THE MUSIK-ZONE
The Business of Music
Tutorials

The Business Essentials - Introduction
By Jim Moore, Phoenix Studios
Copyright ©2008 by Phoenix Studios. All rights reserved.

This section deals with the strictly-business aspects of music - the organization, business type (proprietorship, partnership, corporation, etc.), copyright, business plans - all the stuff most artists will dread.

If you have a partner who is more comfortable with those things, and whom you can trust, then you might want them to go through this. Still - read the next paragraph.

If you already have a label deal or have someone else "handle the business end", there are certain things you should know so you don't end up broke, all your bank accounts and property confiscated and in debt to the IRS. Once you do that, you yourself might be able to skip the rest of this section ... but I wouldn't advise it.

Just because you don't do a task yourself does NOT mean you shouldn't know HOW to do it, and be ABLE to do it if you find yourself in an emergency situation where you HAVE to do it.

I have worked (or tried to) with publishers who did not use contracts, depending entirely on a person's integrity and hand-shake agreements. It has been one disaster after another. For example, in one case an album was taken right up to production - until it was discovered there were no written agreements regarding copyright, just "oral agreements." The entire project collapsed because some co-writers couldn't be found, one was dead, and some others were on ego trips and wanted more than what they had originally agreed upon "orally." The album was mastered, the artwork was completed and ready to go. But the album died an instant death because of a lack of planning.

Trust is nice. Trust is fine. Trust is good. But verification is always better! If it ain't in writing, it might as well not even exist. Many CD production companies simply refuse to produce a CD until they have copies of the written contracts.

What You Will Learn in This Course

In these tutorials you will be taken step-by-step through the process in the creation of a real-world album from conception to birth. You won't find it all here at the very beginning, though - these steps will be added gradually as they are completed, so they can be fully and easily explained, using audio/visual examples.

You'll learn what software and hardware is available and why some are better than others.

You'll learn some basics about how to use that hardware & software - what audio file formats to use in what circumstances, how to sample it, how to upload it, how to prepare it for delivery to your audience.

The business end of music is the hardest part to get a handle on, and you'll learn all about what to expect from managers and record companies, what you need to know about copyrights, various avenues for the sale of your music, and a whole lot more - from some of the best names in the business!

These are the the current articles (more are planned) we have in the pipeline for this section, in alphabetical order:

  1. A&R - Getting Signed

  2. Advertising Jingles

  3. Album Release Guarantees

  4. CD Mechanical Royalties From 2004 to 2008

  5. CD Mechanical Royalties for 2005

  6. Changes in Copyright Renewal Procedures

  7. Choosing the Right Music Manager

  8. Collectibles - Almost as Good as A Gold Record

  9. Co-Publishing Agreements

  10. Co-Publishing Agreements—How Writers Are Paid

  11. Copyright Basics - Joint Works

  12. Developing Your Skills As A Manager

  13. Do I Need a Producer?

  14. Duration of Copyrights

  15. Film Composing Fees

  16. Foreign Sub-publishing Agreements

  17. Getting a Record Deal

  18. Getting Record Deals

  19. Gigging for a Living

  20. Home Video Licensing

  21. How Long is Too Long?

  22. Increase Your Odds of Getting Signed

  23. Infringement Claims

  24. Making a 'Spec' Deal

  25. Managers and their role

  26. More information on Performing Rights Organizations

  27. More on Writer-Artist Movie Song Contracts

  28. Movie Scores - Starting and Completion

  29. Mumbo Jumbo - Videos

  30. Music Business Attorneys

  31. Music Cue Sheets (How You Get Paid for TV Performances)

  32. Music, Money and Sampling

  33. Naming Your Band

  34. Negotiating Television Music Licenses

  35. Negotiating Your Employment Agreement

  36. New Band Members and Departing Band Members

  37. Ownership of Recordings

  38. Performances- Where the Real Money Is

  39. Performing Rights Organizations

  40. Personal Management Q&A

  41. Potential Revenue Streams - Merchandising

  42. Promotional Streaming Licenses

  43. Record Companies - What The URL Else Do They Want?

  44. Recording and Delivery of Albums

  45. Restrictions in Music Publishing Contracts

  46. Self-Publishing

  47. Songwriter Advances

  48. The A&R Games

  49. The Broadway Musical as a Motion Picture

  50. The Inner Workings of a Music Publisher - Part 2

  51. Treating Your Band as a Business

  52. Types of Songwriter Agreements (An Overview)

  53. Unions - Protecting Active Musicians

  54. Writer-Recording Artist Movie Song Contracts

STEP 1: Organize

Before you ever take your first step out into the music world, beyond a few local gigs, you need to get yourself well organized. Organization involves Goal-Setting and Plan-Making.

Goals without Plans are as worthless as New Year's resolutions, and seldom get accomplished.

  • The first thing you need is a set of databases, where you keep track of things like individual tracks, writers, co-writers, performers, band members, studio files, file submissions and responses, sales, royalty payments, production costs, album cover art, etc., etc.

    We'll get more into detail on this later, with specific templates you can download and adapt to meet your own needs.

  • You need to set up your business as, well, as a business. Is it a sole proprietorship? A partnership? A corporation? An LLC? If something goes wrong, are you at risk of losing your car, your home, your equipment, your bank account?

    If you have partners, do they want to risk losing everything they own, too, for someone's stupid oversight or mistake?

    We'll also go into more detail on this later, again with templates and resources to avoid expensive legal costs. It's easy to incorporate by yourself if you know how to fill in a few blanks on a standard legal form.

I mention these just to show you why you need to get organized before you ever start.

Databases

Personally, I use Filemaker Pro - an excellent database program that puts Microsoft to shame. Filemaker Pro will work with both Mac and Microsoft computer systems. It's easy to create and easy to expand. It's also very easy to transfer a set of files from a Mac to a Microsoft machine and back without having to redo anything.

One of the products we sell from Phoenix Studios is a set of blank databases already created specifically for the small independent music industry - musicians as well as songwriters and independent publishers. You get it free with the purchase of this course.

Useful Links (open in a new window)

Answers to Legal Qustions - Ron Bienstock, Music Attorney
Music attorney Ron Bienstock (Goo Goo Dolls, Billy Joel, Mighty Mighty Bosstones) returns to answer more of your burning music 'biz/legal questions!  "How do I start a record label?", "Does the recording studio share in my song royalties?", "How much should I pay my manager?" Find out Ron's answers to these questions and much more - and ask your own questions!

 



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