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I need help with artists levy and pecentage of cd's

Discussion in 'Studio Lounge' started by mjatas, Oct 23, 2005.

  1. mjatas

    mjatas Guest

    Firstly, I own a small recording company. I have made a CD with artists songs that I have licensed. When I pay the artists they will recieve 20% total for the cd. how to exatly calculate how much percentage each artist will make and the breakdown of all the costs

    I have the cd and here it is
    I am also on the cd listed as various artists. Some artists have more then 1 song on the cd.

    1. Beat the Fuckin' Noize - ELEKTROTOT
    2. ^#$% You! - GOD ^#$%
    3. Computer Generated Sounds - MENTAL CORPSE
    4. What Happened to my Life (Part I) - MISTER JOKER
    5. To Hell - MENTAL CORPSE
    6. Schmetter Ling (This is cpu war) - CATCORE
    7. Chainsaw Games (Dark Remix) - OHS
    8. Abgefickt - OHRENSCHMERZEN
    9. Pornomietze (Blankes Geballer) - CATCORE
    10. The Ballad Of Dying Foxes - OHS
    11. Real Noize - CATCORE
    12. What Happened to my Life (Part II) - MISTER JOKER
    13. Total $*^t - SCISSOR SHOCK vs. MISTER JOKER
    14. Classical Symphony - MISTER JOKER
    15. Megamix (Mixed by Mister Joker & Vulva)

    Now I go under a few artists such as Vulva, Mistre Joker, Mental Corpse and God ^#$%. The other artists are the artists I licensed music from.

    How to calculate it if all artists get a total of 20% profit from the profit I make from the cd minus the expenses ? The cd costs $9.99 USD on my site to purchase, how exactly would I calculate it so it can be easy for me and the artists to understand when I send them the reciept? Thanks!
  2. o2x

    o2x Active Member

    Mar 17, 2005
    Well I suppose the easiest way would be to divide the 20% by 15 and apportion to each artist individually - this means you get multiple royalties as you have more than one track on there.

    Or if your happy just getting one payment for all your tracks then divvy it out that way (20% / 11) this may keep the other artists happy.
  3. mjatas

    mjatas Guest

    but which way would you do it? It just seems so confusing. I mean the cd cost $9.99 USD so 20% of the profit price which would be
    $6.00. So $6.00 and 20% for the artists? but some artists have more then 1 track on there so then how would I calculate that. And when I do the invoice how do I show the breakdown of what $$$ they recieve?
  4. maintiger

    maintiger Distinguished Member

    Dec 3, 2003
    Whittier, California, USA
    Home Page:
    divide the money you're paying out by the number of tracks- that will give you the money per track. If an artist has 2 tracks in the cd, pay them for 2- if 3, pay them for 3, if one, for one.

    If the Cd sells for $10 and say you're paying 20% of that to the artist, that would work out $2 total, whic works out to about .13 per song. the artist with 2 songs would get 26 cents, the artist with 3 songs 39 cents. But you have to figure out how much you are paying t0 the artist per cd before you can divide it
  5. mjatas

    mjatas Guest

    ok thanks you cleared me up now, now let's say (because it happens on my album) that I have 1 song that 2 artists produced then I divide that into 2?
  6. maintiger

    maintiger Distinguished Member

    Dec 3, 2003
    Whittier, California, USA
    Home Page:
    yes, and that would work out to 6.5 cents per song in our example

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