A Ok Music

www.aokmusic.com

Music - Understanding The Music Industry
by Rick Talant
http://www.rttmusic.com

==============================

The music industry is one of the most multi-cultural and
diverse industries in the world. Musicians flock to and
appreciate this quality.

It is the type of work where you don~t sit in an office
nine to five and punch a clock. You might be hard
at work in a club playing your heart out to a wild
crowd of excited fans.

The way that money is handled and exchanged is much
different from an hourly or salary-based paycheck.

No matter how artistic and talented you are, you still have
to eat, buy clothes and afford the little things in life.
So it~s a good idea to understand where your money is coming
from, how you will get paid as a performer and what is
happening so if it goes wrong, you know what to do.

To get started understanding the money trail in the music
industry, you have to become familiar with two terms,
recoupment and royalties

RECOUPMENT DEFINED

Recoupment is a loan from a record label or company. These
funds are to pay for expenses necessary in creating an
album or playing tour dates.

Be careful though, this is definitely a loan. It's meant
to be spent to help your career, but it must all be paid
back at some point.

So watch your expenses, track what you spend and get the
financial geek in your band to manage those funds because
you don~t want to find yourself facing a cash crunch with a
big recoupment payback because you blew the money on that
big party at the end of the tour.

ROYALTIES EXPLAINED

A Royalty is the percentage of the sale of your record
that you get. It seems simple but there is a whole world
behind tracking and collecting royalties. There are
basically four kinds of royaltys

1.~The Mechanical Royalty is the cut that you get when
another performer covers your song.

2. Synchronization royalties occur when your song is used
in a movie or TV spot.

3. The Print royalty is the amount you get when the
printed version of your song is sold.

4. The Performance Royalty is attained when your song is
on the radio or you play it in person.

So how does the money to get the artist?

Well the record or publishing companies have elaborate
systems in place to track these sales and get you the
money you need. Make sure your agent is aware of these
concepts to keep track on the money coming in and stays
on top of it.

Performing Rights Organizations, or PRO, are agencies that
will monitor the industry to ensure money is being handled
fairly and correctly.

It's a good policy to get to know the people who will be
handling these finances. It's a great way to earn money if
you're talented, and most artists do quite well with it.
Keep organized to make sure that you get paid what you
deserve.

Submit An Article

Get Exposure For Your Site! Advertise with us.
Click Here For Details on a Great Deal!

Would you like more information on music?
Sign up here for our mailing list. You will get great information before it becomes available on our website!