FAQ

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Mechanical royalties are per-unit payments collected by record companies for the manufacture and distribution of songs on CDs and tapes, usually based on the current statutory rate as fixed by the Copyright Act. In 2004, the rate is 8.5 cents per song or 1.65 cents per minute, whichever is greater.

There is no one simple answer to this question. It’s a competitive market so you need to do your homework and develop a solid fan base. Start by building your e-mail list. The people who sign up are your best customers for your music and merchandise. Let people know when you’re performing next in your e-mail correspondence to draw them in for your next gig. When you’ve built up a local following, you should expand to a few new towns. Check out the popular networking sites. Create a great web site and stay in touch with your audience. You might want to hire a publicist and gradually expand your touring area, in turn building your e-mail base. Also, make sure your CD sales are being tracked so you can build a story around that. You can also network at key industry events around the country like SXSW, CMJ or the DIY Convention. Build your e-mail list; build your network of people who support you; and you will evolve from there.

In today’s competitive climate, major and indie labels are looking for something unique, talented and well developed. Record labels are in the business of making money from the artists that they sign. The labels want bands and artists that have built a following by touring and that have already sold self-released CDs. Be smart, do your homework!  Know what demographic your fans are in, and develop savvy marketing strategies that will help you stand out from the rest of the unsigned artists. Apply to play at a BMI showcase in your local area. Apply to showcase at one of the top music conferences, such as SXSW or CMJ. Attend seminars and other educational workshops where key A&R people will be in attendance and contact the local colleges, radio stations and newspapers to further publicize you. Build a unique and informative website that includes a bio, photos, song samples and tour dates.

Again, your song is copyrighted as soon as you finish writing it but it’s a good idea to register that copyright with the government (see “How do I copyright my songs?). Registering a song with a PRO will allow you to receive performance royalties if that song gets radio play; it does not give you protection under copyright law.

Be smart, do your homework! Take advantage of the resources that are available to you, such as organizations like TAXI or Circle of Songs. There are great classes and seminars offered by organizations like BMI that can further help you develop your songwriting skills. In addition there are several trade magazines, such as Performing Songwriter, that offer valuable information for the beginning songwriter.

The sleeve should be the place that anyone who enjoys your music can find out information about how to contact people vital to your career. Include the name, phone number and e-mail addresses for your publishing company, record label, manager or attorney. You should always include your band’s web site and email addresses with an easy link for signing up for your mailing list. Don’t clutter the sleeve up with inside jokes and special thanks to all of your friends - busy professionals, like music supervisors and festival bookers, want easily accessible contact information.

Each performing rights organization has its own fees for setting up a publishing company and many impose an annual charge or collect annual dues. BMI, for example, charges a one-time fee of $150 for individually owned publishing companies and $250 for partnerships, corporations (including sole stockholder corporations) and limited liability companies.

There’s no one perfect answer, but you have to get the attention of the person who’s booking the festival/tour. Show them that you’re drawing big crowds at your gigs and that you’re getting a lot of radio/retail/press attention…you get the picture. State your case in terms that translate to people showing up to see the show.

No. This is a common misconception. PROs collect royalties for songwriters, composers and music publishers from radio, television, the Internet, restaurants and thousands of other businesses that use music. In effect, a PRO acts as a representative so writers can get on with the business of creating new music while their royalties are collected for them. There are three in the US: BMI, ASCAP and SESAC, and one in almost every country you can think of. (See “What does a publisher do?”)