Under a standard record deal, most artist royalty deals with a label are about 15%-20% of the retail price (i.e., in general if a record sells for $10 that's about $1.50 to the band) - its the same for a compilation, but instead of a solo act/band getting all 15-20%, its 12-15 acts splitting that royalty on what they call a pro-rata (fractional) basis - so in a compilation deal, the artist needs to ask for:
(1) A pro-rata royalty of 20% (and hopefully no less than 14-15%), and also if the artist can get whats called a "most favored nations" rate it means the artist gets paid the same royalty (pennies per sale) as all the other acts on the comp (even if there is a big name;
(2) That the label lists the artist's credit on the package (name and website);
(3) That the label can only use the artist's track for the compilation (i.e., nothing else like licensing to film/tv) without artist's permission.
Ben McLane Esq
benmclane.com
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So, if I have 10 artists on a CD compilation and they all get 1.50. I, the producer, will LOSE money? How can one MAKE money on a compilation or is that not the point of compilations?
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ReplyDeleteSo I should stipulate the listed information you typed above to My Company. I have a Compilation Album Distribution III 2 yr. 5,000 song contract with Songtradr The Music Solution. And I'm scheduled for receiving royalty payments to my Pro account on 6/30/18 or within 90 days of this date.I received this contract on 9/30/17.So it will take 9 to 12 months to start receiving royalties. Then I will get paid every quarter for a two year period,so it's more like one year since it took a year to start.Is this a normal distribution process?
ReplyDeleteMe and a Friend made a 13 song companion with about 10+ Local artist which we paid them upfront cash for there verse or hook.We have the masters which we also have the whole Compalation copyrighted,with cd already pressed to sell.My Question is how do we register are Compalation/ body of work so we can get streams/digital downloads/? Do we own all the rights to this music and if so should we sign up with BMI,etc?
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