In this article, we’ll dive into these different payment models so you can decide the best pricing structure for you.
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Getting Your Music After Recording
Major labels play a smaller role in the music industry than they used to. As a consequence, rules and expectations on how things are done are constantly being rewritten. Some of this is good, some bad, and some just confusing.
This is a clip from Love & Hip Hop filmed in our very own Bay Eight Recording Studios. Watch producer Bigg D give Jessie Woo a lesson in how producer-artist relations traditionally work.
As you can see, many people are confused by how the business side of music works, even celebrities working with big-league producers.
Don’t hesitate to ask questions before you began working with a new producer or studio. It’s important not to make assumptions about when you’ll get your music, how payment will work, what credits they expect, etc. Expectations can range widely.
How Pricing Works
What Should You Expect to Pay Hourly For?
Studio Time.
Sometimes mixing and mastering, but this isn’t ideal because paying hourly for mixing and mastering means your engineer is not incentived to be efficient (unless you are attending the session).
What Should You Expect to Pay Fixed Price For?
Mixing and Mastering.
Sometimes production or songwriting services.
What Should You Expect to Pay Royalties On?
Production and songwriting services.
Traditionally, people who work on the “creative side” get royalties, and people who work on the technical side (engineers) get paid upfront.
So, you should only expect royalties to come up when you are working with a producer or songwriter, not when you are working with an engineer, or simply recording in a music studio.
We AreMIami's #1Recording Studio
How We Work at Bay Eight
At Bay Eight, your session, which is charged at an hourly rate, comes with an engineer. We believe this is the best pricing model for studio time because every project is different, and the amount of time it takes to complete a song can vary widely. You can find our hourly studio rates here.
Also, for production or songwriting services, we offer flexible royalty agreements. Our default publishing split is the standard 50 / 50 rate.
Default Publishing Split: 50/50. At the base rate of $50 per hour, the studio retains 50% of the publishing revenue.
Buyout Options for More Publishing Ownership: The maximum ownership buyout is capped at 90%, while Bay Eight maintains a minimum ownership stake of 10% in publishing.
| Client Publishing Ownership | Hourly Rate |
| 60% | $60/hr |
| 70% | $70/hr |
| 80% | $80/hr |
| 90% | $90/hr
|
Ready to record? Book your session with us today.
Why Some Producers Don’t Want Royalties
These days, many independent artists and producers opt for fixed-price payment rather than royalty agreements. This setup can be advantageous for both parties, especially if you’re just getting started.
A fixed-rate setup for creative services means not having to track down your collaborators, and that a producer at the beginning of their career can start sustaining themselves with their craft rather than waiting for the artists they’ve worked with to release their music and earn income.
If you don’t have a team, it doesn’t make sense to spend more time than neccesary on accounting, which takes time and energy away from your music.
Why Some Producers Charge Fixed Price Rates
- They need the money now
- They don’t have a team to track down royalties
- It’s less complicated
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Why Some Artists Prefer Fixed Price Rates
- Less accounting involved
- No need to track down your collaborators months or years after working together
Fixed Price vs. Royalty Based Rates
Famous producers and songwriters who work with major label artists usually expect a royalty cut. This makes sense at their level because the artists they work with typically have a proven track record, a fanbase, a marketing budget, and a team of experts helping to ensure their success. Therefore, these producers and songwriters are more likely to expect a profit worth waiting for.
As an artist, you’ll find this setup is still worthwhile if it means you get to work with award-winning producers, even though it’s less clean cut.
While famous producers and songwriters like these are still costly to work with today, the industry has come a long way in terms of democratization, meaning some of your dream collaborators are just a DM away. The good news is that many are more open to the idea of working with an independent artist than they were a few decades ago.
Don’t Let Your Music Get Lost in the Shuffle.
What’s the Right Choice for You?
Pros of Royalty Agreements
If you want to get in the recording studio but don’t have money to do so right-now, you may want to consider a royalty agreement. This is essentially a pay-later plan, and like all pay-later plans, it’s likely to cost you more in the long run.
Pros of Fixed Price Rates
- You know exactly how much you’ll pay for the project
- You won’t need to follow up with your collaborators
Pros of Hourly Studio Rates
- A producer without a team doesn’t have to track down artists they’ve worked with for royalties
- As an artist, paying an hourly rate is more straightforward.
At Bay Eight, we work with many major label artists. We know they have a team who will follow through on royalty payments. Though it may feel intimidating, we can assure you it’s a mutually beneficial setup, because it helps to make our award-winning engineers available at reasonable rates. Furthermore, we’re happy to explain the ins and outs of how our royalty agreements work.
Call or send us a message with any questions or inquires.
Our Mixing and Mastering services are guaranteed to compete with the biggest names in the industry.
