Working out a deal with your band………..


Reader Oliver was kind enough to post a comment with a question that covers a topic I have intended to cover for a few weeks now. That topic is how do you cut up money within a band? What’s the whole royalty payment thing mean for individual band members over the long haul?
———————–
Read through Oliver’s question and I’ll be back at the end……By the way Oliver is well-informed, and has put some thought into how his actions will affect other’s lives and their desire to be in the band. This proves Oliver is not a sociopath. Good for you Oliver. This may prove a handicap when dealing with all the bona fide sociopaths in the music business but it’s likely he’ll be a more satisfied rock star……………..
————————
Oliver writes:

Sorry if I’ve missed this somewhere but in keeping with the non-democratic approach you described, whats the best way to go about song rights/royalties? How do I avoid this situation:

i) Write every note and syllable and take all the royalties but gradually lose my band (but buy one eventually) (Dylan-esque)

ii) Write every note and syllable, split the money with band members to keep the band, drive myself crazy giving away money to the non-writing band, potentially lose the band anyway (Dandy Warhols-esque?)

iii) Agree to play/record anything good that any member writes and allow the rights/royalties go to the contributing member, run the risk of losing direction/ internal power struggles/ control over band. (Stones-esque)

None of these options seem good to me, and although I’m not greedy I’d hate to see a disgruntled band member in 30 years cruising on a yacht he bought with my songs (fanciful I know). I assume there’s no right answer, but you’ve been there and there must be a slightly better option of the three. I feel I’ve got to get this right early.

Regards and many thanks for publishing knowledge you can’t buy.
Oliver.

None of these options seem good to me, and although I’m not greedy I’d hate to see a disgruntled band member in 30 years cruising on a yacht he bought with my songs (fanciful I know). I assume there’s no right answer, but you’ve been there and there must be a slightly better option of the three. I feel I’ve got to get this right early.

Regards and many thanks for publishing knowledge you can’t buy.
Oliver.

————————————–

You’re welcome Oliver. I appreciate my readers and I know that getting an informed opinion is valuable. That’s why I write this blog.

Oliver’s predicament is classic. He is the primary creative force in his band. This is common. Most musicians are not also great songwriters.  A typical band is made up of :

A drummer – a rock steady rhythm monster with a flair for knowing exactly when to step in and a flash. He is the backbone and holds the rest of the band in the pocket and is the timekeeper.

A Bassist – He builds the groove and either adds the drive or defines the song as a dance tune. He can add darkness or light, thunder or soul.

Guitarist – Endless, colors and flavors, rhythms, melodies, flashy solos and roar.

A Lead singer – this is the ego and the magnet and turns the writing into an experience.

Any and all of these people make up a band and make the magic that the world recognizes as rock. Any and all of the people could be primary writers. Any and all of these people make it work and without them the magic is lost. All you need to do is think of two or three great bands and it’s easy to point out an instance where the loss of a minor member seemed to change a band’s spirit and as a result the band’s golden years were over.  Making music is a touchy thing, little  changes often have big results for the better or worse.

Since this is the case how does a band split up the money?  In a way this question misstates the reality of the way money is usually dealt with within a band.  The vast majority of bands are controlled internally by one or perhaps two creative geniuses.  This is the person that writes the material and provides the vision that makes the band unique. This person has more power than the other members so saying how does a band split up its money is dishonest.  The real question is how does the person that controls the band allow the money to be split up? Or what is the best way for a band to work out a compromise that keeps everyone on board and gives credit and money to the person (s) that deserve it based upon contribution.

Another wrench that gets thrown into the possibility of an easy fair system is the fact that most of a band’s career is spent in poverty. The lifespan of bands after they get a deal or a hit, or build a base is, at the absolute extreme 10 years with 3 years being a much more likely scenario. As a result of this reality in most bands money is never discussed except perhaps as a fantasy until it is too late and there is a pie to split up without a system to do so.

I suggest quite strongly that if you are in a band, form a band or join a band that you force the band to have some kind of agreement on how money is cut up.

In the underground indy world, the world that I lived in for twenty years and helped create, there is little money to worry about as a band works out its career. Gigs can be for $50, or perhaps a $100 and recordings are simple affairs that are self financed.  So nothing to worry about right? No, there is still a little money being passed around and more importantly people will often PUT MONEY INTO THE BAND.  So you and your Mother’s Uncle’s Nephew pay for the band to record a record, who owns it? The answer is 50% you and 50% your brother. Or 50% you and your brother and 50% the band. What about the producer? I think you get the point.

When your band first starts out have a serious band meeting. Discuss the following topics and write down the results. It’s better to lose a nutty bassist during an argument before things get going then to have him walk out on tour when he doesn’t get all of the door which is what his warped mind had decided was fair. (this happened to me. He started with “Everyone knows I have the most talent…..)

1. Does the band keep a joint piggy bank? Who keeps it? In what form? (cash or an actual bank account)

2.What is done with gig money? Most bands use this to build up the piggy bank.

3. If you pay for a recording what is the split on the ownership of the recording? On this one I will suggest that you work out something where the person that pays gets their cash back first, then the band owns the recording with the person that paid getting an extra share for risking their money. This is a common arrangement.

4. Is one person the leader and or main writer? If this is the case that person MUST GET SOME CONTROL over the use of their songs, and get the publishing money. I will explain this later in the blog. Let me just say that songs make money and bands make money and the songwriter is gonna end up with the song money no matter what you may want. If this pisses you off then write a great song about it, turn it into a hit and keep all the money to prove how unfair that system is….

Have a meeting. Write this stuff down. Then rewrite it in the form WE the members of Dog Dandruff being Joe, Schmoe, Larry Schmoe, Curly Schmoe and Gonzo Garbigian do hereby agree  to the following……then put all the crap you agreed to and sign it. Make four copies sign them all and Larry, Curly and Joe get a copy. Gonzo’s mom gets a copy since he can’t read.  This is a binding contract. It’s not a very good contract and it’s not a contract written up by a lawyer but in court the judge will hold his nose and respect it. Make sure it covers what to do with gig money, royalty money and songwriting money.

Now if it comes down to a fight about money and this goes to court this contract and your two-bit agreement will run smack into the LAW. There are laws about songwriting royalties. (see one of my blogs for an explanation) There are laws about contracts and working for hire and working for a cut. There are sleazy lawyers. There are sleazy bass players with sleazy lawyer cousins.  What does all this mean? As soon as you have some success and/or a manager redo all of this with a lawyer doing the consulting.  If you do end up using a lawyer YOU TELL HIM WHAT TO DO!!! He doesn’t tell you. He works for you. He will advise you and you’d be an idiot to pay him and not listen but in the end if the band wants to leave all of the money to the Museum of Idi Amin then that’s tough luck for the lawyer.

Now for some practical advise. Perhaps this will help our Reader Oliver. The vast majority of bands, and by that I mean a band formed by unknown musicians in an attempt to make it big, split their gig money evenly.  Since recordings are becoming less and less valuable as money-making endeavours this may turn out to be the lion’s share of the money.  So split the money evenly after the band covers gig expenses. The better you do the more the gig expenses cover. Once the band starts to play regularly and your fee starts to get healthier it’s wise to start a system of per diems. (that’s Latin for Per Day) What does that mean? Well, let’s say your band is getting paid $400 per gig. You are doing 4 to 7 gigs per month. The gigs are all within a day or two drive from your home base. The band will be covering a hotel room where you can all fight over who gets the single bed and which three fools have to sleep together in the King size. The gas for the van will be covered as will tolls and strings and drum sticks etc. What won’t be covered is food, drinks etc.  (of course, you will read one of my future blogs about how to get a promoter to feed you and get you drunk. But that’s only one meal a day) So in this situation you make a joint decision to give each band member a $20 per diem each day you are on the road. If you have crew it applies to them as well. (even the T shirt girl) Why would you do that? It’s simple. If  you try to have the band pay for dinner, and drugs, and alcohol you will soon be really pissed at the one guy in the band that eats steaks, smokes high-class bud and get’s loaded every day. Every band has one. Well, maybe Fugazi didn’t…well come to think of it I think they just SAID that everyone was straight…

If you go with a system where everyone gets a little cash every day then if they eat too much or drink or whatever most of it comes out of their own pocket. This is fair. You will be surprised how many days you can go on twenty dollars a day if your bed is paid for and the promoter gives you food and drink once a day.  sometimes it’s $5, sometimes $10, sometimes $50, I’ve never seen it go over a $100 unless it was a cheap excuse for the band to subsidize the members drug habits. (the breeders, The stones, Etc.)

