Need Buyout Advice UPDATE

[edteja]

Whatever comes of it, it is a wonderful bit of feedback on your work. Congratulations.

[mojobone]

Yeah, I'd say a lot depends on the future earning potential of your tracks, and in no case should you feel the need to rush into anything if other offers are in the, erm, offing. I would try to learn as much as possible about the company (sorta goes without saying, but...) maybe look up some folks that have dealt with the company before, if possible, so as to find out if they're open to other types of deals. I don't have the sort of firsthand experience you really need for this sitch, but speaking for myself, if it's the sort of stuff I can cheerfully crank out by the hour, I'd have no problem with a buyout in the $500 to $1000 per-track range for loop-based stuff where I didn't need to hire in musicians, particularly if the material's very much of-the-moment. Different story, when your heart and soul is in it. And, hey, congratulations, it's a nice problem to have.

[cameron]

Is it appropriate in library deals like this to ask for a reversion clause, i.e. they get exclusive use of the material for "x" number of months or years, and thereafter you are free to sell it to others again?Cameron

[edteja]

If it is a buyout, it should be a buyout. The songs be gone! What would a reversion clause be based on? Usually it is in case they don't place them, and the clause is to ensure you get paid for your work. In this kind of deal, they pay up front and placement is irrelevant. (Although still the goal. And without placement, they don't get their money back.)

[mojobone]

Meaning they're pretty dang sure they can place 'em, so other libraries probably could, too. Question is, how sure? $500/song worth of sure, or more? A conundrum wrapped in enigma....

[edteja]

I thought they came in plastic or foil packages.

[wodinlord]

Thanks to everyone who weighed in on this. I will give you all a quick synopsis, in case it serves as an example for someone else. The upshot was - they were only willing to pay $500 a cut. That was for total ownership, in perpetuity. That is really only the price of 1 or 2 advertising spot placements. Some of the cuts I could let go for that and some I felt were very suitable for TV/Film placement (some have Taxi forwards) and would not sell at that price. So, I ended up making an agreement to sell them 5 or 6 of the songs I sent them and round it up to 10 with some others I have in the works. Not an amazing deal, but worthwhile at this point. If they are happy with these, I can always ask for more in the future. and they did ask for a chance to hear what else I have available. I look at it as a foot in the door and I can still keep shopping my most "valuable" cuts. There are so many of us doing this right now, that it is truly a buyer's market, at least for buyout libraries. I am hoping to place other cuts with licensing libraries, so that I can continue to place them and make fees off of them for a long time. However, a little quick cash is not bad either.Thanks to all again,Wodinlord

[davewalton]

Jul 31, 2008, 5:35pm, wodinlord wrote:Thanks to everyone who weighed in on this. I will give you all a quick synopsis, in case it serves as an example for someone else. The upshot was - they were only willing to pay $500 a cut. That was for total ownership, in perpetuity. That is really only the price of 1 or 2 advertising spot placements. Some of the cuts I could let go for that and some I felt were very suitable for TV/Film placement (some have Taxi forwards) and would not sell at that price. So, I ended up making an agreement to sell them 5 or 6 of the songs I sent them and round it up to 10 with some others I have in the works. Not an amazing deal, but worthwhile at this point. If they are happy with these, I can always ask for more in the future. and they did ask for a chance to hear what else I have available. I look at it as a foot in the door and I can still keep shopping my most "valuable" cuts. There are so many of us doing this right now, that it is truly a buyer's market, at least for buyout libraries. I am hoping to place other cuts with licensing libraries, so that I can continue to place them and make fees off of them for a long time. However, a little quick cash is not bad either.Thanks to all again,WodinlordFWIW, I think you did very well for yourself here. A nice balance... the best of both worlds. You can always write more music similar what you sent and it sounds like you also kept your best for other opportunities. "Foot in the door" is the key.An exclusive deal with no reversion can be a really good deal if they place your music regularly... who would want a reversion in that case? You'll have a chance to see how it turns out with those tracks and that'll pave the way, one way or another, for what you do with them in the future.Congratulations! Dave

[mojobone]

Sounds to me like you made out real good, congratulations and big up ya, Wodinlord!