Note: this is a specially edited excerpt for the J.A.M. Program. About the authors: Todd Brabec, Executive Vice President and Director of Membership for ASCAP, and Jeff Brabec, VP Business Affairs at Chrysalis Music Group, are Deems Taylor Award-winning writers and authors of the book, Music, Money and Success: The Insider's Guide to the Music Business (Schirmer Books/MacMillan Books), available at bookstores everywhere and at Amazon.com.
The figures and comments contained in this article are based upon the authors' experiences over the years with many specific situations. Ranges of fees, as well as comments, do vary based upon individual negotiations and situations.
INTRODUCTION
A lot of young musicians, songwriters and executives are so happy to be able to work in the music business that they sometimes forget that it's a BUSINESS, where you have to look out for your interests at all times. The history of the music business is filled with sad stories about people signing away the rights to their songs for eternity, usually because someone persuaded them to sign something they shouldn't have (many episodes of VH1's "Behind The Music" deal with this situation in one way or another).
Even if no one seems to care now, your songs and lyrics are your property, and they need to be protected because they can become very valuable virtually overnight. Knowledge is power, and "Music and Money" is one of many ways that ASCAP attempts to help up-and-coming creators, musicians and executives to avoid making decisions that they'll regret later.
Just check these two examples, from a recent ASCAP discussion panel:
"Don't screw up at the beginning. I did! Do you remember a TV show called "Dance Fever"? I wrote [the theme], I sang it and I produced it. It played for eight-and-a-half years on every major network in America, and all I got was $4300 because I didn't know about publishing. Guess how much money I lost over that? Can you imagine?" (artist and artist manager Stan Shepard)
"In between his In My Lifetime and Hard Knock Life albums, Jay-Z learned what publishing really was about, because he didn't make a lot of money on his first albums. When we went to collect his royalties,they weren't there, because he had signed deals that he didn't really know a lot about. Hey, it happens every day.
So I went and investigated why he hadn't been paid and I showed him: this is what you're getting -- but if you had done it right, this is what you would have gotten. Let's say In My Lifetime sold a million records. Jay would have made maybe $300,000 in publishing. With Hard Knock Life, he's clocking close to $2 million in publishing royalties alone [circa June '99]. I helped him just by showing him the right way to do it, so I feel real good about that." (Big Jon Platt - EMI Music Publishing)
The financial value of a songwriter's and music publisher's catalogue is based on the quality of the songs, how and how often they are used, and how they are licensed. Success in the music business does not happen overnight -- it takes talent, being associated with the right people, some luck and, most importantly, knowledge of how the business works. This overview focuses on the many sources of income for songwriters and publishers.
Next: CD, Tape and Record Sales
Copyright © 2002 by Todd Brabec, Jeffrey Brabec. All Rights Reserved. Note: The figures and comments contained in this article are based upon the authors' experiences over the years with many specific situations. Ranges of fees, as well as comments, do vary based upon individual negotiations and situations. |
