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Record Contract

Discussion in 'Band Management [BG]' started by johnm0187, Mar 16, 2005.

  1. My band has gotten a couple of interests from small record companies, and I was just wondering what average terms are set for them. We aren't jumping the gun, but we are just trying to take our time and choose what is best for us.

    What is normal royalties per cd?
    How often should you get paid your royalties?
    Entree fee (seems like some bs to me, but what do I know?) for getting privelages on their website?

    I'm sure there are more general questions in my brain, but i can't think of them right now, so any general information is fantastic.

  2. willgroove2


    Aug 16, 2003
    chicago IL
    Endorsing Artist;Essential sound products,Dunlop, Ergo Instruments
    What is normal royalties per cd?
    How often should you get paid your royalties?
    Entree fee (seems like some bs to me, but what do I know?) for getting privelages on their website? royalties are only paid after all cost of recording are paid back,this is called recouping.now if your band is being offered a pressing&distrabution deal and pay recording cost yourself upfront you MAY see royalties sooner.a record deal is a LOAN from a record company with terms that are mostly in favor of the record company.most record company's pay royalties quarterly but you my have to wait as much as a year to see anything.a legit lable finds it in their best interest to promote bands on the lable so having to pay to be on their website is a little strange if you ask me.go to ascap.com or bmi.com for more info
  3. Music Attorney

    Music Attorney

    Feb 22, 2004
    Regardless of what someone may tell you, there is no such thing as “average terms”. The terms of your contract represent a myriad of factors such as the parties involved, the leverage each party has, the amount of money invested in advances/marketing/promo/videos/recording/etc., the length of the term, album commitment, the quality of your representatives, and on and on. I know plenty of artists who like to brag about their royalty rate and plenty of lawyers who like to pander to that mentality. After all, it’s pretty easy to justify a big fee if you get the artist a big royalty. Problem is, there are so many ways to get screwed in a record contract that an artist could wind up getting an 18% retail royalty and wind up making less per CD than an artist getting a 10% royalty.

    Are the deals you’re being offered require you to be exclusive? Are there advances? If so, how much? Do you have to share any revenue from publishing, merchandising, touring, etc.? What happens if a band member wants to leave? What kind of money are they paying for the musical compositions on the album (i.e., as opposed to the royalties for the performance of those compositions)?

    If you want some help, then be specific and I’ll try to help. Otherwise, Don Passman has a good book out that will give you some ideas about what is “average” ;-)

  4. Tash


    Feb 13, 2005
    Bel Air Maryland
    Get a lawyer. You can bet THEY have at least a couple, nothing anyone can tell you here (or anywhere else on the net) is going to be the elast bit relevant as your situation is unique.

    Get a lawyer who specializes in entertainment industry contracts on your side of the table before you get into serious talks. As someone already said, there are a lot of ways you cna get screwed.