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Zak McKracken
Trance
Registered: Jun 2003
Location:
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beatport takes 50% and some extra fees for creditcards etc.
the label takes 50% and fees for promotion. artist is left with nothing.
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May-31-2009 22:32
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KennethThomas
Supreme tranceaddict
Registered: Mar 2003
Location: Detroit, mi
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| quote: | Originally posted by palm
beatport takes 50% and some extra fees for creditcards etc.
the label takes 50% and fees for promotion. artist is left with nothing. |
haha... no. Not exactly.
The 50% for the label is NOT from the gross sale amount, its %50 from the amount the label receives.
Very basic example:
Say the label has a 50/50 deal with Beatport and the artist has a 50/50 deal split with the label.
The track sells for $2 (round it up a penny to keep the math more simple).
Beatport takes $1 the label takes $1.
The label then splits that $1 with the artist 50/50, in this scenario the artist makes .50.
Now, yes their are clauses built into most contracts where the label can recoup some other costs (promotional/remix fees) which can often times lead to the artist making very little on a track or even nothing. Thats why its good to get a heathly understanding of what your contract reads in signing a track. Also, ask the label for accounting statements on a regular basis to see where all the money is going.
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Jun-02-2009 00:40
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a98
Supreme tranceaddict

Registered: Jan 2004
Location: Kotka, Finland
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| quote: | Originally posted by supersaw abuse
How does revenue work for remixes? Say Rank 1 did a remix of a Marcel Woods song - if I purchased the Rank 1 tune, would the artist revenue be distributed between the two of them, or would Marcel Woods get the whole income?
Also, what about collaborations? Are those split evenly? What about when a collaboration tune is remixed, as happened with the Rank 1/Alex M.O.R.P.H. tune "Life Less Ordinary" a couple years back? |
with big name artists such as the ones you mentioned, the remixers are payed in advance fees. and just like advance payments for original artists this is slowly changing and more and more labels are just going to pay royalties to remixers as well. especially smaller labels.
there's no standards for those, but what i've seen is, from the amount the label receives, either:
25% to original artist and 25% to remixer(s)
10% to original artist and 40% to remixer(s)
0% to original artist and 50% to remixer(s)
these are the most common that i've seen, but it all depends on the contract.
with collabs the royalties are of course split between the two, unless they have their own agreement.
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Jun-02-2009 09:26
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KennethThomas
Supreme tranceaddict
Registered: Mar 2003
Location: Detroit, mi
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| quote: | Originally posted by supersaw abuse
How does revenue work for remixes? Say Rank 1 did a remix of a Marcel Woods song - if I purchased the Rank 1 tune, would the artist revenue be distributed between the two of them, or would Marcel Woods get the whole income?
Also, what about collaborations? Are those split evenly? What about when a collaboration tune is remixed, as happened with the Rank 1/Alex M.O.R.P.H. tune "Life Less Ordinary" a couple years back? |
My experience is that the remixers rarely see any back end %. I actually prefer no back end as it is so hard to collect and takes ages, so i prefer a flat fee. A lot of labels prefer this as well as then they dont have to account for that remixer on that one version of the track. They can still keep the basic split between the original artist and label the same across the board on all the mixes on the package.
Although, I am now seeing labels who dont want to put much money up front offer larger % on the back end to entice bigger remixers. It may even turn into a flat 50/50 backend deal with the remixer for their remix with the Original artist cut out on that one version if this added name is adding much more to the package.
Bottom line though, there are all sorts of deals and splits and it can vary from project to project and label to label.
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Jun-02-2009 15:55
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