That's funny.

When the Recording Comanies respond to the act's questions regarding where the Royalty Fees went, the act is always told that they are expected to make their money offa the live performances and that the recording sales are what is used to *advertise* the act, guaranteeing the performance draw.

And the reason for all the confusion is that the recording companies are run by weasels.

Distribution has changed. The old "station wagon that pulls up in the night" that Frank Zappa used to write about, the one where all the pressings that *weren't* counted by the royalties counter mechanism was filled with, does not have the same impact on profits for the weasels that it once had.

Internet distribution is a daily changing aspect at this point in time, I expect there to be some technological solutions found -- that actually work and don't alienate the customers nor the artists -- and in the meantime things like what Matt is doing may just be working towards the elegant solution in some fashion that may not stand out at the moment, but it will.

Now let's talk CD Royalty Fees.

Let's say that you are the "Artist" and that you both wrote and performed all songs on a ten song CD. (Using the "ten songs" just to make the arithmetic easy here.)

That CD is sold for a $14.95US "street price".

Reality of sales rearing its head, the discount stores, with their larger buying power, are selling your CD for $9.95.

**Check the rider in your Recording Contract for the part where it stipulates that you do NOT get any royalties for any *discount* sales. see, "recording company weasels" **

Now, for those CDs that *are* sold at full retail price, the ones in which you are to receive your royalty fees, guess what the rate is?

You will make about 14 cents per song per sale.

10 songs, in which you both wrote AND performed, would net you $1.40 per CD.

So where does the rest of the $14.95 full retail pop go?

About 40% to one half goes to the retailer.

And the rest goes to the recording company.

Now take a look at how much of Matt's CD sales money goes -- directly to Matt...

One of the most common complaints I see around the web is that one where people complain about the recording companies signing younger and younger artists.

The reason for that is the same as the reason that the countries of the world draft people of a certain young age.

They are "malleable" -- they are somewhat "gullible" -- and if they tried to draft someone my age, I'd tell 'em to go to hell.


--Mac

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