1. Record Sales : Most music artists on well-known record labels do NOT sell millions of cds. Those artists selling millions of cds are likely those you would only find on major labels and whose songs were in the top ten on the Billboard music charts for weeks and weeks. In the case of more underground music, such as with the many genres of rock and metal music, most of these releases would be lucky to sell 50,000 cds. Take into consideration the metal album by the music group Machine Head called Burn My Eyes which was released on Roadrunner Records , a well-known smaller label. This was a great album that made the Billboard charts and was advertised extensively on TV. At the time it was Roadrunner Records biggest selling metal release and it sold only about 150,000 records. In the case of more underground music, such as with the many genres of rock and metal music, a more accurate count would probably be ten to twenty thousand cds sold for a well-produced album with a great recording production. With this said , understand the potential of cd music sales in the industry.

2. Selling A CD : After realizing the potential af cd music sales , next you need to understand how a music artist is paid on those cd sales. The standard artist royalty within the music industry, found on most every record contract, states the artist receives about one dollar (or about ten percent) on every cd sold , less any costs recoupable first by the record company , producer , etc. There may also be a "promotions clause" described in #3 below. The exact chain of mark-up involved in a retail release will also affect monies earned. For example : If a cd sells at a retail price of say $12.99 in a record store. The distributer of the cd may only be paid $7.99 for each cd sold. The record company may only be paid $4.99 from the distributer for each cd sold. From this $4.99 earned on each cd , the record company must first recoup all its costs , promote the cd , and then the music artist gets paid their percentage from the leftovers. The amounts actually earned vary widely from one record store (chain) and distibuter who all have different mark-ups they make on the sale of the cd. With this said , do not expect to get rich from the sale of your cd unless you are selling a whole lot of cds !

3. Promotions and Touring : Most music artists think they will be get signed to a label , who will pay for all their costs , release their albums , put them on a major tour around the world , and make them lots of money. The true reality of the industry is that it doesn't work that way. Music artists DO NOT get personal money advances by signing an record contract unless they are already well-established and selling millions of records. It takes considerable money to release and promote an album, all of which will be paid back to the financier before the music artist every sees a penny. In many cases , especially with larger record companies, there is the fine print "promotions clause". This basically states the record company has the exclusive right to re-invest any monies earned into continued promotion of a music artists album instead of paying off royalties to the music artist. This could mean the music artist never sees a penny of money , ten years or more after an albums release. As far as touring , gone are the days of big stadium tours with the exception of the occassional annual festivals that happen. Most tours are booked in smaller venues and most well-known headlining rock and metal acts of today get paid only two-three thousand dollars for a show. In the case of the new music artist , struggling music artist , etc. it is more likely you will be lucky to break even on the touring costs. Don't expect a paycheck and don't be surprised to find yourself having to cover your own personal costs while out on tour !

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Band Name

The most important aspect is the name of the artist or group. This must be thoroughly researched to determine any conflicts with someone else using the same name or similiar name in any regions that you will be doing business using your name. If you find any other music artists using the same name than this must be pursued to determine who has true rights to the name and in what regions. Comprehensive name searches are available through certain attorneys and they will provide this research for you. Some key things to remember are this :

a) The United States is one region and you must do business between multiple states (more than half is recommended) just to take the first steps in establishing a trademark for your name in the United States. This is called a common law trademark and requires no official filing to establish rights. There are two classes of marks that need to be secured. One is a servicemark ( performances) and requires live performances in multiple states. Two is a trademark (goods) and requires release of products bearing the artists name in multiple states. To be eligible to even file for an official U.S. Trademark , the artist must have at least two commercially released products.

b) Outside of the United States every country has its own laws regarding servicemarks and trademarks. Some countries do not have provisions for common law estalbishment , sometimes called first use rights , and require an offiicial filing. You must research these laws for any regions you wish to promote your music and satisfy the requirements.

c) You can force someone to stop using your name with simply a common law , first-use establishment of a trademark. However , you cannot recover any monetary damages unless you have an official registration in the region the infringement occurs.

d) You cannot copyright a name , nor can you write it down and mail it to yourself so it is postmarked , etc. You cannot register your band name with one of the phoney band name registrations sites online. The name must be established by actual commercial release of an album , which can then be later upgraded to an official registration.

SPECIAL NOTE : Consider the impact of promoting your band name without proper trademark establishment and then having someone come along and force you to stop using it. The promotional losses would have a big impact on the artists future.

Business Entity

A music artist or group is a business and needs to be treated as such. The business laws in your region should be researched to determine the proper filing of trade names or ficticious names in your residing location. This is generally inexpensive to register. Do not be confused , this is not a trademark which is something completely different. A trade name/fictious name registration is necessary to establish the artists name as a legitimate business in the state or country that this their origin of business. Once this is done a proper bank account can be established so payments may be made or deposited in the name of the music artist. You will have to determine the ownership of the music artist as a business whether a sole-proprietership , partnership , or corporation. There can be additional filings and fees necessary with a partnership or corporation. It is in your best interest to also draft , sign , and notorize a contractual agreement between any musicians who are in the band defining control of the business ,creativity, as well as the divison of money.

Copyrights

The music artist should have filed the necessary official copyright forms for any music the music artist creates. In the United States these filings are made with the U.S. Library of Congress. Record companies and publishers will most likely demand that the music artist have these official filings. Some record companies and/or publishers may demand assignment of your copyrights and publishing rights to their control for life.

Publishing

If the music artist is to have any music released commercially then the writers must be signed through a publisher who is established as one of the publishing clearinghouses such as BMI , ASCAP , etc. Without publishing the music artist does not get paid for radio airplay , television airplay , and more. Most record companies are affiliated with at least one publisher in order to get publishing for their music artists. Some publishers may demand assignment of your copyrights and publishing rights to their control for life.

Studio Recording

If the music artist plans to already go into a studio they should note these things. Be sure to go to a professional studio and ask to hear samples of their work before making any committments. One of the biggest mistakes made by self-producing music artists is that they find the best price they can and go with that studio. There is a reason a studio costs less than another even if the equipment is close to the same. The person engineering and mixing the record has the most important job and this job involves his ear for music. It is a person the music artist is essentially paying for , not just a studio ! Even if the music artist must wait to save additional money for a more expensive studio , the difference in professionalism of the recording production will make it worth the wait and expense. Another mistake often made by music artists is that a studio is booked in advance and has no open dates for months down the road so the music artist chooses to go with a studio with dates immediately available. Think about this ! There is a reason a studio is booked up solid. They are producing excellent productions , so book sessions now and wait for availability.

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