When Miracle Legion toured Europe in 88? (I can’t remember which of the dozen tours it was) I sent a new member of the road crew out with them. His name was Tommy, he was from Philly, someone’s cousin’s friend, tough, strong, compact, didn’t say much. The kind of crew i prefered. If he had been Scottish I would have had him cloned. Hey you can clone a dog, why not a great roadie?

Well Tommy was new to the road so I gave him the standard lecture and then told him he would receive $24 each day. I forget why we picked that number but that was the per diem. He looked at me like and owl in the headlights. I asked him what was wrong. He said “That’s a lot of money.” The other crew members laughed.  LAter I noticed him loading a ten pound sack of rice into his backpack with a camp stove and pot. I told him he had to dump the rice. He looked hurt so I told him we would buy him ten pounds of rice in London since the issue was bringing grain across the English border (no fruits or grains)

The tour went out for twelve weeks.  When I met them all for the wrap up at tours end I asked the tour manager how Tommy had done. “Too fuckin’ good!” was the reply. It seems that Tommy lived on boiled rice and whatever he could scrounge. He didn’t smoke or drink. He got high once a week on the band’s day off.  Since the band demanded a full meal each night at the gig he was all set for food. So he hadn’t spent much money. To top it off he had lent all the other crew money when they ran out and charged them 5% interest (he ok’d this with me. How the hell could you say no to that?) He came back with everyone owing him money and he still had $1780 of the 2100 in per diems. Smart Kid. They all ended up hating him because he made them look bad. They tried to keep him off of the next tour so I made him crew boss with a different band.

—————————————————————–

So you split up the gig money evenly. You give out per diems based upon what makes sense.  Now we come to publishing and recording which was the central issue with Oliver’s questions.

I’ve seen numerous solutions and they all have strengths and weaknesses. I’ll start with recording.

The most common solution is for the band to split the royalties from and recordings evenly. This split only pertains to records that you actually play on. If you leave the band you keep the royalty payments on albums you played on and forfeit all future royalty earnings on future albums. You have no rights to the band’s name. That remains with the band that continues on. This is important. Ask the prog rock band Yes. They had a PRODUCER take the band’s name away from them. That sucks huh?

Now we come to the complex one, songwriting and the use of songs. This is often where the big money comes in. This money is largely outside the grasp of the record company. It has the law backing it up. Radio pays it. TV pays it. Concert Halls pay it.

When a songwriter writes a song it is, by law and common sense, his property. He cannot stop someone from recording it including his own band. They do, however, have to pay him for it and the payments are set by law. (I strongly suggest that you read my blog about royalties.)

This brings us to Reader Oliver’s questions. In essence since he is the writer and guiding light he is wondering what is fair when it comes to splitting up money from his song’s publishing.  Should he give his band members some of this money so that if he becomes wealthy they will too, at least in some smaller way. There are arguments on both sides.

Now keep in mind that this does not have anything to do with songs that the whole band writes of songs that other members write.  In that case everyone will share or the individual writer will get the money. But what about a band where one member is the writing machine?

So let’s now imagine Oliver goes to see his Big NY Entertainment LAwyer Harvey Jacobowitzhofffriederstein. Yup he sounds like he’s a stereotypical NY jewish lawyer.  Don’t worry I will also send Oliver to other stereotypical characters of other races and religions in future blogs spreading his fictional life around amongst all of America’s stereotypes! whoopee! Sorry I got carried away.

Harvey is smart, he knows the business and he has decades of experience. He says

“Kid what a you meshugenah?  You’re talkin’ about giving away your money? Don’t you think the law is fair?”

He goes on to explain to Oliver that careful consideration had gone into the law and songwriters get exactly what they deserve.  He, of course, is a lawyer and lawyers are paid to represent your interests alone. They also seem to think that the law is always fair. If they changed the law today, he would tell you it was just as fair tomorrow.  In some ways the lawyer is right. Why would Oliver give away his money?

Oliver on the other hand realizes that if he has a hit song his royalty money will pour in. The band will not see any of this cash. Yes, the record will sell but the band will be in debt to the record company for big money. All of the sales of the record will go to paying off the band’s debt and the individual members will see little of it. This brings about a situation where one member is rich and the balance of the band gets nothing.

So now Oliver goes to see his manager, Clive Bakersfield -Coopersmith, a sweating, overweight Englishman with bad teeth. The manager listens to his problem while answering phone calls and returning emails.  He says

“Oliver, baby, you’ve got to keep the boys happy. You should split up your songs and give everyone a share. You’ll get the most of course. I’ll make a call and get you a publishing deal so everyone has some money by next week. That should keep everyone happy.”

He goes on to explain that Oliver will write many hits and will be rich beyond his wildest dreams. He shouldn’t begrudge his band mates a piece of the pie. In many ways the manager is correct as well. What to do?

Now oliver goes to see me, the retired Indy manager that has seen bands implode for ridiculous reasons and for good reasons.

And I say “Oliver, thanks for reading my blog. Here’s some advice from someone who has no dog in the fight, me. Your instincts are good. You should make some provision for the guys that play in your band. It is, after all, your band and your songs. Lots of the people who you will play with will forget that or never learn that fact fully. This members will become problems and you cannot be tied to them forever.  So this is the practical solution that I would suggest.

1. Start your own publishing company Artful Dodger Music.  This company will publish EVERY SONG YOU WRITE.  This company can collect your radio, tv and movie royalties directly without any other middleman. Choose one of the performance rights societies, either BMI or ASCAP and join as both a writer and as a publishing company.  Of course at any time this company can choose to sublicense some or all of the songs to a large established publishing company in return for a cash advance and a commitment to land soundtracks, commercials and tv spots.

2. Offer the band members a publishing contract. It would work like this. They must publish all of their songs through your company. At any point they can opt out of this requirement in which case they lose all FUTURE payments on FUTURE work. They will still retain any income or rights earned up to that point.

3. As the second part of this deal they will receive part of the publishing company’s income. It will work something like this.If they write a song and publish it with Artful Dodger Music they, of course receive all of the writer’s shares and also a share based upon the main writer’s deal (oliver’s cut) This makes it so they cut the same cut for their songs that you get for your songs.

4. The longer that they stay in the band the more interest and ownership they will gain in the publishing company.  Each year will add a set percentage until they reach a maximum cut. They will never lose this, the company will pay them royalties in perpetuity (forever or until Ronald McDonald is elected president whichever comes first) The percentage of these cuts is open to discussion  although I would suggest that  you enter into the discussion with two numbers in your head. An ideal deal for you and a compromise that you’ll except in order to do the deal. Remember ONLY WEAK PEOPLE DON’T KNOW WHEN TO COMPROMISE. I might suggest that you shoot for 50% of the publishing company and settle for 40%. This would leave 50-60 percent for them to split up.  If they stay in the band 4 years they get their full cut  of the band’s piece of the publishing company.  Each year they are in the band they receive 25% of the total amount they might get if they make it four years. As the band builds up their cuts the unassigned money goes to you.

5. If they leave they retain payments on everything published up to the day they leave.  They never lose this percentage. Any new member starts out at the bottom and has to accrue his cut as he goes, once again he maxes out at four years.

So what would this mean in the real world. OK let’s say that your write a hit “Beat’s the Dickens out a me”. It is published by Artful Dodger and released on your band’s major label record.  The record label pays mechanical royalties, radio plays it and sends in royalties and it appears in a bad kids sitcom where Miley Cyrus goes to 19th century london. For each $100 the song generates this is how it splits up.

