March 28, 2011 Now, If I Owned A Record Company…
… I would first weigh my wants and needs, my strengths and weaknesses, leave my sanity at the door, and it would go something like this…
My Aim [Musically]:
1. My Main Criteria: Grrreat Songs that grab you and take you away to another land… That always has been, and always will be #1 in my book!!!
2. Broadcast-Ready Masters with Great Artists & Great Accompanying Musicians with Great Arrangements & Productions.
3. Genre: Open – But I would lean toward Rock, Classic R&B, Classic Soul [not neo], Rock-Dance, Techno, & Rock’n Country.
My Aim [Products]:
1. Singles! Each Song would be handled like a “Project”
2. Possible Albums [if there is a demand for a particular Artist]
3. Compilation Albums [if there is a demand for one, or it just makes sense at the time.]
My Aim [Business-wise]:
As each Single is completed and [Mastered], they would be put right out! Single, by Single!
1. Downloads, Streaming, etc…
2. Placements of Recordings – Branding, TV/Film, etc…
3. Placement of Songs
4. Placement of Artists [PP/Label]
5. Multimedia Uses and Sales
6. Sale of other Products, including Merchandise, when warranted.
My Legal Set-up:
The Record Company [“Company”] would be part of the Music Division of “Professor Pooch LLC” [“PPLLC”], involved with:
1. Production/Record Company – Artists would be signed with my Company, per Single, or through my Company to another Label – only if that Label approaches my Company, and my Company and Artist feel they should become involved in some way with them.
My Company would only consider Artists who are willing to do what Artists are supposed to do in the Music Industry in 2011, both musically, and in regards to being sociable, inviting fans to be a part of their Total Music Experience. Artist [or Musician or, Producer, or whomever] could, if they wish, use any alias they want…
2. Publishing – We would be using a good deal of my own songs. But, I will always be open-minded to amazing songs that grab me that are written by others! I’m not stupid – and I Love Great Songs!
Multiple people would be able to record one or more songs, with or without my Company’s involvement, as long as the arrangement and production are different, and it’s not released until after the Publisher has the right to choose who’s releasing the 1st version. [“Compulsory License”]
3. Management Division [“PPLLC”] – We would over-see projects, but will receive no income for Managing, except when we’re responsible for directly or indirectly making whomever or whatever “happen.” There will be no double-dipping! When earned, Management would receive 20% of the Artist’s Gross, to be split up with all the associates involved on that Project.
I will always be open to suggestions, from anyone involved in any Project, but I would have final say if a decision can’t be made - regarding any situation, for any reason. MY Name is on the line!!!
In truth, a Democracy rarely works in the Music Industry - somebody MUST make a decision at some point so things can move forward!
Yes, I would have a Team of Associates that would become involved on a Project by Project scenario… Also, from time to time, I would take on Interns, those who would really want to learn the Music Business, and help make the Project[s], a success.
Note: In most cases, Legal Contracts covering all our wants and needs, would be written and/or negotiated by me – but I would reserve the right to use outside Attorneys, in certain circumstances…
Record Company Business Model:
The Artist would be signed “Per Single.” Just for that Single - unless “something happens.” That is, somehow this Single jump-starts their career, wherein they should keep in mind, and reward, those who were responsible for helping make it happen, by extending “the Term” of service.
All accounting would be totally transparent to those involved with that particular project.
This would NOT be a 360 Deal!!! 100% of Artist’s Live Performance money is theirs to keep!!! [Unless they have their own Manager]
We would not Manage Artists, but are open to guiding their Manager, if they have one. The Record Company and Artist must be on the same page.
As with any Record Company, this Company would have the right to release or not release the Recording[s]. However, if Recordings are not released by the Record Company, Artist would have the right to release them, themselves. However, those involved, except for the Recording Company, would be paid as agreed…
My Company Criteria for “Signing” an Artist:
Artist & Musicians/Groups/Bands:
1. They would have to be considered an “Unsigned Artist”. That is, they are not signed with a Major Record Label or Subsidiary. Artists may be signed to, and are encouraged to form, their own Indie Label. Artists already with other Indie Labels would be considered on a case by case basis [through the Production Company.]
2. Artists must know how to “communicate” a song. [If they can’t feel a Song – they shouldn’t do it!]
3. Details of what I look for in an Artist can be found at this Link:
http://www.professorpooch.com/Superstars.htm
Note: I may choose to be one of the Artists, myself – depending on the Song, and if it makes sense…
Money Splits:
Note: These are generalized; there may be variations due to participants and situations… All are from “the net” [as opposed to the “gross”] – full, transparent accounting will be made available to all on that Project…
Artists: 15 points [“pts.”] for sale of Physical Products [if released in that form]; & 35 pts., for Digital Products
or
Musicians: If not part of a Group, they will receive 15 points [pts.] Physical & 35 pts., Digital – which would be split equally between all the Musicians, including Vocalist]
Songwriters/Publishing: The actual Songwriter[s] would receive 100% of the writing money. The Publishing income would be split 50-50 between Writers and the Publisher.
