Article From the Producers Den
Now before we get in depth, lets get a general understanding. There are 3 different kinds of production deals an artist and producer can partner up on. They are the following: The Mini-Record Deal, Joint Venture, and Work-For-Hire. But, before this idea is even entertained the artist MUST NOT be signed to a distributing label. But this is a VERY IMPORTANT issue among artists that are going the independent route. As you will understand later.
Now.
The Mini-Record Deal
Just as the name suggests this deal allows the producer to sign the artist to his production company, the same way a label signs an artist. At this point the artist is to work for and with the producer through out the length of the term of the contract. In exchange, the producer pays for everything. And in exchange for the artist’s services the producer gets around the same percentages as a label, which is 85% of the record and a publishing deal with the artist of 50% of the artist’s publishing if the artist is a writer on the album.
Next.
Once all recordings are finished, edited, mixed, hopefully mastered, they will then be shopped BY THE PRODUCER to either a major or independent label in hopes for DISTRIBUTION from the finished masters. There are usually THREE situations that this work.
1. Master Buyout: On this situation the record label of interest BUYS the completed master and pays a fee about equal to the same price if they would have signed, developed, and recorded the artist.. Around $25,000 US Dollars per SONG. The artist and producer recieves royalties also in this case. Usually 12-14% of the SRLP (Suggested Retail List Price). Again, the same as if the label signed and developed the talent.
There is reasoning behind this from the label’s point of view. They don’t take a huge risk on whether the artist will deliver. Get it? They can preview your product up and down before they deem you worthy of a purchase, thus ensuring their % of success with you. Yeah, it’s a dirty game, but this is a business of chance. Risks and Rewards.
ontinuing on.. Even though the record label has bought the master recording the artist is STILL not signed to the record label, the artist is still with the producer remember? So, usually the label signs the producer’s production co, this contract resembles the one that is used to sign the artist by one’s self. The producer is know as the ‘furnisher’ in these contracts. The artist is then presented with a ‘Side Chain Letter’. This letter states that the artist will perform exclusively for the label THAT the producer has the deal with, even though it is the producer that signed it.
2. Master Licensing Deal: This deal is just about a direct copy of the former, but a few twists. Understand that the records recorded with the producer are NOT shopped to be bought by a record label. Only to be licensed. What does this license mean? Simply to distribuite the masters for a period of time, think of it as a house that you rent with an option to buy. Although your upfront is lower than that if you had your master’s bought. Expect your licensing fee to be around $5,000-25,000 US Dollars per song, and lastly 12% of SRLP.
3. P&D Deal: This is yet ANOTHER branch from the ‘Mini-Record Label’ option. The producer in this case is changing his production entity into an actual label. This case leaves him just looking for an independent or major label to distribute his company’s masters.
The Joint Venture
This deal sets the artist and producer on equal footing, in this case the artist and producer share the finances AND responsibilities equally till the partnership is dissolved. How can the partnership be dissolved? This usually happens in the way of a record company wanting to sign the artist and NOT retain the producer for the record.
In the usual Joint Venture the ARTIST puts up money to do the recording and PAYS the producer a cheap amount for his services (refer to my post on beat prices to reference with the commanding price of ‘New Producers’). This is usually around $300-$500 US Dollars per song as an arranging fee or either production/engineering. The producer also recieves 5% of the backend. In exchance for this, the producer brings his expertise in producing records, he brings industry contacts to shop the once finished masters to and opt to get a record deal once recordings are done. A typical budget is about the same as an indie record deal. $5,000-$40,000 US Dollars.
These deals are better for those new in the game, as that they are usually written in plain english in regards to both parties responsibilities, and are actually WORKING TOGETHER. Unlike the last deal. (as you see how the artist can go behind the producer’s back and sign a Side Chain Letter with the Distribution Label).
The Work-For-Hire Deal
This deal allows the artist to ‘hire’ the producer, usually for a solid fee per song, around $2,000-$3,000 US Dollars per song. The producer’s ‘job’ is to produce the songs that the artist writes. This deal is different, as when the producer finishes his/her ‘work’ for hire the producer has his money, but no credit or claim on the master recordings. (personal note)
I’ve personally dealt with this one with an indie record label. As in the stipulations of the contract, I was to sign over my copyright of my track to the label owner for EXCLUSIVE use, also that it was only 1 track, BUT, under the Copyright that that track was under, signing over that copyright would have led the indie label exclusive use to all my tracks that were under that one copyright for their EXCLUSIVE use.
Be careful what you sign. As I didn’t sign it.
Ok, now you see that this isn’t limited to an artist signing a producer, oh excuse me. HIRING a producer for a certain number of tracks. Keep an eye out for the many clauses that are hidden deep in those 9 page ’standard’ contracts.
Keep in mind that the producer of these works will recieve a backend percentage. Usually of 3%-5%. This results on the artist acting on a ‘power trip’ as they are the ones to pay the producer, keep in mind of ‘expenses before recoupment’ simular to how record labels keep the artist waiting and waiting for publishing/royalties.
Risks. It’s the name of the game.
