Is this type of buyout deal standard/fair?

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EraCollage
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Is this type of buyout deal standard/fair?

Post by EraCollage » Wed Oct 06, 2021 10:43 am

Hello,

I'm fairly new to this world as I have signed one deal with a library and have just been offered something else (both not through taxi)but it differs from the previous deal. I have been warned against signing this type of buyout deal by an industry person unless i really need the money . The deal is basically this-----

"We offer $350/per track non-recoupable master/sync buyouts on vocal tracks, with 100% of writer’s royalties flowing to you via PRO.

(taken from contract) ---- The Publisher and/or its designates shall receive 100% of the publisher's share of the worldwide public performance royalties.

So this is basically a buyout deal where I get 100% of performance royalties and library gets 100% of publishers royalties for a non recoupable fee of $350 per vocal song.

The previous deal I signed was a 50/50 split on both sides with a recoupable upfront fee of $350 per vocal track.

Questions I have are would they keep 100% of any sync fees? Is this a common deal you would get through libraries that sign deals through taxi? Any advice would be appreciated. I can upload the entire contract if anyone is interested in seeing it.

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cosmicdolphin
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Re: Is this type of buyout deal standard/fair?

Post by cosmicdolphin » Wed Oct 06, 2021 12:52 pm

EraCollage wrote:
Wed Oct 06, 2021 10:43 am
So this is basically a buyout deal where I get 100% of performance royalties and library gets 100% of publishers royalties for a non recoupable fee of $350 per vocal song.

The previous deal I signed was a 50/50 split on both sides with a recoupable upfront fee of $350 per vocal track.

Questions I have are would they keep 100% of any sync fees? Is this a common deal you would get through libraries that sign deals through taxi? Any advice would be appreciated. I can upload the entire contract if anyone is interested in seeing it.
Yeah...a sync buyout...so you give up the right to any sync fees ( which can range from a few hundred to multi thousands ) for $350 but keep the backend.

Personally , if it was an instrumental cue I'd take it all day ( because they don't very often attract sync fees ). But for a song ......if I " really needed the money ".... they would need to put another zero on the end for me to even consider it. Your other deal is much fairer...if they make money you make the same money but get part of up upfront in good faith...I mean it may never get placed so you may never have to give them the $350 back.

So I agree with your other industry person. I would expect even a very small sync fee on a vocal track would net you more than $350 . A more typical deal is nothing upfront but 50-50 on everything including sync fees.

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Re: Is this type of buyout deal standard/fair?

Post by SMCM » Wed Oct 06, 2021 3:06 pm

I'll happily echo what Cosmic said above. For underscore instrumentals, I'd be all over that deal. But for vocal songs which often command sync fees, that's very low for a buyout.

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Re: Is this type of buyout deal standard/fair?

Post by EraCollage » Wed Oct 06, 2021 3:32 pm

thanks for the feedback guys.... Its still a tough call for me only because I have not gotten any other interest in these songs from other libraries(the hand full i reached out to and some taxi listings) and would rather get something for them as opposed to nothing before they become dated.

I'm sure at the end of the day it would be nice to have everything you create earn something as opposed to just sit in a folder on your computer. However it is difficult to sign off on songs you put alot of work into for $350. It is very hard to tell how much you could make from a deal like this from the PRO. Strangely I just received a decent amount of money for songs i did over 5 years ago from my PRO from a youtube placement which tells me there can sometimes be decent $ on that end but it has been rare for me so far.

The advice on accepting this deal for instrumentals is very helpful.... cheers

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Re: Is this type of buyout deal standard/fair?

Post by Casey H » Wed Oct 06, 2021 5:53 pm

Even for a vocal song, it can be a good deal. Many of us have vocal songs in excellent libraries for years and, just be the nature of the business, the songs have not earned $350 in sync. Quite often they never land a sync, some may earn $500 or $1000, occasionally higher. I would say the AVERAGE sync earnings of a vocal song, for most of us, is less than $350. Also, libraries that pay upfront have much more of a vested interest in getting your song placed which means your odds of earning back end are higher.

A bird in hand is worth something. That being said, you have to be comfortable with the fact that you are giving up all rights and control of the song. Do you feel it is special to you and you don't want to let it go or do you believe you could write plenty more that are as good? There is no right or wrong. It has to be within YOUR comfort zone. Just don't assume that if you let this deal go, you necessarily will earn more money from the song down the road. Maybe, maybe not.

Congrats! It must be a really good one to get this offer!

Best.
:D Casey

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Re: Is this type of buyout deal standard/fair?

Post by EraCollage » Tue Oct 12, 2021 6:26 am

Casey H wrote:
Wed Oct 06, 2021 5:53 pm
Even for a vocal song, it can be a good deal. Many of us have vocal songs in excellent libraries for years and, just be the nature of the business, the songs have not earned $350 in sync. Quite often they never land a sync, some may earn $500 or $1000, occasionally higher. I would say the AVERAGE sync earnings of a vocal song, for most of us, is less than $350. Also, libraries that pay upfront have much more of a vested interest in getting your song placed which means your odds of earning back end are higher.

A bird in hand is worth something. That being said, you have to be comfortable with the fact that you are giving up all rights and control of the song. Do you feel it is special to you and you don't want to let it go or do you believe you could write plenty more that are as good? There is no right or wrong. It has to be within YOUR comfort zone. Just don't assume that if you let this deal go, you necessarily will earn more money from the song down the road. Maybe, maybe not.

Congrats! It must be a really good one to get this offer!

Best.
:D Casey
Thank you very much for your insights, this is the type of info i was looking for from someone with more experience than myself.

cheers!

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