UG Rap Community

STOPPPPP!!!! WAIT LISTEN, PLEASE DO NOT SKIM OVER THIS, TAKE THE TIME TO READ EVERY LINE!!!!!!!
I INVESTED A LOT OF TIME GETTING THIS INFO AND POST TOGETHER. THIS IS GOOD INFO FOR ALL OF YOU… DJS OR NOT!

AFTER ALL THIS STUFF THAT’S HAPPENED RECENTLY, I KNOW SOME OF YAW ARE STILL CLUELESS WHEN IT COMES TO FIGURING OUT WHAT IT TAKES TO DO A LEGIT MIXTAPE. SO IM GONNA SHARE WITH YOU MY EXPERIENCE WITH THIS ISSUE FOR YOUR BENEFIT. YOU ARE BOUT TO SEE WHAT HAPPENED WHEN A FELLOW DJ AND I MADE A MEGAMIX BACK IN FEB 2003. PLEASE KEEP IN MIND, SINCE SOME LABELS REQUIRED TO HEAR THE ENTIRE PRODUCT AND HOW THEIR SHIT WOULD BE USED IN THE MIX… SO THE MIX WAS DONE 1ST. AND AS USUAL, I USED A TON OF EDITS, SCRATCHES, SAMPLES, ACAPPLEAS AND BEATS!

THINGS FELL APART INSTANTLY WHEN WE WERE TOLD ABOUT REQUIRED QTYS, RATES AND THEN SOME MASTER USE REQUESTS FELL THRU. YO, DON’T GET ME WRONG, ITS BEEN DONE… AND THERE ARE DJS WHO GET LEGIT CDS OUT IN BEST BUY AND SAM GOODY ETC. AND HAVE GREAT DISTRIBUTION DEALS BUT WE ARE TALKIN BOUT THE AVERAGE 9-5 GUYS WITH KIDS AND MAYBE A DJ GIG HERE AND THERE. WE HAD SEVERAL INTERSCOPE SONGS ON THIS MIX SO WE ALREADY HAD TO MAKE 10,000 COPIES TO EVEN REQUEST A MASTER USE LICENSE. WE ONLY WANTED TO DO 1000 AND SPLIT THEM UP… SO HERES A GENERAL BREAK DOWN OF A 10,000 CD PROJECT WITH 18 TRACKS AND NO SAMPLES, ACCAPELLAS OR INSTRUMENTALS.

BTW, I JUST GOT OFF THE PHONE WITH A REP AT HFA (HARRY FOX AGN.) 212-834-0100 EXT#2 AND WENT OVER ALL MY FIGURES WITH HER AND SHE CONFIRMED THIS IS CORRECT! SO LIKE SHE SAID… “OFF THE RECORD… EVEN THOUGH YOU ARE TAKING THE LEGAL ROUTE, IF YOU AREN’T SIGNED, PRODUCING YOUR OWN MATERIAL, HAVING A MAJOR BACK YOU OR GETTING $30-$40/CD, THIS (PRIVATE HOMEMADE MIXTAPES) IS NOT FEASIBLE OR A GOOD BUSINESS IDEA.”

1) PRODUCTION COSTS: (ARTWORK, PRINTING, DUPLICATION): LAST OFFER I GOT FOR QUALITY WORK WAS $750 FOR 1000 COPIES BUT WE NEED 10,000, THATS $7500 & SHIPPING WOULD HAVE BEEN $320.00 = $7820

2) HARRY FOX AGENCY CURRENT STATUTORY MECHANICAL ROYALTY RATE: ASSUMING EVERTHING CLEARED AND EACH SONG WAS AT 4 MINUTES LONG x 9.1 CENTS/SONG (18 TRACKS) = $1.62 x 10,000 = $162,000 YEAH, $1.62 PER CD!

NOTE: THAT’S NOT INCLUDING THE LABELS ADVANCE REQUEST AND WHAT THEY MAY ASK FOR AS THEIR ROYALTY NEEDS. THE MASTER USE LICENSE IS COMPLETELY DIFFERENT FROM THE MECHANICAL USE LICENSE AND LABELS HAVE THE RIGHT TO CHARGE WHATEVER THEY WANT FOR SAMPLES, ACCAPELAS, BEATS IN WHICH IF YOU HAD AT LEAST 10 OF ANY KIND…LOL, NEVERMIND. YOU SEE WHERE UM GOIN NOW?

3) HARRY FOX LICENSING FEES: $15 FOR THE 1ST FIVE SONGS EACH IN YOUR MIX AND $13 FOR ALL TRACKS AFTERWARDS. $75 + $169 = $244 x 10,000 = $2,440,000

SO WE NOW KNOW AT THEE VERY LEAST WE NEED = $2,609,820. IM SORRY, I DONT HAVE THAT IN MY WALLET RIGHT NOW. ASSUMING YOUR CD SELLS FOR $10 EACH AND YOU GOT 10,000 COPIES = $100,000 IS NOT ENOUGH TO EVEN COVER ROYALTIES NOT TO MENTION THE FACT YOU MAY HAVE TO GO BACK AND REDO PARTS OF YOUR MIX IF YOUR MASTER USE REQUEST FALLS THRU FOR AN ITEM OR TWO.

