The business of music for Beat makers

Music is an art. Art is made for people to appreciate and admire. To raise social questions or inspire us to dream…

Sounds good doesn’t it? The artists that get lucky enough to get a record deal might connect with us (the listeners) on a deep level, but once we peel back the layer of the idealism, what remains is the cold underbelly of the real music world. The business of music.

Music is there to make money.

Music is a product to be sold.

Music is there to be exploited.

Those statements may sound bold but they are 100% true. Music is about the direction in which we consume or create it.

An artist may create a song that does indeed touch a lot of hearts and minds. A record exec is about taking that powerful ‘product’ and turning into money. A fan is about taking that same product and allowing it to affect them in a way that might change the way they look at life. What we have is a music sandwich that looks like this:

[ARTIST] + [RECORD EXEC] + [FAN]

You can see the Record Exec is the man in the middle, the “meat” of the sandwich. It’s this part that is the business part of music.

Many people might paint the record label as the bad guy, but it’s not really true. They put up the money and risk to promote and artist. The artist gives up certain things (like partial ownership of their songs, and other rights depending on the terms of their contract) in agreement.

At the end of a day, a business exists to make money.

So what does that mean for you the beat maker? You are like the lettuce between the artist and the record execs.

Let’s take a scenario and break down a possible deal:

A record company approaches you and says “We want you to be on our staff of producers. We’ll pay you $50,000 up front, and you will get paid $10,000 for every tack you produce that we release on a record”

Would you take it?

Now let’s look at the fine print for a minute. Since you are “on staff” that means you can’t make tracks for any non-label artists unless you get approval from the company. Of course they will want to get paid to allow this approval.  Usually the other label will pay them if they think you’re worth it.

Is there a term to this contract? Say it’s a three year term with an option to renew. That means you are tied to the label for three years. If you get a better offer elsewhere or want to leave, the label wants to get paid to let you out of your contract.

As a staffer, you are doing work -for-hire. That means the label owns all copyrights. Unless explicitly stated in the contract, you don’t own squat. Royalties? If it’s not in the contact, again you get zero.

Next, let’s look at the money. Who wouldn’t want $50k cash up front? Better not forget to pay your own taxes on that money. That 50K might turn out to be worth $35K after taxes. Take another $5k  for attorney fees and $10k that goes to your manager and you’re talking $20k in your pocket.

“Yeah but $10k a track! I make 50 beats a week!” you say. How many of those beats will be used on a record? Maybe you get lucky and place one every other month. That’s $60k a year. Minus taxes again and you’re at $40k. Minus manager and you’re at $35k.

Is $35k a year enough for you? Are you willing to grind long hours and deal with egos all night to make slightly more than an receptionist?

Now what about the positive aspects of this scenario:

You’re in the studio all day. Learning new things. Meeting people in the industry. You might make a hit record which gets you well known even if you don’t make any money from royalties. You get more savvy about the business.

There is good and bad. The point is to understand the real truth and make a decision that you can live with.

If you’re full of dreams of big pimpin, buying houses and cars, and you sign this deal you might be disappointed and feel cheated.

If you’re level headed and realize that you can grind it out for three years and come out with more experience, more contacts and the sacrifice is worth it to you, then it might be a golden opportunity.

At the end of the day, be prepared for hard work and sacrifice in some areas of your life. Bless you if you’re a younger person since you have a lot less to worry about giving up. An older person with a family and a mortgage might see this deal as a lot more risky than a 20 year old with no kids and bills.

The article isn’t meant to scare you away from the business of music. It should hopefully open your eyes a little and make you realize that it is a business with each side looking out for themselves.Your best weapon is knowledge and knowing how much you can give and take for your shot at the big time.