Is 50/50 split in royalties a fair deal?

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dyak
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Is 50/50 split in royalties a fair deal?

Post by dyak » Sat Nov 22, 2008 6:47 am

Hello everyone,Consider you're a singer/songwriter that is going to cut your long expected debut album, yet searching for best possible option out there. In consequence you have been offered a 50/50 split in royalties deal from an experienced record producer/studio owner. No big name here, but someone who works to a world-class standards.50/50 deal means that you and the producer share all of the expenses of making your record, then all the incomes.Consider also that your record contain a potential hit or hits and you're the only author and someone who gives your record that unique voice, which in fact refers the majority of solo artists.The other aspect are session players that should be paid right away in such cases. I think this is the subject to negotiate here - who should pay them and why; you or the producer? But that's less important now, I think.I've heard opinions from music biz veterans and pros alike that in such cases, a producer can get money or split in royalties, but NEVER both.I'm curious about your opinions, especially if you have experienced the pretty same situation in the past.Many thanks,Dyak

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Re: Is 50/50 split in royalties a fair deal?

Post by gitarrero » Sat Nov 22, 2008 7:46 am

hi dyakI'm not sure if I get your question correctly; did you get a deal offered where a producer records your songs & get 50 % of royalities (what royalites..? from the record sales? copyright?), plus you need to pay this producer? what/how much would you pay?if working in a team a 50/50 split can be fine if it's a co-write (meaning: you BOTH *write* the songs together).you may just give some more & detailed infos.hthmartin
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Re: Is 50/50 split in royalties a fair deal?

Post by hummingbird » Sat Nov 22, 2008 7:55 am

50/50 of what royalties? Songwriting or publishing? There would be no mechanicals because it's your original songs. How does that affect the copyright of your original works? Who will own the Masters?My advice would be... consider this to be a fair offer until you know otherwise. BUT - and I can't emphasis this enough - SEE AN ENTERTAINMENT LAWYER before signing anything. You're going to invest a lot of time and money in producing this CD, and marketing this CD... you must get qualified advice before doing this. Get the offer in writing - including 100% of all costs (that you will be paying 50% of).
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Re: Is 50/50 split in royalties a fair deal?

Post by dyak » Sat Nov 22, 2008 10:37 am

Hummingbird and Martin, thanks for your interest and input. I've been absent in the forum for the past year or something. Good to see that you guys are still around. First of - I didn't get exact details, but am pretty sure that we talk about 50% from retail. Therefore I keep copyrights and master, but every single dollar of income from all areas (CD's, mp3's download, TV, radio, movie placement - you name it) we share 50/50. That's the kind of split I've been offered. Now Martin; the record will be produced in his studio and apart from engineering work he offered to lay down keys/piano parts on the record and provide 2 session players (e.g. drummer and bassist). He expects me to provide 10k euro at minimum, plus one more session player of my choice.The other veteran producer from the U.S commented that it sounds like someone is trying to sell his studio time more than anything else.However, that's the story. Hope you get a bigger picture now. Look forward to your reply.Cheers,Dyak

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Re: Is 50/50 split in royalties a fair deal?

Post by mazz » Sat Nov 22, 2008 1:42 pm

Hi dyak,So this all sounds very nice on paper but my question would be, before you plunk down your 10+largeEuro: What is your marketing plan?See, this guy gets paid up front and even if you sell zero product, he still gets paid for his time. So what's really in it for him? Does he have connections to get TV placements, library deals, and so forth? What is his motivation to turn you and your music on to his connections?How do you intend to market this stuff so that you can at least break even? Remember, you have to factor in the cost for an attorney to look this over too. If you don't do that, then you could potentially be signing over things that you don't realize you are. There's lots of these kind of people out there that offer to "produce" you. If this producer isn't going to help market and promote your music (like a real label should do), I'll bet you could find someone who would do a buyout for the same amount and not have any strings attached when all is said and done. I'd be willing to be they'd be open to a piece of the action if they feel your music is good enough. Then they have some "buy in" too.So again: what "buy in" does this producer have after you've paid him for his studio time and his "production"?Mazz
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Re: Is 50/50 split in royalties a fair deal?

Post by dyak » Sun Nov 23, 2008 12:31 am

Hi guys,This is the latest producer's statement:"By 50/50 spilt I mean the sale of the album and the writer/publishing.We will both get 50% of the album sale revenue and 50% of the writer/publishing.That way we both benefit if the album is a hit."Could you comment on that? Any further recommendations?Cheers,Dyak

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Re: Is 50/50 split in royalties a fair deal?

Post by girasoledonna » Sun Nov 23, 2008 4:55 am

I think he is taking too much of a piece of the pie - afterall, he he didn't write the song, just produced it. If heis getting 50% of album sales, he shouldn't get 50% of both writing and publishing too.

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Re: Is 50/50 split in royalties a fair deal?

Post by mazz » Sun Nov 23, 2008 5:38 am

So the producer is going to get paid 10K AND is going to get half the royalties and profits? Again I ask: how is the producer going to help you make the project become a hit?Even if your project doesn't become a hit in sales, you'll still have music you potentially can license to Film/TV, in which case, this producer will get 50% of all that income too. Also, if he is listed as co-publisher, then you have to have an agreement with him so that you can promote the music to licensing opportunities without checking with him first, and remember, any library will probably want to become the publisher, even if only for a short term (3-5 years). How is that going to work with this person?I strongly suggest you get a lawyer to look over the contract and explain it to you.This producer has to have more to offer than just producing your music in exchange for half of all future revenues!!!!! If this producers is a "big shot", then he should be able to help you get your music out there. Producing an album is usually the goal of musicians but it's really only the first 25% or so of the process. The rest is selling it and finding opportunities for it. I know plenty of artists with boxes of CDs in their garage that are still unsold. They made their album but didn't have a strategy for after UPS dropped them at their door.Measure twice, cut once.Mazz
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Re: Is 50/50 split in royalties a fair deal?

Post by dyak » Sun Nov 23, 2008 9:49 am

It definitely doesn't sound like a fair deal now. I wanted to gather various opinions which is always good in such cases. I'm not going to sign it. Period. Besides Mazz, you're right with your previous reply too; I used to talk to a veteran producer from Utah with major/indie labels credits (no "big shot" but I like his sound, well - the guy we talk about isn't any big shot too, and he calculated the whole thing (incl. session players and his engagement) for about 12-13k USD. And - what's the most important - no strings attached when it's said and done. That's the fair deal in my opinion.Thanks again for input from all of you. I'm not on a fence anymore.Dyak

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Re: Is 50/50 split in royalties a fair deal?

Post by greatmoves » Sun Jan 11, 2009 2:58 pm

I was looking at some old post and come across yours. How did it go with the producer. hopefully you all negotiated and worked things out.BB
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