The further I’ve engrossed myself into Hip-Hop, the less money I seem to be able to find in it. On the surface, the rap life seems great. The chains, the hoes, the cars and all the assumed perks of being a rapper look to be overflowing, but the Great Depression of the music industry has really changed all of that, probably permanently. In 2011, 360 deals are the norm while record-label schemes and artist naivety more often than not leaves them broke and stuck on square one. Sure the fame and glitz and glamor look great, but that retirement fund remains empty and the checking account stays in the red.
The ins and outs of the recording contract remain an unsolved mystery to most of casual observers, but I’ve always wondered just what they can contain that so perfectly traps artists and forces them to hand over most, if not all of their dough right back to the executives. In a video called “How to Sell 1 Million Albums and Owe $500,000,” entertainment attorney Martin Frascogna breaks down all the insane contractual clauses from breakage fees to container charges. Though his initial estimate of $20 per CD is a bit high in today’s market, at retail prices of $10 – $15 the amount of money that an artist would owe the label after going platinum is closer to an even million. To break even under this model, the album would have to sell a near-impossible 2.5 times platinum.
Watch the video and then think about if you really want to be in the business © ATCQ.
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![[image]](http://cdn.tss.uproxx.com/TSS/wp-content/thumbnails/130/110/2010/11/contract-main-150x71.jpg)
![[image]](http://cdn.tss.uproxx.com/TSS/wp-content/thumbnails/130/110/2010/02/360-contract-150x100.jpg)
Even if a artist does break even, they still have to pay lawyer, manager (20%), booking agent, financial advisor, publicist and whoever else.
I guess going indie would be the logical route in this day and age. A 360 is really a mechanism for a label to recoup monies they’ve lost due to illegal pirating.
But what’s to say that the labels didn’t do their due diligence in the late 90s when Napster and Kazaa were coming up? All evidence says that they didn’t and now they’re seeing how they fucked up.
*Commence armchair quarterback/basement record label CEO commentary for 40 comments*
*Awaits TRA’s son’ing of aforementioned “industry heads” *
*Welcomes Monday morning review of comments*
People always say “indie is the best route.” Not always. Depends on the artist.
Then when you do go big, boy do you have to be aware and make sure everything’s in order or you will get screwed.
In short, I think now is a really shitty time to become an artist, regardless of how things may seem lol.
Industry Rule #4080
That is very scary… But still, I can’t see myself doing anything else. I’m an artist, I gotta create. If I can get paid doing this, so much the better.
[aaronsmarter.bandcamp.com]
by way of example…
Cosign all three comments above my first one.
Especially looking forward to what TRA has to say.
Important info. I learned this math via my would-be godmother Wendy Day years ago and I’ve taught it to hundreds of students through my non-profit hip hop education program…it’s my favorite lesson to teach because noone realizes just how bad it is.
I do a whole role-playing thing with the youths where I’m the exec and they are the artist…At the juvenile detention center I’ve had kids threaten to hypothetically rob me and take their hypothetical money back at the end lol.
“In short, I think now is a really shitty time to become an artist, regardless of how things may seem lol.”
Yep.
Great video.
I think the independent route better suits artists. Their fans still come out to their shows, they still see sales i think via their websites and even possibly iTunes.
the downside is that you don’t see them get much press.
But I admire guys like Curren$y and a lot of other rappers that are going independent. Joe Budden as well.
Great post
Idk if I can believe him 100%. Kinda sounds like he’s tryna get some new clients who will think he’s a legit guy.
But I do remember Wayne doing an interview with Tim Westwood back in ’08, and he said selling a million copies wouldn’t even pay for promotion.
If the artist takes money from ITunes sales or shows, they can get a good publicist. All an indie artist needs is a really good lawyer, business manager and publicist. Then when they’re ready to play bigger shows, they can holla at a booking agent with established relationships or their manager hook them up with tour placements
Labels come with publicity departments, but there are plenty of freelance publicists with good connections to media outlets. Speaking from experience, as I’ve been on both the label and freelance end. Even if you’re on a label, global outreach isn’t guarantee and you’re often subject to be at the bottom of the barrel if the label has a priorirty artist that has a release due out. That’s the downside of it. A freelance publicist can pay more attention to an artist depending on their workload. A label has a brand name that may guarantee placements faster. There’s pros and cons to both.
Whatever the case, a lawyer is imperative.
It is a scary time to be an artist.
This is a great time to be a self-contained artist that knows how to hit the road, play live and doesn’t need to be a millionaire by the time they’re 30. Jazz and Blus acts been doing it since inception.
Like Gotty says, it depends on the artist. If you can write, produce/have access to producers and know how to really make music/perform it, now’s as good a time as any.
Too many artists still wanna be overnight celebs.
I know a guy–kinda famous… pioneering artist who now runs a small label. he’s sick of running the label. he wants to go back on the road and just DJ and produce and be an artist. He’s prolly gonna shutter his label this year for that very reason–the headaches aren’t worth it. he’s rather hit the road for 150 dates a year, cake up and have his family and life back.
this business man… what a trip.
The real money comes in producing.
Real artists don’t make music for the money, they do it for the culture. I know that doesn’t put food on your plate, but if someone’s primary goal behind making music is money, then I don’t consider them a real artist.
^^^
I think I should clarify that the above statement is MY opinion, which I do not consider to be fact.
You guys in the know can kindly fill me in on this. I’ve always wondered, how do indie labels make bank? I mean their artists rarely make six figure sales, do they eat off of tour returns or something like that?
Pardon my ignorance on the topic. Its just that indie dudes are always die hard loyal to their labels unlike the majors who pretty much bar hop labels and hate everyone e.g Fif’s current predicament.
I wish I could burn this article to a DVD and exchange it with every rapper who hands me a mixtape. Imma learn them something.
New Link:
[youtu.be]
kill the computers!
swag