Artist Don’t Make Money From Record Deals

Who is the incredible bonehead who said rappers make mad loot? Wrong, wrong, wrong, wrong, wrong!! Because the fans expect their favorite artists to be crazy paid and livin’ large, this puts an incredible amount of pressure on the artists to appear wealthy.

We’re going to assume that there are 3 artists in the group, and that they split everything equally. We’re also going to assume that they produce their own tracks themselves.

Suggested retail list price $10.98
Less 15% packaging deduction (usually 20%) =$ 9.33
Gets paid on 85% of records sold (“free goods”) =$7.93of a picture or illustration.

So the artists’ 12% is equal to about 96 cents per record sold. In most deals, the producer’s 3% comes out of that 12%, but for the sake of brevity, in this example the group produced the whole album, buying no tracks from outside producers, which is rare.

Let’s assume that they are a hit and their record goes Gold (although it is rare that a first record blows up like this).

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