So you think you can write a song? Maybe you stand out among the competition, but if you want to make a living this way you’ll need more than the right melody, lyrics and rhythm to keep you afloat. Your business savvy better equal your talent. But before you start working the system you must understand a few things about how the system works.
How do royalties work?
Royalties are classed according to the media by which a piece of music is experienced. Mechanical royalties are paid for physical sales, i.e., CDs, digital downloads, vinyl records and tapes. Performance royalties accrue as a song is played via the radio, piped in music service or live performance at a music venue. Synchronization royalties or “sync fees” are earned when a piece of music is “synchronized” with a piece of film as in motion pictures, television programs and advertisements. There are now also streaming royalties for a number of internet and digital uses, such as when companies make songs available on their website and telephone service providers sell ringtones.
Radio airplay usually pays the most. When you have a hit song it’s heard repeatedly all over the country and sometimes the world, making it possible to quickly garner substantial royalties. Physical sales are way down from where they used to be as many people skip buying albums to purchase singles. Illegal downloads also hurt profits in this camp. These days, a performing songwriter may make most of his or her money doing live performances of their songs.
Radio airplay is collected by BMI (Broadcast Music Inc), ASCAP (American Society of Composers Authors and Publishers) and SESAC (originally stood for Society of European Stage Authors & Composers). Their methods for collecting royalties and paying their songwriters vary, but generally they collect money each quarter, take out operating expenses and distribute the remainder to songwriters based on the amount of airplay they received during the quarter.
Mechanical royalties, funds collected on the sale of a physical product, is set by copyright law at 9.1 cents per song. According to Bruce Burch, director of the University of Georgia’s Music Business Program and former creative director for EMI Music Publishing, the world’s largest music publisher, synchronization fees are negotiated according to several criteria. Contracts take into consideration such factors as how much of a song is used by the licensee, how popular the song is (hits and classics generally receive higher payments) and the popularity of the songwriter or artist. Sync fees can be set as low as zero, such as when a new artist offers their song to a television show that cannot pay but allows exposure to a new audience. At the other end of the spectrum they can bring in hundreds of thousands of dollars, even millions, for top film composers like John Williams, who has been nominated for 45 Academy Awards, winning five.
What about ownership rights?
It’s all about the deal. There are two ownership shares of a song: the writer’s share and that of the publisher. A writer owns both rights until he assigns the publishing rights, usually for a monetary advance against the song’s future earnings. Starting out novice songwriters must typically sign deals in which they have to give up all publishing rights. A more established songwriter, who perhaps enters a publishing deal with a song already recorded, will usually be able to negotiate an agreement in which he or she retains 50 percent of the publishing rights. Sometimes a songwriter can negotiate reversion rights, an arrangement whereby publishing rights revert back to the songwriter after a certain period of time.
What are you waiting for? (OR How do you get started?)
Now that you know the basic economics of songwriting, here’s some advice from folks at the top of their game.
Study up. Do your research. “This game will eat you up and spit you out. You’re sitting in a lion’s den,” said Sean Garrett, who earned his nickname, “The Pen”, from Jay-Z. He’s written and produced over 17 number one hits for the likes of Usher, Beyonce and Mary J. Blige, in part because he took the time to learn the business. There’s a ton of resources from websites, blogs and seminars, to books like Everything You Need to Know About the Music Business by Donald Passman and Music, Money and Success by Todd and Jeff Brabec.
Protect your material. Register and secure copyrights for your music. When you’re protected you don’t have to worry about somebody helping themselves to your hard work. “Don’t be afraid of putting your music out there,” says Marcello “Cool” Valenzano of the super-producing duo, Cool & Dre, who has worked with Lil Wayne, Queen Latifah and Nas. ” Let people hear it. Don’t think you can hold onto it until you meet Beyonce. Protection is key, particularly in the digital age where work is frequently leaked and illegally downloaded.
Be flexible. “As a writer, be open to working with different people,” advised Valenzano. ” Be smart, don’t think you will write an entire song by yourself. Be open to collaborating with other writers and producers.”
Think outside the box too. Camaron Ochs, an upstart folk/indie pop singer-songwriter, is using social media and online marketing to grow her fan base and drive album and concert ticket sales. “Using Facebook, Twitter and MySpace beats passing out flyers, but it’s work,” she said. “You have to post often and engage people. “The industry is upside down, be creative about how to get your music out there.”
Flexibility gives you an edge, especially when you’re starting out. If the terms of a deal aren’t exactly what you want, evaluate the long-term gains.
“How much are you willing to pay to get into the party?” asked Chris Henderson, who was recently honored at the ASCAP Pop Music Awards for his work writing and producing Jamie Foxx’s “Blame It”, which held the number one spot on the Billboard Hot R&B/Hip Hop songs chart for 14 consecutive weeks.
“I told myself early on, I will sometimes sacrifice pay or credit, but never both. Sometimes you take less pay if you get the credit, which gets you attention and positions you to get paid more the next time,” said Henderson.
From the beginning Garrett knew his value and would compromise but so much on compensation. “When I came in the game, I was like, cut the BS. I’m working my tail off. I’m dropping hits. I want to get paid. Respect my hustle,” he said.
For Valenzano the choice sometimes comes down to simple mathematics: “What if the record is a hit?” he asked. “Would you rather have 50 percent of a million or 100 percent of zero dollars? Get your foot in the game, don’t overlook your shot.”
Get help. “You can be talented, but without the right team, it’s hard to make money,” warned Makeba Riddick, who has written for Janet Jackson, Rihanna, Beyonce, Mariah Carey, Jennifer Lopez and collaborated with producers like Timbaland.
“I always had someone from A&R [Artists and Repertoire, the division of a record label charged with guiding an artist’s development] because they have an incentive to put you on projects,” she said. Your team should include an accountant, business manager, and attorney. Experience matters, and experience in the music business is even better. How do you find these pros? “Depending on how good you are, they will find you,” said Riddick.
Having someone to help you manage your money is of great importance. “You might bet a deal where you get a lump sum of $50,000-$80,000,” said Riddick. “Without an accountant you can blow right through that money. You also want an accountant so that you stay on top of your taxes and to gauge your spending.”
You need someone watching your back. “You don’t know all the fundamentals yet, so you need a manager. You could write four tracks with multiple samples, and may not get paid if you don’t know the inner workings,” she said.
Simply put, “Inspect what you expect. You think you got a hit song on the radio, but if you didn’t handle your business right, you don’t. What looks good ain’t always good,” said Garrett.
Hone your craft. “Creatively focus on what you know, songs that connect, that strike a cord with people because they agree with it, or they want to learn from what you’re talking about,” said Henderson. “Life should be your research.”
According to Garrett the ability “to be able to interpret life in song is a gift from God.” Manage that gift well and it will support you for years to come.
For sure there will be mistakes along the way, and as is the case with any worthwhile endeavor, a certain amount of rejection must be expected. “But if you pitch 1000 songs in a year, that means you still get 10 of them recorded and if just one is a hit you can make a pretty good living,” said Burch. Ka-ching is a sweet song indeed.
-Sheryl Nance-Nash