OK I'LL BE NICE AND LIL MORE REALISTIC, LETS ASSUME YOU WERE GRANTED ALL MASTER USE LICENSES AT NO MINIMUM QUANTITY AND YOU WANTED TO JUST DO 750 COPIES:
1) PRODUCTION START TO FINISH: $1000
2) HFA ROYALTY RATE: $1215
3) HFA LICENSING FEES: $183,000

THAT’S $185,215 FOR 750 COPIES!!!
NOTE: THAT FIGURE DOESN’T INCLUDE THE MASTER USE FEES FROM THE LABELS, LABELS ADVANCE, AND LABELS PERCENTAGE OF SALES, NO ADDITIONAL SAMPLES, ACCAPPELAS OR BEATS! NOW THAT I GOT YOUR ATTENTION, BELOW ARE THE DEMANDS MADE BY LABELS AT THAT TIME:

Wed, 19 Feb 2003 10:26:07 -0500
From: "Hernandez, Tammy" <Thernandez>
To: "Terra X"
Chris,

You must obtain 100% permission of a song for a mechanical license. If we represent only 62.50% of a song, you will need to obtain the remaining percentage from the publisher. Please obtain the publsher information and call us back with that information. It is possible that we do represent the publisher; but that percentage is in copyright control. We need to confirm the information.

The 2.00 fee is a processing fee per visit, not per song.

AND

From: "Locke, Mike" <Mike> Add to Address Book Add Mobile Alert
To: "'Terra X'"
Subject: RE: Licensing Request
Date: Thu, 27 Mar 2003 11:15:41 -0800
Chris-

Typically, if we are able to license our material, we may require a royalty amount equivalent to a pro-rated amount of 16% of the package with standard reductions. Please fax your request to 818....... even if you do not have a set royalty/advance offer, and we will review and be in touch via fax if it is even something we can participate in at this time.

Thank you,

Mike
-----Original Message-----
From: Terra X
Sent: Wednesday, March 26, 2003 1:56 PM
To: Locke, Mike
Subject: Re: Licensing Request

Thx for your quick response.

I checked some music industry references and online resources in regards to royalty offers and there really nothing specific. I would think this would vary depending on artist, track, time song used and copies distributed. This dj is using:

Jaheims - Fabulous instrumental for 2 minutes and 51 seconds in this cd complimation. He will put out 10,000 copies in the U.S., there are 39 other tracks total. What would be an average price for use of this instrumental?

Please help me out!

Thx again, Chris - Pinkey's

"Locke, Mike" <Mike> wrote:

In placing a request to license tracks from our catalog, we will need the following information for each package:

Track name/artist (with source information)
Package title
Project explanation (compilation, album reissue...)
Package Release Date
Number Of Tracks (per package)
Configurations (CA, CD, LP...)
Retail List Prices for! each configuration
Methods Of Distribution (Retail, Direct Response, etc.)
Name Of Marketer
Name Of Licensee
Royalty Offer
Unit Guarantee/Advance
Territory Of Release
Term
Track Listing (on a separate page that includes all tracks included on the release)

Please fax this information to my attention at (818) ......

Regards,

Mike
Warner Strategic Marketing
3400 West Olive Avenue, 4th Floor Burbank, CA 91505
ph#: 818-562
fax#: 818-562

AND

> From: Terra X
> Sent: Thursday, March 27, 2003 1:14 PM
> To: Black, Rebecca
> Subject: Re: TVT Track Clearance Procedure
>
> <<File>>
> "Black, Rebecca" <Rebecca> wrote:
>
> Hi Chris,
>
> Thanks for your voicemail. All track clearance requests must be submitted
> to TVT New York Business Affairs Department, attn: Jackie Sussman Sr.
> Director of Business & Legal Affairs. You can e-mail the request to:
> manny@tvtrecords.com.
>
> Please feel free to cc me on the e-mail if you'd like my assistance in
> following up (which I'm happy to do). The request would include all
> required information, including release information and sales expectations,
> proposed track listing, payment for track per unit, and advance.
>
> Thanks, and take care,
> Rebecca

AND

From: "Ernie Nieves" <ernien> Add to Address Book Add Mobile Alert
To: "Terra X"
Subject: Re: Master recording license request
Date: Fri, 28 Mar 2003 17:04:00 -0500
Dear Troy:

Thank you for your recent email regarding your sample license request of "Al-Naafiysh (The Soul)" by Hashim.

In order to consider your proposal, our A&R Dept. has requested a copy of your sampled recording. You may send us a CD copy or email us an mp3 file of the recording.

Thank you again for your interest.

Best Regards,

Ernie Nieves
Cutting Records
PH: (212) 868
FAX: (212) 868

IF YOU STILL WANNA PURSUE THE MIXTAPE THING THE LEGIT WAY, I WOULD ADVISE GETTING A LAWYER AND SOME MAJOR BACKING OR FORGET IT... GOOD LUCK KIDDIES & HAVE A NICE DAY!
:-\~