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I got a response from a label (pg. 3)
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| Storyteller |
| quote: | Originally posted by G-Con
1)The general gist of it is that I'm am signing over full rights of ownership to them in everyway and giving them full control. Sounds scary but is this standard? |
A normal contract only grants a label the rights on the master recording for a period of time. After this time all rights go back to you and you could sign it again somewhere else if you want.
If you were signing away all rights on the recording you wouldn't get any royalties in a normal case. Just a flat fee. I never heard of a case where someone signs away all rights but does get royalty payments... (Maybe this would be the first?)
If the contract mentions a timeframe in which it is active you're not signing away all rights :). A normal timeframe would be about 5 years imo. Unless you don't mind it being more :).
| quote: | | 2)For digital sales, they say I will get 16% of the gross income, minus all the costs they have incurred. Does that sound about right? |
Generally most digital labels (is it a digital only label/release?) grant an artist 50% of the profits. Which almost always is 50% of the generated income through digital sales. Publishing music digitally on webshops is free. Promotion could cost a bit. So when thinking it over
16% is .
| quote: | | 3)I get 50% of income for reproductions from inhouse compilations, reproductions sold through clubs etc. (Have no idea what this means) |
Every artist on the compilation needs to get payed. Based on the playing time on the compilation you will be paid a percentage agreed upon by your label and the compilation manufacturer. You'll get 50% of the income the compilation generates. This means the other 50% will go to the label. This are standard percentages.
| quote: | | 4)What does this paragraph mean. "This transfer of rights also contains the right to solely use and Exploit the Track and Title as specified above in each and every form within the Territory under any name, label or trademark " |
| quote: | 5)In the calculation and settlement of royalties section, there is one bit which caught my attention. Can anyone explain it please?
The Label is allowed to make a reservation up to 25%(twenty-five percent). These reserves shall be liquidated within 2(two) accounting periods
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As sr126 said. for both :)
| quote: | | I know asking questions on here probably isn't the most professional way to go over a contract but its not as if I'm gonna pay a solicitor to go over it so I hope that maybe some of you who have signed these kind of contracts before will be able to help me. |
This is the part where I mostly disagree with sr126. Good thing you asked here. A lawyer is a better choice if you want to take the safe road BUT it is so expensive you probably won't get the costs earned back with this record deal. If you have any questions you could ask the label as well. They should be very helpfull if they really want you in their portfolio :). |
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| G-Con |
| quote: | Originally posted by Storyteller
Generally most digital labels (is it a digital only label/release?) grant an artist 50% of the profits. Which almost always is 50% of the generated income through digital sales. Publishing music digitally on webshops is free. Promotion could cost a bit. So when thinking it over
16% is . |
Thanks Storyteller for this bit of info. Can anybody else who has experience of getting their stuff signed PLEASE tell me what sort of % I should be aiming for realistically. At the moment they are offering 16% on digital and cd releases after costs have been taken out... |
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| Storyteller |
| quote: | Originally posted by G-Con
Thanks Storyteller for this bit of info. Can anybody else who has experience of getting their stuff signed PLEASE tell me what sort of % I should be aiming for realistically. At the moment they are offering 16% on digital and cd releases after costs have been taken out... |
From my experience it is often a 50/50% (sometimes 60/40 in advantage of the label) split after cost deduction, or a percentage based on the sales income before cost deduction (often between 12-20%).
If it would be 16% before cost deduction it would actually be a decent deal (if there are vinyls/cd's being manufactured). But if the release is only digital you're getting ripped off imo. (But knowing the company you're signing to there's more to it :D)
On the other hand you have to get your name out there. And you should start somewhere. You could accept the offer or request minor changes and sign it. Then just don't deal with them again and try out some other labels as well for future releases :). |
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| XvN |
congrats! and good luck!
Let us know how it all turns out :) |
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| Drik |
| quote: | Originally posted by G-Con
After sending my tune out to quite a few labels yesterday, I got a reply this morning (quick!) from one of them saying they would like to hear any other tracks I've done and to send them a cd with these tracks.
They said, once receiving the cd, they will contact me to discuss a possible collaboration with their company.
Firstly, is this the standard procedure for a label to take? Does it mean they really like this and wanna hear what else I've done aswell? Or could it more likely mean thay they thought this tune sounded ok but not good enough but they are hoping other tunes i've done might be better?
Main problem I've got is I haven't really got any other tracks to show them. This is only the 3rd tune I've completed, and the first two are okay but not as well produced and different genres aswell.
If I tell them this is the only track I have at the moment, might they still be interested or is it unheard of for labels to sign just one track off someone?
One other thing, should I be concerned about sending a cd of my tune to a label when it isn't copyrighted. From what I can tell, they aren't a very big label, based in Italy. Should I be concerned? |
Just tell them that this track is what it's about and other works is irrevelant, also you shouldn't need to send them a cd, if they reply, a mp3 should be good enough. Actually, 99% is signed by listening to a mp3. |
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| Drik |
| quote: | Originally posted by G-Con
I've now had an offer of contract from a different label who I won't mention for now for ethical reasons but they seem like a pretty decent label. I've been goin over it trying to cut through the jargon and understand it all.
1)The general gist of it is that I'm am signing over full rights of ownership to them in everyway and giving them full control. Sounds scary but is this standard?
