I have been releasing records for about 5 years now and was thinking to myself the other day that I wish someone could have told me a bit about some of the common mistakes people make when they are first starting out. Sure you can buy tons of books on record contracts for major and indie labels out there but i find that these don't really apply to the typical house producer out there. So while I may not have 20 years experience and I may not be a superstar I thought some of you out there would appreciate a few basic pointers on what to look for and what to avoid when shopping your music around these days.

What to expect

For most new producers who are thinking of shopping their first record the hardest question to get an answer to is what to expect if their track does get picked up. How do you know if you are getting ripped off by a label if you've never signed a deal before? For an original release, you can expect to see a deal structure that will compensate you a percentage of what the label brings in. Depending on the type of release (Digital only, Vinyl only or both), you may be offered as much as 60% of the profits. Be sure to read your contract carefully though as most labels have a line in there that allow them to recover costs of production before you see a dime. So be sure to find out if your share is of Net profits or Gross profits as this could make a significant difference especially if the Label shelled out for a vinyl release and paid for remixes.

These days with digital releases the rule of thumb is usually 50% of NET. This means that for every mp3 sold you get 50% of what the Label rakes in after overhead. The great thing about digital releases is that there is generally very little overhead cost. Now before you get all excited remember that the label has a deal with the site that distributes the music. For instance, Beatport has a straight 50/50 deal with the label so for ever track that you sell on beatport, half the proceeds stay with them. So the label is only raking in a buck of the two dollar cost and that means you are only seeing 50 cents at the most!

That is the reality of the industry these days so perhaps the most important thing that I can tell all you aspiring artists out there is this: If you hope to make money as an artist STOP RIGHT NOW! It really can't be done. Unless you're Deep Dish and are remixing Madonna on the weekends you aren't gonna make a living as a producer, no matter how many tracks you bang out a week. Now before everyone jumps down my throat I will concede that there are a ton of other ways to market your tracks that can give you an handsome income but that should be the subject of a completely different post.

Now a remix is generally a work for hire which means that you will be paid a flat rate for your services. Remixes are commissioned at pretty much every conceivable price range, from free all the way up to thousands of dollars. As a fledgling producer, don't let a label sucker you into doing a remix for free just because they signed one of your tracks. You should always get paid for this work. Think of it in terms of how many hours you spend making the remix and how much your time is worth. My first remix paid me a paltry 300 Bucks but that is better than nothing. As you progress as an artist your remix price will go up. Also how well the track does once released will have an impact. A remix that hits the charts is good for you as you become more sought after and can charge more. This is why it is very important to keep track of how many copies are sold and what kind of press any of your tracks receives.

I'll stop there for now and give you all some time to digest and give me feedback but I have much more to share on this topic so check back soon for the next installment!

2:Cents