Producer Point's for those that don't know..

  • Thread starter Thread starter bknot1
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hol up hol up so the producer gets 3% which comes out of the artist 15% then the store its sold at gets about a dollar which is about 5% so thats around 20% for the artist producer and retailer.... leaving 80% unaccounted for and im guessing this goes to who the label?....... thats crazy and whats even more crazy is that if im right the label not only gets 80% off every album sold but they also get the artist 12% untill everything they spent making the album comes back to them off that 12%

tell me if im wrong or not but if im right thats dayum near like robbery when it comes to album sells
 
Fyre said:
hol up hol up so the producer gets 3% which comes out of the artist 15% then the store its sold at gets about a dollar which is about 5% so thats around 20% for the artist producer and retailer.... leaving 80% unaccounted for and im guessing this goes to who the label?....... thats crazy and whats even more crazy is that if im right the label not only gets 80% off every album sold but they also get the artist 12% untill everything they spent making the album comes back to them off that 12%

tell me if im wrong or not but if im right thats dayum near like robbery when it comes to album sells
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The price of fame, fam.

The label gets that 80% or so, and they pay everyone else. Distribution, Lawyers, Sample clearance, etc... Then they profit the most.
 
I understand that the label has to pay out to lawyers and all but does sample clearance price fall on the label or artist..... at the same time besides promotion and distribution what does the label do for the artist that the artist doesnt pay for..... what i dont understand is why everybody involved get they money from the jump except the artist.. i can understand u gotta pay back advances thats like paying back a loan but dayum even loans thru the feds have a payment plan lol
 
Fyre said:
I understand that the label has to pay out to lawyers and all but does sample clearance price fall on the label or artist..... at the same time besides promotion and distribution what does the label do for the artist that the artist doesnt pay for..... what i dont understand is why everybody involved get they money from the jump except the artist.. i can understand u gotta pay back advances thats like paying back a loan but dayum even loans thru the feds have a payment plan lol
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Labels pays for sample clearance, not the artist. The label technically owns the the music, so when they distribute it, they get sued if they didn't clear something.

Unless of course you own your masters, then you get sued for it.

No such thing as payment plans, fam. You recoup, and then you make your percentage.
 
Fyre said:
I understand that the label has to pay out to lawyers and all but does sample clearance price fall on the label or artist..... at the same time besides promotion and distribution what does the label do for the artist that the artist doesnt pay for..... what i dont understand is why everybody involved get they money from the jump except the artist.. i can understand u gotta pay back advances thats like paying back a loan but dayum even loans thru the feds have a payment plan lol
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https://homerecording.com/bbs/showthread.php?t=185351

and read it some more :D
 
dayum yo this is crazy.... making me question if a major label deal is really what i want
 
And im guessing that if your in a group then that same 12% is split between all the members of the group
 
Fyre said:
And im guessing that if your in a group then that same 12% is split between all the members of the group
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Yep. Imagine how little Black Eyed Peas actually get?

4 members, at a 15% split (on the high end).

That means they get 3.75% each, assuming an equal split. Now break that down into album points, and 15% of 100% at a $10.99 CD price. That 15% yields them $1.65 per CD sold. Their last album sold 4 million +, so let's say 5 million for a round figure.

5 mil x $1.65 = $8.25M

$8.25M / 4 members = $2.06M

Taxes on $2.06M are 47% in the US, as it falls in the highest bracket.

So after Taxes, each member has $1.09M.

Keep in mind, this is BEFORE they take out the recoup...

Assuming they went low budget on production, etc... let's say they made the entire album for $2M.

Take out the $2M in recoup costs, and that leaves $2.36M to be split by all 4 members of the group.

Which means each member would end up with $591,800 after label recoup, and taxes.

That's for selling 5 million records... :eek:
 
Change of POETS said:
Yep. Imagine how little Black Eyed Peas actually get?

4 members, at a 15% split (on the high end).

That means they get 3.75% each, assuming an equal split. Now break that down into album points, and 15% of 100% at a $10.99 CD price. That 15% yields them $1.65 per CD sold. Their last album sold 4 million +, so let's say 5 million for a round figure.

5 mil x $1.65 = $8.25M

$8.25M / 4 members = $2.06M

Taxes on $2.06M are 47% in the US, as it falls in the highest bracket.

So after Taxes, each member has $1.09M.

Keep in mind, this is BEFORE they take out the recoup...

Assuming they went low budget on production, etc... let's say they made the entire album for $2M.

Take out the $2M in recoup costs, and that leaves $2.36M to be split by all 4 members of the group.

Which means each member would end up with $591,800 after label recoup, and taxes.

That's for selling 5 million records... :eek:
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got DAMN!!
That just changed my whole perspective on wanting to become famous... well i do wanna be famous but i wanna be famous without all the taxes ;)

this is a damn good thread
 
Wow, I remember this thread. Extremely worthy of being a sticky!!!!!!!!!

Good Job Knot!
 
bknot1 said:
Thanks alot Chili
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Sorry I missed this one earlier. You're welcome... it is a very good thread.

btw: You might remember me as 'Dave' over at sw101. Don't go there much anymore.

Trumpspade said:
... Extremely worthy of being a sticky!!!!!!!!!

Good Job Knot!
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I agree...

Change of POETS said:
Yep. Imagine how little Black Eyed Peas actually get?....
Which means each member would end up with $591,800 after label recoup, and taxes.

That's for selling 5 million records... :eek:
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Just to add my 2¢, this is why everyone tours. That's where the money is... That, and endorsements. Didn't Black Eye Peas do some commercials?? You only do cd's to get people to come to your shows and buy your t-shirts. :D
 
bknot1 said:
Alright we goin to show how to figure out producer points for a album...


the SRLP $18.99(Suggested Retail List Price) multiplied by 3%(Producer's Points)= 57 cents

$18.99 x .03 = 0.569(.57)

unless you produced the whole album..you won't see .57 cent

now we need to take the .57 cent and divided by the number of tracks on the CD(15)

$18.99 x .03 = 0.569 / 15 = $0.0379 per song

so you will get ~$0.04 per song you produced on the album if you did more then 1 song..its that easy..

so now you know have to figure out what you would get after the labe recoup their money...

stay on your grind...peace
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I know a lot of producers nowadays rely on up-front fees. Mechanical royalties are kind of screwed up for now. Just wait 'till they get the laws together for the internet and the money starts coming in again ;)
 
KidQuan said:
got DAMN!!
That just changed my whole perspective on wanting to become famous... well i do wanna be famous but i wanna be famous without all the taxes ;)

this is a damn good thread
Click to expand...
5 Million records is a huge sale nowadays too. Who sells over 5 million records? And at what price per unit?
 
omg...

i just got off the phone with an artist who is going to need production done for his album...ive worked with him before but it was just stuff for mixtapes and stuff like that...

His company is suppose to be calling me tell me about my producer points..

i had no idea what producer points really are and was worried that i was just going to get abused and not treated fair..

this kinda gives me an idea of what producer points are now..thanks alot

i wont be producing the whole album..but i say maybe 3 to 5 songs....

how much money per unit am i looking at?

and how do i give someone rep points?
 
Come on now...

Like anybody's really making money off of hip hop these days....:laughings:
 
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