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).