Custom Beats, asking for a down payment?

Shands

Shands

Dj Shands
Hey guys ive been receiving a lot of requests for custom beats however ive noticed a lot of times the initial buyer loses touch and never actually buys the beat(s). I want to start charging a down payment. I charge people via paypal. Is there a simple way to go about this? Id love to here some feedback on this. Thank you!
 
When I did custom beats online I'd ask for at least 1/2 up front and IMO that is generous. Getting the buyer to pay 100% up front might be a better route depending on the relationship you have with the other party.

Also:

Make sure that the buyer (1.) understands the rights associated with their purchase (2.) adds a note to the PayPal transaction that states that they are paying the first half of the payment and it is non refundable. (This ensures that you receive something for your work and this might make the transaction harder to dispute as well if the person isn't satisfied with your work and decides they want to retract their payment.)


Something to think about as well:

If you decide to sell custom tracks understand that without the other person physically in the studio with you it can be tough to get it right and that might mean spending more time making these tracks. So be sure and reflect that in your price.

Good luck.
 
Thank you for the wealth of great info! As for the actual payment, is there a way for me to charge the person for the down payment initially and then charge them again for the rest of the payment? What would be the best way of going about that?
 
Nope.

The way I used to do it was I got half up front and then when I was done I sent the artist a tagged mp3. Once the artist was satisfied with the mix / song I told them to make 2nd payment (again: including a note that reflected this) and then I sent the files for the beat.

Please note: This isn't legal advice but just advice based on my past experience.
 
Last edited by a moderator:
Shands said:
Thank you for the wealth of great info! As for the actual payment, is there a way for me to charge the person for the down payment initially and then charge them again for the rest of the payment? What would be the best way of going about that?
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It's called itemised invoicing:

you send them an invoice that details the payment schedule required and indicates timelines for, or expectations about, payments to be made

something like



Invoice #000001
Customer ID #1234
Custom beat
Preliminary payment $xyz must be paid before work commences
Final payment $yzx must be paid prior to final work being sent to customer
​

When a payment is received you reissue the invoice to show the received payment


Invoice #000001.a
Customer ID #1234
Custom beat
Preliminary payment $xyz payment received dd-mm-yyyy
Final payment $yzx must be paid prior to final work being sent to customer
​

When the work is completed to everyones satisfaction reissue the invoice with a due date


Invoice #000001.b
Customer ID #1234
Custom beat
Preliminary payment $xyz payment received dd-mm-yyyy
Final payment $yzx due in 7 days (dd-mm-yyyy)
Upon receipt of this payment the completed track will be forwarded to you.
​
 
bandcoach said:
It's called itemised invoicing...
Click to expand...

I think the op was asking if there was a way to ensure that he receives the total payment. - Although I do appreciate what you are referencing - it does not ensure that he receives the second half of his payment.
 
no, but it does ensure that the client knows the score and knows that if they walk away after paying for the project to start, they are losing money

also handy from an accounting point of view to show projected income vs actual income
 
bandcoach said:
no, but it does ensure that the client knows the score and knows that if they walk away after paying for the project to start, they are losing money

also handy from an accounting point of view to show projected income vs actual income
Click to expand...

Again: I do appreciate your contribution but the fact remains that the other party can still stiff the op regardless of this.

In an ideal situation the op shouldn't have to worry about people not paying the balance but in real world situations sometimes these things play out differently and some people will try and play you if they think they can regardless of how your agreement is presented, and lets be real, are you gonna go through the hassle of suing somebody for $100?

Think about it.
 
You miss the point - the client does not have to pay anything at all

By using an invoice, you the producer, clearly indicate that the project will not start until the initial payment is received - i.e. no pay no music made

No final product is delivered until the final payment is made - so the producer is only ever going to lose half of the fee not all of it

If the client chooses to runoff with the (sub-standard 64kbpscbr mono) mp3 used for demoing the work without paying the final fee then they have got their moneys worth and that is about it

at all points in the process, unless the work is done as a work for hire (different scale of payments btw), ongoing logging of copyrights and final registrations should be done - this will stop the client from claiming "all my own work" or at least give the producer grounds to pursue litigation if necessary, i.e. in spite of shit quality the track blows up and money is flowing like beer at a brewery party
 
i'd charge at LEAST 10% if they shy away from that AND you offer revisions then they were never about to buy in the first place
 
bandcoach said:
You miss the point - the client does not have to pay anything at all

