Equipment Rental Agreement Terms: Fill & Download for Free

NO, artists don't get paid if they are with a record label, The record label lends them money that is to be paid back if/when the artist makes it Suppose that a music label gives a band a $250,000 advance to record an album. The label agrees to do so in return for 90% of the sales. In addition, the label will specify certain standards for production of the album, for example, which studios the band will engage. The label may even hold the advance and make all disbursements on the band's behalf, ensuring the funds are used exactly as agreed. In other words, the $250,000 advance is not simply pocketed by the band -- it is to be spent on album production and the band's reasonable expenses during production. The album is recorded, and sells 200,000* copies at $10 each, yielding $2m. The record company takes 90% of this as agreed, leaving the band with $200,000 of their own. This is the situation without recoupment.With recoupment, the label advances the band $250,000 as before. As before, the band (or the label, on the band's behalf) spends substantially all of the advance to produce an album meeting the label's specifications. The album again sells 200,000 copies at $10 each, yielding $2m. The record company takes 100% of the first $250,000 in sales (recouping the $250,000 advance to the band), and 90% of all further sales, as agreed. The band's net is effectively reduced to 0% of the first $250,000 in sales and 10% of the further $1.75m, leaving them with a total of $175,000.*Recoupment deals primarily involve new artists, or those without a proven sales history, so selling 200,000 copies would be fairly unusual. More typically, 10,000 or fewer copies are sold by a new artist. In this more typical case, the label recoups only $100,000 of the $250,000 advance, along with other non-recoupable expenses incurred in getting the album out into the world.---------------------------------------------------------------------------Here is article is from the early ’90s, and originally appeared in Maximum Rock ‘n’ Roll magazine. While some of the information and figures listed here are dated, it is still a useful and informative article. And no, we don’t know how to reach Steve Albini.The Problem With Music by Steve AlbiniWhenever I talk to a band who are about to sign with a major label, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless industry lackey at the other end holding a fountain pen and a contract waiting to be signed. Nobody can see what’s printed on the contract. It’s too far away, and besides, the shit stench is making everybody’s eyes water. The lackey shouts to everybody that the first one to swim the trench gets to sign the contract. Everybody dives in the trench and they struggle furiously to get to the other end. Two people arrive simultaneously and begin wrestling furiously, clawing each other and dunking each other under the shit. Eventually, one of them capitulates, and there’s only one contestant left. He reaches for the pen, but the Lackey says “Actually, I think you need a little more development. Swim again, please. Backstroke”. And he does of course.Every major label involved in the hunt for new bands now has on staff a high-profile point man, an “A & R” rep who can present a comfortable face to any prospective band. The initials stand for “Artist and Repertoire.” because historically, the A & R staff would select artists to record music that they had also selected, out of an available pool of each. This is still the case, though not openly. These guys are universally young [about the same age as the bands being wooed], and nowadays they always have some obvious underground rock credibility flag they can wave.Lyle Preslar, former guitarist for Minor Threat, is one of them. Terry Tolkin, former NY independent booking agent and assistant manager at Touch and Go is one of them. Al Smith, former soundman at CBGB is one of them. Mike Gitter, former editor of XXX fanzine and contributor to Rip, Kerrang and other lowbrow rags is one of them. Many of the annoying turds who used to staff college radio stations are in their ranks as well. There are several reasons A & R scouts are always young. The explanation usually copped-to is that the scout will be “hip to the current musical “scene.” A more important reason is that the bands will intuitively trust someone they think is a peer, and who speaks fondly of the same formative rock and roll experiences. The A & R person is the first person to make contact with the band, and as such is the first person to promise them the moon. Who better to promise them the moon than an idealistic young turk who expects to be calling the shots in a few years, and who has had no previous experience with a big record company. Hell, he’s as naive as the band he’s duping. When he tells them no one will interfere in their creative process, he probably even believes it. When he sits down with the band for the first time, over a plate of angel hair pasta, he can tell them with all sincerity that when they sign with company X, they’re really signing with him and he’s on their side. Remember that great gig I saw you at in ’85? Didn’t we have a blast. By now all rock bands are wise enough to be suspicious of music industry scum. There is a pervasive caricature in popular culture of a portly, middle aged ex-hipster talking a mile-a-minute, using outdated jargon and calling everybody “baby.” After meeting “their” A & R guy, the band will say to themselves and everyone else, “He’s not like a record company guy at all! He’s like one of us.” And they will be right. That’s one of the reasons he was hired.These A & R guys are not allowed to write contracts. What they do is present the band with a letter of intent, or “deal memo,” which loosely states some terms, and affirms that the band will sign with the label once a contract has been agreed on. The spookiest thing about this harmless sounding little memo, is that it is, for all legal purposes, a binding document. That is, once the band signs it, they are under obligation to conclude a deal with the label. If the label presents them with a contract that the band don’t want to sign, all the label has to do is wait. There are a hundred other bands willing to sign the exact same contract, so the label is in a position of strength. These letters never have any terms of expiration, so the band remain bound by the deal memo until a contract is signed, no matter how long that takes. The band cannot sign to another laborer or even put out its own material unless they are released from their agreement, which never happens. Make no mistake about it: once a band has signed a letter of intent, they will either eventually sign a contract that suits the label or they will be destroyed.One of my favorite bands was held hostage for the better part of two years by a slick young “He’s not like a label guy at all,” A & R rep, on the basis of such a deal memo. He had failed to come through on any of his promises [something he did with similar effect to another well-known band], and so the band wanted out. Another label expressed interest, but when the A & R man was asked to release the band, he said he would need money or points, or possibly both, before he would consider it. The new label was afraid