- Artist's music is pitched to us by a promotions company - we'll call them The Provider - who, despite being the official rep for the artist during the current album cycle, does not know (or care to ask at the time they're hired) who controls the rights to the actual music.
- We listen to the Artist and realize that they're a perfect match with one of our clients, Brand X. So we pitch it to them.
- Sure enough, Brand X really likes Song Z and would like to license it for inclusion in Promotion Y. The all-in fee isn't huge by any stretch - $250 - but Brand X is massive, and the Artist will be credited prominently on-screen and featured on Brand X's blog, thereby exposing them to potentially thousands of life-long fans, some of whom will at some point pay to see the Artist, buy their merchandise and maybe - just maybe - purchase their music through a legal download store (or stream it on Rdio, Grooveshark, Mog, etc). Not to mention, other industry professionals like us may discover the Artist via the Brand X promotion, and offer them additional paid opportunities.
- We hit up The Provider about licensing the track. Sorry, they say, you need to talk to the label directly. So we hit up the label. They're stoked, as is the band. But there's a problem: the band signed a publishing deal recently and while we might have been able to get the song for $250 a couple months ago, the price has now quadrupled.
- Sorry, we say, Brand X only has $250. We move on to the next band in line, the one that controls 100% of their masters and publishing. They sign the licenses electronically in our BrandsForBands system in literally 2 minutes, and they're up on Brand X's web site two days later being listened to by thousands of kids, most of whom are hearing them for the first time. Love is in the air.
The moral of this story is NOT that big publishers and record labels are evil. We have many, many friends at both, and they are fine, upstanding members of society.
No, the moral of this story is that if you're going to relinquish control of your music, you better be damned sure that you know what you're doing, and that you've been well compensated in the deal. Because it might be the only money that you see for a long time.
Whenever you license, sell or otherwise transfer the rights to your songs or recordings to a third party, you are ceding a great deal of control. You are also ensuring that you will miss certain opportunities (see above).
Now, a person from one of the aforementioned third parties would be quick to argue that by partnering with a large publisher or record label you will be offered opportunities that are sexier, higher profile and more lucrative than those available to you as a free agent. On the cusp of 2011 this is highly debatable. But one thing is certain: you may be held hostage by your shiny new deal. This is not an exaggeration; we see it happen all the time (again, see above).
As we all know, it's a new world out there. There are opportunities galore for artists willing to hustle. But what's the point of working so hard if you're not able to make the final decision as to where/when/how your music is used, and at what price? By retaining control of your music you're the boss, able to cut deals and place your music on literally a moment's notice. And that's good. 'Cause companies like ours and the people we work for usually only have a moment (or less).
If you're savvy, willing to work your ass off to get your music in front of the right people, and - I cannot stress this enough - you have AMAZING SONGS - you will find that the smaller opportunities - the "micro gigs" - will present themselves. And they'll add up to real money over the long haul.
I'm walking proof of this. I was in a band for 15 years. For the longest time I wanted a publishing deal, and I was bummed when we didn't get one. But at the end of our run, when I added up all the license fees and PRO checks that I'd received - for bigger uses like TV shows and shoe commercials, but also a bunch of smaller placements that a big publisher wouldn't sneeze at - they significantly exceeded whatever advance we would've been offered (and most likely never recouped, because we would've been one of 500 artists on the roster).
My advice to young artists is this: if someone offers you serious money for the rights to your songs or recordings - consider taking it, and if you do, spend it wisely. Because as mentioned above, it may be all the money you'll see from that deal 1) ever or 2) for a very long time. However, if someone offers you a small advance, think twice and three times. Is a new van or gear for the band worth forfeiting the control, the opportunities you'll miss and the money you can earn on your own? There are other ways to raise capital, ones that don't involve relinquishing control of your biggest asset - and indeed the whole reason you do what you do: your music. ~ Tim
