fame
, having the long-reaching tentacles of majors will help deliver your product to the masses and bring you ample exposure. The problem is that new artists often get peanuts on their percentages in exchange for fame. Who wants to be a broke but famous star?
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Adance
rue that you're likely to get large advances from majors. That said, just remember that you have to pay back the advances and recordings costs from your royalty rate as applied to actual sales. When your records no longer shift those monstrous units, you'll find that you're stuck making money for a label even if the passion and financial benefits are long gone. It's like taking a loan that ties you to your creditor long enough to limit your long-term success
SALES
the main objective of everyone who's ever picked up a mic. If you made an argument in favor of sales 12 years ago, I would've nodded in agreement and slapped you hi-five. A cursory glance at the record sales within the last 5 years, however, shows an industry that's on its knees. Every dime spent on promoting an artist's record, from video production costs to radio promo, is recoupable from his royalty points (with few exceptions, of course). When, say $300,000 of income goes to the label, only about 10% of that goes towards recoupment. This way, you'll have to shift a bazillion units to see substantial revenue from royalty points.
SUMMING IT UP
o suggest that major record cartels are irrelevant. Previously undiscovered artists benefit from the huge promotional break a major has to offer. It takes a ton of funds to break a new artist -- funds most artists don't have on their own. But it's important to weigh the pros and cons of signing to a major before making the plunge.