Arrangers: 2 Pts.
Producers: 4 pts.
Studios: a 50-50 split with Company of the Master[s] and its income.
Engineers: 2 pts.
Note #1: For all roles in a Project, if more than one person are involved in that role, the amounts are expected to be split equally.
Note #2: All participants would receive proper recognition for their efforts, which would be displayed prominently, if at all possible.
Other:
Promotion & PR – will be overseen by Management, utilizing a Team of “Trusted Associates.” However, every Musical participant in every project must agree to promote any product they were a part of.
Web Site / Networking: We would have our own Web Site and would be well covered on the Internet, Mobile, etc., including the Social Networks. An agreed upon, off-the-top, per song, set amount would be paid from Income, and would be split between Web & Promotion Associates …
MISCELLANEOUS PROVISIONS:
1. I would expect all involved in any way on any Project to Act & Be Professional at all times! That means: No Drama; No Egos. This would be a Team Effort, & Everyone must treat Everyone, and Everything, with Respect.
2. There would be no coming to me with any products, unless requested. If you are great at what you do, believe me, I will have heard about You, or will hear about you, somehow, someway, from someone!
3. Due to my location, I would use Greater Philadelphia Area Studios, and they would be invited to offer use of their Studios, on a song by song basis, with the understanding that they can pick the Project[s] they wish to become involved with…
4. I would, at times, look for certain people for particular situations. If I ever would need a particular service or person or whatever, I would approach that person or company, or announce it…
5. There would be very few, if any “employees.” People would normally receive their income for what they actually do… Interns wishing to learn the Music Business, and help with the cause, would be able to approach me, and if it’s a “fit”, we would talk about it…
6. At times I will post song demos, and if an Artist or Group would be interested in doing one of the Songs, and feel they can do it justice, we would discuss it…
7. Legal contracts & releases, etc., would be signed “Per Song” with everyone involved, spelling out everything! Everyone would be invited to use an Independent Attorney of their choice, if they so wish.
8. In regards to all the roles I mentioned, you should only pick the products and project[s] that you believe in!
9. There would be little, if any, expenses to recoup, before payments are made!
10. No one involved would be expected to pay for anything involved in their part of the recording process for their project up front! $0.00!
Well, that’s it in a nut shell!
Oh, by the way…
1. Ya know, it’s very tempting to me to want to really do this… Hmmm…
2. You are welcome to steal any or all of what I’ve mentioned. Obviously, as I said in the beginning, I built it around my wants and needs, and my strengths and weaknesses. You’ll need to adjust it to your strengths & weaknesses, and work with others who are strong, where you are weak, like I would do…
Now, if You are seriously interested in starting your own Production and/or Record Company, in any way, shape or form, I will ask you to keep two things in mind, before you start any major project like this:
1. Either know the Music Industry and how it operates, inside and out, or, see either me, or someone else who really knows the Music Industry for guidance in pulling off any or all of the above. I will be happy to help you design your own Company, to fit You.
2. Either know the Legal/Contractual end of the Music Industry, and how the Music Industry operates, or see me or an Entertainment Attorney specializing in the Music Industry, to make sure you’re protected and your contracts are in place, personalized to your exact situation, wants & needs…
Well, the only other thing to add at this moment is:
Welcome to the 2011 version of the Music Industry -
where You, have the Freedom, to be You!
And, as I always say: STAY TUNED FOR THE NEXT EPISODE….
David J. Spangenberg
“Professor Pooch”
Music Business Career Guidance,
Educator, Author, Consultant,
Music Legal & Contract Specialist
musicbiz@professorpooch.com
Reader Comments (6)
Great post David.
2 questions
1) Why a different percentage for physical and digital sales?
Digital
Artist 35.0%
Musicians 35.0%
Arranger 2.0%
Producer 4.0%
Engineer 2.0%
Sub-Total 78.0% from 100% = 22% / 2 = 11%
Studio 11.0% if 50/50 split with company of master
Company 11.0%
Physical
Artist 15.0%
Musicians 15.0%
Arranger 2.0%
Producer 4.0%
Engineer 2.0%
Sub-Total 38.0% from 100% = 62% / 2 = 31%
Studio 31.0% if 50/50 split with company of master
Company 31.0%
From what I just calculated the studio would make more than twice what the artist made from a physical sale.
2) Can you explain further about the Studios?
