Saturday, January 17, 2009

Yikes! I Signed A Bogus Contract, What Do I Do Now?

These are some excerpts from the book that I am currently writing, with some changes to fit this discussion.

All artists, need to realize that there are many sharks who also set up boiler room operations just like in big corporate schemes with these contests and auditions. There are so many companies out here trying to make a patsy out of you (if you are one of the first artists they contact). They will draw you into their web, snare you, and convince you to bring other artists along for the ride, only to trick you into signing your life away, do nothing for you at all, or "create" a few appearances for you (studio, club, concert, etc.).. Remember, they may already have received your contestant or audition fee, so they no longer need you, unless it is to attract other artists to pay that fee.

They look good, smell good, drive good, eat well, and dress good, but they are not there for you to like them, they are there praying you walk right into their trap. I know you are anxious and hungry, but you have also got to be smart about it. Just because someone is pushing a big body Benz, wearing an Italian suit, "talks the talk and walks the walk", you artists keep making the same mistake by thinking that this guy in this suit with all the money in the world is your ticket to becoming successful. Yes, for those who want to know, there are sharks in the Gospel music industry also, so be prepared to run into them as well. I know a lot of brothers and sisters that work for these labels, and various companies, that are not pushing a big body Benz, earn a check every week, but can do more for your career than you ever could have imagined. Get out of the house or your basement studio, and go to some conferences and industry events and you will definitely find them there.

Now don't go run out and start passing around that someone from Earth Brothers Entertainment told me that all contests and auditions are scams. There are some legitimate contests and companies out there, you just have to weed through them all to get to the good ones. Ask for references. Have them show you artists they have worked with in the past, and what they have done for them. Have them checked out by the Better Business Bureau. Just put your thinking cap on and be aware.


Just because you may sign a major record deal, it does not necessarily equate to success to each artist. What works for one may not work for another in this business?

I know an artist out of Detroit, that will remain unnamed. This artist has been completely independent his entire career. He started his company out of the basement of his grandmother's home. He went on to sell millions of albums before the labels came for him. One label that I am very familiar with, due to my brother working for them at that time, sent airline tickets to him and crew to fly them to Miami. My brother had contacted them for the label. Once they arrived in Miami, they were given the 5 star treatment. When they sat down and began negotiating a deal, half way through the meeting, he got up and told them that he was not interested. You see, the label thought they were some street boys who didn't know the game. They became very upset because the upfront money that was offered to them was peanuts compared to what they were already doing independently. After arriving back home in Detroit, he sent the label a check to reimburse them for the airfare, hotel and all accommodations. He eventually did ink a "distribution only" deal with an independent major, but it was for that purpose only.

There are no "standard" contracts in the industry. It all depends on what you negotiate. If you don't know what you or someone else is negotiating for you, how do you know you have gotten the best record deal for you? How do you know what is legit and what is not legit if you can't even comprehend what you are reading or someone else is reading for you? Get the knowledge first, and all else will fall into place. Then and only then will you know who is legit and who is just blowing smoke up your "you know what". I am so tired of hearing all of these horror stories and artists becoming so disenfranchised about remaining in the business, and have given up on their dream because they were ripped off. Reality is that a lot of you will not make it in this business, and a very small amount of you will. But don't set yourself up for failure right out of the gate by not taking care of your career, treating it as a business, and gaining that needed knowledge.

You need to know or have a working knowledge of what is being said to you by any professional in this industry. It is the only way to guarantee your self that you won't be ripped off or used.

DO NOT WAIT until after you have signed because they threw some money, jewelry, a wardrobe, and other things at you, only to find our later down the road that you were misled and being ripped off. Some artists never recover from that, and their careers are destroyed. Why go through all the trouble of recording that "hit album" if you are not going to treat this as a business?

No record label, Management Company, or entertainment attorney is going to teach you the business. Not saying that some won't, but insure your self of a good start by reaching out to some professionals that will. Most of them want you to stay ignorant of the business, so they can continue to steal, rape, rip off, plunder, and destroy your individual earning power as an artist, while they reap millions off of your hard work. That is reality!!!! Find me someone that can dispute that, and I will quit the industry today, right now.

Word of advice: (Use both copyright form PA (lyrics, music, arrangements, etc.) and SR (sound recording "master") for full protection of your work). Most artists make the mistake of only filling out the PA form thinking their work is fully protected. Labels have legal departments that look for these loopholes. If you do not own the SR (master), trust me the label will try to negotiate ownership directly from you, or indirectly through that contract they hand you.
1. If it sounds to good to be true, it probably is.
2. Any person or company that requires you pay a fee for an audition, are usually not legitimate. Have them checked out first, and if you find that they are a scam, run for the door!
3. If you do not understand the business, don't sign anything at all until you understand for yourself. Do not depend wholly on what someone else tells you, and by then (gaining knowledge), you will know it was bogus to begin with.
4. Most established entertainment attorneys and/or management companies, not all, work hand in hand with the labels. What does this tell you?
5. Anyone dropping names is probably just that, a namedropper and little of nothing else.
6. Any contract that is one sided, that reads throughout the contract, "the company this", "the company that", is a contract you shouldn't be signing. If you can renegotiate some terms in your favor, then I would suggest going ahead with it (signing).
7. Stop depending on other artists who probably have about as much knowledge as you do, and give you misinformation. You can only blame yourself if you do not follow up, and get the needed knowledge before you sign a contract.
8. Anyone or any company constantly bugging you to sign with them, is probably out for their own best interest, and definitely not yours.
9. Read, read, read, read, read, read the resources out here, get with some of these legitimate professionals with references on out here in the business. I will suggest you read up on what each part of the "Artist Recording Contract", "Mechanical Rights Contract", "Publishing Contract", Production Contact", Etc.. is, and what each means to you as an artist.
10. No one has all the answers. But there are some trustworthy professionals out here. The music business landscape is constantly changing from hour to hour, day to day, so you need to stay in "the know" of all things that affect your music business and career.
11. If any contract is thick enough to be a book, do not, I repeat, do not sign it, and run for the hills. Do you realize how many legal loopholes in favor of the company (Label) they can place in a contract that large, especially if you do not know what you are signing in the first place?


I Want to Sign A Huge Multi-Million Dollar Contract

Reality is that labels are no longer handing out 50/50 deals or p&d multi-million dollar deals any longer. They all want to rape as much from the artists as possible. Such as the 360 deal which gives the labels multiple rights concerning the artist, such as event ticket sales, merchandising, etc. Live Nation will be here to stay with the 360 deals, because labels are tired of losing revenue from music piracy. So be prepared, all new artists, to have this be a mandatory part of your recording contract.

Although it is good advice to be independent initially, everyone can't be Master P, Cash Money, or the few lucky artists that have been discovered on My Space and sites like it, but you can put yourself in a better position, as an independent artist by gaining that needed knowledge, utilizing it for your benefit, creating a demand in the marketplace for your products, and eventually maximizing your negotiating leverage with the majors.

I am a music business consultant and will work with all budgets to help set up your business, create a solid music business plan, and pass on to you some needed information for you, your career, and business.

Copyright – Earth Brothers Entertainment LLC 2009 – All Rights Reserved

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