1st year    $50 to oliver directly as the writer

$2.50 to each of the four band members that own 1/4 of their potential cut of 4/5ths of  50%

The balance of the $50, $40 goes to oliver so he earns $90 in the first year.

2nd year  $50 to oliver directly as a writer

$5 to each of the band members that own 2/4 of their potential cut of 4/5ths of 50%

the balance of the $50, $30 goes to oliver so he earns $80 in the second year

3rd year

$50 to oliver directly as a writer

$7.50 to each of the band members that own 3/4 of their potential cut of 4/5ths of 50%

the balance of the $50, $20 goes to oliver so he earns $70 in the second year

4th year The band members reach full shares

$50 to oliver directly as a writer

$10 to each of the band members that own 2/4 of their potential cut of 4/5ths of 50%

the balance of the $50, $10 goes to oliver so he earns $70 in the second year

If they bitch about such a small cut explain to them that they are free to write their own hit records at any point and publish where ever they like. Also tell them that you do not have to give them anything and this is most commonly what is done.

What I like about a deal structured in this way is that it provides some incentive to stay in the band, do as they are told and not bitch too much. It also recognizes that they are helping your career in a substantive way.  This earns them money for good. And finally if you become stinking rich they become really rich. Most people can live with that.  Since a hit record in today’s market could generate about 1,000,000 in publishing in a year you can see how it would be a fair deal.

The band will secretly pray that you write lots of hits and hopefully help you do that by giving you the solid backing you need………with a deal like this you are on your way to succeed at rock…………………………..

©Brad Morrison/Billiken Media 2010

Advertisements

The ultimate prize, a record deal!


Well I’ve been dancing around this topic since I started the blog 5 months ago. I haven’t written this blog for some unknown reason. It is certainly not due to lack of interest from you all. The emails and votes for a blog on a record deal have been relentless.  So now I will give in and outline the inner details of doing a deal with the devil.

Through the decades I have managed quite a few bands. Every one of them has lusted after a recording contract. After the first few contracts I developed the habit of telling all of these starry-eyed children that getting signed to a recording contract was the worst possible fate. All of them laughed. All of them ignored me. Did this bother me? No, it was just me covering my moral ass. If I hadn’t warnedthem, with what I know about recording contracts, then I would have been guilty indeed. All of the musicians I represented got what they wished for. All of them regretted it in one way or another.  In some cases it destroyed them and ruined the band. Oh well, I warned them. Now I will warn you.. [Bad Brains -Pay to cum]

Listen carefully -You do not need a record deal. You do not want a recording contract. You will be making a big mistake if you sign a recording contract. Are there exceptions to this? Yes, of course. If by some strange twist of the time space continuum you, the reader are a guy named Elvis and the guy giving you advice goes by the name of Col. Parker then ignore me. If your name is Jimi, you play a lefty strat, and the most important fact it is June 1966 in your world then go right ahead and sign anything anyone offers as long as it comes with a cash advance that is available now.  For all of the rest of you….DO NOT SIGN A MAJOR LABEL RECORDING CONTRACT!!! Is that clear?  [The Who -Dr. Jimmy]

Now I know you will all ignore me. So be it.  If you are being offered a major label deal then it is extremely important to keep in mind that any major label deal is ridiculously complex. YOU MUST HAVE A REAL LAWYER INVOLVED! That means that your uncle Taco is out of the deal. Further you should have a professional manager involved and you should be taking his advice. If you do not have a manger then contact me and I will pass along some contacts or tell you what my consulting fee would be. (I can hear the wheels turning in the minds of many of my readers. Do not attempt to fake a deal in order to get an email full of names from me. It won’t work. The first thing I will do is contact the label and confirm the basic situation. Sorry, I applaud your creative thinking though) The advice I just offered is deadly serious. If you sign a contract without the advice of a real, experienced lawyer then you will get fucked. If you don’t believe me then think about it this way. If you are offered a deal and it is negotiated by a real lawyer and a real manager you will get fucked. With this is mind what will happen to you without their advice? You will get screwed so bad that someone else will end up owning everything including the band dog, the band groupies and that beat up piece of shit guitar that you keep around because you learned to play on it.  Enough said.

Now I am not going to explain how to negotiate a recording contract, that will take a few blogs and I hope to get to that soon. Before we approach that topic I must explain how a recording contract works. For those of you taking prescription antidepressants now would be a good time to check that you have dosed yourself.

OK let’s go.  Let’s assume that a major label wants to sign you. How does something like this happen, in real terms, how does it go down?         [Bowie TVC15]

To reach this stage you will have done all the preliminaries, showcases, meetings, presspacks sent and read, managers and label dudes (and dudettes) making endless calls, rumors, fistfights, depression, elation…so now what happens?

Generally the label starts by issuing a “deal memo”. This is a letter that they send to your lawyer and manager. It is one page and it is a summary of the deal that they are about to offer. IT IS NOT A CONTRACT. It outlines the basics of the deal. That is to say it outlines the basics of the deal they would love you to sign since you haven’t negotiated with them yet. It will tell you how big the advance they will give you for the first few records. It will tell you the total length of the contract and it will outline their offer for your publishing. If they are not attempting to buy your songs then it will address how they plan to pay for the use of your songs on the records.

Your lawyer will turn this offer down and  begin to negotiate with the label.  Every young band will panic at this point and attempt to override their lawyer management team and sign the deal as first offered.  They don’t want the label to change its mind. The band has been hoping and fighting for a deal for so long they talk themselves into believing that negotiating the deal is risky and may drive off the label. Actually the opposite is true. The label expects to negotiate. It is their favorite part of the process. If the band doesn’t try to sell itself high then the label can become doubtful. If the band doesn’t know in its heart that it is the greatest band on earth then how will the fans believe it? Taking a label’s first offer is a sure-fire way to speed up the process of the label losing faith in the band.

So you negotiate with the label and finally come to an agreement. At this point the label sends multiple copies of the 60 page contract. The band sits down and signs them all in multiple places. NOW YOU ARE SIGNED. What does a deal like this say? [Velvet Underground “White Light, White Heat”]

Every record company contract is different. Every deal is different but there are many things that are common to all the deals. These are the things that count. So I will explain them in as basic a fashion as I can.  If you understand the basics of how deals like this work then you will be prepared to open your mouth in a meeting and maybe get what you want or need in a deal. This applies to both big label deals and small label deals.

Every recording contract is designed to lock the band into only recording for the label.  As a result the deal will be split into two halves, the first covering what the band must do, can do and cannot do when it comes to recording. The second half will cover how the band gets paid for its services as recording artists. In addition there may be a third section covering specific commitments to promote the records and to provide tour support.  Finally the contract may cover song publishing and include a complete publishing contract. I will not cover the details of publishing in tonight’s blog. You can check out some of what is involved in my two blogs about publishing royalties. [Yes -Close to the Edge]

Part one the section that covers how long the band is bound to the contract is always structured as a series of options.  What the hell does that mean? Well it isn’t like choosing one item from column A and two from Column B at the chinese take out. (if you have no experience with chinese take out then you are either  an underage hippie kid living at a remote commune, playing a hemp guitar, or not a musician)

The options in a recording contract work like this – the band must make the first record for the label. The label can take a god awful long time putting it out. You must wait. Once they release the recordings the clock starts to tick on the band’s option. Let’s say that it’s a one year option. This means that within one year of the album’s release the label must tell you if they would like another record from you. It is the label’s option not the band’s. It is NEVER the band’s option. [Jackson Five -I want you back] If they say that they would like to “excercise the next option” then the band makes another album.  Most major label record deals have TEN options. In practical terms this means the band is committed to the record label for up to 15 years. (California has restrictions on deals that are this burdensome so most labels use NY law to get around this anti-slavery law. Think carefully about this sentence….yes….a recording contract is a form of slavery…remember I warned you….)

