Posts Tagged ‘Money’

Vampire Weekend Sued

Vampire Weekend’s “Contra” debuted at number one on the Billboard album charts back in January of this year. They have been selling records ever since and everything has been going fine – until now. Vampire Weekend is being sued for 2 million dollars. Did they pull a Coldplay and plagiarize a song? No, but they did (well, maybe not did – we will have to see what the court thinks) use a former fashion models picture on the album cover without her consent. Ann Kirsten Kennis is the girl that looks like a doe in headlights on the Contra cover.

Kennis found out about the album cover after her daughter brought home a Vampire Weekend album and said “Hey, Mom, see your picture?”

The picture is from 1983 and Kennis claims that it is a picture her mother took and was never meant to be, or signed off to be, a modeling picture. Tod Brody, the photographer who sold the picture to Vampire Weekend for 5,000 dollars, claims that he took the picture and has had it for 26 years. So, the question is who took the the picture – the mother or Tod? Reportedly, the consent form is signed “Kirsten Johnson” in one spot and “Kirsten Johnsen” in another spot. Did Tod forge her signature or did she sign it back in 1983 and not know what she was signing?

So, what does Vampire Weekend and their label, XL Recordings, have to say about it? This statement was issued by the band:

“As is standard practice, Vampire Weekend and XL Recordings licensed the rights to use the photo on the cover of Contra pursuant to a license agreement that contains representations and warranties authorizing this use of the photo. Now that a lawsuit has been filed, we look forward to having the matter resolved in court.”

Well, hopefully for them, Tod took the picture because they are not going to be happy paying out 2 million dollars on top of the 5,000 dollars they already paid for the picture. While their album was number one on the album chart for like a week, or whatever, I highly doubt they have truly made that much money – well, the band anyway – and they seem awfully cocky in their response. So, what should happen? If the picture was truly used falsely, then yes, they should starting paying out. Now, whether or not they should pay 2 million dollars is a different question all together. If they didn’t use it falsely, then Kennis regained her publicity for a month and it will all be done with. Win-Win.

Memorial Day – and Coupon Codes

I just wanted to post a quick little something in memory of those who served and wish everyone a great Memorial Day. Remember, if you are in the market for something, today would be a great day to try and pick it up or order it. Most shops that are open or online are having some pretty big sales.

Thanks to everyone who has served and have a great Memorial day.

TODAY ONLY – Here are some places to save:

Music123
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iTunes

Paying for Equipment as a Band Part 2

In Paying for Equipment as a Band (Part 1), we discussed, and for most – realized, that our band is a partnership. Your band operates as a partnership even if you haven’t signed anything as a band. That means that when stuff bought by the band it belongs to the band (unless it is otherwise decided). So, let’s continue on and discuss a few other things – like a method for paying for the equipment.

Now, if equipment needs to be bought on credit, there are plenty of liability issues that should be made known. If the money is borrowed by the partnership, or in the name of the band, then every member is liable for paying back the money. That’s right, all 3, 4, or 5 members of the band are now responsible for paying off the loan. (This will be brought up later, but the same thing goes for when you get signed to a record label and the FRONT you money… you don’t just get a bunch of money for nothing like most think.) Even if only one of the members signs for the loan, the entire band is responsible for repaying the loan.

Okay, that doesn’t sound too great, but sometimes you have to do these type of things. There is an alternative to this as well. If the band is incorporated and the loan is in the corporations name, then the corporation is liable for the debts and not the individual band members. You should get some kind of legal company set up – what we just talked about would be one good reason. There is a slight problem still, even after you have incorporated, if you have no corporate history, no one will give you a loan! Well, how do you get a loan, you do a personal guarantee in which one person signs for the loan saying that it will get paid off if something happens. At that point, only the person who signs is responsible and not other members of the band.

So, what does all of this mean? It means that if the corporation (the band) or partnership (the band) does not pay back the money, and each member is liable, your personal assets can be taken – including your house. Borrowing money is a big risk, but sometimes a necessity, and all members of the band should be aware of what they are liable for when the agree to getting money.