the price would be too dear, and they said no thanks. On the cusp of making their signature album, an excellent band, humiliated, broke up from the stress and the many months of inactivity. There’s this band. They’re pretty ordinary, but they’re also pretty good, so they’ve attracted some attention. They’re signed to a moderate-sized “independent” label owned by a distribution company, and they have another two albums owed to the label. They’re a little ambitious. They’d like to get signed by a major label so they can have some security you know, get some good equipment, tour in a proper tour bus — nothing fancy, just a little reward for all the hard work. To that end, they got a manager. He knows some of the label guys, and he can shop their next project to all the right people. He takes his cut, sure, but it’s only 15%, and if he can get them signed then it’s money well spent. Anyways, it doesn’t cost them anything if it doesn’t work. 15% of nothing isn’t much! One day an A & R scout calls them, says he’s ‘been following them for a while now, and when their manager mentioned them to him, it just “clicked.” Would they like to meet with him about the possibility of working out a deal with his label? Wow. Big Break time. They meet the guy, and y’know what — he’s not what they expected from a label guy. He’s young and dresses pretty much like the band does. He knows all their favorite bands. He’s like one of them. He tells them he wants to go to bat for them, to try to get them everything they want. He says anything is possible with the right attitude.They conclude the evening by taking home a copy of a deal memo they wrote out and signed on the spot. The A & R guy was full of great ideas, even talked about using a name producer. Butch Vig is out of the question-he wants 100 g’s and three points, but they can get Don Fleming for $30,000 plus three points. Even that’s a little steep, so maybe they’ll go with that guy who used to be in David Letterman’s band. He only wants three points. Or they can have just anybody record it (like Warton Tiers, maybe– cost you 5 or 7 grand] and have Andy Wallace remix it for 4 grand a track plus 2 points. It was a lot to think about. Well, they like this guy and they trust him. Besides, they already signed the deal memo. He must have been serious about wanting them to sign. They break the news to their current label, and the label manager says he wants them to succeed, so they have his blessing. He will need to be compensated, of course, for the remaining albums left on their contract, but he’ll work it out with the label himself.Sub Pop made millions from selling off Nirvana, and Twin Tone hasn’t done bad either: 50 grand for the Babes and 60 grand for the Poster Children– without having to sell a single additional record. It’ll be something modest. The new label doesn’t mind, so long as it’s recoupable out of royalties. Well, they get the final contract, and it’s not quite what they expected. They figure it’s better to be safe than sorry and they turn it over to a lawyer–one who says he’s experienced in entertainment law and he hammers out a few bugs. They’re still not sure about it, but the lawyer says he’s seen a lot of contracts, and theirs is pretty good. They’ll be great royalty: 13% [less a 1O% packaging deduction]. Wasn’t it Buffalo Tom that were only getting 12% less 10? Whatever. The old label only wants 50 grand, an no points. Hell, Sub Pop got 3 points when they let Nirvana go. They’re signed for four years, with options on each year, for a total of over a million dollars! That’s a lot of money in any man’s English. The first year’s advance alone is $250,000. Just think about it, a quarter million, just for being in a rock band! Their manager thinks it’s a great deal, especially the large advance. Besides, he knows a publishing company that will take the band on if they get signed, and even give them an advance of 20 grand, so they’ll be making that money too. The manager says publishing is pretty mysterious, and nobody really knows where all the money comes from, but the lawyer can look that contract over too. Hell, it’s free money. Their booking agent is excited about the band signing to a major. He says they can maybe average $1,000 or $2,000 a night from now on. That’s enough to justify a five week tour, and with tour support, they can use a proper crew, buy some good equipment and even get a tour bus! Buses are pretty expensive, but if you figure in the price of a hotel room for everybody In the band and crew, they’re actually about the same cost. Some bands like Therapy? and Sloan and Stereolab use buses on their tours even when they’re getting paid only a couple hundred bucks a night, and this tour should earn at least a grand or two every night. It’ll be worth it. The band will be more comfortable and will play better.The agent says a band on a major label can get a merchandising company to pay them an advance on T-shirt sales! ridiculous! There’s a gold mine here! The lawyer Should look over the merchandising contract, just to be safe. They get drunk at the signing party. Polaroids are taken and everybody looks thrilled. The label picked them up in a limo. They decided to go with the producer who used to be in Letterman’s band. He had these technicians come in and tune the drums for them and tweak their amps and guitars. He had a guy bring in a slew of expensive old “vintage” microphones. Boy, were they “warm.” He even had a guy come in and check the phase of all the equipment in the control room! Boy, was he professional. He used a bunch of equipment on them and by the end of it, they all agreed that it sounded very “punchy,” yet “warm.” All that hard work paid off. With the help of a video, the album went like hotcakes! They sold a quarter million copies! Here is the math that will explain just how fucked they are: These figures are representative of amounts that appear in record contracts daily. There’s no need to skew the figures to make the scenario look bad, since real-life examples more than abound. income is bold and underlined, expenses are not.Advance: ................................................... $ 250,000Manager’s cut:........................................... $ 37,500Legal fees: ................................................. $ 10,000Recording Budget: ..................................... $ 150,000Producer’s advance.................................... $ 50,000Studio fee.................................................. $ 52,500Drum Amp, Mic “Doctors”:.......................... $ 3,000Recording tape........................................... $ 8,000Equipment rental:...................................... $ 5,000Transportation:.......................................... $ 5,000Lodging while recording:............................. $ 10,000Catering:.................................................... $ 3,000Mastering:................................................. $ 10,000Tape copies, reference CDs, misc. expenses: $ 2,000Video budget: ............................................ $ 30,000Cameras: ................................................... 8,000Crew:......................................................... $ 5,000Processing and transfers:............................ $ 3,000Off-line:..................................................... $ 2,000On-line editing:.......................................... $ 3,000Catering:.................................................... $ 1,000Stage and construction:.............................. $ 3,000Copies, couriers, transportation:................. $ 2,000Director’s fee:............................................ $ 3,000Album Artwork:.......................................... $ 5,000Promotional photo shoot and duplication:... $ 2,000Band fund:................................................. $ 15,000New fancy professional drum kit:................ $ 5,000New fancy professional guitars [2]:.............. $ 3,000New fancy professional guitar amp rigs [2]:.. $ 4,000New fancy potato-shaped bass guitar:......... $ 1,000New fancy rack of lights bass amp:.............. $ 1,000Rehearsal space rental:............................... $ 500Big blowout party for their friends:............. $ 500Tour expense [5 weeks]:............................. $ 50,875Bus:........................................................... $ 25,000Crew [3]:.................................................... $ 7,500Food and per diems:................................... $ 7,875Fuel:.......................................................... $ 3,000Consumable supplies:................................. $ 3,500Wardrobe:................................................. $ 1,000Promotion:................................................ $ 3,000Tour gross income: .................................... $ 50,000Agent’s cut:............................................... $ 7,500Manager’s cut:.......................................... $ 7,500Merchandising advance: ............................ $ 20,000Manager’s cut:........................................... $ 3,000Lawyer’s fee:............................................. $ 1,000Publishing advance: ................................... $ 20,000Manager’s cut:........................................... 3,000Lawyer’s fee:............................................. $ 1,000Record sales:.............................................. 250,000 @ $12 =$3,000,000Gross retail revenue Royalty:...................... [13% of 90% of retail]:.................................................................. $ 351,000Less advance:............................................. $ 250,000Producer’s points:...................................... [3% less $50,000 advance]:.................................................................. $ 40,000Promotional budget:.................................. $ 25,000Recoupable buyout from previous label:...... $ 50,000Net royalty: ............................................... $ -14,000Record company income:Record wholesale price:.............................. $6.50 x 250,000 =.................................................................. $1,625,000 gross incomeArtist Royalties:.......................................... $ 351,000Deficit from royalties:................................. $ 14,000Manufacturing, packaging and distribution: @ $2.20 per record: $ 550,000Gross profit:............................................... $ 710,000The Balance Sheet: This is how much each playergot paid at the end of the game.Record company:....................................... $ 710,000Producer:................................................... $ 90,000Manager:................................................... $ 51,000Studio:....................................................... $ 52,500Previous label:............................................ $ 50,000Agent:....................................................... $ 7,500Lawyer:...................................................... $ 12,000Band member net income each:.................. $ 4,031.25The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month.The next album will be about the same, except that the record company will insist they spend more time and money on it. Since the previous one never “recouped,” the band will have no leverage, and will oblige. The next tour will be about the same, except the merchandising advance will have already been paid, and the band, strangely enough, won’t have earned any royalties from their T-shirts yet. Maybe the T-shirt guys have figured out how to count money like record company guys. Some of your friends are probably already this fucked.Steve Albini is an independent and corporate rock record producer most widely known for having produced Nirvana’s “In Utero”.OK what about making money from Spotify, pandora, youtube etcEach 10,000 albums sold on iTunes (or 100,000 song downloads) generates $70,000 in revenue for the solo artist or band. To achieve the same revenue per 10,000 fans in streams, the band has to generate 30 million streaming plays (as detailed above) if they are distributing their music across the most common streaming services including Spotify and YouTube.In 2013 the top 1% of new releases (which happen to be those 620 titles selling 20k units or more) totaled over 77% of the new release market share leaving the remaining 99% of new releases to divide up the remaining 23% of sales.This appears to confirm our suspicion that the internet has not created a new middle class of empowered, independent and DIY artists but sadly has sentenced them to be hobbyists and non-professionals.

The Problem With Music :NegativworldwideweblandTHE PROBLEM WITH MUSICThis oft-referenced article is from the early ’90s, and originally appeared in Maximum Rock ‘n’ Roll magazine. While some of the information and figures listed here are dated, it is still a useful and informative article. And no, we don’t know how to reach Steve Albini.-NegativlandThe Problem With Musicby Steve AlbiniWhenever I talk to a band who are about to sign with a major label, I always end up thinking of them in a particular context. I imagine a trench, about four feet wide and five feet deep, maybe sixty yards long, filled with runny, decaying shit. I imagine these people, some of them good friends, some of them barely acquaintances, at one end of this trench. I also imagine a faceless industry lackey at the other end holding a fountain pen and a contract waiting to be signed. Nobody can see what’s printed on the contract. It’s too far away, and besides, the shit stench is making everybody’s eyes water. The lackey shouts to everybody that the first one to swim the trench gets to sign the contract. Everybody dives in the trench and they struggle furiously to get to the other end. Two people arrive simultaneously and begin wrestling furiously, clawing each other and dunking each other under the shit. Eventually, one of them capitulates, and there’s only one contestant left. He reaches for the pen, but the Lackey says “Actually, I think you need a little more development. Swim again, please. Backstroke”. And he does of course.Every major label involved in the hunt for new bands now has on staff a high-profile point man, an “A & R” rep who can present a comfortable face to any prospective band. The initials stand for “Artist and Repertoire.” because historically, the A & R staff would select artists to record music that they had also selected, out of an available pool of each. This is still the case, though not openly. These guys are universally young [about the same age as the bands being wooed], and nowadays they always have some obvious underground