Working with royalties

[Lito313]

Hello FP, i have a current situation where an artist contacted me for studio time and productions. He claims he just signed a distribution deal, and offered me royalties in exchange for work. Is there a way i can find out for myself if this is really true? He says he is registered with BMI.

any tips on this subjest are greatly appreciated, lay it on me!!!

 

[Rekordhead]

Sign a contract

 

[bandcoach]

this guy is asking you to invest in him on the promise of something that may not eventuate

therefore, you should ask for a copy of

* BMI member number
* signed contract from the distributor relating to the deal agreed to

in return, you should then generate a contract that stipulates payments to be received as a percentage of royalties, with several clauses stipulating default payments to be made at regular intervals if sales do not follow projections

that is, the contract you agree to should include a mechanism to ensure that you receive money to cover the overheads related to recording (rent, electricity, water, gas, loan interest, salaries of staff, etc) on a quarterly basis as well as allowing for such payments to be recovered from future royalties due to you, if sales pick up

in other words protect yourself as best you can

in drawing up the contract ensure that you get input from a lawyer of your \choosing to ensure that you do not have any weasel words inserted in the regular payments clauses

 

[agivens]

* signed contract from the distributor relating to the deal agreed to

You can ask, but for the most part nobody will let you see the terms of their contract; it just doesn't happen if you're dealing with someone of significance.

The BMI # is a good thing to ask for, but in general you should be asking for a set amount over a period of time (a payment now and a payment several weeks/months down the line) so that you get something guaranteed.

of course, you can always ask for details of the deal and see if their story stays consistent as the details are revealed.