Nicky Reardon

However, in this video by Jelly Roll, which I found so fascinating, is when he talks about this idea of an 80-20 split, right? Let's say they give you $500,000 advance and you go and release an album that generates $500,000. You might be like, heck yeah. Break even on my first album, period. Yeah. And the answer is no. The way it works is the label would get 400K. The artist would get 100K.

However, in this video by Jelly Roll, which I found so fascinating, is when he talks about this idea of an 80-20 split, right? Let's say they give you $500,000 advance and you go and release an album that generates $500,000. You might be like, heck yeah. Break even on my first album, period. Yeah. And the answer is no. The way it works is the label would get 400K. The artist would get 100K.

However, according to the advance, you still owe 500K. So the repayment comes from only your percentage. So you actually would get nothing. And your owing would come down to 400K. Even though your art generated... as much as it costs, in theory, to make for this thing. And in order to break even, for example, on a 500K advance or whatever, you would have to make $2.5 million.

However, according to the advance, you still owe 500K. So the repayment comes from only your percentage. So you actually would get nothing. And your owing would come down to 400K. Even though your art generated... as much as it costs, in theory, to make for this thing. And in order to break even, for example, on a 500K advance or whatever, you would have to make $2.5 million.

And then after that, you'll start seeing your 20 cents on the dollar, essentially.

And then after that, you'll start seeing your 20 cents on the dollar, essentially.

Yeah, totally.

Yeah, totally.

Why they aren't getting money. And I think that's what Jelly Roll was really talking about in his first label, that, like, he didn't understand, like... why didn't my music make money? And it's like, no, it did make money, it's just that's not how your agreement with the label works. Again, there's an interesting POV to both sides here.

Why they aren't getting money. And I think that's what Jelly Roll was really talking about in his first label, that, like, he didn't understand, like... why didn't my music make money? And it's like, no, it did make money, it's just that's not how your agreement with the label works. Again, there's an interesting POV to both sides here.

I think from the label's perspective is like, hey, we bear 100% of the risk. There is zero risk to you. If you make this thing and it flops, we don't get our money back, right? We are investing the money, we are giving you staff, two years of support, all the money they spend again on this marketing, promotion, development, whatever.

I think from the label's perspective is like, hey, we bear 100% of the risk. There is zero risk to you. If you make this thing and it flops, we don't get our money back, right? We are investing the money, we are giving you staff, two years of support, all the money they spend again on this marketing, promotion, development, whatever.

And also I think another label POV is like, well if you do get famous, and it does work, the label spent all this money building a brand for you, and you get to leverage that brand however you want. Like at the end of the day it is, you know, if they're making Nicky Riordan the pop star, famous.

And also I think another label POV is like, well if you do get famous, and it does work, the label spent all this money building a brand for you, and you get to leverage that brand however you want. Like at the end of the day it is, you know, if they're making Nicky Riordan the pop star, famous.

And then Nikki Ridley and the pop star in five years wants to do a brand deal, do movies, switch music labels, whatever that fandom is mine. And it will follow. It would follow me where I go. So that is why they're structured so heavily in this percentage skewed towards the label. Yep. And there's no right answer here.

And then Nikki Ridley and the pop star in five years wants to do a brand deal, do movies, switch music labels, whatever that fandom is mine. And it will follow. It would follow me where I go. So that is why they're structured so heavily in this percentage skewed towards the label. Yep. And there's no right answer here.

Some artists, you see they win a Grammy and the first thing they do is they go up and thank their team. And there's some artists who have won a Grammy without any team at all. I don't think that there is a right answer. I think it is understanding this flow of commerce, essentially. You're $1. Let's make it $10 for easy math.

Some artists, you see they win a Grammy and the first thing they do is they go up and thank their team. And there's some artists who have won a Grammy without any team at all. I don't think that there is a right answer. I think it is understanding this flow of commerce, essentially. You're $1. Let's make it $10 for easy math.

Your $10 goes to Spotify, which then only gets to keep $3 of it, essentially. $6.70 goes to the music label. Then out of the music label, that's $6.70. They are taking their cut, then also the royalty cut of like a brigade.

Your $10 goes to Spotify, which then only gets to keep $3 of it, essentially. $6.70 goes to the music label. Then out of the music label, that's $6.70. They are taking their cut, then also the royalty cut of like a brigade.