Look, Before You Make Money in the Music Business

Rhymefest and Vet Boi™:

Grammy Award Winning Artist/Songwriter

Making Money in the Music Business

                           

This past weekend was chocked full of musical activities. Lollapalooza happened, and there was a showcase at the Hard Rock Cafe. However, I had the honor to sit in another music business seminar. This time I was not on the panel as the Grammy Award-Winning Producer, Engineer, or Songwriter, but I was sitting in the crowd listening to perspective. I love to listen to other people’s perspective about the music business. Everyone’s journey is different. A master is always a student of life.

Rhymefest, CHE SMITH, is a Grammy Award Winning Artist and Songwriter. He co-wrote the song “Jesus Walks” by Kanye West. In October 2010, he ran for the Chicago’s 20th ward alderman position but lost to incumbent Willie Cochran by placing 45.4 to Cochran’s 54.6 margin (Glanton). Smith has also made a few television appearances, such as MTV’s Wild Out Wednesdays, Punk’d, TRL, PBS, and Last Call with Carson Daly.  Smith blessed the attendees at Music Industry WORKSHOP With his talents and his knowledge.

Rhymefest kept it completely real with his delivery. He held no punches. One of the topics he discussed was the difference of being a major recording artist on J Records to being an independent artist. Smith said, “I was signed as a major recording artist, and I seen how that worked. Then I was also on an independent label and seen how that worked. Neither worked, but now I am doing it my way to make it work.” He took a decent amount of artist and publishing advances when he signed, but knew upfront he was part of a machine, which had other intentions than his album release. In other words, J Records was primarily known for being successful with pop records not rap. Therefore, he capitalized on his opportunity without worrying about recoupment. Additionally, when he was released from his contract he received another advance. FYI: this is not the norm. I’d advise to have an excellent attorney and great relationships in tact in order to accomplish a feat such as this.

When an artist is looking to get signed, they want to get a huge upfront advance. However, one must be conscious before executing that deal, because it could potentially be a 360 deal. Under a 360 deal, the label will make money from all sources of income and can acquire all rights of the songs. 

Another crucial point made by Smith was regarding making money in the industry. It can be generated from multiple sources such as merchandising, tours and live performances, synchronization licenses, digital downloads, publishing, and songwriting. Smith is currently working on a full package of distribution, which entails a television show, book, and album.

Glanton, Dahleen (April, 2011). Alderman claims victory against rapper "Rhymefest" Smith. Retrieved  from http://newsblogs.chicagotribune.com/clout_st/2011/04/rapper-rhymefest-smith-losing-in-bid-for-alderman.html

Music Industry Workshop. (August, 2011). Retrieved from http://www.miworkshop.com/home.html

Plat'Num World ProjeX. (August, 2011). Retrieved from http://platworldprojx.com/