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This week That BIG contract - Let’s go -
First let me start with I am not a lawyer, and this by no way is attempting to offer legal advice. I just thought I’d way in on something that has been floating around the internet. It seems that the particulars of a current artists contract was leaked when she signed it in 2017. I have seen all kinds of comments calling her unintelligent, calling out her team, and of course demonizing the record company. In the words of Master P “don’t hate the playa, hate the game.” I’m not one for gossip so I won’t go too far into what they say was in her contract. Some “experts” say it was brutal; 85K advance and 15% royalty. Was it that bad? I don’t know, did it provide for her and her family’s needs at the moment? Again I don’t know. I do know that the industry itself was built on bad, backroom, under the table, scandalous practices. One writer said “bad deals were baked into the way the music industry operates.” So let me whisper this - get a team you trust and GET AN ENTERTAINMENT ATTORNEY! No not your cousin who is a paralegal, a bonafide entertainment attorney who is abreast of how the game is changing and where it’s headed next. Now I know some artist were living very hard lives before getting signed. Some have been homeless, living in shelters, their cars and other horrific stories. So they don’t have the money to go out and retain some high powered attorney, I get it. Another reason I don’t judge about the first contract. Now the second contract - that’s on you!
A few tips that I offer, first and foremost, read it! Don’t skim it, read it. If you don’t like to read - hire an entertainment attorney; they love to read. Can’t afford one, find a law student, or someone who just passed the bar, or someone who hasn’t passed the bar but has a law degree. Look at the length of time on the contract. My personal opinion is if you find yourself in a bad contract grind your way out. Meaning keep writing, release as soon as they will put you on the schedule, and don’t floss with advance money. Pay some bills sock the rest away - it’s nothing more than a payday loan; you owe it back, and they get theirs off the top first. Don’t take “stuff” as an advance. You don’t want to owe back money for gold chains, or a pick up truck. What is the territory and what are the terms of your deal? Is it world wide, or just north america? After you sign is not the time to find out. A typical artist's royalty is in the 12 - 20% range. Depends on a lot of factors. Your entertainment attorney knows and is up to date on these rates. Know what is to be invested; not just to make the record but to market the record. You should know actual dollar amounts of your production, video, radio promo, pressing, tour, merch, marketing and sales. All of this is to be paid back to the label before you see a dime. How much of your non record revenue are you willing to give up? This is where those 360 deals come into play. My personal opinion on 360’s is nobody gets anything for free. If they want a piece of the non record revenue, then work for it. You want touring money how much are you willing to pay for the tour? You want merch money? Are they making it in bulk and paying the shipping? This should be non negotiable, can’t be double dipping. Again I say a little louder - get an entertainment attorney. Lastly, let's say a label gives an artist a $1 million advance and it costs $200,000 to record their album. That means the artist has an unrecouped balance of $1.2 million. With a royalty rate of 20 percent, their album has to earn $6 million before they break even. Crazy right. So either stay independent or let me say it one mo time - GET AN ENTERTAINMENT ATTORNEY!
This week's #IAOTW - Independent Artists Of The Week is singer, songwriter Vick Jones from Birmingham Alabama.
For more information or to hire Unda The Hat as your brand or label consultant send a message via undathehat.com. See you next Tuesday.