Artists News

Sharpening your music business skills – when to negotiate and when to sign on the dotted line

Posted by Mike McCready | December 7th, 2011 | No responses


Frequently, we receive inquiries from musicians who have had their song(s) selected for opportunities on Music Xray and who have questions about contract terms they’re being offered by the industry professionals.

One of the most frustrating occurrences is when an industry professional sends you a contract for license deal, you have some doubts and questions about the contract so you send your questions to the professional and then you never hear back. It’s like the deal just disappeared.

Why does this happen?

The hard reality is that while the license deal may be your first (or at least not the sort of thing you deal with every day), that’s not the case for many industry professionals. Many of them do license deals multiple times per week and many of them have successfully been using a similar contract template for years. It has been sufficient and deemed fair by many musicians who have gone before you so, for the professional, the contract is not a point of negotiation. Going back and forth on a standard contract is, in their minds, a waste of time. That’s why sometimes you may never hear back when you try to negotiate it. It’s just seen as too much hassle to discuss the finer points of a straightforward deal and it’s easier to move on and find alternative music.

 

Believe it or not, some industry professionals simply do not accept unsolicited material simply because they consider it to be too much effort to deal with artists who don’t demonstrate business competence. That is one of the primary reasons you should have a team that includes a manager. Seek one here (scroll to view all managers seeking to expand their rosters).

We’re not telling you to sign every deal put in front of you. Heavens no! You are right to have some healthy skepticism. We all know the reputation this business has earned. However, the web has made business a lot more transparent and it is getting a lot harder for anyone who is not ethical to hide their bad reputation. We urge you to check people out and do some reasonable research. We also urge you to negotiate the points of large complex agreements. You can also have a professional such as Desha Jackson review contracts for you at a very reasonable rate. But be careful not to become your own worst enemy when completing a deal.

The best next piece of good advice we can give you is to never stop learning how this evolving business works. As part of that endeavor, subscribe to our blog.

 

Mike McCready is an entrepreneur at the crossroads of music and technology. He pioneered the introduction of Hit Song Science into the music industry and followed up with Music Xray, the company he co-founded and serves as CEO. His companies have been the subject of case studies at Harvard Business School, IESE and he frequently guest speaks at many of the top business schools around the world. He helps the music industry identify high potential songs and talent and helps musicians get deals, get fans, & get better: http://musicxray.com