The quest for the elusive record deal is sought by thousands who want to be the next big thing on MTV. This is a follow-up to the “Record Deal – Are You Ready” blog. These articles are not meant to discourage those that are interested, but meant to enlighten. If you want to be in the music business, then you should know something about the business.
The numbers below fit the following scenario:
There is a band that has 4 members; the band signs a 3 album deal. The band gets 13 points on the deal. The Record Label gives the band a $250,000 advance on the first album. It takes you 3 months to complete the album, you spend 5 weeks on the road promoting the album, and the album sells 250,000 copies.
How much money does the Record Label make and the other participants?
<<– click on the picture to see the detail accounting
Even knowing how the numbers don’t add up in the favor of the band, there are still those same thousands that would jump at the opportunity to sign this deal under the same circumstances. You can not put a price on fame, and the Record Label magic is that this may be your only chance at being famous!