Often bands will talk about getting “three records guaranteed”. This means that the label commits to exercising the first two options after the first release. In practical terms this is never true. The label can usually get out of the options by paying off a penalty. [Iggy Pop- The Passenger] If the label decides it doesn’t want to release any more records from a band, any band, they will stubbornly stick to their guns.  Even though the band may have language in their deal that states that the label must do it in practical terms this will not make them release the record. They will pay the penalties, no matter how large, and move on. Even a sizable non-release penalty payment is cheaper than releasing a full-scale release. When you add in the fact that an unwanted release would require lots of staff time, time that could be spent on a record the label is excited about, then you can start to see why they do this.

So a contract that guarantees three albums will be released doesn’t mean three albums will be released. What does it mean? Well it shows that the label was enthusiastic enough when they signed the deal to commit serious money to the project of developing the band.  So deals like this primarily measure how committed and excited the label was about the band during the negotiation process and little more. All bands and all labels rise and fall in their enthusiasm and this affects the way albums are promoted.

Now we’ve established that the contract revolves around options and that options are set to certain time periods and all of this is nailed down to the concept of  a “record”. This concept is certainly being tested in the modern market. Bands no longer go into the studio and put together a 10 song, 34 minute vinyl LP (the standard from 1967 ’til 1987) nor do bands go into the studio and put together a 12-14 song , 45 minute Compact disc (the standard from 1987 ’til 2003). I think we can also rule out the old school idea that bands go into a studio and cut two tracks which are turned into a single.

 [Mission of Burma “Academy Fight Song”]

The current environment is one of changing standards where bands are releasing individual tracks as downloads, collections of varying lengths in every format they can concoct and in the near future streaming the live creation of recorded music through peer to peer networks. [Bad Brains “Banned in DC”]

Despite the state of chaos and the coming changes labels seem to be sticking to locking a band’s output into the concept of albums and collections of songs. [Deep Purple “Pictures of Home”]. No matter how a contract is structured all of the band’s recorded output will be controlled by the label for the duration of the contract. If a contract did not accomplish this there would be no reason for the label to enter into the deal.  In short the band will only record for the label and every single note put to tape during the contract will be owned by the label.

In this section of the deal the contract will also cover who controls the different aspects of creativity. Here’s a short list of things that will be covered.

1. Who’s songs are going to be recorded?  Are there going to be any Bob Dylan songs? Is a ghost songwriter going to be employed? Can the label force songs on the band? Often the label will require the band to submit demos and then the label will pick out the tracks to be recorded. Sometimes the selection will be by mutual agreement. When the deal is structured in this manner the band will discover that it is very hard to win an argument on song selection with the label.

[Bob Marley “Crisis”]

2. Who will produce the recordings? Here is another case where the label will demand complete control. For all bands without a hit the label will use the producer to control the band and micromanage the band’s recordings. Once again if the band gets the label to agree to a situation where the producer is agreed by both sides then the band will have a great deal of trouble over ruling the label. [Love “Live and Let Live”] In many cases a band will attempt to be self producing. That is to say they want to make their own records and do their own tracking, mixing and editing with the help of a buddy who is an engineer. This kind of provision is very hard to get from a label for the simple reason that all major labels know that this is an extremely bad idea for any new band. The label knows that the band has no experience creating a record that will compete sonically on the radio. If the band makes this point a do or die point of negotiation the label will act as if they are giving in and just demand more flexibility to remix. Then under the cover of darkness they will “remix” the record by tearing it to pieces and producing the product they wanted all along. [Rolliing Stones “Sympathy for the Devil”]

3. The budgets for recording of each optional record. The language that covers the recording budgets will name maximums that the label is willing to put up for recording. They will often include language that allows the label to exceed these numbers but only with the written permission of the label.

4. The budget for the total amount of money to be advanced to the band. This will be a large sum which will include many smaller sums like recording budget, tour support, personal advances to band members, allowances for gear purchases etc. [Santana “Black Magic Woman”]

5 Budgets and maximum allowances of money to pay producers. Once again these sums will be controlled solely by the label. In general the producer will be paid an advance payment which will be part of the money that he will earn when the record sells. THIS MONEY AND THE ROYALTY POINTS COMES OUT OF THE BAND’S SHARE!

6. Allowances and advances set aside for the band’s manager. This amount is usually negotiated by the manager as he works out the deal. This is a blatant conflict of interest on the part of the manager and is, as a result, standard practice in the music business.

There are other items that are often included in the first section of a recording contract. I’m certain I am forgetting a few but it doesn’t really matter. What is extremely important to understand is that the number of options, the guarantee of options, the total contract length will all determine how long you may be locked into a label.

When a label is courting a band they will be the most charming, supportive, understanding, coolest people who you have ever met. This view will change once you begin to work with the label to create your first album. I promise that any label will be much less attractive once the deal is over. Always keep this in mind.

 Without exception the area of the contract that covers options and budgets is the part that gets a band licking their greasy chops. It is very easy for these numbers to add up to over a million dollars for the first option.  This is what lures the band in and gets them to sign.[Beatles- 8 days a week]

Now here is the fact that puts all of this in the proper perspective. Everything that is done to create, manufacture and promote the record, everything that is done to pay off the business, all of the advertising, all of the advances , all of the tour support, all of the gear allowances, all of the catered food and press events, all of the plane tickets given to writers, all of the cash put up to print up t shirts, everything in every possible way that is paid for by the label ultimately comes out of the band’s cut of money. Go back and read that again. What does this mean? EVERYTHING DONE TO MAKE THE RECORD AND PROMOTE IT IS PAID FOR BY THE BAND OUT OF THEIR ROYALTIES!!!

Think about this fact. It the fundamental truth about record deals. The band pays for everything out of the royalties that the band MIGHT receive.  As a result of this the way a recording contract is structured the average musician in a successful band will not only make no money from making records they will spend years OWING THE LABEL MONEY!!!

[Grand Funk “I’m your captain”]

I will explain how this works in the next installment when I cover royalty payments.  Let me close by saying that it often works out like this :

Producer $50,000

Recording Studio $200,000

Engineers $75,000

Manager  $140,000

Each crew member $12,000

remix engineer $40,000

Mastering studio $20,000

Band member $7500 and a new guitar, amp and a few pedals

Ask yourself do you want to give the best you’ve got to give, perhaps the best you will ever give since you are in your prime, in return for $7500, a new guitar and amp and a year’s worth of crappy catered food as you make an album?

[Gang of Four “Anthrax]

©Brad Morrison/Billiken Media 2010

Question from a reader, how to cut up money inside a band


Reader Oliver was kind enough to post a comment with a question that covers a topic I have intended to cover for a few weeks now. That topic is how do you cut up money within a band? What’s the whole royalty payment thing mean for individual band members over the long haul?
———————–
Read through Oliver’s question and I’ll be back at the end……By the way Oliver is well-informed, and has put some thought into how his actions will affect other’s lives and their desire to be in the band. This proves Oliver is not a sociopath. Good for you Oliver. This may prove a handicap when dealing with all the bona fide sociopaths in the music business but it’s likely he’ll be a more satisfied rock star……………..
————————
Oliver writes:

Sorry if I’ve missed this somewhere but in keeping with the non-democratic approach you described, whats the best way to go about song rights/royalties? How do I avoid this situation:

i) Write every note and syllable and take all the royalties but gradually lose my band (but buy one eventually) (Dylan-esque)

ii) Write every note and syllable, split the money with band members to keep the band, drive myself crazy giving away money to the non-writing band, potentially lose the band anyway (Dandy Warhols-esque?)

iii) Agree to play/record anything good that any member writes and allow the rights/royalties go to the contributing member, run the risk of losing direction/ internal power struggles/ control over band. (Stones-esque)

None of these options seem good to me, and although I’m not greedy I’d hate to see a disgruntled band member in 30 years cruising on a yacht he bought with my songs (fanciful I know). I assume there’s no right answer, but you’ve been there and there must be a slightly better option of the three. I feel I’ve got to get this right early.

Regards and many thanks for publishing knowledge you can’t buy.
Oliver.

None of these options seem good to me, and although I’m not greedy I’d hate to see a disgruntled band member in 30 years cruising on a yacht he bought with my songs (fanciful I know). I assume there’s no right answer, but you’ve been there and there must be a slightly better option of the three. I feel I’ve got to get this right early.

