How much does a recording contract cost ?

Question by traceerhinestone: How much does a recording contract cost ?
See I REALLY want to make my own Single and eventually Album
So how much money will it cost ?
Can you explain EVERYTHING about recording contracts/studios

Thanks

10 points for Best Answer

Best answer:

Answer by LoveOfMyLife
http://ask.slashdot.org/askslashdot/03/01/24/018213.shtml?tid=141

dvances, Royalties and Recording Costs

The financial side of any recording contract is extremely complex. Some of the money may be “recoupable” which means that it can be earned back from record sales, some of it is money that the label is simply expected to pay out.

In very basic terms, the record company is like a bank giving the artist a very very big loan with which to create a record. The loan is paid back slowly through sales.

For every sale the artist received a royalty, which itself has a very complex formula by which it is calculated. Some of the money goes to the record company, some to the publishing company, some to the artist’s manager, some to the distributor, some to the record shop, some to the producer(s) and engineer(s) etc etc.

Also packaging deductions are made, i.e. money is taken off the royalties to factor in for the manufacture of the actual CDs, jewel cases etc.

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