How Much Does A Record Label Pay An Artist

Have You Been Wondering  How Much A Record Label Pay An Artist

Fingers are not the same! I mean not all aspiring artists have enough cash to startup their career. Some even have money for startup but cannot continue after releasing a single record, resulting to
their fall.

Thus, that made them struggle to get signed in a record label to get paid.
As a musician, you shouldn’t just join a record label without having little if not all information
about them.

Some of which are year of contract, amount paid, popularity, etc.
Well, I have made my research on this and I’m willing to share what I discovered with you. Trust
me, upon reading this article, you will have the full idea of how record label make money to pay
artists, how much a record label pays to an artist, payment type, percentage shared and much
more.

Record Label

Ways Record Labels Get Money To Pay Artists.

I don’t have to write much about this. Cameell Hanna who works in serenity West Recording at
Los Angeles have said it all. He said;
“They make money the way they have for years . . . off of the exploitation of the recordings
themselves, and there’s a million ways that is exploited. So, now they make money off of every
aspect of an artist’s career. There’s a deal type that’s been around for a while called the 360 deal, which means that they
participate in all aspects of an artist’s career, like touring, merchandising, etc.
“So, you, as a label, are now making money off of pretty much every action an artist takes that
involves getting income. A 360 deal is sort of the standard operating understanding in most labels,
when you’re talking about a major label.
You are going over to Interscope, and you’re signing a deal, and you’re like, ‘I’m going to be the
next Justin Bieber.’ You’re going to be signing a deal like that, where they participate in
everything, including every T-shirt you sell.
They’re going to have their own piece of that. It’s a giant markup on merchandise. A lot of people
have made more off of the things surrounding the music than the music itself. “So, they . . . The
labels have always figure out ways to get a piece and keep it moving.”

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Amount Record Label Pays To An Artist

The amount a record label pays to an artist depends on record label itself and the artist
performance. If your records earn lots of money to record label, there will definitely be an increase
in amount paid to you. However, record labels pay in the range of $500,000 to $2,000,000 at the
time of writing.

In addition, some record labels pay artists in advance then balance up later after record hits the
market and perhaps,

generated millions of cash. While others pay you after successful sales. You
can read more about advance payment type in the next heading.
Funds allocated is further broken-down for various activities like recording ($150,000 to
$500,000), video production ($50,000 to $300,000), tour support ($50,000 to $150,000),
marketing and promotion ($300,000 to $700,000).
Therefore, an artist signed in a record label can get up to $700,000. Isn’t it amazing? Amazing!!!
On the other hand, labels pay artists for other activities which have not been mentioned above
simply because they think it worth it or rather consideration due to ones performance.

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Advance Payment Type

No one is as happy as an artist offered an advance payment during his/her sign in, especially those  who have always strive to earn money. However, given an advance payment should not make you  misbehave at the end of the day. Record labels give advance payment to motivate artists, which you also have to motivate them in  return by working hard and most importantly, generate revenue for them. Advance payment is like  striking a gold. I would advice you not to lose the opportunity. Ok! Do your best and let them have  value of their money spent.

List Of Record Labels With Great Offers

  • Island Records
  • Sony Music Entertainment
  • ABC-Paramount Records
  • Atlantic Records
  • Virgin Records
Wrapping up

If you think joining a record label is going to help your career. Don’t accept any and every deal  presented to you. If you do, I’m sorry you might end up in regret.

A record label would not sign  you if you don’t have a unique ability. Likewise, don’t accept to join any record label that has nothing or less to offer. People say artists  don’t earn enough in music industry, maybe because of the record label they found themselves.  Hence, you have to choose wisely!!

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