Master Monies
Moving on to another form of compensation to the producer, let’s briefly discuss master monies.
In the record label deal scenario, the label is typically the owner in the copyright of the master recording. Nonetheless, since the master embodies the artist’s performance, it is customary for the artist to receive a 50% split of any monies that the record label may receive from the exploitation of the masters in other areas such as film and TV.
Of that 50%, the producer will receive a prorated split based on the same ratio he or she gets in royalties to the all-in rate. So if the producer gets 1/4 of your rate, he will get 1/4 of the 50% (i.e., 12.5%).
Music Publishing: When Should the Producer Get a Share?
Finally, for the last item to discuss regarding the producer’s compensation structure, let’s tackle the difficult issue of your songs and whether the producer gets a share.
Under copyright law, a music or lyric “contribution” to a song, no matter how big or small that contribution may be, could entitle the contributor to a “pro rata” (equal) share of ownership, unless there is a written agreement between the parties that stipulates otherwise. Bottom line: Before any artist/band goes into the studio with a producer, they should have a sit-down with the producer and discuss matters of music publishing, to the point of putting something in writing. The issue really comes down to how involved you want the producer to be in the songwriting process. Is he or she going to sit down with you for several weeks and pen a batch of songs with you one-on-one? Or is he or she just going to make minor changes? Read on...
When Writing Songs One-on-One From Scratch? Yes!
When a producer contributes significantly in the songwriting process, then he or she should get a percentage of the publishing.
To illustrate, Alanis Morissette joined forces with producer Glen Ballard to co-write songs. The collaboration not only helped Morissette to land a major recording deal, but also allowed her album Jagged Little Pill to sell over 30 million copies worldwide. In this instance, the record producer is clearly involved in the songwriting process and entitled to a share. I’m certain that there was a clear understanding about business matters before the two writers joined to pen that album.
When Making Slight Modifications? No!
When a producer simply does what a producer is supposed to do (i.e., make minor modifications), then he or she may not share in the publishing.
Says producer Arif Mardin: “All producers will make modifications to the arrangements of your songs by adding or dropping four bars here and there, rewriting a pre-chorus, etcetera, but they’re hired and offered a handsome advance and royalty of future sales to do so and should not ask for publishing. I suggest all artists/writers should be leery of producers that are overly insistent on taking a piece of the [music] publishing or getting involved in the songwriting process. Your music publishing income can be the very money you live on long after your career is over.”
Producer Robert Shahnazarian Jr. says: “I’ll always make sure to discuss publishing matters with any band for which I work before going into the recording studio. I want the artist to feel free to create music around me, without being afraid that this will somehow involve me in the songwriting and entitle me to a share. This is simply for the best of all parties involved. Artists must get educated about the biz: Read books like Business Basics For Musicians and take classes at local programs like UCLA or online platforms like Berklee College of Music. After all, Music is art, but making money from it is a serious business.”
ABOUT THE AUTHOR
BOBBY BORG is a former major label, indie and DIY recording/touring artist with over 25 years in music. He is also a music business educator at Musicians Institute and UCLA and the founder of Bobby Borg Consulting where he works with rising music pros globally. Borg is the author of several best selling music business books including The Musicians Handbook and Music Marketing For The DIY Musician. Borg’s latest book, Business Basics For Musicians: The Complete Handbook From Start To Success (Published by Hal Leonard) is available for a limited time special offer: get the book, CD and DVD for $21.99 (a $70 Value). Visit bobbyborg.com/store.
