Record Deals Are Never Free

The biggest misconception in the music industry is that music deals are full of up front money and equal profit sharing. Again this is a huge misconception! Even though the traditional music labels are dieing daily I recently read an article in Billboard about Marilyn Manson signing a deal with an indie label overseas.

I would have to say that at best less than 1% of musicians are in a category to receive an advance. What also has to be understood is that is an "advance" the record label will hold back any profit to the artist until that advance is recouped. Also remember that it's just not the advance that has to be recouped before the artist starts making money. Any money spent on marketing, distribution, promotion etc... is part of that equation as well.

In reference to Manson's new deal "The structure is a 50-50 profit share after the label recoups its costs, which include an advance paid out to Manson and a major marketing commitment."

Everyone here at Tate Music Group and Variance Magazine continue to stand by our contract as an industry best. Our contract benefits an artist who is not in the public eye from the start to someone like Kenny Rogers, Katy Perry Toby Mac etc... TMG pays 50% on all digital sales and the artists has the ability to make 70 - 80% on physical CD sales.