GOLD RECORD = 500,000 units sold x $ .96 = $480,000. Looks like a nice chunk of loot, huh? Watch this. Now the label recoups what they’ve spent: independent promotion, 1/2 the video cost, some tour support, all those limo rides, all those out of town trips for the artist and their friends. Then deduct Reserves, Breakage, Returns, and give-a-ways. Now your business begins by paying your personal manager, business manager, (CPA/Accountant), lawyer, road manager, flunkies and assistants. Finally, you split what’s left 3 ways.
So there you have it, the real deal on how much money an artist makes. You can subtract out now another 28% to 50% of all income, including show money, (depending on the artist’s tax bracket which is determined by how much income was made within any given calendar year) for the IRS who get paid quarterly (hopefully) by the artist’s accountant. If the average artist releases a record every two years, then this income must last twice as long… I think about this every time I see my favorite artists flossing in their music videos drinking champagne or every time I see them drive by in a brand new Benz…
Wendy Day is the founder of rap coalition. Get more info @www.wendyday.com
This Article First Appeared in The Black Truth News Volume 1. Issue 8 July 2010