22 March - 2017
Royalties Vs. Joint Venture By: Nikki Halliwell, 1 Comments

Every artist knows what royalties are by now. But there are so many different ways to get paid for your music. The term that gets lost in the list is Joint Venture. Not many people use this anymore.  But when you’re having a lot of success and a big income, this might be it.

What is a joint venture?

This is just the same as an label deal, except the artist doesn’t get paid any royalties for his contribution. Now, before you panic and try to click away, this doesn’t mean the artist doesn’t get anything. So, hold your horses and read a little further.

This deals is meant for a band or artist with a lot of income in their music. This way, all the costs and expenses (like marketing and distribution) get taken from the income and the income will be split 50/50. This is how it works in most cases, but it depends on whether or not the label is in a good mood when signing the deal.

Royalties Vs. Joint Venture

So, is more more advantageous than the other? There is no definitive way of knowing. Our advice is that if you have a lot of success, you can get a joint venture (meaning you’d be the next Taylor Swift). This way, you can earn more of your money back. But you can lose a lot with it too if you’re not ready for this deal in your professional career.

With an ‘ok’ success and a decent income, we advise you choose royalty payments. In a joint venture you get charged more costs than under a royalty agreement. This can both be good an bad.

Royalties get paid ‘per unit’, this gets lost to joint venture and its easy to see that you can get more out of an joint venture. Of course, after all the expenses are deducted from the profit.