Regards and many thanks for publishing knowledge you can’t buy.
Oliver.

————————————–

You’re welcome Oliver. I appreciate my readers and I know that getting an informed opinion is valuable. That’s why I write this blog.

Oliver’s predicament is classic. He is the primary creative force in his band. This is common. Most musicians are not also great songwriters.  A typical band is made up of :

A drummer – a rock steady rhythm monster with a flair for knowing exactly when to step in and a flash. He is the backbone and holds the rest of the band in the pocket and is the timekeeper.

A Bassist – He builds the groove and either adds the drive or defines the song as a dance tune. He can add darkness or light, thunder or soul.

Guitarist – Endless, colors and flavors, rhythms, melodies, flashy solos and roar.

 A Lead singer – this is the ego and the magnet and turns the writing into an experience.

Any and all of these people make up a band and make the magic that the world recognizes as rock. Any and all of the people could be primary writers. Any and all of these people make it work and without them the magic is lost. All you need to do is think of two or three great bands and it’s easy to point out an instance where the loss of a minor member seemed to change a band’s spirit and as a result the band’s golden years were over.  Making music is a touchy thing, little  changes often have big results for the better or worse.

Since this is the case how does a band split up the money?  In a way this question misstates the reality of the way money is usually dealt with within a band.  The vast majority of bands are controlled internally by one or perhaps two creative geniuses.  This is the person that writes the material and provides the vision that makes the band unique. This person has more power than the other members so saying how does a band split up its money is dishonest.  The real question is how does the person that controls the band allow the money to be split up? Or what is the best way for a band to work out a compromise that keeps everyone on board and gives credit and money to the person (s) that deserve it based upon contribution.

Another wrench that gets thrown into the possibility of an easy fair system is the fact that most of a band’s career is spent in poverty. The lifespan of bands after they get a deal or a hit, or build a base is, at the absolute extreme 10 years with 3 years being a much more likely scenario. As a result of this reality in most bands money is never discussed except perhaps as a fantasy until it is too late and there is a pie to split up without a system to do so.

I suggest quite strongly that if you are in a band, form a band or join a band that you force the band to have some kind of agreement on how money is cut up.

In the underground indy world, the world that I lived in for twenty years and helped create, there is little money to worry about as a band works out its career. Gigs can be for $50, or perhaps a $100 and recordings are simple affairs that are self financed.  So nothing to worry about right? No, there is still a little money being passed around and more importantly people will often PUT MONEY INTO THE BAND.  So you and your Mother’s Uncle’s Nephew pay for the band to record a record, who owns it? The answer is 50% you and 50% your brother. Or 50% you and your brother and 50% the band. What about the producer? I think you get the point.

When your band first starts out have a serious band meeting. Discuss the following topics and write down the results. It’s better to lose a nutty bassist during an argument before things get going then to have him walk out on tour when he doesn’t get all of the door which is what his warped mind had decided was fair. (this happened to me. He started with “Everyone knows I have the most talent…..)

1. Does the band keep a joint piggy bank? Who keeps it? In what form? (cash or an actual bank account)

2.What is done with gig money? Most bands use this to build up the piggy bank.

3. If you pay for a recording what is the split on the ownership of the recording? On this one I will suggest that you work out something where the person that pays gets their cash back first, then the band owns the recording with the person that paid getting an extra share for risking their money. This is a common arrangement.

4. Is one person the leader and or main writer? If this is the case that person MUST GET SOME CONTROL over the use of their songs, and get the publishing money. I will explain this later in the blog. Let me just say that songs make money and bands make money and the songwriter is gonna end up with the song money no matter what you may want. If this pisses you off then write a great song about it, turn it into a hit and keep all the money to prove how unfair that system is….

Have a meeting. Write this stuff down. Then rewrite it in the form WE the members of Dog Dandruff being Joe, Schmoe, Larry Schmoe, Curly Schmoe and Gonzo Garbigian do hereby agree  to the following……then put all the crap you agreed to and sign it. Make four copies sign them all and Larry, Curly and Joe get a copy. Gonzo’s mom gets a copy since he can’t read.  This is a binding contract. It’s not a very good contract and it’s not a contract written up by a lawyer but in court the judge will hold his nose and respect it. Make sure it covers what to do with gig money, royalty money and songwriting money.

Now if it comes down to a fight about money and this goes to court this contract and your two-bit agreement will run smack into the LAW. There are laws about songwriting royalties. (see one of my blogs for an explanation) There are laws about contracts and working for hire and working for a cut. There are sleazy lawyers. There are sleazy bass players with sleazy lawyer cousins.  What does all this mean? As soon as you have some success and/or a manager redo all of this with a lawyer doing the consulting.  If you do end up using a lawyer YOU TELL HIM WHAT TO DO!!! He doesn’t tell you. He works for you. He will advise you and you’d be an idiot to pay him and not listen but in the end if the band wants to leave all of the money to the Museum of Idi Amin then that’s tough luck for the lawyer.

Now for some practical advise. Perhaps this will help our Reader Oliver. The vast majority of bands, and by that I mean a band formed by unknown musicians in an attempt to make it big, split their gig money evenly.  Since recordings are becoming less and less valuable as money-making endeavours this may turn out to be the lion’s share of the money.  So split the money evenly after the band covers gig expenses. The better you do the more the gig expenses cover. Once the band starts to play regularly and your fee starts to get healthier it’s wise to start a system of per diems. (that’s Latin for Per Day) What does that mean? Well, let’s say your band is getting paid $400 per gig. You are doing 4 to 7 gigs per month. The gigs are all within a day or two drive from your home base. The band will be covering a hotel room where you can all fight over who gets the single bed and which three fools have to sleep together in the King size. The gas for the van will be covered as will tolls and strings and drum sticks etc. What won’t be covered is food, drinks etc.  (of course, you will read one of my future blogs about how to get a promoter to feed you and get you drunk. But that’s only one meal a day) So in this situation you make a joint decision to give each band member a $20 per diem each day you are on the road. If you have crew it applies to them as well. (even the T shirt girl) Why would you do that? It’s simple. If  you try to have the band pay for dinner, and drugs, and alcohol you will soon be really pissed at the one guy in the band that eats steaks, smokes high-class bud and get’s loaded every day. Every band has one. Well, maybe Fugazi didn’t…well come to think of it I think they just SAID that everyone was straight…

If you go with a system where everyone gets a little cash every day then if they eat too much or drink or whatever most of it comes out of their own pocket. This is fair. You will be surprised how many days you can go on twenty dollars a day if your bed is paid for and the promoter gives you food and drink once a day.  sometimes it’s $5, sometimes $10, sometimes $50, I’ve never seen it go over a $100 unless it was a cheap excuse for the band to subsidize the members drug habits. (the breeders, The stones, Etc.)

When Miracle Legion toured Europe in 88? (I can’t remember which of the dozen tours it was) I sent a new member of the road crew out with them. His name was Tommy, he was from Philly, someone’s cousin’s friend, tough, strong, compact, didn’t say much. The kind of crew i prefered. If he had been Scottish I would have had him cloned. Hey you can clone a dog, why not a great roadie?

Well Tommy was new to the road so I gave him the standard lecture and then told him he would receive $24 each day. I forget why we picked that number but that was the per diem. He looked at me like and owl in the headlights. I asked him what was wrong. He said “That’s a lot of money.” The other crew members laughed.  LAter I noticed him loading a ten pound sack of rice into his backpack with a camp stove and pot. I told him he had to dump the rice. He looked hurt so I told him we would buy him ten pounds of rice in London since the issue was bringing grain across the English border (no fruits or grains)

The tour went out for twelve weeks.  When I met them all for the wrap up at tours end I asked the tour manager how Tommy had done. “Too fuckin’ good!” was the reply. It seems that Tommy lived on boiled rice and whatever he could scrounge. He didn’t smoke or drink. He got high once a week on the band’s day off.  Since the band demanded a full meal each night at the gig he was all set for food. So he hadn’t spent much money. To top it off he had lent all the other crew money when they ran out and charged them 5% interest (he ok’d this with me. How the hell could you say no to that?) He came back with everyone owing him money and he still had $1780 of the 2100 in per diems. Smart Kid. They all ended up hating him because he made them look bad. They tried to keep him off of the next tour so I made him crew boss with a different band.

