Advice on a proposed record deal

finnezzia

Hi all, just looking for any opinions on a proposal that a band I'm in has gotten from a record label.

We're a fairly unique quartet that raised the money to record an album of original material which we completed last year. Our plan was to release it ourselves here in Ireland and tour a bit on it and see where it went, but through some personal contacts, a small European label has gotten in contact looking to release it.

Just wondering if anyone had any interesting perspectives on the offer (it's a proposal at the moment really, everything's negotiable). We're not worried about being fleeced or anything but just we've no experience in this field and could do with having a few of the pitfalls of the deal pointed out to us.

OK:
At the moment we own the master, obviously. He wants us to put a value on that in terms of cost (10,000 say). He'll then do all the duplication/press/whatever for a European launch at a cost (20,000 say) and in this example he would then own 2/3 of the master. That make sense? He wants an exclusive license from us for three years, after which he can buy out our percentage and give us the usual 11% royalty (he basically has first option on buying us out, he can make us an offer and we don't have to take it).

The plan is to do release it in all the major European markets at some point after the summer. As they'll be doing the duplication, we will have to buy our albums of them for selling at our gigs and on the website, at wholesale price. And we are only talking about the master here, the songs will still belong to the songwriters and everything.

I know a LOT of detail is missing, but as a sketch how does that sound?

The Master

This caught my eye

we will have to buy our albums of them for selling at our gigs and on the website, at wholesale price

So you'll be selling the album yourself? was that not your original plan anyway?

Other than duplication and some PR (that you could do yourself) giving away 2/3 of your master seems a bit much

Does the label have a good track record?

finnezzia

thanks for your comment.

It's a new label so there's nothing much to compare to.

The album will be physically released in multiple European countries, including Ireland, that thing about buying our cds off him is just for us selling at gigs and through the website. If he were to spend the 20,000 (in the example) to get 2/3rds of the master then he's gonna be waiting a looong time to earn that back from us selling at gigs, so you would think that it will have to be given a push for retail sales.

A huge thing for us would be opening up other markets not just for selling albums but for getting gigs abroad, which would be greatly helped by the album being available in those markets.

Again, the 2/3 was just an example, but it's a good point to say what will they actually do in real terms to get their share of the master.

The Master

finnezzia wrote: »

The album will be physically released in multiple European countries, including Ireland,

Sorry , this part wasn't clear it looked as if you were being asked to do all the selling yourself

micko4

I'd go for it to get your name out there,how successful do you think it could be promoting it yourself,do you have the contacts or the money.
Self promoting can't compare if you don't have the money.
But I am no expert.its just what seems a good idea to me as I know a lot of people who self released and its hard to get places..although I'd negotiate hard for another deal ..and also I might try contacting other labels and mentioning you have an offer

This is just my 2 cents though ah I said Im not an expert,I'll be interested in seeing the replys and how you get on.

Waking-Dreams

When you say you’re a fairly ‘unique’ quartet, do you mean that your style of music is very niche? What kind of appeal do you think your music has; who are your target audience? These days, it’s common enough for record labels to expect many bands to record their own albums and for the label to then promote and distribute it in other territories (and on iTunes, etc.).

So in exchange for all the promotional expenses (which will be based on a set fee as you stated) 2/3 of all profit generated from sales/licensing will go to him and after 3 years, he can buy-out your 1/3 and give you an 11% mechanical royalty rate (if you accept his buy-out offer)?

Do you know how extensive the ‘promotion’ will be? PR can be mighty expensive, so a ‘European launch’ can mean anything. They will be printing off CDs but there are also digital sales to consider, which cost next to nothing to set-up.

Also, having to buy your own CDs at wholesale isn’t unheard of for the purposes of gigging. Because this is a new label, understandably, he isn’t going to have money to burn and will not be giving you a deal that doesn’t allow for risk.

jane82

I cant see him getting the cds done. Paying to make profit on them then letting you sell them at gigs making him no profit so thats fair enough.
Id want to knpw how many cds he plans to print and how much he is putting into promotion though.
You dont want him putting you on his itunes and then collecting money off you forever for nothing like.

jus_tin4

2/3 if that's right is a bit much for no real details to what he is doing? So that would be the first thing.

Regarding the buy out clause, I'd make sure that you don't have to take his offer if he matches an offer from a different company!

Details are limiting tbh so get a solicitor to check it

SweetStasis

firstly - well done

secondly - 100% get legal advice, instead of listening to people speculating on Boards.ie (no offense folks). its worth it. this could be a big thing for you guys.

here's one i came across that I was recommended - I haven't done any business with them so can't recommend them personally.

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