Music - Understanding The Music Industry

How To Turn A Profit In Music

==============================

The music industry is one of the most multi-cultural and
diverse industries in the world. Musicians flock to and
appreciate this quality.

It is the type of work where you don~t sit in an office
nine to five and punch a clock. You might be hard
at work in a club playing your heart out to a wild
crowd of excited fans.

Just as your lifestyle is different in the music industry
and it is one that suits your creative soul, the way that
money is handled and how you get paid is totally different
from a corporate job.

We all have needs. We all need money for food and shelter,
and other various essentials. Musicians must know how
their salaries work so that they can maximize profits.

To get started understanding the money trail in the music
industry, you have to become familiar with two terms,
recoupment and royalties

RECOUPMENT DEFINED

Recoupment is a loan from a record label or company. These
funds are to pay for expenses necessary in creating an
album or playing tour dates.

Make no mistake though, recoupment is a loan. You may feel
you just fell into a volcano of cash when that recoupment
money comes in but every bit of that money will be required
of you sometime in the future.

Keep track of what you spend and make fund management a
key. Don't blow this money, because you'll regret it when
it must all be paid back later.

ROYALTIES

Royalties are commissions - percentages of each sale.
There are four main types of royalties, and each one may be
a different rate or arrangement in your contract:

1. Mechanical royalties are percentages that you receive
when another artist plays a cover of your song.

2. If you song is used in a movie or on TV, you'll receive
synchronization royalties.

3.~The Print Royalty is the amount you get when the
printed version of your music is sold in a music
store.

4. When you play a concert or a song of yours is on the
radio, you'll receive a performance royalty.

So how do I get my paycheck?

Well, record companies have systems and analysts in place
to track all these figures and get you the money you
earned. You also have an agent who can offer direction in
the dispersion of these funds.

There are also agencies called Performing Rights
Organizations or PRO that monitor the industry to make sure
the money is being handled honestly and correctly.

It's always a good idea to do a little research yourself.
Some record labels provide better royalty programs than
others, so get to know your options. This industry
provides the creative freedom we all love, but you might
as well get paid for it, too!


Rick Talant is the owner of RTT Music,
a leading resource to help make your music dreams a reality.
For helpful music news, music links, music resources and our
music newsletter visit: http://www.rttmusic.com/