Looking for Advice on a Distribution Deal

[damajackal]

Hey guys.

 

I'm a musical comedian. I had a meeting with a company called New Wave Dynamics, which is a spin off of New Wave Entertainment (A talent agency). They're starting a quasi-record label to compete with Comedy Central Records and are interested in re-releasing my two albums.

 

They'd be putting my album up on just about every digital distribution site in the world; iTunes, Amazon, etc.... basically, the works. Their contract gives them exclusive digital rights and they keep 40% of royalties after the percentages that distribution sites take. I'm not excited about any of that really. With iTunes, for example, I'd be earning 42 cents a song. That's a terrible deal. CDBaby is better and I'm already using Bandcamp so I keep 90% of my royalties.

 

Here's what I am interested in: They have is a Talent Management agency that could be coerced into representing me and a PR department with connections that can drum up appearances, radio interviews, etc... They won't spend money on advertising, like a label would, but they are willing to lend their industry connections made through their talent agency.

 

It sounds crazy to give up 58% and exclusive digital distribution rights to companies that aren't spending a dime to promote me, but my current sales aren't enough to support me. Afterall, 42% of something is better than 100% of nothing...

 

Still, I'd hate for a proper investor, even a small-time one, to come along and be interested in me and then have to tell them I've signed away my digital distribution rights.

 

Thoughts?

 

Please?

[3shiftgtr]

Get a lawer and give 'em a go. Not the best deal, but make sure you still retain your publishing....then it is not a bad deal. You are basically paying them a commission from sales that they help generate.

 

Problem is that if you get in with them, and their agency is smaller and less powerful than they pitched, or can't get anything done for you, then you are on the backside. Try to get the deal to be close ended; so that at the end of say 3 years, all royalties revert back to pre contract levels.

 

I wouldn't worry so much about future investors. No one wants to invest in someone who's foot isn't in the pool. You won't get any bites until they can smell the money. And that won't happen until someone 'on the inside' does something for you. Funny how finding the right door is the hardest part, and nobody wants to help with that. But as soon as you start knockin' there is usually someone saying "Here, you need some help with that."

 

Good luck.

[damajackal]

Thanks for the advice. I sent them an e-mail to ask about putting a term on it. It just seems so silly to give away digital distribution rights indefinitely.

 

Who knows how we'll be doing music sales in 3 years?

[daddymack]

the next music distribution model...

[Brianazee]

LOL at brainslug!

 

I'm a firm believer in having lots of throwaway content. I don't know how your creative process works, but the question I'd be asking myself is how easily could I make two more albums like that?

 

If the answer is anywhere near the "easy" side of the spectrum, then it's nothing to lose. What you'd essentially be doing is giving away (I certainly would look at it as a giveaway cause any holding on you do will guarantee frustration down the line) your first two records to build a platform for your next two.

 

If you're in a position to do it this way, make sure they can deliver on their end of the deal, and then network like a mofo with every single person they put you in touch with.

[damajackal]

I'm kind of leaning toward giving them one album, but not the other. My first album has more songs, but the 2nd one has the best song, so it's hard to decide.

[BlueStrat]

 

I wouldn't worry so much about future investors. No one wants to invest in someone who's foot isn't in the pool. You won't get any bites until they can smell the money.

 

 

Yep. Awhile back, in the late 90s, there was a local band who became wildy popular in a short amount of time. They were selling out shows and sold over 7,000 CDs in about a year. Sure enough Capricorn Records came calling, and signed them (and also ruined and killed the band in the stereotypical fashion we have all heard about, but that's another story). They dropped off the face of the earth by 2000.

 

They just did reunion gigs in Seattle, Portland and two shows here, and all of them sold out. The point is, they had and still have 'it'.

 

I'm convinced that for now anyway, having great songs and great records is just not enough. Live performance is at least half of a band's success these days.