In one place you said, "Studios: a 50-50 split with Company of the Master[s] and its income.," and in another place you said, "they [studios] would be invited to offer use of their Studios, on a song by song basis, with the understanding that they can pick the Project[s] they wish to become involved with…"
The first one sounds like a 50/50 profit sharing scenario, and the second one sounds like the studios would be donating studio time free of charge. Can you please explain further?
Great post David.
2 questions
1) Why a different percentage for physical and digital sales?
Digital
Artist 35.0%
Musicians 35.0%
Arranger 2.0%
Producer 4.0%
Engineer 2.0%
Sub-Total 78.0% from 100% = 22% / 2 = 11%
Studio 11.0% if 50/50 split with company of master
Company 11.0%
Physical
Artist 15.0%
Musicians 15.0%
Arranger 2.0%
Producer 4.0%
Engineer 2.0%
Sub-Total 38.0% from 100% = 62% / 2 = 31%
Studio 31.0% if 50/50 split with company of master
Company 31.0%
From what I just calculated the studio would make more than twice what the artist made from a physical sale.
2) Can you explain further about the Studios?
In one place you said, "Studios: a 50-50 split with Company of the Master[s] and its income.," and in another place you said, "they [studios] would be invited to offer use of their Studios, on a song by song basis, with the understanding that they can pick the Project[s] they wish to become involved with…"
The first one sounds like a 50/50 profit sharing scenario, and the second one sounds like the studios would be donating studio time free of charge. Can you please explain further?
H Foster Hagey! & Thanks!
1st, the difference between physical and digital royalties needs a short history. To make a long story short, many labels are getting sued [example, the Eminem case] trying to pay the Artist the same for digital downloads [which is really "Licensing"] as sale of CDs. Since there are no "Packaging Costs", etc., I'm offering more to the Artist for Downloads, and the like...
Re: the Artist & Musicians split - it would be one or the other. That is, either it would be the Artist getting 35%, split between the Artist & Musicians, OR the Musicians and singer, acting as a Band, getting 35%. Sometimes it would be a put-together kind of situation where there wasn't really an Artist per se. So it would be one or the other - not both...
Re: the Studio - I would NOT be paying for Studio time, per se. They would donate their time for a 50-50 split with the Record Company of eventual income. Studios would donate their time for this opportunity... The studios should only get involved in projects they believe in - just like I would as the Record Company. Studios also need a separate source of income in 2011 - more than just being a studio... My article re: this is at: http://www.professorpooch.com/main/music-business-studio-owners-surviving-succeeding-in-the-21st-century
I hope that clears it up...
PP
Interesting take, although as presented it fails to answer a key question - to my mind at least: what is the incentive for an artist to sign to such a label in the first place?
It appears to me that this post mostly outlines provisions that are meant to be favourable for the label - at least, for a certain vision of the label. It's all well and good, but a label is nothing without talent and this does rather read like: "musicians, if you are really good and do what I say, you just might be worthy to work with me". Now, given that label involvement isn't necessary to enter the market these days, what advantages would signing with your label entail?
In other words: any label needs artists, but artists don't necessary need a label. What would be in it for us?
Hi Faza!
In actuality the article was meant to leave quite a few things unanswered, and I intended to almost go line by line, explaining reasons for each - but I realized it would end up as a whole course :) So I left it the way it was, at least for the time being, as an outline, just to get people thinking - and working on making a situation that was best for THEM. Please keep in mind - I'm a Music Business Educator :)
Where I WAS "Selfish"? As I said in the beginning of the article, I kept in mind "MY Wants & Needs" - and I'm a Songwriter :) I would think, as it is written, that the purpose would be a way for a Songwriter/Publisher to get masters of songs, plus to help others who are great writers. Today's music industry lacks great writing...
However,if you look closely, it was written to be favorable to everyone involved - way more so than any other Label, unless you were doing it yourself - which I did recommend setting up. And btw, keep in mind, the label would be splitting it 50-50 with the Studio. Everybody involved would be included and "paid" in some way... Plus people would be able to record with top people in top studios - at no cost... And also learn a hell of a lot about the Industry, from myself and others. And they'd be signing for just 1 song - no long time commitment if the recording wasn't successful...
Again, as I said, I left quite a lot unanswered. The real question is: What would you consider as best for you? :)
PP
pooch@professorpooch.com
Hi Professor,
I really appreciate you responding to my comment on your post about "If I owned a record company."
First off, thanks for clarifying the Artist vs Musician question I had.
Second, how do you plan to establish the trust with the studios to have them take on the risk and costs of production without having a well established track record of success. The studios have to pay rent, electricity, equipment maintenance and much more, but you are asking them to defer their payment for these upfront costs until maybe something hits. Seems like a hard sell to me. How is a studio supposed to establish the resources to take on such a risk?