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