By using an invoice, you the producer, clearly indicate that the project will not start until the initial payment is received - i.e. no pay no music made

No final product is delivered until the final payment is made - so the producer is only ever going to lose half of the fee not all of it

If the client chooses to runoff with the (sub-standard 64kbpscbr mono) mp3 used for demoing the work without paying the final fee then they have got their moneys worth and that is about it

at all points in the process, unless the work is done as a work for hire (different scale of payments btw), ongoing logging of copyrights and final registrations should be done - this will stop the client from claiming "all my own work" or at least give the producer grounds to pursue litigation if necessary, i.e. in spite of shit quality the track blows up and money is flowing like beer at a brewery party
Click to expand...



I found our disconnect: :hello:

Your angle makes some assumptions (-which mine does as well-) which is based off of our experiences.

Peep my angle:

My angle comes from the "independent online producer" level and assumes that we're not talking about a professional, possibly label backed "career musician" who understands and respects fundamental things like basic business practices and copyrights. From my experiences, on that level I usually get an email from some young cat to the tune of "Yo, do you make "custom beatz"? Typically these cats who want you to make these beats typically want beats that either (1) sounds like something they heard (eg: a remake) or (2) they want you to remake a beat that someone else made but is no longer available. (which I won't even begin to talk about the ethical issues surrounding that) But at any rate, in these scenario's there is a high probability that the other party might try and play you if they think they can so the method I've shared here applies to that scenario.

In an ideal world there would be only one level.

The professional one.
 
you have not identified a disconnect

- we are talking about how to handle clients/customers

- whether you're dealing with pros or wannabes you need to be professional in your paperwork

- this means
-- issuing invoices and receipts and
-- advising clients/customers up front about costs and contractual obligations and
-- securing your rights to any work that you perform

regardless of the level at which a client/customer is at, you need to be professional at all times and not allow yourself to be played
 
....Oh yeah, one thing I forgot to mention is the reason its in your best interests to get a larger deposit is because this helps secure the commitment from the inquiring party.
 
SFTRAXX said:
I think the op was asking if there was a way to ensure that he receives the total payment. - Although I do appreciate what you are referencing - it does not ensure that he receives the second half of his payment.
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The first half payment should be enough to motivate a producer to start and finish a fresh track, as the second half is a bonus for doing a good job. If the purchaser doesn't like their new track or decides not to pay, then the producer has just been paid to upload a beat to their FlashStore!
 
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Shands said:
Hey guys ive been receiving a lot of requests for custom beats however ive noticed a lot of times the initial buyer loses touch and never actually buys the beat(s). I want to start charging a down payment. I charge people via paypal. Is there a simple way to go about this? Id love to here some feedback on this. Thank you!
Click to expand...

Why would you do a custom beat for someone you don't know and havn't sold to before?

Also should i start charging a down payment for producers to use my vocals? I'm doing more work than the producer, seems only fair.
 
Olie said:
Why would you do a custom beat for someone you don't know and havn't sold to before?
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If you are in business then you take one of two positions with regards to custom work: you either do it or you don't: either position is fine, but stock beats will sell/lease for less. Custom work usually takes more time and so costs more to produce; it is also a way of establishing a relationship with new clients that goes beyond "here's a stock beat have fun"....

If you are playing at being a producer then you don't have to do custom work if you do not want to...

In either case remember to get your percentages set in writing - no wholesale selling of your work, rights and all.......

Also should i start charging a down payment for producers to use my vocals? I'm doing more work than the producer, seems only fair.
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Why are you not charging to begin with? Secondly, recording vocals is under the direction of the producer and so you do not know what your fee will be until they advise you that the job is finished - i.e. if you are charging an hourly fee then you can't charge until you know how many hours to charge for, leaving aside minimum session times and such as determined by the Musicians Union collective agreement
 
ProducerJC said:
The first half payment should be enough to motivate a producer to start and finish a fresh track, as the second half is a bonus for doing a good job. If the purchaser doesn't like their new track or decides not to pay, then the producer has just been paid to upload a beat to their FlashStore!
Click to expand...

Should def send an invoice with a note of the rights at least. That shows professionalism which goes a long way. Don't underestimate that.

Also, like JC said. Don't worry about the artist backing out after their down payment because someone else will like the beat will purchase it if you shop it online; that's for sure.
 
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