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Marketing/Publicity/Hype

– Marketing is to promote your artists by using means other than cds, like t-shirts, benefits associated with your record label and such.

– Advertising is tv, radio, commercial and other media base promotion.

– Publicity is getting people to talk about you through media like
newspaper clippinsg and word of mouth.

– Hype is the momentum until your album is released. A local publicist should be hired if you need the buzz.


Mechanical/Royalties

Mechanical royalties are about .0715 cents per song and you can be paid up to about ten songs, but in due to a statutory clause a record label only pays 75% of the .0715 royalty.

So if you album goes platinum (sells a million records) you would get paid 1,000,000 times 10 (ten songs) and then take that 10,000,000 and times that by 75% of .0715 or .06639 to get $663,900

1,000,000 records
* 10 songs
----------------------
10,000,000
* $.06639 royalty percent
----------------------
$663,900


This cost is without recoupment costs of the album and assumes you own 100% of the publishing. If the record label owns 50% of the publishing the record label gets paid 50% of this sum. All cost of the album are then taken from the artist’s portion of this sum including studio time, promotion, producers, retail, distribution, mastering and anything that costs money.

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