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