Exclusive deal / 20% seems unfavorable

[ljweber70]

Hi everybody,I've been offered a 5 song deal with a music library (in Texas) that is assembling a new catalog scheduled to kick off in January, 2009. The agreement is exclusive (IE: I can't place the songs with any other library or publisher) and pays 20% of sync / placement fees collected to songwriter. It has a 4 year reversion clause.This deal contrasts my first deal with an L.A. library which is non-exclusive (I can place the songs with whomever I want) and pays 50% of placement fees collected. It has a 3 year reversion clause.I feel like I should take anything I can get at this early stage in my journey, but do not want to tie up some songs that could perhaps be placed elsewhere knowing there could be better offers.Any advice?Larry

[53mph]

If the library is a major player in the business then 20% of lots of usage will be favourable to 50% of 2 plays in a lifetime.You have to weigh up how you feel about taking 5 of your songs out of circulation against the possibility of earning some money from the songs. If you produce alot of music then you can always write more tracks in a similar style and place them with other libraries. Remember, library music is not quite like signing a 5 song deal with Sony et al. You can always change the composition abit and resubmit it to other libraries and you're not breaking any contract doing that.

[mazz]

I'm familiar with this deal and this was discussed quite some back. I have signed with this company, I believe they have 3 pieces of mine right now.Apparently these people are pretty aggressive in their marketing and have quite a bit of experience in the library industry so they feel that, given their marketing strategy, 20% is a fair split on licensing fees. It's up to you to decide if the deal is for you. Like 53mph said, if you're a prolific writer, tying up a few songs for a few years may be no big deal. If you have a limited catalog then it's a tougher decision.One thing to keep in mind is that a lot of licensing deals these days may pay very little or nothing up front (sync/placement fees) and all of the money is from "back end" publisher and writer performance royalties (ASCAP, etc.). It's a gamble for them too, as they are out there marketing your music, (possibly more than you do), and they may have to wait for publishing royalties as well (which can take months or years to roll in). That's another reason they are probably going for a higher percentage.One more thing you probably already know: 0% of 0 is still 0.Let us know more about the size of your catalog and your thought process as you go along.Good luck,Mazz

[ljweber70]

Thanks guys,I've only been at this for about a year, on a part time basis, so my catalog is small: 15 to 20 pieces, maybe. I signed my first deal with the L.A. library a couple of weeks ago for 2 songs. My thought process (perhaps flawed), is that the L.A. company may be more of a major player since they are well, ..... in L.A. and owned by "veterans of the industry." The Texas company is creating a new library set to launch in 2009. So... I should try secure as many songs with L.A. first (anyone can submit songs directly on line) then whatever they pass on, pitch to the Texas based company. I know we're not supposed to use company names on the forum, but it sure would be nice to get feedback on specific libraries. IE: Who are the major players, who is aggressive, who has the most contacts, who is the hardest to get placed with, who to avoid, etc.Larry

[gitarrero]

@larry: if I was you I'd be happy to give those songs to the library in texas. simply write more tracks, instead of "waiting for that perfect oppurtunity" - you never know who's gonna bring you the next placement, and both companies are legit, good working companies.

[ljweber70]

Thank you to those who sent me a PM on this topic.I appreciate you,Larry

[matto]

Quote:I've only been at this for about a year, on a part time basis, so my catalog is small: 15 to 20 pieces, maybe.As you probably know, you'll need a catalog of several 100 songs to make a living with music library placements, so you obviously have to write a lot more music. Typically, it's also unrealistic (and not even a good idea) to think you'll build a catalog of several hundred songs with just one library.Quote:I signed my first deal with the L.A. library a couple of weeks ago for 2 songs. My thought process (perhaps flawed), is that the L.A. company may be more of a major player since they are well, ..... in L.A. and owned by "veterans of the industry." The Texas company is creating a new library set to launch in 2009. If mazz is right about the Texas company, then they would seem to be "veterans" as well. As far as the LA factor, remember that "Hollywood" (meaning Film/TV) is just one part of the music library market. The market as a whole is a lot bigger and nationwide (worldwide actually), so depending on which market segment a company is targeting, being in LA may be not be an advantage at all.Quote:I know we're not supposed to use company names on the forum, but it sure would be nice to get feedback on specific libraries. IE: Who are the major players, who is aggressive, who has the most contacts, who is the hardest to get placed with, who to avoid, etc.Just a few reasons why this is not realistic: 1- A company that does exceedingly well for one composer may do poorly for another, depending among other things on musical styles the two writers are composing.2- If somebody who does this for a living were to publicly endorse a company on an internet forum, that company would be flooded with unsolicited submissions, which would jeopardize the relationship between individual and company.And if other writers signed with that company and it didn't perform well for them, the individual might face legal liabilities.3- Or the opposite, if somebody who does this for a living were to publicly dis a company on an internet forum, they might open themselves to legal liabilities.4- New companies emerge constantly, and some of these may quickly turn into "major players". But perhaps only in one musical field.This forum offers a great deal of information for free, and even more great information can be gotten at the Road Rally (essentially also for free).Ultimately though, anybody who's offered a deal has to do some of their own research, follow their own gut instincts and ultimately bear their own risk.Now here are a few more things to consider:- These days, sync fee participation ranges from 0% to 50% (I've seen one company offering 60% but that's highly unusual). Compared to 50%, 20% seems unfavorable, but compared to 0% is doesnt.- Ultimately, IMHO the most favorable deal is the one that generates you the most money per song per year. Looking at my own catalog, 6 out of my 10 highest grossing songs are 0% sync deals, the rest 50%. I'm not in any way saying this would be typical, and I'm sure others' results might be quite different, but the point is that in the right hands a 0% sync song can gross you just as much as a 50% sync song.- Of course I'd always rather take 50% than 20% or 0%, but if the question is between taking a deal or leaving it, I wouldn't base my decision solely on sync percentage and/or exclusivity. I would do as much research as I could, and ultimately make my decision based on that and my gut instinct about the company.- If your goal is to build a catalog of several hundred songs so you can make a living at it, you need to realize you can't get there in a reasonable amount of time by signing songs one or two or three at a time. You need to build relationships that hopefully will eventually enable you to be assigned projects where you can sign songs 10 or 15 or 20 at a time.And I think a good way to begin building those relationships is to sign a few songs to a variety of companies, to sort of get to know them and find out what they can do for you and you for them. In the context of a catalog of several hundred songs, taking a chance on 2 or 3 doesn't seem to be such a big deal.matto

[ljweber70]

I'm probably asking questions that seem downright petty for those of you with voluminous catalogs. So for you to take your time on a little fish like myself, thank you.Hopefully you remember how excited you were when you got contacted for your first couple of deals, wanting to make sure you do everything right. "learning as I go...."Excellent advice as always.Thank you,Larry

[matto]

Quote:Hopefully you remember how excited you were when you got contacted for your first couple of deals, wanting to make sure you do everything right.Oh yeah!! I remember it very well...and I was far more clueless and more freaked out than you ...and there was no Taxi forum

[ciskokidd]

Yep - Matto has the science down on this and I pretty much agree wholeheartedly with his views.Mazz and Martin also know well of which they speak so you are getting some excellent advice here.You can never have enough contacts and relationships and as you build your catalog you will see which publishers work for you and which don't.One of our first publishers was one of the absolute nicest people on the planet and gave us a great deal, but she just could not get us placements. So as Mazz probably meant to say, if you get 50% of zero dollars that is still zero dollars.Best of luck,Cisco