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Who Else Wants to Receive A BIG FAT Royalty Check for Their Music?

Article Title: departments and the organizationto handle
============== this on-going duty. That helps you out a
Who Else Wants to Receive A BIG FAT lot. Oh,they take their cut too but for
Royalty Check for Their Music? the most part, if they treat youhonestly,
Who Else Wants to Receive A BIG FAT it is worth letting them participate for
Royalty Check for Their Music? Copyright the hasslethey save you in managing these
© 2005 Ty Cohen Music Business Phone details. There are four kinds
Book ofroyalties to discuss before we are done
Some Help with Figuring Out the Sometimes with this topic and thoseare...
Confusing Ways * Mechanical Royalties
That Artists Are Paid For Their Work In The cut you get when another artist
The Music Industry. records or covers your songto release on
The thing we like most about the music their CD. You receive a royalty for the
industry is also the thingthat is most sales ofthat CD as the author and copy
confusing and frustrating. It just right owner of the song. Thistype of
doesn't worklike every other job in the royalty applies whether you write a song
country. When you make a living as that the artistreleases initially or if
aprofessional songwriter, producer, the artist is covering a song you
musician, rapper or singer,you don't work havealready released.
9-5, you don't have a boss and a desk and * Synchronization Royalties
all ofthose "normal job" things. That's You receive these payments when your song
what we like about it. is used in a movie, a
But the music industry is a business and TV show or a video. These are negotiated
a lot of money flowsthrough the companies on a royalty-by-royaltybasis so make sure
that promote, produce and market the your agent is experienced in this kind
musicyou make. The process of getting ofcontract. If your song becomes the
the money you deserve worksmuch theme some for a popular
differently in the music industry than it Sitcom, it could be a huge windfall for
does in corporate you if thesynchronization royalties are
America. negotiated correctly.
To be considered full time at your art * Print Royalties
and craft of being asongwriter, producer, As the title implies, print royalties are
musician, rapper or singer, you have to what you receive whensheet music of your
getpaid. Being an artist doesn't exempt song is sold. Print royalties can run in
you from the rules we alllive by. You the
have to eat, live somewhere and pay the 10-15% range so they are worth securing
rent asthey say. And you don't want to and protecting.
just "get by". Ideally yourmusic will * Performance Royalties
become recognized and well liked and you Royalties are due to you every time your
will becomeone of those "filthy rich song is played on theradio or performed.
rock, pop or rap stars" you see on VH1, Performance royalties, as you might
MTV or BET. But to do that you have to expectare very complicated to track and
master one basic idea. collect so you will come torely on a type
You have to figure out how to get paid. of service organization known as a PRO.
This article will give you the basics. A PRO is not a Terrorist Organization.
We will go over some ofthe unique PRO stands for Performing Rights
terminology that pertains to how money is Organizations and they are thegood guys
collectedand paid out to artists in the because they help you get paid the
music business as well as discusssome of performanceroyalties you deserve for your
the organizational systems that you must material. These organizationswork on
understand to beable to "make a buck" in behalf of song authors and publishes to
this business. collectperformance royalties on any
Strange New World possible venue including:
The terminology or the words we use to * Radio
refer to the paymentssystems in the music * Television
industry are much different from in a * Movies and even
normaljob. You don't just report to * The Internet
payroll for your regular paycheckevery Now you may think every time you hear
other week. So our first order of your song on the radio, youimmediately
business is to defineand understand a earned a small royalty but it doesn't
couple of terms and the systems they work exactlythat way. Instead, radio or
represent. other broadcast media includinginternet
The two terms you should get to know the pay services pay a single flat license
best are "recoupment"and "royalties". fee to broadcastfrom a catalog of songs
You Mean It's Not a Gift? represented by the PRO. The PRO
Recoupment may seem like a sweet deal up thenestablishes a song frequency
front. Recoupment isessentially a loan percentage based on samplings of airplay
from the record company to fund the to determine how much your "cut" of each
expensesof your recording work. The radio stationlicense fee might be and
record company has signed you andnow the from that they pay your
work of producing the CD is ahead of you. performanceroyalties.
In order toallow you to focus all of To learn more about the major Performance
your energies and time on making Rights Organizations,here are the big
therecord for them, the record company three and how to research or contact
will "advance" you a lump sumof money to them...
handle both your living expenses and the 1. BMI
expenses ofthe recording. This is to go 20 W. 57TH ST.,
for: NEW YORK, NY 10019 USA
* The gear and equipment you will need to Tel 212-586-2000
produce the recording. 2. SESAC
* Living expenses and incidentals during SESAC (headquarters)
the recording process 55 Music Square East
* Touring expenses Nashville, TN 37203
If you receive recoupment money for 615-320-0055
recording your CD,immediately discuss Fax 615-329-9627
with your band or other key people in 3. ASCAP
yourcamp two important concepts and One Lincoln Plaza
enforce them religiously. New York, NY 10023
1. Keep track of what you spend and use Tel: (212) 621-6000
the money wisely. Youcould blow through Fax: (212) 724-9064
your recoupment money very easily and Conclusion
suddenlyrealize you have no more expense There is a lot to learn about how you
money and the recording ortouring is not will be paid for yourartistic work in the
done. You don't want to face that. Pick music industry. But it's a
the mosttrustworthy, numbers aware person worthwhileinvestment to understand the
in your band or entourage andmake him the system as much as possible becausein
budget wizard for the entire process and doing so, you increase the amount of
obey himlike he was your master. You money you will see cometo you for your
will be happy you did. songs and performances.
2. It isn't your money! Remember, In this article, we have given you an
recoupment money is a loan. overview, some definitionsand introduced
It is an advance against the profit the you to a few organizations that are
record company will makefrom your work. central tomaking the music industry
The record company must recoup the funds payment system fair and workable, tofind
fromsales and if they do not, they loose even more as well as thousands of other
money and you could bedropped. essential musicbusiness contacts visit
So be careful in how you negotiate and Don't stop with this introduction though.
use your recoupment funds. Work with yourmanagement and become
Recoupment is a wonderful system to give "industry savvy" about
you the freedom toproduce a quality royalties,contracts, recoupment and all
recording. But beware that there are the inner workings of the moneyside of
hiddencosts and demands that come with a the music business. Your homework will
recoupment. Don't let themtake you by pay off and leadto a long and prosperous
surprise. career as a performer in the
A Royalty That Does Not Refer To Princess excitingworld of the music industry.
Di. Thank you for taking the time to read
The term "royalty" when it pertains to this article and I wishyou Much Success!
the music business issomewhat more This article was written by Ty Cohen,the
familiar. The simplest definition is music industry's most recognizable voice!
that aroyalty is a percentage of the sale Ty is the C.E.O of Platinum Millennium
of a song or CD that is paidto the Publishing and
artist, the composer and other Platinum Millennium Records as well as
participants in theprocess. Royalties owner of: and
are used in many creative To find out more about Ty Cohen, his
industriesincluding publishing, services, products and howhe may be able
television and movies as well so to help you succeed in the music industry
mostpeople are aware of the idea. go to: and sign up for his freelimited
But you might wonder who handles the edition music industry success 10-part
collection and distributionof royalties? "Mini-Course",it will work wonders for
As a rule, the publishing company takes you and best of all, it's FREE, but
on thisjob. They have the accounting EXTREMELY VALUABLE!




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