#989416 - 01/31/04 05:47 PM
Collection issue
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shrimp
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Registered: 08/28/01
Posts: 11
Loc: southport,CT,UNITED STATES
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I will soon begin producing the 2nd release for an artist who is just getting his career started. For my compensation, he has agreed to the 3% of retail price which, from what I've read, is a standard fee. How will this be paid to me? Who is responsible for documenting CD sales? As no distribution deal has been struck, I anticipate lots of sales "out of the trunk". I want to be fair, as this is a very talented artist with a good shot at becoming something special, however I want to avoid working for nothing and having our relationship disintegrate into one of mistrust.
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#989417 - 02/01/04 05:27 AM
Re: Collection issue
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RaGe
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Registered: 04/26/01
Posts: 786
Loc: 16°14 N 61°32 W
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Interested in hearing about that too. Pros? 
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#989418 - 02/02/04 01:15 AM
Re: Collection issue
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flymax
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Registered: 01/09/02
Posts: 40
Loc: ,,UNITED STATES
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What i do in this situation is sign a basic agreement that twice a year we will check in and I get copies of the orders from the manufacturer. I also give them a percentage off of my cut to account for CD's they give away. If the person has integrity (and you make up a good agreement) it should all be fine.
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#989419 - 02/02/04 03:50 PM
Re: Collection issue
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bdbklyn
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Registered: 04/04/01
Posts: 1035
Loc: Los Angeles,CA,UNITED STATES
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Shrimp,
I think you have to find out some additional information. How many CD's were sold of the first release? How long did it take to produce the first release? Some information for us would help too. Are you engineering and producing? Are you getting paid an hourly rate for engineering? Whose studio is being used?
3% of a milion dollars in sales is nothing to sneeze at. However 3% of $100,000 in sales
estimating 10,000 unit sales @ $10/CD "out of the back of a trunk is not much compensation of the project takes some time and no advance received.
Bill
_________________________
Studio Guru
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#989420 - 02/03/04 09:00 AM
Re: Collection issue
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Bill@Welcome Home Studios
MP Hall of Fame Member
Registered: 08/23/03
Posts: 7376
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You madea bad deal. Learn from it and move on. You will only get what they give you. There is no way to trace what they do with the product or what they charge for it. As you say, 'out of the trunk'... there just isn't any way to trace it.
Bill
_________________________
"...it's easier than hitting the kids, and almost as much fun..."
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#989421 - 02/13/04 10:28 PM
Re: Collection issue
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ani
MP Hall of Fame Member
Registered: 10/26/03
Posts: 2294
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There are definitely ways of tracking sales of CD'S, however, small timers normally do not go to extensive measures to apply UPC barcodes on their products, nor do they have the equipment to scan the codes during live shows.
I've not looked for quite some time, but it seems the last time I looked into acquiring a UPC code, they ranged somewhere between $250.00 to $350.00. Most small timers will not exhaust that expense unless they have a guaranteed sales outlet willing to distribute their product.
So not to invite a huge controversy; these are opinions based of detailed observations. I am not an attorney. 
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#989422 - 02/14/04 09:40 PM
Re: Collection issue
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ani
MP Hall of Fame Member
Registered: 10/26/03
Posts: 2294
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Shrimp,
Another thought comes to mind on this matter. If you are actually doing the replication of the CD's for sale; you might consider alloting your artist set amounts of product for him to sell at shows. He should be willing to hand you the 3% of sales of those already sold prior to your releasing the next batch for sales. Keep the quantities low in the beginning, and if he claims the CD's are moving faster than what you are allowing, then he should be willing to cough up the dough to have them available. This way, you make sure that he's not burning you. You might allow the first batch out on a gentleman's agreement, but from that time forward, you should recover you 3% up front prior to releasing additional CD's. If he's asking for more, that means he must have sold the previous batch; therefore you are intitled to your share of profits.
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