Nicky Reardon

Interesting that that's even true when it's an independent artist. It's not just the idea of... It is across the board, Spotify does not pay the artist directly.

Interesting that that's even true when it's an independent artist. It's not just the idea of... It is across the board, Spotify does not pay the artist directly.

Yeah, yeah, yeah, yeah. It is the way that the streaming business works. So with that, I think I want to talk about first the record deal structure. Although, again, that doesn't apply to everybody. I think it applies to most artists. Because the concept of a record deal... is it starts with like, they give you a big advance. And then you sort of pay that advance back in royalties.

Yeah, yeah, yeah, yeah. It is the way that the streaming business works. So with that, I think I want to talk about first the record deal structure. Although, again, that doesn't apply to everybody. I think it applies to most artists. Because the concept of a record deal... is it starts with like, they give you a big advance. And then you sort of pay that advance back in royalties.

And there is many good and downsides to being a part of a label. Also, I'm not an artist. So, like, can't give you my experience with a label. Like, it's not my choice. You know, I think it's a very, like, choose your own adventure. But the way, I think I want to break down the deal first before I, like, talk about, like, the pros and cons of that thing, right? And I'm going to use an example.

And there is many good and downsides to being a part of a label. Also, I'm not an artist. So, like, can't give you my experience with a label. Like, it's not my choice. You know, I think it's a very, like, choose your own adventure. But the way, I think I want to break down the deal first before I, like, talk about, like, the pros and cons of that thing, right? And I'm going to use an example.

There was this incredible video by Jelly Roll that I really loved where it, like, really broke this down well. So let's say they give you an advance, right? They're like, here is $500,000. We want you to cut your record. You're going to make the music. You got to turn it in in, let's say, two years, right? For starters, that $500,000 is a loan. Like, it is not... Here, blank check, $500,000.

There was this incredible video by Jelly Roll that I really loved where it, like, really broke this down well. So let's say they give you an advance, right? They're like, here is $500,000. We want you to cut your record. You're going to make the music. You got to turn it in in, let's say, two years, right? For starters, that $500,000 is a loan. Like, it is not... Here, blank check, $500,000.

The idea is, like, we are investing in you. You have this money so that you can quit your job, so that you can fund your music, so that you can spend your 40 hours a week either writing, practicing, making social content, promoting it. Like, however you do it is up to you. But the point of the money is to give you this ability to pursue this thing full time.

The idea is, like, we are investing in you. You have this money so that you can quit your job, so that you can fund your music, so that you can spend your 40 hours a week either writing, practicing, making social content, promoting it. Like, however you do it is up to you. But the point of the money is to give you this ability to pursue this thing full time.

Um, in exchange for this industry standard for my reading was an 80, 20 split. I know that the real way it works is that everybody has like their own contract with their own label. Some people could be more, some people could be less. I think generally for like indie labels, it'll be like the, they get, cause they know they're smaller, they get a little less percentage, blah, blah, blah.

Um, in exchange for this industry standard for my reading was an 80, 20 split. I know that the real way it works is that everybody has like their own contract with their own label. Some people could be more, some people could be less. I think generally for like indie labels, it'll be like the, they get, cause they know they're smaller, they get a little less percentage, blah, blah, blah.

Um, I don't know. It depends on the label.

Um, I don't know. It depends on the label.

Yeah. So in exchange for this 80-20 split to the label, we're using that as an example. They give you the advance. They promote it. They do the marketing. They are helping with social strategy. They might give you PR. They might fund a music video. They are having connections to do things like touring, maybe they can get you on an opener for somebody else.

Yeah. So in exchange for this 80-20 split to the label, we're using that as an example. They give you the advance. They promote it. They do the marketing. They are helping with social strategy. They might give you PR. They might fund a music video. They are having connections to do things like touring, maybe they can get you on an opener for somebody else.

They can be equipping you with songwriters, producers, dancers, or just other things that develop you as an artist. The idea is that you are giving this percentage of your

They can be equipping you with songwriters, producers, dancers, or just other things that develop you as an artist. The idea is that you are giving this percentage of your

rights you're streaming to um have the incubator to be in this thing where you can develop as an artist and and where you are going to have every tool in the tool about all that support yeah and and and in many ways you can't do also there's like weird logistical stuff you know what i mean like like your favorite like your favorite artist isn't like sending a 1099 for streaming royalties for the songwriter that you use on one song like like the label is doing that for them right like there's like an actual genuine service being done through this system absolutely

rights you're streaming to um have the incubator to be in this thing where you can develop as an artist and and where you are going to have every tool in the tool about all that support yeah and and and in many ways you can't do also there's like weird logistical stuff you know what i mean like like your favorite like your favorite artist isn't like sending a 1099 for streaming royalties for the songwriter that you use on one song like like the label is doing that for them right like there's like an actual genuine service being done through this system absolutely