Promotion Expenses

by Jeff and Todd Brabec </p>

Since independent promotion can be an important aspect of establishing an artist or making a particular recording a hit, record company contracts will usually provide that all or a portion of third-party promotion expenses will be treated as additional advances to the recording artist recoupable from royalties due under the recording agreement.

Such costs are usually 100% recoupable with respect to newer and less powerful artists, and 50% recoupable for more established artists.

The record company will often agree to consult with the performer as to the actual promotion and marketing plans designed for a single or album but almost always will have the right to make the final decision.

In recent years, music publishers have tended to contribute guaranteed monies to their writer/recording artists for promoting their albums and singles, over and above monies expended by the performer's record company.

Occasionally, such guarantees are part of the music publishing contract (e.g., the music publisher committing a minimum of $10,000 in independent promotion and marketing for each album released).

Other times, they represent voluntary decisions on the part of the publisher either of its own choice or at the request of the writer/performer's management, attorney, or record company.

Sometimes the record company may be able to commit only a certain amount of promotion money for a newer artist, and the monies expended by the writer/artist's music publisher can make the difference in pushing the writer/performer or recording over the top.

Most promotion-related monies paid out by music publishers are, as in record contracts, treated as additional advances.

© 2007 Jeff Brabec, Todd Brabec

This article is based on information contained in the new, revised paperback edition of the book "Music, Money, And Success: The Insider's Guide To Making Money In The Music Business" written by Jeffrey Brabec and Todd Brabec (Published by Schirmer Trade Books/Music Sales). www.musicandmoney.com