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how much profit per cd....

Discussion in 'Studio Lounge' started by nauc, Mar 15, 2008.

  1. nauc

    nauc Active Member

    just curious what kind of profits do bands get per reg cd sale
     
  2. Thomas W. Bethel

    Thomas W. Bethel Well-Known Member

    Too many variables to answer your question.

    I will try and help you but I need to know a lot more about exactly what you are talking about.

    Is this a self released CD or something that is released by a record company?

    Are you going to have the CD replicated or duplicated and how much can you get it done for?

    If you get a CD done professionally and have someone like Oasis do the duplication and printing you are probably looking at about $3.50 per CD in quantities of 1000. Add to that your production cost for recording, mixing and mastering and you will have some idea of how much you have invested in each CD. Then you can figure out how much you want to charge for the CD and subtract the amount you put into its creation and what you have left is your profit. You also have to take in to consideration how many CDs you will sell.

    Lets take a typical case

    1000 CDs in Jewel Cases printed and duplicated $3,000 dollars plus let say $2500 for the recording and $500 for the mastering. So each CD will cost you $6.00 if you sell all of them for $15.00 dollars each you will make $15,000 less the cost of producing them -$6,000.00 or a net profit of $9,000 or $9.00 per CD profit but if you only sell 500 then you would get only $7,500 and after subtracting the $6,000 for production costs would wind up with only a profit of $3.00 per CD for the CD's sold and you would have an additional 500 CDs to sell and make your profit on. Your break even spot would be 400 CDs sold. If this is being done as part of a record company deal your "profit" would probably be a WHOLE lot less as they will want you to REPAY them for their part in helping you to get your recording done.

    Hope this helps and if not let me know what other information you need.
     
  3. nauc

    nauc Active Member

    just wondering what bands make per cd, bands like Metallica or Madonna etc etc after everything gets paid and theyve sold those 1000 cds

    so if a cd is say $15, does the band get like $5 after everything is said and done. i know theres probably tons of factors, but just wondering if the band makes like a buck or 2 or more like $10+. i have no clue.

    and thanks a lot for helping, ive always wondered this
     
  4. bent

    bent No Bad Vibes! Well-Known Member

    There are a lot of factors when it comes to acts such as those you mentioned - contracts, credits (publishing and otherwise), loans, etc.
    I think after all is said and done a "Metallica" makes a couple cents per sale, possibly upwards of a US quarter. Many bands are obligated to pay back the money spent on the recording end and are therefore so far in debt that they don't see a penny.

    Here's a nifty little essay on it:
    http://www.ram.org/ramblings/philosophy/fmp/albini.html
     
  5. MadMax

    MadMax Well-Known Member

    When it comes to national/international acts that are signed to a major label...

    It can be anywhere from $.05 to $2.00 each... depending upon how far in debt they are to the label.

    More often than not, the sale of CD's goes towards paying off the advances that the label gave the act to create the CD/Album in the first place.

    It's typically more like endentured servitude.
     
  6. bent

    bent No Bad Vibes! Well-Known Member

    Did anyone else feel our collective gears turning at the same time?
    I think we all just moved a little closer to the Great Attractor.
     
  7. nauc

    nauc Active Member

    so then, not more than about $2 a cd, and often a lot, lot less than $2 a cd?
     
  8. bent

    bent No Bad Vibes! Well-Known Member

    That's about the whole of it.
     
  9. nauc

    nauc Active Member

    i see, thanks
     
  10. MadMax

    MadMax Well-Known Member

    Kinda' hard to pull up to a table of fame and fortune and actually eat peanut butter sandwiches.

    Yeah... It's a sad state of affairs that should make everyone just dying to get on a "major label" think twice... but it usually doesn't.
     
  11. nauc

    nauc Active Member

    what are "points"

    this article keeps mentioning them, but what are they

    http://www.ram.org/ramblings/philosophy/fmp/albini.html

    thanks
     
  12. bent

    bent No Bad Vibes! Well-Known Member

    Points are a percentage of sales that are paid out to the person named to receive them - i.e. as a producer you might agree to an amount up front plus 5 points which in turn equals the up front amount plus 5% of retail sales.
     
  13. nauc

    nauc Active Member

    i see, thanks
     
  14. bent

    bent No Bad Vibes! Well-Known Member

    Hey man, no problem!
    That's why we're here.

    :cool:
     
  15. nauc

    nauc Active Member

    sweet! :D
     

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