rock credibility flag they can wave.Lyle Preslar, former guitarist for Minor Threat, is one of them. Terry Tolkin, former NY independent booking agent and assistant manager at Touch and Go is one of them. Al Smith, former soundman at CBGB is one of them. Mike Gitter, former editor of XXX fanzine and contributor to Rip, Kerrang and other lowbrow rags is one of them. Many of the annoying turds who used to staff college radio stations are in their ranks as well. There are several reasons A & R scouts are always young. The explanation usually copped-to is that the scout will be “hip to the current musical “scene.” A more important reason is that the bands will intuitively trust someone they think is a peer, and who speaks fondly of the same formative rock and roll experiences. The A & R person is the first person to make contact with the band, and as such is the first person to promise them the moon. Who better to promise them the moon than an idealistic young turk who expects to be calling the shots in a few years, and who has had no previous experience with a big record company. Hell, he’s as naive as the band he’s duping. When he tells them no one will interfere in their creative process, he probably even believes it. When he sits down with the band for the first time, over a plate of angel hair pasta, he can tell them with all sincerity that when they sign with company X, they’re really signing with him and he’s on their side. Remember that great gig I saw you at in ’85? Didn’t we have a blast. By now all rock bands are wise enough to be suspicious of music industry scum. There is a pervasive caricature in popular culture of a portly, middle aged ex-hipster talking a mile-a-minute, using outdated jargon and calling everybody “baby.” After meeting “their” A & R guy, the band will say to themselves and everyone else, “He’s not like a record company guy at all! He’s like one of us.” And they will be right. That’s one of the reasons he was hired.These A & R guys are not allowed to write contracts. What they do is present the band with a letter of intent, or “deal memo,” which loosely states some terms, and affirms that the band will sign with the label once a contract has been agreed on. The spookiest thing about this harmless sounding little memo, is that it is, for all legal purposes, a binding document. That is, once the band signs it, they are under obligation to conclude a deal with the label. If the label presents them with a contract that the band don’t want to sign, all the label has to do is wait. There are a hundred other bands willing to sign the exact same contract, so the label is in a position of strength. These letters never have any terms of expiration, so the band remain bound by the deal memo until a contract is signed, no matter how long that takes. The band cannot sign to another laborer or even put out its own material unless they are released from their agreement, which never happens. Make no mistake about it: once a band has signed a letter of intent, they will either eventually sign a contract that suits the label or they will be destroyed.One of my favorite bands was held hostage for the better part of two years by a slick young “He’s not like a label guy at all,” A & R rep, on the basis of such a deal memo. He had failed to come through on any of his promises [something he did with similar effect to another well-known band], and so the band wanted out. Another label expressed interest, but when the A & R man was asked to release the band, he said he would need money or points, or possibly both, before he would consider it. The new label was afraid the price would be too dear, and they said no thanks. On the cusp of making their signature album, an excellent band, humiliated, broke up from the stress and the many months of inactivity. There’s this band. They’re pretty ordinary, but they’re also pretty good, so they’ve attracted some attention. They’re signed to a moderate-sized “independent” label owned by a distribution company, and they have another two albums owed to the label. They’re a little ambitious. They’d like to get signed by a major label so they can have some security you know, get some good equipment, tour in a proper tour bus — nothing fancy, just a little reward for all the hard work. To that end, they got a manager. He knows some of the label guys, and he can shop their next project to all the right people. He takes his cut, sure, but it’s only 15%, and if he can get them signed then it’s money well spent. Anyways, it doesn’t cost them anything if it doesn’t work. 15% of nothing isn’t much! One day an A & R scout calls them, says he’s ‘been following them for a while now, and when their manager mentioned them to him, it just “clicked.” Would they like to meet with him about the possibility of working out a deal with his label? Wow. Big Break time. They meet the guy, and y’know what — he’s not what they expected from a label guy. He’s young and dresses pretty much like the band does. He knows all their favorite bands. He’s like one of them. He tells them he wants to go to bat for them, to try to get them everything they want. He says anything is possible with the right attitude.They conclude the evening by taking home a copy of a deal memo they wrote out and signed on the spot. The A & R guy was full of great ideas, even talked about using a name producer. Butch Vig is out of the question-he wants 100 g’s and three points, but they can get Don Fleming for $30,000 plus three points. Even that’s a little steep, so maybe they’ll go with that guy who used to be in David Letterman’s band. He only wants three points. Or they can have just anybody record it (like Warton Tiers, maybe– cost you 5 or 7 grand] and have Andy Wallace remix it for 4 grand a track plus 2 points. It was a lot to think about. Well, they like this guy and they trust him. Besides, they already signed the deal memo. He must have been serious about wanting them to sign. They break the news to their current label, and the label manager says he wants them to succeed, so they have his blessing. He will need to be compensated, of course, for the remaining albums left on their contract, but he’ll work it out with the label himself.Sub Pop made millions from selling off Nirvana, and Twin Tone hasn’t done bad either: 50 grand for the Babes and 60 grand for the Poster Children– without having to sell a single additional record. It’ll be something modest. The new label doesn’t mind, so long as it’s recoupable out of royalties. Well, they get the final contract, and it’s not quite what they expected. They figure it’s better to be safe than sorry and they turn it over to a lawyer–one who says he’s experienced in entertainment law and he hammers out a few bugs. They’re still not sure about it, but the lawyer says he’s seen a lot of contracts, and theirs is pretty good. They’ll be great royalty: 13% [less a 1O% packaging deduction]. Wasn’t it Buffalo Tom that were only getting 12% less 10? Whatever. The old label only wants 50 grand, an no points. Hell, Sub Pop got 3 points when they let Nirvana go. They’re signed for four years, with options on each year, for a total of over a million dollars! That’s a lot of money in any man’s English. The first year’s advance alone is $250,000. Just think about it, a quarter million, just for being