Music Industry Point System ..... PLEASE EXPLAIN

  • Thread starter Thread starter Binocular
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Binocular

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I'm about sell a beat to a cat def jam ......... my price for the beat

is 10G's since he's on a corporate label and i'm that huge yet.

credit on the album of course

but, i know should ask for "points" on the track as well.


but,

WHAT ARE POINTS? HOW MANY SHOULD I ASK FOR
.........

I remember that TLC got ****ed over on "points" they sold millions of copies but, only got 3 points

WHAT ARE POINTS?

could someone please help me out
 
If you are SELLING (Assigning) your song or beat why should you get royalties? You don't own it if you sell it.

IF you licensed it exclusively to the party, you would still OWN it and collect some royalties.

Selling = transfer ownership (you get no royalties)

license= you have ownership and you are entitled to royalties.

You need a lawyer foreal.
 
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Anytime you are in that position you should have a lawyer!
 
You can sign a bad contract (I seen them) which could transfer ALL of your SONGS (present and future) to a single company. That would screw you for life.
 
junebugz said:
If you are SELLING (Assigning) your song or beat why should you get royalties? You don't own it if you sell it.

IF you licensed it exclusively to the party, you would still OWN it and collect some royalties.

Selling = transfer ownership (you get no royalties)

license= you have ownership and you are entitled to royalties.

You need a lawyer foreal.
Click to expand...

not true
 
Seany Mac said:
not true
Click to expand...

Your right but............

If you assign a song, you do not OWN it anymore but you may get royalties from it. THAT IS TRUE.
 
It all depends on how your contract is written. You need a lawyer that specializes in entertainment. Not just any lawyer. Most don't have a clue unless they specialize in this field.Never enter into a deal without one.You could lose alot of residual income by going in blind.Also points are for the artist. You may hear someone say they got a 14 pt deal. That means they will collect 14 % of the record sales. That's on the wholesale price and not the full retail price.The record may retail for $19.99 but the store only paid $ 10.99. The artist's share would be 14% of $10.99.
 
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junebugz said:
Your right but............

If you assign a song, you do not OWN it anymore but you may get royalties from it. THAT IS TRUE.
Click to expand...

thats better
 
#1 - I know A&Rs and artists who are on Def Jam and actually am partly responsible for getting one of the acts on the label. I know that if the producer doesnt have a large name they are not going to pay 10G's for a beat and also pay royalties on it.

#2 - If you really are dealing with 10G's per beat you should already have a team of lawyers. If you don't have one yet and live in nyc, la, atl, miami, chicago then you should have some good ones in your local area you can find. If you don't live by a large city then find one in a large city and travel to closest one. Do not find a lawyer who does divorce or general stuff in your area because they really don't know the fine details of everything.
 
^thats true but anyway how the points system works is like this:

points = percentage of album price / total amount of beats on the album

so for example you got 2 beats on an album for with 20 tracks which sells 50 000x for 14 dollar a CD with 3 points for you.

That would be 0,021 cent for each album for each beat. So in this case you would get 2100 in total.

I think 3 or 4 points is normal. Although I have no experience with it myself I just got this from some book.
 
ok its like this...let say you produced one song on the release..

you get 3% for producer royalty rate..and the SRLP is $18.99

it will look lke this (i thought i posted this on here)

$18.99 x 0.03 = $0.569 ~ $0.57 if you produced the whole project.. but you didnt..so you need to divide the number by the number of tracks on the project..

$18.99 x .03 = $0.569 / 15 songs = $0.0379 per song

hope this help
 
so its:

points = royalty rate

x

price of cd

/

# of tracks

=

royalty per track

? is that the right equation?
 
"Assign" is a broad term. You have to be specific as to what rightrs you are assigning. Admin only, which means you pay them an administration fee annually. Assign publishing and you only get writers share. Split publishing and the percentage of the publshing you retain as a co-publisher. Assign rights to get the song into film, movies, commercials, what????????. Make sure you know what you are assigning.

MusicPrivateEye
 
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to what artist are you sellin this beat to ... out of curiousity????
 
I was about to ask the same thing! and great thread!
 
Ok I love this thread Because ive been trying to understand this Point system, Now... How do i go about to add points to my beats.. What forms or appliacations do i need to fill? Does anyone know ?
Thanks
 
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