Your money isn’t going to the band.
Just a little music industry lesson, big artists and bands are more likely than not in a 360 deal. These types of deals look like what I’ve laid out below.
What are they getting paid for?
Now, when you make an album that’s obviously bringing income. But, in a 360 deal, the record label takes all of your following lucrative aspects and groups them together to form a big pool of money, that’s your income, which they take roughly two thirds of.
Music Sales - these are your physical and digital albums, as well as streaming
Licensing - if your song is used in a videogame or movie, or anything audio-visual, anything someone needs a license from you/the label for.
Merch - self-explanatory, the purchase of something involving your ‘brand’
Books/DVDs - if you make a tour DVD or a docu. or if you write a book ON YOUR OWN, still the label gets a cut.
Appearances - Panels at conferences or live shows separate from tour
Touring - Because there are fees and you have to buy your own tour merch from the label that owns your merch designs.
Publishing - because you want your music to exist in the copyright system.
Other - because there is more, I guess.
Who’s getting paid, and how much?
Let’s start with the income: $100,000 is a good example.
Well your record label and distributors need to take their for some odd reason large portions, so they get about, oh 60% (it’s usually a little more) and the distributor 25% (probably normal.) so you get about, 15%
Good, that sucks, although 15,000 dollars isn’t too bad... but wait, what about the booking agent and manager and stuff? Oh right, that comes AFTER the label takes it’s cut (you know, to pay itself back from what you ‘owe’)
Booking agent / business manager gets 5%, your personal manager gets another 15% for probably just partying with you, your lawyer (which you absolutely need) gets 5%, your producer get’s 5%
Now after all of that, if you decide to make this career then what’s left over is between 4 of you or if you’re lucky maybe 3 (combine the vocals and guitar, and you’ve earned yourself like 6% more of the money)
Let’s take the $15,000 then....
Entertainment Lawyer: $750
Wow, 10,500 dollars. That’s awesome if you’re a solo act and acquired 100,000 in a very fast amount of time!
But if you’re a 4-piece band you’re getting $2,635 per member for every $100,000 you make.
Doesn’t that seem a little messed up?
This isn’t just until you pay back what you owe, this is your contract for X amount of years or albums and they can refuse to make your album and just keep you there idly if they want, because they own you. Major Labels are pure evil.
When you buy that concert ticket, T-shirt, Album, or whatever else to support.. idk Maroon 5 for example, you’re paying $20, but the band is most likely getting a little over $2 from it.
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