I hope that this has helped you go over some basics of paying for equipment as a band and realized that your band is a partnership. This will be all for this particular series, but I will go over some other ideas for paying for equipment in future post. If you have any ideas or things you have done from your own experiences, please share them. If you have any other questions, feel free to ask.

Be sure to check out Part 1 of this series if you haven’t already!

Paying for Equipment as a Band

I wanted to talk about a subject that seems straight forward and simple, but it can really get complicated. You will need equipment to perform. Whether it is a musical instrument, amplifiers, or a vehicle to get to gigs, it is equipment that is owned by the band or members of the band. You should treat your band as a business because that is basically what it is. When you own a business, there can be, and will be, some issues with liability and when it it comes to being in a band, there is no exception.

If you are a solo artist, you will be paying for your own equipment and you will own it. (Assuming there is no investor behind you and your music – then it can get complicated.) So, it is pretty straight forward there. If you need a guitar, you buy it. If you need a microphone, you buy it. But, I said buying equipment was going to get tricky, so when does it do that? It gets tricky and complicated when your band as a group goes in to buy something.

If you aren’t aware, your band is a partnership – even without any type of writing. So, if the group buys something with money that is allocated to the band (money that the band makes and uses it for band stuff and not the money that will be divided up among the members) the equipment that they purchase belongs to the partnership, aka the band. This may seem obvious with things like a vehicle or banners bought by the band, but this can include instruments as well.

For Example, if Johnny needs a new guitar, but cannot afford one, it is perfectly normal and acceptable to use the band funds to get Johnny a guitar. After all, if he doesn’t have an operating guitar, it will be pretty hard to perform. The band decides to buy Johnny a nice PRS and Johnny is excited to have “his” new guitar. Well, two months later Johnny decides to quit the band. Who does the guitar belong too? Not Johnny, but the band. When Johnny leaves the group, the guitar stays with the band. After all, it is not Johnny’s guitar – it is the partnerships guitar. (Of course, the band can always agree otherwise – either up front or when the member of the group using the equipment leaves.)

There is more to the story and the next part of this series of blog post is where it gets really exciting and complicated. Be sure to keep checking back for more updated post on Paying for Equipment as a Band. You can subscribe to my feed to get updates as they happen.

Personal Update

As you know, I like to stay away from talking about myself too much (maybe that should change – after all, it is STEVEHATMAKER.com, right?) but I would just like to let everyone in on why I have been slackin’ on the updates lately (as if you cared). I have been busy getting some new stuff in the works for the website and some of the other sites that I own – it is going to be great! Also, I have been working on getting all the leg work done that goes with getting a CD mass produced and setting up a publishing company – much less trying to find a way to pay for it all. Luckily, I will have lots and lots of blog post in the near future with ways to get through all of the music related things I have been going through – easily and more effectively then I have been going about it… because I didn’t know and wish I had some of the info before hand. I have a couple of other song-writing and recording projects that I have been fitting in between everything else.

Anyway, I will be enjoying Memphis in May as well as playing a few shows with the good old cover band this weekend. I will be sure to keep everyone updated on Memphis in May as well as have some great articles and useful information start flowing into the website. I also plan on doing a reviews section on this website, which if you are interested in guitar effects and guitar reviews be sure to check out my other site – thegitfiddle.com, and on the reviews section I will post reviews about music gear and books as well as just plain old music – when I have time. I just thought it would give everyone a little more insight on how my beautiful, yet complex, brain works.. or something like that.

So, keep checking back and looking for some great, new music information as well as the entertaining nonsense that I post on otherwise horribly boring subjects such as American Idol. Be sure to jump over to twitter and follow me (@stevehatmaker) as I will be talking about how great, or not great, music fest is going. Unless, of course, it is horribly rainy as I don’t won’t to ruin my already crappy Blackberry.

I take that back, I will do it anyway.

