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You don't have to get signed to a record label. Getting signed to a record label can really boost your career in music. A record label has all tools available to distribute your music and to promote your music. However being signed to a record label is like working with a company.
5 Things to Look for in a Music Producer Agreement Who Owns the Masters? How Many Points for Your Producer? Should Your Producer Get SoundExchange and Other Revenues? Is Your Producer a Co-Writer of the Compositions? How Much Will Your Producer Be Paid?
A Producer Agreement is pretty much what it sounds like! It's a legal contract between a producer and their clients. It sets out the terms and conditions under which a product will create music, film or other creative works for their clients.
The record royalty to the artist is around 15% to 16% of the sales price of the audio product. The record royalty for a music producer is usually between 3% and 4% of the record's sales price, or 20% to 25% of the artist's royalties.
Producers typically get anything from 3 to 7 Producer Points. That means that if the artist gets, for example, 20% of the royalties in a record deal and the producer gets 5 points, the producer is getting 25% percent of the artist's share of the royalties.