—————————————————————–

So you split up the gig money evenly. You give out per diems based upon what makes sense.  Now we come to publishing and recording which was the central issue with Oliver’s questions.

I’ve seen numerous solutions and they all have strengths and weaknesses. I’ll start with recording.

The most common solution is for the band to split the royalties from and recordings evenly. This split only pertains to records that you actually play on. If you leave the band you keep the royalty payments on albums you played on and forfeit all future royalty earnings on future albums. You have no rights to the band’s name. That remains with the band that continues on. This is important. Ask the prog rock band Yes. They had a PRODUCER take the band’s name away from them. That sucks huh?

Now we come to the complex one, songwriting and the use of songs. This is often where the big money comes in. This money is largely outside the grasp of the record company. It has the law backing it up. Radio pays it. TV pays it. Concert Halls pay it.

When a songwriter writes a song it is, by law and common sense, his property. He cannot stop someone from recording it including his own band. They do, however, have to pay him for it and the payments are set by law. (I strongly suggest that you read my blog about royalties.)

This brings us to Reader Oliver’s questions. In essence since he is the writer and guiding light he is wondering what is fair when it comes to splitting up money from his song’s publishing.  Should he give his band members some of this money so that if he becomes wealthy they will too, at least in some smaller way. There are arguments on both sides.

Now keep in mind that this does not have anything to do with songs that the whole band writes of songs that other members write.  In that case everyone will share or the individual writer will get the money. But what about a band where one member is the writing machine?

So let’s now imagine Oliver goes to see his Big NY Entertainment LAwyer Harvey Jacobowitzhofffriederstein. Yup he sounds like he’s a stereotypical NY jewish lawyer.  Don’t worry I will also send Oliver to other stereotypical characters of other races and religions in future blogs spreading his fictional life around amongst all of America’s stereotypes! whoopee! Sorry I got carried away. 

Harvey is smart, he knows the business and he has decades of experience. He says

“Kid what a you meshugenah?  You’re talkin’ about giving away your money? Don’t you think the law is fair?”

He goes on to explain to Oliver that careful consideration had gone into the law and songwriters get exactly what they deserve.  He, of course, is a lawyer and lawyers are paid to represent your interests alone. They also seem to think that the law is always fair. If they changed the law today, he would tell you it was just as fair tomorrow.  In some ways the lawyer is right. Why would Oliver give away his money?

Oliver on the other hand realizes that if he has a hit song his royalty money will pour in. The band will not see any of this cash. Yes, the record will sell but the band will be in debt to the record company for big money. All of the sales of the record will go to paying off the band’s debt and the individual members will see little of it. This brings about a situation where one member is rich and the balance of the band gets nothing.

So now Oliver goes to see his manager, Clive Bakersfield -Coopersmith, a sweating, overweight Englishman with bad teeth. The manager listens to his problem while answering phone calls and returning emails.  He says

“Oliver, baby, you’ve got to keep the boys happy. You should split up your songs and give everyone a share. You’ll get the most of course. I’ll make a call and get you a publishing deal so everyone has some money by next week. That should keep everyone happy.” 

He goes on to explain that Oliver will write many hits and will be rich beyond his wildest dreams. He shouldn’t begrudge his band mates a piece of the pie. In many ways the manager is correct as well. What to do?

Now oliver goes to see me, the retired Indy manager that has seen bands implode for ridiculous reasons and for good reasons.

And I say “Oliver, thanks for reading my blog. Here’s some advice from someone who has no dog in the fight, me. Your instincts are good. You should make some provision for the guys that play in your band. It is, after all, your band and your songs. Lots of the people who you will play with will forget that or never learn that fact fully. This members will become problems and you cannot be tied to them forever.  So this is the practical solution that I would suggest.

1. Start your own publishing company Artful Dodger Music.  This company will publish EVERY SONG YOU WRITE.  This company can collect your radio, tv and movie royalties directly without any other middleman. Choose one of the performance rights societies, either BMI or ASCAP and join as both a writer and as a publishing company.  Of course at any time this company can choose to sublicense some or all of the songs to a large established publishing company in return for a cash advance and a commitment to land soundtracks, commercials and tv spots.

2. Offer the band members a publishing contract. It would work like this. They must publish all of their songs through your company. At any point they can opt out of this requirement in which case they lose all FUTURE payments on FUTURE work. They will still retain any income or rights earned up to that point.

3. As the second part of this deal they will receive part of the publishing company’s income. It will work something like this.If they write a song and publish it with Artful Dodger Music they, of course receive all of the writer’s shares and also a share based upon the main writer’s deal (oliver’s cut) This makes it so they cut the same cut for their songs that you get for your songs.

4. The longer that they stay in the band the more interest and ownership they will gain in the publishing company.  Each year will add a set percentage until they reach a maximum cut. They will never lose this, the company will pay them royalties in perpetuity (forever or until Ronald McDonald is elected president whichever comes first) The percentage of these cuts is open to discussion  although I would suggest that  you enter into the discussion with two numbers in your head. An ideal deal for you and a compromise that you’ll except in order to do the deal. Remember ONLY WEAK PEOPLE DON’T KNOW WHEN TO COMPROMISE. I might suggest that you shoot for 50% of the publishing company and settle for 40%. This would leave 50-60 percent for them to split up.  If they stay in the band 4 years they get their full cut  of the band’s piece of the publishing company.  Each year they are in the band they receive 25% of the total amount they might get if they make it four years. As the band builds up their cuts the unassigned money goes to you.

5. If they leave they retain payments on everything published up to the day they leave.  They never lose this percentage. Any new member starts out at the bottom and has to accrue his cut as he goes, once again he maxes out at four years.

So what would this mean in the real world. OK let’s say that your write a hit “Beat’s the Dickens out a me”. It is published by Artful Dodger and released on your band’s major label record.  The record label pays mechanical royalties, radio plays it and sends in royalties and it appears in a bad kids sitcom where Miley Cyrus goes to 19th century london. For each $100 the song generates this is how it splits up.

1st year    $50 to oliver directly as the writer

                     $2.50 to each of the four band members that own 1/4 of their potential cut of 4/5ths of  50%

                         The balance of the $50, $40 goes to oliver so he earns $90 in the first year.

2nd year  $50 to oliver directly as a writer

                        $5 to each of the band members that own 2/4 of their potential cut of 4/5ths of 50%

                       the balance of the $50, $30 goes to oliver so he earns $80 in the second year

3rd year   

                      $50 to oliver directly as a writer

                        $7.50 to each of the band members that own 3/4 of their potential cut of 4/5ths of 50%

                       the balance of the $50, $20 goes to oliver so he earns $70 in the second year

4th year The band members reach full shares

                        $50 to oliver directly as a writer

                        $10 to each of the band members that own 2/4 of their potential cut of 4/5ths of 50%

                       the balance of the $50, $10 goes to oliver so he earns $70 in the second year

If they bitch about such a small cut explain to them that they are free to write their own hit records at any point at publish where ever they like. Also tell them that you do not have to give them anything and this is most commonly what is done.

What I like about a deal structured in this way is that it provides some incentive to stay in the band, do as they are told and not bitch too much. It also recognizes that they are helping your career in a substantive way.  This earns them money for good. And finally if you become stinking rich they become really rich. Most people can live with that.  Since a hit record in today’s market could generate about 1,000,000 in publishing in a year you can see how it would be a fair deal.

The band will secretly pray that you write lots of hits and hopefully help you do that by giving you the solid backing you need………with a deal like this you are on your way to succeed at rock…………………………..

©Brad Morrison/Billiken Media 2010

Classified Madman!, the greatest goddamn f##king band of all time!


