm not asking for official legal opinions or anything, just past experiences. I hope I can make sense in my questions:

What happens when an artist is also the producer on their own record? Do they negotiate a seperate type of contract as producer with the label or whomever...with things like requesting royalties from record one and the like? How does that work?

Also, how do points play out when the entire album has two producers, or coproducers I guess. Isn't it usually standard for a producer to get around 3 points on a project? With two producers, does that equal 3 points each (6 points total), or 1 1/2 points each (3 total)?

In terms of the above, I know they're probably lots of details that are different from one project to the next, but what's been your general experience? Thanks in advance!

-Mike

[MichaelT]

anyone?

[Jules]

Good questions be patient, someone will be along soon who has an idea...

[wwittman]

Generally the artist deal gives you X number of points (percent of retail usually, sometimes wholesale, notably Sony)... OUT OF this number, the artist is responsible to pay the producer.
Typically, the artist will "direct" the record company to pay the producer and account to him, directly.... but that's bookkeeping... the money comes out of the artist's points.

If you are the artists you don't need to pay yourself separately as the producer.

you MIGHT have a lawyer make the case that as the producer as well, you should be paid THOSE points sooner... that is, after recording costs are recouped but perhaps before other artists related expenses are recouped.
But i suspect that's a tough sell.

you're right that, after recoupment of recording costs, most producer deals then pay retroactively to record one, as the phrase goes, not just from that point forward.

Mutliple producers have to split the producer points and they would be pro-rated per track.
Naturally, If I were to come in and produce the only hit single on your 12 track album, i would make the case that i am entitled to perhaps a 1 point override or some sort of royalty on the WHOLE album in addition to my 3-4 on the single track.. because my efforts contribute to the sale of the overall product disporportionately.
If you are the artist and you and I are going to co-produce YOUR record, I am probably going to ask for my full producer royalty or at least the larger share of the split, knowing that you are making your money elsewhere in the deal.

It's also not unusual to have in the contract a bump in royalties for the producer after a certain sales level is attined.
So perhaps 3% of sales until 500,000 units is reached at which point the rate increases to 3.5% on sales over that number and perhaps again to 4% at a million.(not retroactively)


EVERYTHING is a negotiation.

but i'm not an attorney... i have sex.

hope this helps

[Jules]

"but i'm not an attorney... i have sex."

[shikawkee]

If you're also the producer you're entitled to points if you ask for them. If there are more than one producer who works on the whole album then they split typically. If it's based on song-to-song production it would likely be pro-rated based on how many songs are on the album. It depends on the situation and the track records of those involved. Hope that helps a little. If I missed something or you have more questions don't be afraifd to ask.

As has been stated already, everything is negotiable.

[Jules]

ro·rate __ _P___Pronunciation Key__(pr-rt, prrt)
v. pro·rat·ed, pro·rat·ing, pro·rates
v. tr.
To divide, distribute, or assess proportionately.

v. intr.
To settle affairs on the basis of proportional distribution.


[From pro rata.]
pro·rata·ble adj.
pro·ration n.

In other words - split it up between everyone that is owed a share, fairly, so that everyone gets their correct slice of the pie.

You can do anything you want in a contract.. Just have to pay a lawyer to organise it.

[StoneinaPond]

You can do anything you want in a contract.. Just have to pay a lawyer to organise it.

And get the other side to agree.

[MichaelT]

Wow...thank you everybody for the posts...William, that was very informative! I didn't mean to sound impatient when I replied "anyone?" in the second post...the thread was slipping into second page la la land on the forum so I thought I'd give it a bump.

One other quick question: I know I typed terms like "record one" in my first post, but could someone clarify what "retroactive" means in relation to that. I think I made it seem like I knew what it meant in my first post, but I really didn't:) Thanks!

-Mike

[Stizz]

Originally posted by MichaelT
could someone clarify what "retroactive" means in relation to that. I think I made it seem like I knew what it meant in my first post, but I really didn't:) Thanks!

-Mike

I believe that he was saying that this deal must be agrteed on BEFORE the record becomes a huge success...