in a rock band! Their manager thinks it’s a great deal, especially the large advance. Besides, he knows a publishing company that will take the band on if they get signed, and even give them an advance of 20 grand, so they’ll be making that money too. The manager says publishing is pretty mysterious, and nobody really knows where all the money comes from, but the lawyer can look that contract over too. Hell, it’s free money. Their booking agent is excited about the band signing to a major. He says they can maybe average $1,000 or $2,000 a night from now on. That’s enough to justify a five week tour, and with tour support, they can use a proper crew, buy some good equipment and even get a tour bus! Buses are pretty expensive, but if you figure in the price of a hotel room for everybody In the band and crew, they’re actually about the same cost. Some bands like Therapy? and Sloan and Stereolab use buses on their tours even when they’re getting paid only a couple hundred bucks a night, and this tour should earn at least a grand or two every night. It’ll be worth it. The band will be more comfortable and will play better.The agent says a band on a major label can get a merchandising company to pay them an advance on T-shirt sales! ridiculous! There’s a gold mine here! The lawyer Should look over the merchandising contract, just to be safe. They get drunk at the signing party. Polaroids are taken and everybody looks thrilled. The label picked them up in a limo. They decided to go with the producer who used to be in Letterman’s band. He had these technicians come in and tune the drums for them and tweak their amps and guitars. He had a guy bring in a slew of expensive old “vintage” microphones. Boy, were they “warm.” He even had a guy come in and check the phase of all the equipment in the control room! Boy, was he professional. He used a bunch of equipment on them and by the end of it, they all agreed that it sounded very “punchy,” yet “warm.” All that hard work paid off. With the help of a video, the album went like hotcakes! They sold a quarter million copies! Here is the math that will explain just how fucked they are: These figures are representative of amounts that appear in record contracts daily. There’s no need to skew the figures to make the scenario look bad, since real-life examples more than abound. income is bold and underlined, expenses are not.Advance:$ 250,000Manager’s cut:$ 37,500Legal fees:$ 10,000Recording Budget:$ 150,000Producer’s advance:$ 50,000Studio fee:$ 52,500Drum Amp, Mic and Phase “Doctors”:$ 3,000Recording tape:$ 8,000Equipment rental:$ 5,000Cartage and Transportation:$ 5,000Lodgings while in studio:$ 10,000Catering:$ 3,000Mastering:$ 10,000Tape copies, reference CDs, shippingtapes, misc. expenses:$ 2,000Video budget:$ 30,000Cameras:$ 8,000Crew:$ 5,000Processing and transfers:$ 3,000Off-line:$ 2,000On-line editing:$ 3,000Catering:$ 1,000Stage and construction:$ 3,000Copies, couriers, transportation:$ 2,000Director’s fee:$ 3,000Album Artwork:$ 5,000Promotional photo shoot and duplication:$ 2,000Band fund:$ 15,000New fancy professional drum kit:$ 5,000New fancy professional guitars [2]:$ 3,000New fancy professional guitar amp rigs [2]:$ 4,000New fancy potato-shaped bass guitar:$ 1,000New fancy rack of lights bass amp:$ 1,000Rehearsal space rental:$ 500Big blowout party for their friends:$ 500Tour expense [5 weeks]:$ 50,875Bus:$ 25,000Crew [3]:$ 7,500Food and per diems:$ 7,875Fuel:$ 3,000Consumable supplies:$ 3,500Wardrobe:$ 1,000Promotion:$ 3,000Tour gross income:$ 50,000Agent’s cut:$ 7,500Manager’s cut:$ 7,500Merchandising advance:$ 20,000Manager’s cut:$ 3,000Lawyer’s fee:$ 1,000Publishing advance:$ 20,000Manager’s cut:$ 3,000Lawyer’s fee:$ 1,000Record sales:250,000 @ $12 =$3,000,000Gross retail revenue Royalty:[13% of 90% of retail]:$ 351,000Less advance:$ 250,000Producer’s points:[3% less $50,000 advance]:$ 40,000Promotional budget:$ 25,000Recoupable buyout from previous label:$ 50,000Net royalty: $ -14,000Record company income:Record wholesale price:$6.50 x 250,000 =$1,625,000 gross incomeArtist Royalties:$ 351,000Deficit from royalties:$ 14,000Manufacturing, packaging and distribution:@ $2.20 per record: $ 550,000Gross profit:$ 710,000The Balance Sheet: This is how much each player got paid at the end of the game.Record company:$ 710,000Producer:$ 90,000Manager:$ 51,000Studio:$ 52,500Previous label:$ 50,000Agent:$ 7,500Lawyer:$ 12,000Band member net income each:$ 4,031.25The band is now 1/4 of the way through its contract, has made the music industry more than 3 million dollars richer, but is in the hole $14,000 on royalties. The band members have each earned about 1/3 as much as they would working at a 7-11, but they got to ride in a tour bus for a month. The next album will be about the same, except that the record company will insist they spend more time and money on it. Since the previous one never “recouped,” the band will have no leverage, and will oblige. The next tour will be about the same, except the merchandising advance will have already been paid, and the band, strangely enough, won’t have earned any royalties from their T-shirts yet. Maybe the T-shirt guys have figured out how to count money like record company guys. Some of your friends are probably already this fucked.Steve Albini is an independent and corporate rock record producer most widely known for having produced Nirvana’s “In Utero”.

50 Small Business Ideas for 2019Starting your own business is everyone’s dream. However, most budding entrepreneurs see their dreams nipped in the bud due to paucity of funds for investment.Should you possess some special skills, you can definitely start your own small business with low investment. While some such small business ideas can be operated from your home, in other cases, you may need to lease small premises.1. Mobile phone repair/ accessories/ rechargeIndia will have nearly 800 million smartphone users by the end of 2022. Further, this figure will grow exponentially as more brands and cheaper variants enter the market.Consequently, the demand for outlets and persons who offer repairs of mobile phones is expected to increase manifold. You can also sell accessories and credit recharge.2. Meal service (Tiffin)One of the best small business idea for women. Nowadays, the demand for home and workplace delivery of meals has increased vastly.You can launch your small business with low investment right from your kitchen by preparing fresh, wholesome meals and supplying them to offices and homes.3. BloggingBlogging is no more a work from home career. Now you can consider blogging a serious small business. You can either start from your home if you have some space or take a small office on rent.Either you can team up with like-minded people or hire people to work on your blog(s). You need to hire a content writer, a SEO expert and a content marketer.There is a huge returns if you make a proper strategy for your blog. People easily earn $10,000+ with such setup. You can start your blog here and once your blog has good traffic then make money with the ways explained here.4. Network marketingNetwork marketing, also known as Multi Level Marketing is an excellent small business. However, you need to tie-up with well reputed brands that offer great products.A search on the Internet will reveal