 It's a common story among first time rappers to have their albums sitting on the shelves. Understanding the management's perspective and going into the industry with realistic expectations can prevent that from happening.
Let’s get this out the way. There is no money in a recording contract. Well, not for the artist at least. If you are one of the lucky new faces that do get an album to see the day of light, be prepared for the frustration of watching everyone else get paid before you do. First off, the distributors take a huge cut of your sales, then comes the labels share, the managers, promoters and A&Rs. Next you have the accountants and the lawyers. Don’t forget the producers, mixers and executive producers on your album. Chances are, the way your contract is set up, the intern making photocopies and taking lunch orders will get paid before you do. Oh, and taxes. So what can you expect to make from a record deal? An unestablished artist in the industry can expect to earn 50% an album from an independent deal or 10% from a major deal. If you have a tremendous buzz, you will probably do the following numbers. Independent 100,000 albums sold x $10 per album = $1,000,000 50% of $1,000,000 = $500,000 earned Major 500,000 albums sold x $10 per album = $5,000,000 10% of $5,000,000 = $500,000 earned *Numbers and explanations are chosen and simplified for ease of understanding. Actual terms may vary and other clauses may apply. Not bad at all considering you are a first time artist. If you don’t have a buzz surrounding you, forget about it, you will be end up closer to the $50,000 earned range. But wait…there’s more bad news. The costs of the music videos, the costs of the street marketing team, the flights and hotel costs, even your $100,000 advance which you spent on clothes, jewels and cars are recoupable if stated in your contract! That means, the label dips their hand into your 5% and takes back whatever you “owe” them. “Damn! I knew these rappers were lying about their money!” Indeed many do lie and most will exaggerate but a select few do get PAID. The most common way an artist earns money is from doing shows; this includes tours, clubs and various events. When Ballin was a hit, club owners were offering Jim Jones $50,000 to do a single appearance. Don’t forget the time Kanye West charged a church $70,000 for performing a verse off Jesus Walks. And just recently, insiders estimated that 50 Cent commanded a handsome $100,000 per show in Europe. And unlike money from record deals, the artist will manage to keep most of their new found fortune to themselves. Now with that newsflash out of the way, we can move on to developing an industry mentality. The Management’s Point of View They know what you’re thinking, they know what you want. You’re a hungry young artist that has dedicated your life to making music and now you want to be recognized for it more than ever. They know you come from poverty and hardships and you have fought your way to the front of the line waiting for the door to open. But they also know you are not the only one. You are not the first and you won’t be the last. They know there is plenty of undiscovered talent and you should know it too. You should also understand how management thinks. They are a business and their job is to make money. To the higher ups you are not Thugnificient, you are not Gangstalicious. You are investment number 5, grade C, high risk, high return. You are investment number 18, grade A, sure thing, decent return. Record labels are not charities or saviors, they are businesses that must act in their best interest to stay afloat in a very competitive industry. While talent is abundant, the same cannot be said about professionalism. And this is where you can immediately set yourself apart. Simple things, like arriving early to a meeting, dressing properly and being courteous are rare in the hip hop industry and can dictate management’s impression of you. But where you can really separate yourself from the rest is understanding how to market yourself. As a music artist, you are selling more than your music to the public. You are selling your stories, your experiences, your pain and your happiness to them. You are selling them a character. If you can create an effective marketing scheme for yourself, you are better off than 95% of the artists WITH a record deal. Unfortunately for hip hop purists, some of those schemes include dance steps and auto tunes. So while you may not want to trade in your integrity of the music you create, it is not unfair for you to put yourself in an executive’s shoes and think like them. After all, would you invest in a lyrical monster if he is bringing a loss or no gain to your company?
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