In the late eighties I signed a band to my record label.This band, the Vestrymen, were a jangly guitar pop band from Amherst Massachusetts. Now I have quite a few insane stories about this band including but not limited to How they came to give me autographed photo of the band members naked whilst tripping in the woods, How the drummer tried to kill me over a misrouted tape of loop of Ingrid Bergman and last but greatest the story of the greatest rock prank of all time the story of John-O! Tonight’s story has nothing to do with any of the sordid tales instead it concerns something that The Vestrymen discovered in a paper in Providence Rhode Island while on tour. Like any bored musician on the   road they were scanning the musicians wanted section of the paper and ran across an ad.

  The Vestrymen had a gargantuan appetite for drugs. Bless them they were stoned rock n roll stars. Imagine that! As a result, like all rural stoners they lived in a semi secluded ranch house in the Berkshires. (that’s part of Massachusetts that doesn’t appear on any maps of America. At least any maps of America that outline the places in America where Americans have jobs, work and suffer from common sense) This ranch house developed a legendary status as a crash pad, party house with the usual mix of midget luggage and imaginary teen runaways. Oh wait a minute. Sorry, I suddenly drifted into the story of John -O. Damn.

This ranch house, nick named the Ruby Ranch, was a standard rock crash pad party house.  The refrigerator in the Ruby Ranch was covered by a mix of tour memorabilia and in the midst of this chaos was THE classified ad.    What follows is a word for word transcription of the ad. I’ve included a scan of the ad at the end of the blog but it’s difficult to read, hence the transcription.  Now as you read this keep in mind that the writer was PAYING BY THE WORD. A typical ad like this in the eighties might have cost $20.00 for the first twenty words and then .25 per word thereafter. Since the Ad has 888 words this puts the printing charge around $235!  This man had a dream and he was going to back it up with his wallet. I recently wrote to one of the band members asking for him to dig up this gem of rock madness.  It stands as definitive proof what ten thousand spins of “Houses of the Holy” will do to a young, impressionable mind……………..


Utopian Band

Do you sometimes stay up late at night and dream that you are a member of the greatest rock and roll band of all time? I do, and I want to make that dream come true. I am 21 years old and want to be the lead vocalist. I have no experience, but I am extremely ambitious and intelligent. Ninety percent of my music spectrum includes the following bands. Heavy on Led Zeppelin and the Doors, while I am also into the Beatles, Jimi Hendrix, the Moody Blues, U2, Sting, Pink Floyd, the Monkees and the Rolling Stones. To put this band together I need a lead guitarist, a bassist, a drummer a keyboardist and someone who can play the synthesizer. You must be able to unleash the raw power on your instrument that it would take to form a magical, mystical, eternal, everlasting sound that will rock an entire planet. How good can we be? Put it this way, there are 5 billion people in the world. Now imagine a kickass construction crew has just built a stadium that when full to capacity will hold 5 billion people. In every city and every town the word is being passed around the greatest band in the Universe is playing there.  The stadium sells out and everybody has the time of their lives. I am into freedom, liberty, peace, nuclear and conventional disarmament, a central world economy, one world language (English) and for everybody in humanity through the power of music to be mutually happy and satisfied. I follow the teachings of Jesus Christ, Martin Luther King, Confucius, Mahatma Gandhi, Plato, Aristotle, Socretes, Goethe, Sartre, Camus, Rimbaud,Nietzsche,Buddha, Mohammed and many people in the bible. I am not a deeply religious person but I have read the Bible from Genesis to Revelations at least 15 times. Some of the group songwriting we should do should come from experiences in the Bible. I really want to get to know you people very well, therefore we should get together and find a house to rent with a large basement so we can jam there. I am very intense when it comes to practicing. I believe we should practice at least eight hours a day, seven days a week. I have a complex yet simple ideology on life. I believe people should move to a world democracy, collaborate, consolidate and over-all contribute 100 percent to humanity as one society without war or conflict. The U.S.A. and her allies have about 10,000 megatons of atomic weapons, and the Soviet Union and her allies have 10,000 megatons of atomic weapons. There are about 1,000 20 megaton nuclear bombs between the superpowers. The are also about 50,000 smaller nuclear warheads in the world.  A 20 megaton bomb within a radius of 15 miles turns everything into molten lava; at 30 miles people are set on fire and burnt to a crisp, at a 100 miles people are permanently blinded. Nuclear strike zones in Rhode island are Newport, Quonset Point and Providence.  This will never happen, but I don’t like living under the threat of total destruction.Through the powers of the United Nations and the recent signing of the INF treaty and the successful summits between the USA and Russia, relations are at an all time high. Disarmament and development are two of the most urgent challenges facing the world today. They constitute priority concerns of the international community in which all nations developed and developing, big and small, nuclear and non-nuclear have a common and equal stake. Disarmament and development are two pillars on which enduring international peace and security can be built. The arms race is absorbing far too great a proportion of the world’s human, financial and natural and technological resources placing a heavy burden on the economies of all countries and affecting the international flow of trade, finance and technology in addition to hindering the process of confidence building among nations. Thus, there is a commonality of interests in seeking security at lower levels and finding ways of reducing these expenditures. I smoke marijuana and hashish to explore the deepest realms of the human condition.I believe time has no beginning and no end, life and the joy of living are infinite. I am a vegetarian and take vitamins for good health. I meditate to find inner tranquility. I would like to rent out this house on the east side of Providence and eventually move to New York. The house must have a huge basement that we can jam in. I must stress the intensity that I am looking for in you people. The lead guitarist must have the sheer power of Jimi Hendrix. The Bassist like John Paul Johns. The drummer like Ringo Starr. The keyboardist like Ray Manzarek. And the synthesizer player must play like the almighty God. I don’t want to do any covers. I just want to write songs and be as totally original as possible. It is extremely important that each band member can powerfully sing in harmony on backup vocals. Together we can put together the greatest goddamn fucking band of all time! This ad has appeared in Providence, Boston, New York, Chicago, Detroit, Dallas, Cleveland, Philadelphia, Houston, Miami,Memphis, New Orleans, Tampa, Orlando, Los Angeles, Phoenix, San Diego, Buffalo, Rome London, Dublin, Paris, Moscow and Peking.


 

——————————————————————————————————

It’s interesting to note that he fails to give any clue as to how to contact him. A slight oversight on his part.  I believe he is still waiting to for the kick ass construction crew. How can you fail to admire this guy’s ambition?

 

 

Copyright Brad Morrison/Billiken Media 2010

lesson #15 Godzilla Magpops VS THE PROMOTER….


So we’re gonna play a game. You get to be the band, hmmm let’s say your band name is Godzilla Magpops. I play the promoter. Then I’ll play the label. I play the kid that’s making movie and wants you to be in it. Then I get to be the big time manager with a tour.

I get to offer you deals and you get one response. If you respond correctly you move on.
Promoter: “Hey, I think you guys suck but my girlfriend really wants you to be on a bill. I got that fucked up Prog Rock band Mists of Avalon playing on the 23rd. You guys can play the bill, and I’ll give you $100 for the first set.”

Tick, tick, tick (this is the part where the fashion model points at the clock thingy)

“Ah..Ah…..Can We play second for $50 vs 20% of the door?”

“You’re kidding right? 20% of the door!? You think you’re Metallica? No way. 10%”
Tick, tick….
“OK we’ll take it.” Ding, ding, ding… you move on to the next level.

[When you do a VS. deal or what is called a versus deal you are agreeing to receive one of two possible outcomes, in this case…either $50 or 20% of what the door totals for the night. So if the door comes to $250 you get $50. If it is more than  $250 then you get 20%of the larger number . Since you agreed to 10% the door has to go above $500 for you to make more than $50.]

Next round….It’s the Record Label Round…. it’s worth half of a hill of beans and the fashion model spokesperson in this round is way hotter but would never date a person like you unless of course you get a record deal.
Label Dude calls….”Heya buddy boy, this is Slick Tawilliger from Turd Polisher Records. We love your band. We saw you guys at the Sunshine Superman festival and also on Chainsaw Rock night at The Turnstile. We think you’re the bees knees. We’d like to offer you a recording contract. We’ll sign you for 5 records, with an advance of $35,000 against 10 points. If that’s cool with you I can pop out of the dumpster in the alley behind your practice space in about ten minutes.”
“Turd Polisher!! I don’t know what to say. I guess I’ll see you at the dumpster.”
BZZZZZZZZZZZZZ. Wrong.

