Originally Posted by: snojones

Don't forget that the record buisness also has a reputation for ripping people off. read...SHARKS IN THE WATER... That has to gum up the works a lot.

Sharks. Totally true.

I figure if folks are interested in a little more of the 'inside baseball' of the music business, I'd add this: As an artist, you have potential to be paid on two different types of royalties; mechanical and publishing.

Publishing royalties are what we've been talking about in this thread. Publishing royalties are what is paid to the songwriter. Whether you are the performer or a songwriter of a song performed by another, if that song sells as part of a single or album realease, for each sold, you get paid as the songwriter. The going rate is $.08 songs 5 minutes. For songs longer than 5 minutes, it is $.0155 per minute for songs that are over five minutes long (Yes, I did look that up just now..like I could remember all that!).

Publishing royalties are the royalties that actually get paid. So long as you set up your own publishing company as a legal entity (like you see on album credits 'Funky Stink Publishing Inc'). That entity utilizing a Harry Fox Agency to collect, as the writer, you'll get paid.

Then there is mechanical royalties. This is where all the stinky hijinks happen in the music business (at least as far as sales). This is also known as 'performance royalties'. If you perfromed on an album, you may be eligible for a royalty.

May? Yes.

If you were paid as a contracted worker as a flat fee worker, you get paid for that session. That's how session musicians are paid. The more you're called, the more you're in demand and can command.

If you're in the band and the band is generally the performers on the album, they get to make part of the money on the album sales overall (seperate from publishing). How much are you paid? Versus publishing, mechanicals are whatever is negotated between the artist and the label.

Best music business advice I ever heard was in response to the question; what would you say is the best advise for a young musician? Answer? 'Get a good entertainment lawyer'. It's true too.

Mechanicals tend to be measure in 'points'. You'll hear things like a producer asking for '5 points' to produce the release. What's the value of a 'point'? Nobody knows. It's whatever is negotiated. Nothing is set.

After you remove all those expenses like promotion, damaged product shrink, advance money and all manner of other things, you get what's left over.

Or do you?

How many bands have said they got screwed by the business? The answer is 'all of them '. Why is that? The answer is; 'so, sue me'.

Back in the day 'in the industry', I had a few friends that had sold some records. I have a few stories in my pocket but one band (singer) told me the story that they never got paid, ever, from the label for their mechanical royalties. They sold platnum. Lots of records. You'd think that if the label had made $10,000,000 that the band should have pocketed something, right?

After it was all said and done, each member was due about $30,000. Not a bad take even if not exactly getting rich. But none of them got paid.

I was told that the label said to this band; 'if you want to get paid, sue us for it'. It's a finanancial calculation. It's likely that the label could end up costing you more than $30,000 for you to collect. They know that. So you end up walking away with nothing.

This was not a unique story. Thus having a good entertainment lawyer is essential along with not being so excited to sign any major label contract. If you have enforcable mechanisms in the contract in order to get paid, you'd just need a judgement in order to enforce. Not a lawsuit.

If you start selling enough that they need to pay you or you have a string of decent selling albums, you start to get paid as well as the opportunity to renegotiate for better terms. Now the label knows your value as a money maker and you're worth more to keep than lose.

...and so ends story time on the music business. Fun.