Aug 02, 2010, 09:20 PM
If they can get your work into the marketplace, getting airplay, the song can potentially earn royalties.
The ‘fame’ of this song for the duo can become a credential for you as a songwriter, as a performer if you also play.
So your thinking seems sound. If they succeed, you succeed.
If they intend to manufacture a quantity of CD’s you could demand that they pay a Mechanical License fee.
But that may not be in their budget and asking for it might stop them from wanting to do the song. Your instincts seem right.
One way to go is to let them use it, with a formal contract specifying that you are forgoing a Mechanical License fee for now but reserve the right to ask for one if CD production goes beyond 1,000 copies.
That means that, if they are successful with a run of 1,000 and want to make another 1,000, you’ll ask them to pay you about 9 cents per unit.
Do the math, and you see it’s not much if they’re selling CD’s at $10 per unit. That means they could earn back the Mech. License fee on their first 10 sales, and sales of the other 990 CD’s would be theirs. But $90 dollars up front may not be in their budget if they’re just getting started.
The important thing is that they DO play your song, telling audiences who wrote it, and do record it and sell CD’s and Downloads.
Their recording becomes a demonstration recording for other artists to consider covering the song. Those other artists would be ‘compelled’ to pay a Mech. Lic. fee. More importantly though, other artists’ covers of the song may get you more airplay and earn you more royalties.
If you have not joined a Performance Rights Organization (PRO) it’s time to consider it. They are the entities that collect your Publishing Royalties and your Songwriting Royalties. Harry Fox Agency ( http://www.harryfoxagency.com ) is one of the Mech. Licensing entities. There are others.
If you’re not familiar with these things it’s time you studied up on them. Welcome to the campus of Songwriter101. All the links at the top of the page are worth exploring. http://www.johnbraheny.com has some education you can use. The PRO’s’ websites have information too. Click on BMI at the bottom of this page and you can see theirs.
I hope the duo does well with your song and it’s the beginning of greater things.