It kind of works like this:
The producers are paid before/during/after the CD is made, meaning they gain no profit from the CD
The record company take a large profit from CD sales, meaning the band get stuff with some sort of £1 per CD sale meaning the band get squat while the record company are rolling in it.
But the record company has this money for areason, to pay for the band to go on tour and to pay the producer and engineers who made them in the 1st place.
Now the band mainly make their money through touring and merchindise.... merch is the way forward. Merch is usually created by the band and the record company has no control over the products, meaning, the band get full profits from the merch.
Touring is great for income aswell. Usually you rent out a hall, or huge venue blah blah blah and sell the tickets at the price in which the band(s) know they can pay the venue, while take in a fat profit at the end of the night, even if there was a bad turn out so thats why tickets in big venues cost alot of dosh (like £20-40 for some bands). So the band pay the venue, using the ticket profits, and pay themselfs using whatever is left.
Hope this helps