 But since you passed the first round you get one more reply.
“Hmm Turd Polisher huh? Didn’t you drop my favorite band? Nevermind, so you’re offering us 5 records guaranteed, that sounds cool but we wouldn’t take anything less than 75,000 against 15 points and we want full publishing payments….”
“Gee you drive a hard bargain. How about two records guaranteed, 50,000 to start against 12 points?”
“Hmm that sounds interesting but you forgot full publishing and Slick?
“Yeah?”
“Get a pencil and write down our lawyer’s number.”
Bingo….Lots of flashing lights…..
——————————
Now I realize that most of this is meaningless. What is the game about? Is it about getting a gig? No. A record deal? No. An appearance in a movie? No. It’s about the basic way to talk shit when you negotiate. It doesn’t matter what the numbers are. It doesn’t matter what the subject matter is all about. What matters is the way you respond to an offer.
Let me simplify it.
I say I will give you A
You say I want A +1 and B

I say I will give you A, B, C and some of Z
You say, thanks for A, B +2,C +1 and all of Z and some of Y.
—————————–
This blog is about basic negotiation skills. They are extremely important and whoever gets stuck being the mouthpiece for the band has to learn this system like the back of their hand. The philosophy behind this system is based upon some basic rules.

Rules of arguing out a deal…
1. They always offer something, anything, real and tangible first. They must go first.
Example – a promoter calls “Hey I got a slot open on the 12th what would you guys want? (he doesn’t make an offer) You reply with gibberish “I don’t know? What would we want?” ( you reply without saying anything of value) He says “Don’t be an asshole -how much do you guys want to play the opening set?” (now he has offered something real, the opening set, but he hasn’t mentioned money so you reply with more gibberish) “Gee, everyone knows I’m an asshole. I’m not sure I can act any other way. What’s the opening set pay?” This could go on for days since everyone has unlimited cell phone minutes. Eventually, right around the time he is considering choking his cat, he will give in and mention money. “Well I was thinking $150 to open.” Got him. He has offered something real.And he has offered something first. Now you move  on to rule two.

2. After your adversary offers something you reply by adding to it and then asking for something else.
“Gee $150? I was thinking that we should play second set, give the first set to The Baboons ( a band from outta town that you are trying to hook up with a gig so they will help you out in return) and we would have a $250 guarantee. You can keep adding to your demands but remember you are trying to better his initial offer. If you actually talk the guy into paying your rent for the balance of the decade and giving you his girlfriend you may just negotiate him into being your enemy.

3. Learn the value of silence. DO NOT NEGOTIATE WITH YOURSELF. Any good businessman will try to use silence when working a deal. If you are not careful, and you are not on your game they will use silence to bring out your doubts. Then you will be negotiating with yourself. When this happens you will discover that negotiating with yourself is a downhill game. This is the way it usually goes.
You are bargaining. He says how much? You say $1250, or blue or I want to produce or whatever. His response is total silence. The clock ticks, the world turns and still no reply. Now you start to wonder if you overplayed your hand. “did I ask too much?” You open your mouth and start to prop up your demand.”You know we are really worth it. We have two new singles out and blah, blah, blah…”  You are now cheerfully negotiating with yourself. He will then add fuel to the fire by egging you on. Pretty soon you’ll be painting his Yacht on weekends and playing the gig for free. Here’s a story to illustrate this point.
———————–
I was negotiating the Figgs recording contract with Imago BMG. I had flown out to LA and hammered out a deal with the label’s lawyers.It was a typical situation, my lawyer, the band’s lawyer and a couple of label lawyers locked in a room for 10 hours. As usual I chainsmoked which pissed off everyone and as a result I got what I wanted -Three records guaranteed, $350,000 for the first record, full publishing, 90,000 tour support in the first six months, a war chest to bribe radio, all the fun stuff. What we did not work out was creative control. I was told I would have to negotiate all of those deal points with Terry Ellis the label President. I mentioned Terry in my first blog entry. He used to manage Jethro Tull and Billy Idol and founded Chrysalis Records.

After I returned from LA Terry’s assistant called to say he would be phoning me that evening to work out the final details of the deal. The music business has lots of assistants that do all the work and then call people to announce the fact that So and So would be calling at some future time.

So that evening the phone rings and I answer.
“Hold please for Terry Ellis.”

“Brad, how are you? Were all the arrangements in LA acceptable?”

Terry is slick. We talk about his wine collection and his race horse collection.  I tell him some gossip about one of his ex employees.  Then we get down to business.

“So, Terry let’s talk about creative issues. ”

“Certainly. What did you have in mind”

“Come now Terry, you don’t get off that easy. You go first. What’s the label’s position.”

Terry decides to throw me a bone of no value.

“Well we would like to pick the producer, pick all the songs, and get to remix with anyone we like.”

This is him basically saying that the label will control everything and the band gets no say.

“Gee that’s unfortunate Terry since I’m certain that the label the Figgs sign with will allow the band to pick all the songs, pick their producer and there will be absolutely no remixing of the album.”

This is standard banter with each side saying they want it all.  Soon he starts to narrow it down.

“So why don’t we talk about just one thing and try to get that issue settled. What percentage of the songs would the band be willing to let the label pick?”

This is a clever opening. It assumes that we are going to let the label choose any of the songs. So if I carry on talking about the percentages I have already given them some control. Now this brings us to rule number 4 (always have your position- that is to say what you are willing to take – worked out ahead of time) I will cover rule #4 after I finish this story.  The band had already decided that they would allow the label to pick up to three songs on each album.

“Well, Terry we would be willing to let the label pick two songs for each album.”

There is no reply. After about ten seconds it starts to get a little uncomfortable. After twenty seconds the urge to speak becomes a powerful incentive. The normal reaction is to want to fill in the vacuum. To say something, anything. What could I possibly say that would help us?

“Well the band really understand their music and they are the best judge of their strongest material…” Gee that’s kinda lame. I don’t need to sell him on the band’s talent. He is already giving them a deal.  A more normal reaction would be to backpedal

“Hmmm,….well… we might be willing to consider another arrangement…”    The cold hard reality is that ANYTHING I say will make me lose ground and appear weak to MYSELF.  So what did I do? I just waited. I waited four and a half minutes. Try it. Pick up the phone. Look at the clock, then stare in the mirror for four and a half minutes. It’s a really long time.

Finally Terry said…”Ok Brad. You win. You can have what you want.”

“What exactly do you mean Terry?”

“You can control the record. Pick the producer, pick the songs and do the mixes. I’ll trust you. Let’s get together to pick the single. ” I was stunned. A couple of years later I asked him about that conversation. The Figgs contract was long gone and we were just hanging out as friends. He explained that he had never had anyone nail that particular  negotiating trick right off the bat and he was impressed so he let me run the show.  A rare win but it proves the point.

Try it. Pick out the weakest member of your band. Ask them where they want to go for dinner. When they tell you just remain silent and stare at them. Watch what happens. They will start to do the talking and they will start to negotiate with themselves. When you work out a deal don’t be the weak guy that negotiates with himself.

———————————————————————————-

So this brings me to the last point of my rules for negotiation.

4. Always work out your deal before you start to negotiate.  If you are going to negotiate a recording contract get your shit together, find out what the possibilities might be and discuss them with the band. If you are negotiating a gig fee have an idea what your band might be worth in that situation.  If someone tries to get you to bargain without doing your homework try to get out of it long enough to sort out your position. This is not always possible but if you spend some time working out a basic framework of what you want then you will always do better.  Be careful not to ask for the sky and the moon. The point of negotiation is to better a deal you are being offered. If you ask for too much you may end up with nothing which is a step backwards.

All of these rules are techniques that can be learned. If you learn them so they become second nature then you are on your way to Succeeding at Rock……………………………..

Copyright Brad Morrison/Billiken Media 2010