Royalty Contract?

S

SkullFaceBeatz

Guest
Hello,

So some guy (think he's an A&R) wants to use a beat of mine, will probably be sold quite much (to my standards, which are low), and we're coming to a royaly agreement, for me as producer.

Now it looks like this:


USD $200.- up to first 5.000 copies
USD $50,- per 1000 copies from 5,000 up to 25,000 copies
USD $35.- per 1000 copies over 25,000 copies


Example: For a total of 30.000 copies, the license fee is $200.- + 20x$50.- + 5x$35.- = $1,375.-


Am I being underpaid/overpaid with this agreement? Do I need to change anything?


All input is appreciated.
 
Last edited by a moderator:
Yeah, the 200. After 5000 copies the royalties start.
 
Before you step into this Royalty Agreement you should find out who will use the beat. Then you can do your research on how many sales they usually get from singles/albums.

---------- Post added at 02:34 PM ---------- Previous post was at 02:31 PM ----------
SkullFaceBeatz said:
Yeah, the 200. After 5000 copies the royalties start.
Click to expand...

never Under Sell yourself if they are buying your beat for $200 and you feel that is was worth $150 then you should take the deal but if you feel the beat is worth more then you should renegotiate the deal to what you feel the beat is worth. Always upsell yourself never Down. Your Always Worth more than you think.
 
Thanks, the thing is, I have literally 0 experience with selling beats. What is the normal price for a pop beat, of the same level as the ones in the charts? But from a producer that isn't known or popular yet?
 
SkullFaceBeatz said:
Thanks, the thing is, I have literally 0 experience with selling beats. What is the normal price for a pop beat, of the same level as the ones in the charts? But from a producer that isn't known or popular yet?
Click to expand...
Years of experience don't really matter its the quality of the beat. let me hear it and i will give you my opinion
 
SkullFaceBeatz said:
Thanks, the thing is, I have literally 0 experience with selling beats. What is the normal price for a pop beat, of the same level as the ones in the charts? But from a producer that isn't known or popular yet?
Click to expand...

take the deal if you have zero experience with selling beats
take the deal why??
you can build a relationship/connection get this person's contact info
that means phone number as well

stay in contact with him/her but not as a salesman as in building a relationship




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I'd take it, it is only a beat that he can get off the next guy anyway. $200 in your pocket = #win. I wouldn't even worry about royalties, like anyone sells that many copies anymore.
 
Not worrying about royalties is BAD ADVICE. Always worry about royalties.

The current statutory royalty rate in the United States is 9.1 cents per copy.

Based on the "royalties" offer you posted, this means that he is going to give you 4 cents per copy on the first 5000 copies sold. Then he is going to give you 5 cents per copy sold for 5001 through 25,000. Then he is going to give you 3.5 cents per copy sold beyond that.
 
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