some such major brands, whose products are always in demand.Thanks to rising medical inflation, people nowadays look for unconventional health and nutritional products and supplements as well as skincare and beauty products.You can grow your network marketing businessby promoting its products in your friends circle. You can also promote it online by creating a website.5. Babysitting/ ChildcareThis is a small business for women that can launch from home or small premises. Investment required for opening a babysitting and childcare service is very minimal.All you need to invest in are a few toys, cribs and mattresses.Add a few packets of disposable diapers, antiseptic lotions and a first aid box as well. Nowadays, babysitting and childcare facilities are in very high demand due to the rise in number of working couples.6. Small Online Business IdeasThere are various small business ideas that can be done online from home or office. You can start many of such ideas without investment.We have already covered such business ideas here. You can check which is best suitable for you from the list of 160 business ideas.7. Mobile garage-(Small business for men)Everyone has seen cars, scooters and motorbikes breakdown in the middle of busy roads. The unfortunate owner of these vehicles usually faces a dilemma about where to get repairs. For such eventualities, you can offer a mobile garage.For this business with low investment, you will require a car, mobile phone and all the tools required to repair a stalled vehicle. All you need to do is, rush to the place where the vehicle is parked to perform repairs.8. Aquariums & fishThis is a small business idea you can enter with low investment and also from your home. For this trade, you need to buy a few aquariums of various sizes and different kinds of fish that are popular as pets.You can also breed fish by keeping special tanks.Additionally, selling air pumps, fish food and decorative stuff for aquariums will net you more profits. Aquariums are also popular as gift items. However, you need to be well versed in handling various species of fish.9. Nursery & garden requirementsOnce again, this is a great small business idea with low investment. Due to increased awareness about environment, many people now maintain small plants and shrubs at their apartments and offices.You can open this business from your home. Additionally, you can sell packets of fertilizers, seeds and other garden requirements.10. Jams, pickles & saucesAs people become increasingly conscious about their health, the demand for healthier, non-commercial jams, pickles, sauces and ketchups is on the rise.Moreover, consumers nowadays are wary of consuming foodstuff that contains chemicals of any sort. Given this scenario, you can manufacture jams, pickles, sauces and ketchups with traditional recipes that are chemical free.11. Stamps & CoinsSurprisingly, this lucrative business is almost non-existent in India. Stamp and coin collectors look for the latest issues from around the world.A few simple steps are all you need to enter this low investment high returns small business.Register yourself with postal departments of various countries by paying them a small advance for buying the latest stamps. For coins, there are special government run bureaus abroad.They will send you the latest stamps and coins which are sold at a good premium to collectors.12. Pet careUnderstandably, people love their pets. However, while travelling for holiday or business, they are unable to take their pets along. Hence, people look for services that will care for their pets while they are away.If you are well versed in handling pets, this is a great business you may consider. Again, this is a small business that requires low investment.13. Fragrant candles- (Creative business idea)Let you creativity and sense of fragrances run wild. Making candles is fairly easy. Fragrant oils are readily available. With some training and experience, you can make fragrant candles of all shapes, sizes and colors.Nowadays, such candles are becoming increasingly popular for meditation and relaxation purposes.14. Cakes & bakesArmed with a good oven, you can open a low investment business making cakes, muffins, cookies and other bakery itemsThis small business has huge potential since consumers are always looking for new, better tastes at economical rates. You will however require great skills in preparing these baked delicacies.15. Ice cubesUnderstandably, this is a complex business. Especially, since ice cubes sold in the market nowadays have to conform to specifications prescribed by Food Safety and Standards Authority of India (FSSAI).However, with proper equipment, clean water and proper packaging, you can enter this lucrative market of selling ice cubes in bulk to restaurants and bars and retail to consumers.You will require FSSAI certification for your ice cubes.16. Travel servicesOffering travel and related services can see you make instant profits. Tie-up with long distance bus services, offer online reservation of rail tickets and reserve hotels at various destinations for clients.You can also add local sight-seeing and other requirements for your customers. You can either collaborate with a major travel agent or enter into deals with service providers and get commissions for every reservation you make.17. Small business idea to start an Ethnic food storeShould you be well acquainted with the palates of various communities of India, you can open a small ethnic food store with low investment.All you need to do is procure products that have a long shelf life, from suppliers located in those particular regions and sell them to your target communities.18. Medical sample collectionThis is yet another rapidly growing, low investment small business idea in India. It simply means you collect blood, stool, urine and sputum samples from patients, from their homes.These samples are for delivery to pathological labs that will test them and issue medical reports.The reports have to be home delivered to the customer. You will require a vehicle, equipment to store the bio-hazardous material and skills in extracting blood samples.You will need agreements with pathological labs before entering into this business.19. Antique furniture restorationNobody wants to part with antique furniture. Simply because they have sentimental values attached. Restoring or repairing damaged antique furniture is one business you can look at, if you have a sense of aesthetics and the required skills.You can also hire craftsmen to do the restoration at the premises of your customer. Restoring antique furniture is very intricate and you will require excellent workers.20. CCTV & surveillanceIncreasingly, people are becoming security conscious. They want to protect their families and themselves against theft, rape and other crime.Consequently, more and more people are installing CCTV and surveillance cameras at their homes and offices. This is a low investment and high returns small business idea.21. Party servicesPeople hold parties for various reasons. They are held round the year to celebrate birthdays, anniversaries and other special occasions. With this low investment business, you can offer various services.These include decoration of the venue, conducting games, mascot appearance, buying and