Now before we get in depth, lets get a general understanding. There are 3 different kinds of production deals an artist and producer can partner up on. They are the following: The Mini-Record Deal, Joint Venture, and Work-For-Hire. But, before this idea is even entertained the artist MUST NOT be signed to a distributing label. But this is a VERY IMPORTANT issue among artists that are going the independent route. As you will understand later.
Now.
The Mini-Record Deal
Just as the name suggests this deal allows the producer to sign the artist to his production company, the same way a label signs an artist. At this point the artist is to work for and with the producer through out the length of the term of the contract. In exchange, the producer pays for everything. And in exchange for the artist’s services the producer gets around the same percentages as a label, which is 85% of the record and a publishing deal with the artist of 50% of the artist’s publishing if the artist is a writer on the album.
Next.
Once all recordings are finished, edited, mixed, hopefully mastered, they will then be shopped BY THE PRODUCER to either a major or independent label in hopes for DISTRIBUTION from the finished masters. There are usually THREE situations that this work.
1. Master Buyout: On this situation the record label of interest BUYS the completed master and pays a fee about equal to the same price if they would have signed, developed, and recorded the artist.. Around $25,000 US Dollars per SONG. The artist and producer recieves royalties also in this case. Usually 12-14% of the SRLP (Suggested Retail List Price). Again, the same as if the label signed and developed the talent.
There is reasoning behind this from the label’s point of view. They don’t take a huge risk on whether the artist will deliver. Get it? They can preview your product up and down before they deem you worthy of a purchase, thus ensuring their % of success with you. Yeah, it’s a dirty game, but this is a business of chance. Risks and Rewards.
ontinuing on.. Even though the record label has bought the master recording the artist is STILL not signed to the record label, the artist is still with the producer remember? So, usually the label signs the producer’s production co, this contract resembles the one that is used to sign the artist by one’s self. The producer is know as the ‘furnisher’ in these contracts. The artist is then presented with a ‘Side Chain Letter’. This letter states that the artist will perform exclusively for the label THAT the producer has the deal with, even though it is the producer that signed it.
2. Master Licensing Deal: This deal is just about a direct copy of the former, but a few twists. Understand that the records recorded with the producer are NOT shopped to be bought by a record label. Only to be licensed. What does this license mean? Simply to distribuite the masters for a period of time, think of it as a house that you rent with an option to buy. Although your upfront is lower than that if you had your master’s bought. Expect your licensing fee to be around $5,000-25,000 US Dollars per song, and lastly 12% of SRLP.
3. P&D Deal: This is yet ANOTHER branch from the ‘Mini-Record Label’ option. The producer in this case is changing his production entity into an actual label. This case leaves him just looking for an independent or major label to distribute his company’s masters.
The Joint Venture
This deal sets the artist and producer on equal footing, in this case the artist and producer share the finances AND responsibilities equally till the partnership is dissolved. How can the partnership be dissolved? This usually happens in the way of a record company wanting to sign the artist and NOT retain the producer for the record.
In the usual Joint Venture the ARTIST puts up money to do the recording and PAYS the producer a cheap amount for his services (refer to my post on beat prices to reference with the commanding price of ‘New Producers’). This is usually around $300-$500 US Dollars per song as an arranging fee or either production/engineering. The producer also recieves 5% of the backend. In exchance for this, the producer brings his expertise in producing records, he brings industry contacts to shop the once finished masters to and opt to get a record deal once recordings are done. A typical budget is about the same as an indie record deal. $5,000-$40,000 US Dollars.
These deals are better for those new in the game, as that they are usually written in plain english in regards to both parties responsibilities, and are actually WORKING TOGETHER. Unlike the last deal. (as you see how the artist can go behind the producer’s back and sign a Side Chain Letter with the Distribution Label).
The Work-For-Hire Deal
This deal allows the artist to ‘hire’ the producer, usually for a solid fee per song, around $2,000-$3,000 US Dollars per song. The producer’s ‘job’ is to produce the songs that the artist writes. This deal is different, as when the producer finishes his/her ‘work’ for hire the producer has his money, but no credit or claim on the master recordings. (personal note)
I’ve personally dealt with this one with an indie record label. As in the stipulations of the contract, I was to sign over my copyright of my track to the label owner for EXCLUSIVE use, also that it was only 1 track, BUT, under the Copyright that that track was under, signing over that copyright would have led the indie label exclusive use to all my tracks that were under that one copyright for their EXCLUSIVE use.
Be careful what you sign. As I didn’t sign it.
Ok, now you see that this isn’t limited to an artist signing a producer, oh excuse me. HIRING a producer for a certain number of tracks. Keep an eye out for the many clauses that are hidden deep in those 9 page ’standard’ contracts.
Keep in mind that the producer of these works will recieve a backend percentage. Usually of 3%-5%. This results on the artist acting on a ‘power trip’ as they are the ones to pay the producer, keep in mind of ‘expenses before recoupment’ simular to how record labels keep the artist waiting and waiting for publishing/royalties.
Risks. It’s the name of the game.
