Monday, September 14, 2009

Avoid Performance Royalty Organizations (PRO)

Most artists may balk at this, reading the shiny pamphlets, flyers, postcards, binders, or being invited to tons of “exclusive parties” from these organizations. The current ones are known as:

  • ASCAP
  • BMI
  • SESAC
  • HarryFox Agency

Why should you avoid them? First, they reduce your potential exposure by demanding exorbitant amounts of money from independent radio firms, who have a pure intention of promoting your music. Many who don’t have this cash. In addition, they all tend to be directly affiliated with the RIAA, which means bad news for you.

If you want maximum exposure for your music, don’t sign with them. Allow radio stations to play your music, without restriction, without royalty. Trust me on this one. Your band goes much further. I see more and more independent artists climbing the charts faster because of it, and most Radio Stations are more partial to those who don’t charge them and allow them to do what they are there to do.

Also, by not being with a PRO means you’re in direct control of licensing for TV, Movies, and more.

In my opinion, let businesses play your music on their phones, and in their locations. Allow radio stations to promote you without royalty. Allow TV station news companies to play your tracks. They all get asked what they are playing, if the listener enjoys it, which means more sales for you. I can’t tell you how many times when people have called my office going “I love that song on your hold, what’s it called, and who did it?”.

While PRO’s may seem to have your back on Copyright, they are For-Profit agencies, there to make a profit to their shareholders. Some shareholders are other Artists, some are RIAA members.

Even the way PRO’s handle royalties should be outright illegal. With some, only the Top Artists get money, and believe it or not, those checks are cut to, their record label. So if you’re not as popular as say Madonna, good luck getting anything out of a PRO.

Now, what I meant in the prior one about a live band paying royalties is this. There is performance royalties that are subject to you, if you are not careful about producers and assisting musicians. So if you perform a track, expect a good chunk of change to go to these PRO’s.

They don’t sound too good now do they? But they were so convincing? That’s what they are there to do. Their representatives are sales professionals. Think about it.

Music Business Plan

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