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I got a sizeable offer to license a song for a commercial. Is it enough?


c0rs0

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Hi...looking for some advice from those with experience with this. Long story short, I produced an indie-folk album in my home studio on spec with the songwriter, we have a production deal, sort of a start-up "label" where I put out his record and are partners in any revenue it generates.

 

Anyway, it got some good regional notice, and we licensed some of it for use in an indie film. That also got some good notice, and yesterday, a guy from an advertising company who holds the regional account for a really {censored}in' huge company offered us $5000 for a one year license for one of the songs for a commercial.

 

If it were for Al's Carpet Shack or something, I wouldn't be asking, but when I say a really {censored}in' huge company, I mean it. Supposedly it is for a regional campaign initially, but this company is global...and if it goes global, I don't want to get screwed.

 

We have a meeting with this guy this weekend, and I am just looking for some input from any jingle production guys...I will be posting this in Anderton's and O'Keefe's forum too.

 

I assume we are getting lowballed, that is just business, but I wonder by how much? How do I protect my interests and the interests of the artist?

 

A nice piece of luck, and we're really grateful for it, but want to handle it well. Advice?

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Personally, I'd take it, given that it's just a one-year license, so you have your song "back" after that. (If they wanted a perpetual, exclusive license it might be another matter) But of course you should get the agreement looked over - the devil is always in the details..

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5K for a 1 year license for 1 song to be used in a commercial is PRETTY DANG GOOD for a first timer! I make and have sold a BUNCH of buy out music. And have sold a teeny weeny bit of soundtrack work for some major studios, and a small handful for some real indies.

 

Stuff to look out for:

 

- Make sure it is used 'as is' for the commercial only: 'flat license' is the term.

- And no "extras", meaning the license is only applicable to the music as used. Like, if it generates sales on your end as a result, make sure they don't get anything from it.

- Also give them right of first refusal for any future use, to be 'notified and negotiated'.

- No automatic renewal.

- Also, make sure it is for domestic or english speaking use only. If it is USA, Canada and English speaking European countries, you are cool. But if it is gonna be dubbed into multiple languages....they might be lowballing their indie status. Chances are, if it is a true indie with decent distribution, you won't have to worry. But if they are something like Focus features, which is technically an 'indie' but they really are an arm of a major, there's MUCH more money on the table with international distribution.

 

They also might just be using your stuff for domestic. Or even regional, since your stuff seems to have a bit of a 'buzz' going.

 

If this is your first time working with them, make them feel that you are easy to work with, but know your {censored}. 5K isn't really a lowball figure. It, in my experience is pretty fair for a 1 year license for a first timer, domestic or regional. Once you develop a relationship with the producer(s), post house etc., and they give you some more work, you can ask for more accordingly.

 

Also, AFTER the deal is signed, offer your services for playing at promotional events for the film.

 

Congrats, and good luck!!!

 

MAILBOX MONEY RULZ!!!!!!

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As far as taking it...there's that old "bird in the hand equals two in the

bush" saying.......

 

There's also an old saying about wanting part

of something or all of nothing.......

 

 

 

And ALWAYS have a music industry lawyer look over anything you sign....

 

Good Luck.....

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That would be good even for a perpetual non-exclusive license.

 

Whats great is that kind of cash is usually going through established music library and publisher channels.

 

I wouldn't try to negotiate because if they reconsider there are lots of cheaper options in the marketplace.

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