Industry Exposure: Production Deals
There are 3 types of production deals.
1) G-Unit/Young Money etc: There are not record labels. Artists are put into these companies so it is easier to market them.Think of when The Game was put into G-Unit or when the Lox were with Ruff Ryders but were still signed to Bad Boy. Or more recently, Drake being signed to Young Money when he is really signed to Universal Motown. These production companies have large distributors and parent companies who sell the records and pay them millions of dollars to market them.
2) Aftermath/Royal Court etc: A team of in house music producers who are paid by a parent company to produce and develop their projects and artists. Very lucrative. However a lot of ghost production may occur until you get a big break. (I will explain this in a future post this week.)
3) A standard production contract. We pay you to work on project A with artist A over some period of time. Or with artists signed to our label over x amount of time. These are the trickiest contracts. Some producers will be paid upfront exclusive of royalties. But you must think, is being paid upfront for your beats and studio time a better deal then being paid for your beats and studio time at a latter date with your royalties and publishing?
Of course it isn’t. Publishing is key because when you retire, your work could still be collecting royalties. Its the gift that keeps on giving.
A lot of money may be recouped by the label if you are not careful, you wont get paid until they receive their money back. So make sure you settle for nothing less than 65%/35% split with royalties and recoupable advances.(A music attorney will explain this to you in depth).
Only sign multiple album deals with established majors. You should receive around 3% of the artists royalties. For every $1 dollar single, the producer should receive anything from 9 to 17 cents.