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licensing Fees

Posted: Fri Oct 28, 2011 7:53 am
by soundtrack2life
I have an opportunity to have a song possibly used in a radio spot. We were told to keep the licensing fee reasonable. . . . . this is something that is new to us & my question is what is a reasonable fee to license a song for this use.
TIA
Joe

Re: licensing Fees

Posted: Fri Oct 28, 2011 11:58 am
by sedge
Hey Joe,

A radio advert or something you mean? Ballpark figures vary wide, job by job and scale.

Nothing wrong with saying that this is the first time you have licensed your music and you have no idea, bat the ball back with a smile.

I would find it cool if I was the first to licence a new artists music, they probably will too, it will open up the stiffness of money mater talk and they then have to define the "reasonable" ... winner hey.

Welcome to the forum !

Hope that helps, just my take on it

Sedge

Re: licensing Fees

Posted: Fri Oct 28, 2011 1:46 pm
by andygabrys
that's a pretty good idea.
if you have no idea - ask them.

Re: licensing Fees

Posted: Sat Oct 29, 2011 5:55 am
by guitarhacker
Wow... I'd really like to see some NUMBERS too. What is a "decent" licensing fee?

I have a song that is a niche song for sure.... no artist would ever very likely touch this song due to it's subject matter.... on a very controversial topic.... abortion. However, the song is perfect for crisis pregnancy centers to use in their adverts and promo and fundraising.

I am looking to license this and have already signed one "like kind donation" agreement. That was to the center, whose director made a statement to me that inspired the writing of the song. However, to license to other PCC groups and organizations, I need a reasonable number ($$$) to ask for the licensing for the song.

SO the big question remains..... Who here is licensing music and what are the going rates and what is the application of the music?

Re: licensing Fees

Posted: Sat Oct 29, 2011 6:04 am
by kitchensinkmusic
Radio fees depend on the size of the broadcast area or what they call Area Of Dominant Influence (ADI). If it's a small market it's a small fee compared to a large market or markets (multiple stations)
AND the number of plays. I know just enough to be dangerous here. Good luck.
Richard

Re: licensing Fees

Posted: Sat Oct 29, 2011 6:23 am
by sedge
guitarhacker wrote:SO the big question remains..... Who here is licensing music and what are the going rates and what is the application of the music?
No, there is no big question like that. Daft question

How much does it cost to build a house? How much to dig a hole?
are your having the house designed by Bob the Builder or Frank Lloyd Wright?

That's the point to the answers here. Can range from $0 to $mils to not available for licence to that customer at all.

Run your own business

Re: licensing Fees

Posted: Sat Oct 29, 2011 6:46 am
by Casey H
soundtrack2life wrote:I have an opportunity to have a song possibly used in a radio spot. We were told to keep the licensing fee reasonable. . . . . this is something that is new to us & my question is what is a reasonable fee to license a song for this use.
TIA
Joe
Hey Joe
Can you tell us a little more about this?

When you say you "have an opportunity", how far a long in the process is it? Has the client told you the definitely have selected your track or is it a submission you made and are hoping (nothng wrong with that).

When you say "radio spot", can you tell us what than means here? A major ad to be played on major networks?

My advice, FWIW (and not knowing a ton here), is to try to make them throw out the first number. Let them know you are flexible and willing to entertain any reasonable offer. It's always a better negotiating position that way and it gives you a feeling for where their head is at, ballpark-wise.

*IF* this is a major network radio spot that will be played a lot, there should be a nice amount of performance royalty income and then would help mitigate a smaller up front license fee.

I strongly disagree with the advice to tell them you are 'green' and have no idea. There is never any reason to present yourself that way. You are a professional and that's all. Whether you've done this before or not is TMI that has no positive value. (Would you tell a car salesman that you have no idea how to negotiate a new car purchase?) :o

Please let us know more.

Good luck!
:) Casey

Re: licensing Fees

Posted: Sat Oct 29, 2011 6:50 am
by sedge
Casey H wrote:I strongly disagree with the advice to tell them you are 'green' and have no idea. There is never any reason to present yourself that way. You are a professional and that's all. Whether you've done this before or not is TMI that has no positive value. (Would you tell a car salesman that you have no idea how to negotiate a new car purchase?)
That is quite an odd distortion to what I meant and we don't have to treat customers like they are car salesmen out to thrash us either

Re: licensing Fees

Posted: Sat Oct 29, 2011 7:09 am
by Casey H
sedge wrote:
Casey H wrote:I strongly disagree with the advice to tell them you are 'green' and have no idea. There is never any reason to present yourself that way. You are a professional and that's all. Whether you've done this before or not is TMI that has no positive value. (Would you tell a car salesman that you have no idea how to negotiate a new car purchase?)
That is quite an odd distortion to what I meant and we don't have to treat customers like they are car salesmen out to thrash us either
Hey Sedge
Didn't mean for my post to come off rough around the edges.. :oops: Maybe the car salesman thing was a bad analogy. I just disagree with ever telling the other party you are new at this. I don't see any value add in that- it either has no effect or a negative one, but not likely a positive one.

Peace
:mrgreen: Casey

Re: licensing Fees

Posted: Sat Oct 29, 2011 7:35 am
by sedge
Hey its cool you offered the other side to the approach, all makes it good and more info out there/

Honesty, enthusiasm and being green imo doesn't equal being unprofessional or add any negativity to anything, if the deal was a good experience both sides, happy days.
My idea was to free Joe the awkwardness of being forced into naming first price, basic business negotiation stuff. He doesn't need to come across as a dork doing it, there are ways of saying it.

When in doubt honesty rules kinda thing.

I'm sure Joe doesn't think this will be his only song ever to be licensed and I doubt this company wish to be known for ripping musicians off either, if it was a contact through Taxi then I'm sure the honest approach will be very much welcomed and respected professionally too.

All Good Casey, all adding to the different ways we work with people I guess.

I have made some mistakes I regret, promised myself that I will be nothing more than who I am from now

Just me anyways, what do I know, all good debate