packing return gifts, among others.22. Address verification serviceBanks, credit card issuers and mobile phone companies often require physical verification of addresses provided by customers. They do so to prevent frauds and defaults.This is a low investment business that is again in demand nowadays. However, you will require a vehicle and might require manpower to visit the customer addresses provided by bank and other service providers.23. Business idea to make Religious itemsIndia has a huge market for items required by followers of various faiths. These include pictures of deities, incense sticks, cotton wicks for lamps, candles, prayer beads and other minor paraphernalia.Making these at home or at a small premise requires low investment. There is no dearth of customers for such stuff.24. Postal labeling and sortingIndia Post requires all bulk mail to be labeled with addresses and sorted according to the Postal Index Number (PIN) code. Banks, companies listed on the stock market, bulk mailers look for small businesses that can provide this service.Especially, since they do not need to employ staff for the purpose. You will require a vehicle and some manpower to enter this low investment small business.25. Walking toursFor those who reside in cities and towns with several tourist attractions, walking tours is a great low investment business.Foreigners and domestic visitors want to get a first hand feel of the city by walking on the streets, mingling with locals and experiencing sights and sounds of the place.You will have to hire buses to take your tourists to a particular area where they will walk and visit attractions.26. Imported productsIndians returning home after a foreign tour tend to buy stuff they can sell locally. They do so to defray costs of their foreign tripProducts they sell include fragrances, cosmetics, cigarettes, liquor, chocolates, food items and T-shirts among others. The craze for foreign goods in India ensures you have a good market for your wares.27. Soya productsNowadays, an increasing number of people are going vegan. Soya products such as soya milk, tofu (soya curds), soya flour and soya chunks are provide a great alternative to meat.Manufacturing Soya products is fairly easy, provided you have the required equipment. It is also a low investment small business. You can get a small loan to start this micro industry.28. Unique ice creamsSome years ago, people would have balked at the idea of ice cream made with tomato or capsicum. However, such unique ice creams are trending nowadays.Unfortunately, manufacturers of such rare ice creams are few despite the huge market. If you are daring enough, enter this low investment business of unique ice creams.29. Used laptopsConsidered a luxury some years ago, laptops are ubiquitous now. Shopping trends indicate, people sell their used laptops and buy those with the latest features and higher configuration.Despite, there exists a huge market for used laptops. Buying, refurbishing and selling such used laptop is a low investment, high returns business you can consider.30. SignboardsGenerally, there are two types of signboards used by businesses and shops: Painted and Neon. Every small business and commercial establishment requires signboards.The demand is for creative yet low cost signboards that aptly advertises the business. Making and supplying signboards of all types, according to specifications of the business owner, is a business in demand round the year.31. Manpower supplyEvery business requires more manpower almost on daily basis. This is especially true with restaurants where staff attrition rates are rather high.Waiters and cooks leave at short notice or merely abandon work. This puts the business owner to great inconvenience.Occasionally, households also require manpower for cleaning the home. With some ingenuity and low investment, you can help restaurants overcome their manpower problems and earn a handsome income almost daily.32. Stationery supplySchools, colleges and other educational institutions as well as businesses require bulk stationery. These includes customized letterheads, business cards, envelopes, invoice books, receipt books and motley others.With little investment and some contacts, you can enter into this evergreen business. You will need agreements with printing presses and a few samples to enter this profitable venture.33. Digitizing audio and videoMillions of people across India possess audio and video tapes of their favorite music and movies, recordings of special occasions and other stuff. However, audio and video cassette players are now rare.Nowadays, DVDs and digital forms of music storage are popular. If you possess the older type record players, audio and video cassette players, you can enter into this business of digitizing old recordings.You will need to invest in equipment that allows you to copy audio and video in the older formats to the latest ones.34. Gardening servicesIndividuals and housing societies owning gardens generally are unable to attend to their favorite and sometimes expensive plants, trees and lawns.Therefore, they look for small businesses that can perform the required task.You will need to invest in some gardening equipment and hire manpower to enter into this small business, which is also round-the-year in demand.35. Glamour photographyUndoubtedly, every male and female wants to appear glamorous. Glamorous pictures are used for several purposes: To apply for jobs as models, actors and actresses, cabin crew with airlines or matrimony.For those with an eye for photography, taking glamorous pictures is a great business to open with small investment.You will have to buy a professional camera and related equipment. Taking pictures can be done at the residence of the customer or at public places. Alternatively, you can hire a studio by the hour, if needed.36. Caregiver serviceIndisposed senior citizens and people in hospitals require caregivers. Especially, since their kin are busy at work or unable to attend to their needs. Caregiver services are fast gaining momentum in India.Understandably, you will require some manpower to provide such a service. Several unemployed women and men are interested in working as caregivers for businesses that offer the service.37. Computerized horoscopesUnderstandably, this is one of the most common low investment businesses in India. All it requires is a computer with the required software, a printer and fancy paper to print the horoscope.However, in a land of superstitions, computerized horoscopes continue to remain in high demand. The reason is simple: People do not rely on results from only one computer.They want multiple horoscopes from different sources.38. Corporate giftsIndia has a rich culture of corporate gifting. It continues round the year. Corporate gifts include pens, wallets, mugs and a wide range of stuff given to staff and business associates.Usually, these items are printed with the company’s name and logo. With adequate samples and contacts, you too can open this business with low investment.You will need a wide range of products and their samples to display to clients.39. Packing servicesSmall and medium businesses generally do not have a separate department for packing their products. They hire individuals- who can often be unreliable.Or, they