Shade shadow in the Music Producer Contract Template

Aug 6th, 2022
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Though not technically a record deal as it does not cover distribution, Production Deals are usually offered by a production company only for recording and producing your music. If an artist does not have the resources to record on their own, this can be a good option prior to looking into a record deal.
The Beats Purchase Agreement is an exclusive rights contract for beats where the producer of the instrumental beat gives the artist the exclusive right to use the beat in unlimited recordings and without distribution limits.
If you are a newer producer without too much of a reputation, you can expect from $0 to $3,500 per song. If you are considered a mid-level producer, your range increased to $3,500 to $7,000 per song. Finally, if your name carries weight in the music industry, you can receive up to $10,000 to $15,000 per song.
Producer agreements and recording agreements usually provide that no royalties will be paid to the producer until all recording costs have been recouped at the so-called Net Artist Rate.
This agreement sets forth terms whereby the employer (record company or artist hiring producer) will own both the recording and the rights to the song as a work made. Basically, the producer gives up all rights to the recording and song for a single fee.
The production company receives a royalty rate for sales from the label, which it typically splits with the artist 50/50. The production company also typically receives a recording advance, and if anything is left over after it covers its recording expenses, it will typically be split 50/50 as well.
In a production deal, the artist usually signs a 50/50 deal with a single producer. The producer agrees to produce one or more of an artists album in entirety but retains 100% ownership of the master recordings.
Appreciating the difference between producers and record labels is important because these describe different functions usually provided by different entities. Producers actually create the recorded music, whereas record labels typically finance the production and oversee the distribution of the recorded music.

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