How Do Advances Work In The Music Industry
How Do Advances Work In The Music Industry Transcript
00:00:01 – 00:16:08
What up Smart Rapper Gang? I’m about to answer the question, how do advances work in the music industry? You need to know this, right? You going to love this. I’m Rob Level. Let’s get to it. Right. It’s like this. You can get an advance from a publishing deal, there is like a lot of different things. Okay. Let’s say that a record label gives you as an artist a sum of money.
00:16:08 – 00:35:13
Let’s say there’s 300 dollars, and then what happens is that the record label is going to keep all the money that you get until they make their money that they gave you back. No way. That’s why they’re advancing you the money, knowing that they’re going to get it back from your music. Okay. So here’s the thing. If a label gives an artist $10,000 to sign a record deal, okay, if the company keeps the first $10,000, you make that right.
00:35:13 – 00:56:05
It’s that simple. Right. And then after that, they start giving you a percentage or your royalty that was in the contracted agreement. You get your advance and then get the $10,000. And after that, you start getting a percentage of the money that comes in, depending on the contract. Okay. Now, take into account this as well. If they give you $10,000 but you’re in contract and you only make $7,500 back, you still owe them $2,500.
00:56:06 – 01:12:05
So when it comes to recoupment, which then getting the money back, comes from the income of all of your royalties. Okay. If you got an advance of $1,000 from the record company, you still owe them $1,000. You don’t get $1,000 that you earn after that, they get it. All right. Just say it in numerous ways you understand it.
01:12:08 – 01:27:26
And that’s how it works. He’s got a little bit smarter, it’s Smart Rapper. Did you know that I have over 100 masterclasses musical artists just like you and me get from wherever you are to where you want to be. And this stuff covers every single possible area you can think of and is free to check out.
01:27:26 – 01:42:05
If you click this video, it’s going to show you all of the different masterclasses that I have. And I know at least one of them is going to be right for you. Right, click this video. I’m Rob Level from Smart Rapper. 450,000 subscribers. Almost 50 million views can’t be wrong. Click this video, check it out and keep hustling and I’ll see you at the top.
Keep hustling, and I’ll see you at the top!
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