outsource the job to small businesses who can pack their stuff with care while adhering to deadlines.To enter this business, you will require adequate packing material such as cartons, strapping machines and cutters and of course, manpower.40. Homemade chocolatesWith some chocolate making skills and little investment, you can enter into this highly profitable small business idea. Homemade chocolates are sold by almost every major pastry shop and gift store.They are in high demand since their taste is much different from bulk manufactured varieties commonly available in the market.Several companies order homemade chocolates to send as gifts to their business associates. Such chocolates are in great demand during festive and wedding seasons too.41. Name platesA common system worldwide is to affix one’s name plate outside the door of a house or apartment. Moreover, people also install large names outside buildings, villas and bungalows.They prefer artistically designed name plates or simple ones. Making these name plates is a low investment small business that anyone can begin with ease. The demand for these name plates is round-the-year and you can make decent profits from your venture.42. Wedding gownsEarlier, wedding gowns were the mainstay of the Christian community. However, over the years, the concept of wedding gowns has become popular among people of other faiths too.Bollywood movies have also contributed immensely to popularizing the wedding gown.For men and women who are adept at fashion designing, making wedding gowns is a great, low investment and high returns small business idea.Additionally, you can also offer other fashion wear to ensure income round the year.43. Chips and wafersChips and wafers are consumed almost everywhere: cinema halls, schools, home, bars, in buses and on trains. The list is endless. Manufacturing chips and wafers with potato, raw banana, jackfruit, tapioca and other starchy roots is fairly easy.Equipment required is not expensive.However, you need to ensure proper supply of raw material and have good packaging. Generally, shops and bars order such chips and wafers in bulk.44. Idli and dosa batter-(Best small business idea in India)The mainstay of south Indian communities, Idli and Dosa are now popular across India. However, not everyone can prepare the batter required for making these dishes.It requires a proper blend of rice and cereals.The batter has also to be fermented to the right degree to ensure it gives great tasting Idli and Dosa.Packaged Idli and Dosa batter is fast becoming popular, with most stores stocking several packets for their customers. Setting up a batter manufacturing unit from home or a small premise is fairly inexpensive.45. Air conditioner maintenanceNowadays, air conditioners are an essential component of several households and most offices. Hence, there is an ever increasing demand for small businesses who can offer excellent maintenance of these expensive appliances.Trends nowadays indicate, people are willing to sign annual contracts for maintenance of their air conditioners.All you need is some basic equipment required to service air conditioners and skilled manpower who can perform the tasks. Acquiring skills in maintenance and repair of air conditioners- especially window and split types- is fairly easy.46. Renting scooters and motorcyclesTourists, salesmen and small business owners look for hiring scooters and motorcycles while visiting a town or city.Renting such two-wheeler saves them precious time and offers the ease of commuting. With a small investment, you can open a scooter and motorcycle rental business.You need not rush into buying a fleet of vehicles. A couple of two wheelers will suffice to begin with. However, you will need to get proper licensing, insurance and permits before renting out these vehicles on short term basis.47. Employee background checksWith most places in India witnessing high migration of labor, several companies now resort to employee background checks. This means, they verify information provided by a jobseeker through an external agency.Checks include verification of work experience and educational qualifications. This is a rather simple and low investment business to open.You will need a database of companies who require employee background checks, computers and landline telephone to open this small business idea.48. Handicrafts-(Creative small business idea in India)An excellent low investment small business anyone can start is buying and selling handicrafts. Generally, handicrafts are made in rural areas.However, glitzy showrooms charge exorbitant rates for the stuff, which they usually procure fairly cheap.You too can enter this huge market by buying handicrafts from different regions near you and selling them at reasonable rates.Once again, the market for handicrafts is always high because they are also given away as gifts or used for home and office décor.49. Skin and beauty treatment-(Small business idea for men and women)Increasingly men are becoming beauty conscious. For men and women skilled in providing skin and beauty treatment, opening a small business offering the service is an excellent small investment option.You can design your own therapies for glowing skin, anti-aging and facelifts.This business can also be opened from home, provided you have ample space and privacy for clients. Offering herbal and natural therapies will help you stay ahead of competition.50. Mushroom harvestingMushrooms are considered a delicacy and fetch fairly high prices in the market. They are very nutritious as food.Hence, governments of various Indian states provide subsidies and facilities to people who can harvest mushrooms. This is a great low investment small business idea.You will need to set up a green-house with controlled temperature for getting the right crop. Mushroom spores are readily available from state-run cooperatives and agricultural shops. Bulk customers for mushrooms are easy to find.Extra: Broken glassStrange as it may sound, there exists a huge market for broken glass. Millions of glass bottles that cannot be recycled, as discarded daily in India.Shards of broken glass are used in building compound walls of bungalows. They deter robbers from scaling the compound wall to gain access to the bungalow.Glass shards also prevent reptiles like snakes from slithering over the compound wall. A word of caution: Dealing in broken glass can be hazardous and has to be done with extreme care.Extra: Apiary & honeyHere is one great small business idea with low investment, provided you have a garden or open plot of land. Setting up an apiary to breed honeybees is inexpensive.You will also require some basic equipment to extract honey from honeycombs. Homemade honey fetches a great price.Royal Jelly, produced for the queen bee, commands a high price in the market from individuals and medical companies.Before investingRemember, having ample capital to invest in a small business of your choice is not enough. You also require the necessary skills to ensure its proper functioning.Before entering into any venture, it is advisable to know licensing procedures and other legalities concerned.It is better to legitimize your business since it can help you get loans and subsidies in future. It will also protect you against any lawsuits