Back Side Records

Dealing with contracts is not necessarily the easiest of things to do in today’s world. Yet this is twice as difficult when it comes to a music record contract because most bands play music just because they love playing music, and don’t really look at the financial aspects of the music business.

If you don’t understand the language used (and in most cases, you won’t), it’s time to find someone who will (since money is involved) but while you do this, here are a couple of things that you must look for on the record contract:

#1: Royalty rates
For every CD that is sold, the band will receive a royalty whose rate will be specified on the contract. However, you must be aware that there are certain situations in which you will not receive the stipulated royalty rate, and for this you will have to find someone to sift through the jargon.

#2: Recoupment
Very simply, this involves paying money back to record label for the expenditure that they have incurred such as an advance, studio time and promotion. It is only once the band covers this “loan” do they start receiving payments in royalties.

#3: The Recording Fund
Instead of handing out bands an advance, record labels have set up a recording fund which is really the recording budget & the advance rolled into one. This is for purpose that musicians stay efficient in the studio while getting to keep the remaining amount if they manage to stay within the budget.