spec deal points?

Posted: Sat Oct 04, 2003 7:30 pm

I've recorded a couple of songs for these guys and they have enough for a CD, the material is great and the singer has a wonderful silky voice that I think will sell them. They are a typical young group,they all have kids and not much money to spend on getting themselves out there. So I'm thinking about offering to record the CD for them on the speculation that it will sell. What is the average percentage people are asking for?

Posted: Wed Oct 08, 2003 12:14 pm

4%

Posted: Wed Oct 08, 2003 1:46 pm

Four points is correct if you are thinking of the split in GROSS. Most bands I have worked with seem to have trouble with this equation for some reason. It generally works out to about 14% of the advance that the band receives, which is usually 10,000 to 20,000 dollar (typical good deal for unknowns and smaller independent labels). 4 points of that would only be 400 to 800 bucks. Hardly worth the work!

The new artist seems to think only in terms of what they are getting in the advance, so if you agree to four points, they usually think it means four points of the advance, not the gross. Just be sure that they understand that it is the total gross S.L.R.P. , on sales of 10,000 units (what most advances of this type are based on) that you are getting 4 points on.

That being said, I would ask that I was to be made an equal partner in the venture. That is to say if there are four people in the band, I would ask for one fifth of the take. If it was a solo, I would ask for half, minus production expenses like studio musicians and so on. My advice is to give this a bit of thought and have an attorney go over any deal you might wish to make. Then get it on paper.

I was screwed out of royalties on the biggest sellers I have ever produced, records that went #1 in Japan and Europe, because I didn't do this. The worst part of it was it created so much discord between the artist and I that we severed our working relationship, which could have been very profitable for both of us. His later releases have never done as well as the stuff he recorded with us. It's a pity for both of us. Kurt

Posted: Wed Oct 08, 2003 6:10 pm

Thanks for taking the time to reply. Everything will be written by an attorney and I have alot to learn but I feel like I need to jump on this one.

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