TAXI.com

What should the expectation for license fees be? Listings usually say "The estimated license fee for this is up to $X,XXX). Is this like a suggested list price for a car, or is the number usually close to the actual fee? I've not yet had the opportunity to negotiate a deal so this is all brand spanking new to me. I'm sure it varies by customer, I'm curious as to how much actual negotiation takes place. Thanks!

Paulie wrote:What should the expectation for license fees be? Listings usually say "The estimated license fee for this is up to $X,XXX). Is this like a suggested list price for a car, or is the number usually close to the actual fee? I've not yet had the opportunity to negotiate a deal so this is all brand spanking new to me. I'm sure it varies by customer, I'm curious as to how much actual negotiation takes place. Thanks!

It's hard to say because the situation is so variable. Factors that may affect the license fee include length of use (e.g. 13 seconds or 1:45?), how it is used (Background, prominent, featured over title/credits, etc.), and how badly they want the particular track.

I will say that the higher the price (even if a maximum). the more competitive it is to actually land the deal. You can assume that an ad agency willing to pay $20K for a license, has a lot of highly reputable sources (publishers, libraries, music attorneys, managers, etc.) pitching to them. Although still very competitive at $1K, it's not nearly as much.

The best approach is to ignore the concern over how much it will pay and write as best as you can to the spec. That way you build up your own personal catalog of very usable tracks regardless of what happens with a given submission. But keep in mind that you may want to choose where you put your energies. If killing yourself with no sleep for 4 days to get a track ready for a $30K pitch takes too much time away from making 3-4 tracks you can quickly put in good libraries, it may not be the best approach for you. On the other hand, it can be worth the learning exercise and who knows? Some members only pitch the very high $$$ ones if they already have a good track available or can make/adapt one with a minimum of effort. Others, use ANY listing as motivation to add more to their arsenal. I think the process is as important as anything else. It's important not to sit around waiting for that one big "score" - the $25K deal. As a wise friend said, "Write, Submit, Forget, Repeat"...

Casey

Good info Casey, thanks. I've not yet had to negotiate, so I don't know what to expect. I'm writing for every listing that fits in my skill set, I'm certainly going for quality and quantity. I'm also an IT sales guy, so I know that you don't always aim for just the big deals. As they say, a big house is made up of lots of little bricks.

Good to know
Thanks