2)For digital sales, they say I will get 16% of the gross income, minus all the costs they have incurred. Does that sound about right?
3)I get 50% of income for reproductions from inhouse compilations, reproductions sold through clubs etc. (Have no idea what this means)
4)What does this paragraph mean. "This transfer of rights also contains the right to solely use and Exploit the Track and Title as specified above in each and every form within the Territory under any name, label or trademark "
5)In the calculation and settlement of royalties section, there is one bit which caught my attention. Can anyone explain it please?
The Label is allowed to make a reservation up to 25%(twenty-five percent). These reserves shall be liquidated within 2(two) accounting periods
I know asking questions on here probably isn't the most professional way to go over a contract but its not as if I'm gonna pay a solicitor to go over it so I hope that maybe some of you who have signed these kind of contracts before will be able to help me. |
Some answers to your questions:
1) Yes it can happen, be very sure it's the right label for you if you want to take that road, otherwise look for other options, for example Black Tiger Recordings (www.blacktigerrecordings.com) got me on a ministry of sound release, they have 50/50 royalty, and it's a nonexclusive contract.
2) Standard for indie labels is almost always 50% Royalty. For a 16% royalty, you should get a advance at minimum 750 euros, or a _really_ good promotion offer.
3) They press for example 100 copies of inhouse compilations to sell at clubs, if theres 10 tracks on it and you're one of those 10 tracks, you will get 50% of your track, so if it sells at 10 euros a piece, sales generate 1000 euros total, meaning your track pulls 100 euros, meaning you get 50% of that.
4) Meaning, they have full rights to do whatever they want with your track, license it to music compilations, license it to bigger labels, and you get 16% of that since your royalty rate is 16%, not a good deal mate :)
5) Means they can choose to pay you 75% and have 2 years to pay the remaining 25% within 2 years.
I'll be honest with you, this isn't a very good offer, so the important bit is if you're going to take it because of promotion of your music.
This raises some important questions that you need to ask, what can they offer you in promotion? How have previous releases been promoted? Do they have any connections with dj's etc. Basically, the more connected they are, the better. |
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| skot_e |
(1)You shouldn't sign over full rights of ownership
(2) If gross income is $1000, you get $160 less the cost to them of making any sales? You'd definately want to know what those costs are, cos if it's $160, you'd get zip.
(3)As Drik says
(4) You sign over the right for the label to onsell your work, not necesarrily under your name, with them solely able to use for themselves. ie you get zip. (That is how I understand that)
(5)?? |
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| Storyteller |
| quote: | Originally posted by Drik
I'll be honest with you, this isn't a very good offer, so the important bit is if you're going to take it because of promotion of your music.
This raises some important questions that you need to ask, what can they offer you in promotion? How have previous releases been promoted? Do they have any connections with dj's etc. Basically, the more connected they are, the better. |
Oh and they are connected!
On a sidenote, 750$ is rediculous. Nobody will offer that kind of money to a first release unless more than that income is guaranteed. This label is fresh in the bussines which is something which should also be taken into consideration. Their connections however are very very interesting and they do a lot of in-house compilations. They handle a few 100 releases a year (singles, compilations, vinyl, publishing artists etc), so getting on at least one compilation is more or less guaranteed. |
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| Drik |
| quote: | Originally posted by Storyteller
On a sidenote, 750$ is rediculous. Nobody will offer that kind of money to a first release unless more than that income is guaranteed. This label is fresh in the bussines which is something which should also be taken into consideration. Their connections however are very very interesting and they do a lot of in-house compilations. They handle a few 100 releases a year (singles, compilations, vinyl, publishing artists etc), so getting on at least one compilation is more or less guaranteed. |
Yes, and 16% is rediculous, hence the sarcastic sum.
Black Hole offers almost the same royalty rate to new artist and you get 750$ in advance. My point is, as a indie label, 16% is too little.
So, the only reason I see to sign on to this is the promotion.
Btw, how much are we talking about here in promotion?
For example, my friend has 30% royalty at Wonderland records, and for that they get:
1000 printed copies of their album.
Label hires a promotion firm, press coverage, radio commercials, web advertising.
Photo costs for covers and design costs covered.
50% of studio costs.
Non-exclusive rights. |
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| Storyteller |
| quote: | Originally posted by Drik
Yes, and 16% is rediculous, hence the sarcastic sum.
Black Hole offers almost the same royalty rate to new artist and you get 750$ in advance. My point is, as a indie label, 16% is too little.
So, the only reason I see to sign on to this is the promotion. |
Let's just say there's more to it. I signed to them for promotion amongst other reasons which will be vey benificial to me later on :).
Do realise that it's G-Con's first release, signing for the promotion would probably be the best thing to do in the first place to get his name out (and makig a good start and way up to a bright future in music). Good promotion is worth far more than 750$ even if you have the possibility of earning half (could be double as much as well) of that right now. |
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| EtherealSL |
| quote: | Originally posted by G-Con
Firstly, is this the standard procedure for a label to take? |
Generally no. If a track is good enough, it will be reflected in an mp3. You don't need to send a CD anymore.
Lol, and don't get a lawyer. Record sales barely make enough to be worth the cost. |
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| Drik |
Just spoke with Storyteller.
G-Con, it's worth it due to the promotion it will give you :)
Congrats |
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