And if you have anything that you want to know about that pertains to the music industry, be sure to just ask and I will probably have to let you know that I am unaware of the answer. But, it never hurts to ask.

Thanks!

The Cost of Touring – Part 3 “What’s the Point?”

So, in the first parts of this series of post, we have learned that you will not make much, if any, money on you first tour. We also learned that you can book shows yourself or get a booking agent. (You have a better chance of getting shows and money if you have a reputable booking agent booking you.) Of course, if you are doing it yourself, you will need to make a network of people who can help you get into places. Another thing that we discussed, the fact that you will be spending a lot of money to go on tour – between hotel rooms, food, and gas. With all these troubles and cost, what makes touring worth it?

Well, it is the risk and reward factor. The greater the risk the greater the reward. You are risking pretty much everything when you decide to just go out on tour, but you do it all to have everything at the end. If you are doing it in search of “fame,” then you should be ready to sacrifice now and gain later. It doesn’t matter that you are the next big thing until you become the next big thing – until then, you are just another low-life like the rest of us. You go on tour and risk everything for the thrill of getting to play music and to give people something they want. You go on tour for recognition and in hopes that you will build up a following along the way. Once you have a following and you are bring in hundreds of people miles away from your home town, you will have peoples attention. If you aren’t signed and can sell thousands of albums on the road, you will have peoples attention. After all, attention is what you want, right?

I am not saying that you should not go on tour. I am not saying that you should not play shows. In fact, I encourage you to go on tour and to play every show you get a chance to play. What you shouldn’t do is tell a venue that you want a $1,000 and send them a writer for all kinds of stupid things. When you are first starting out, you won’t get much money – that is just how it is and it doesn’t matter how good your band is. One day it will pay off – you just have to work your way up the chain and get to playing music. Now that you know the cost of touring, you can make plans to start your tour and save your money beforehand. The most important part is that you should enjoy what you are doing and love every minute of it – if you are doing music just for the fame and fortune, you won’t make it.

Click here for Part 1 of The Cost of Touring.
Click here for Part 2 of The Cost of Touring.

If this type of article helps you, be sure and to let me know and I can post more information on topics like this. Or if there is anything you want to know more about, please feel free to let me know!

The Cost of Touring – Part 2 “How Much Will It Cost?”

In the first part of The Cost of Touring series, I explained that chances of you making any money, especially at first, were slim to none. (You can click here to go to part one.) Again, when you are starting out, no one cares that you are the next big band – every band believes that they are going to be the next big band. So, chances are you won’t make money and you will be lucky to get paid at all.

Now, let’s move on to how much a tour cost. Let’s assume that you have a few shows lined up for a week. And to make this example a little easier, let’s just say that you already have a van or some kind of vehicle that can haul a trailor and your equipment. (If not, you will need to rent a van which can get costly – or all travel in different vehicles which can also get costly.) Okay, so where to start? First, we know that you won’t be getting paid very much, if any. Next, you should realize that you are going to have to pay for gas. So, if all of your shows are within a hundred miles of each other, it will be cheaper than if they were several hundred miles apart. Gas isn’t cheap and it’s not going to be when you go on tour – this is going to be one of your biggest cost.

Another big cost is going to be food. When you go out of town to different shows, you are going to need to eat. If you are extremely luck, the venue will offer you one meal which means you only have to come out of pocket for one or two others that day. Also, think about drinks – not even alcohol – will cost you a few bucks a day. (Pstttt… water is free…)

Where are you going to stay? That’s correct, you are going to have to sleep. Now, your decision is do you have to stay in a hotel room or rotate drivers? But, if you are only having to drive 2-3 hours away each night to the next venue, wouldn’t you need somewhere to stay?

When you are first starting out, you more than likely won’t have a merch team or some “crew” members, but when you do have them, you are responsible for paying their needs too. (A smart idea is trying to set up a street team in the area you are going. But, again, that is assuming some people have heard of you!)

If you have gotten this far, you maybe thinking that I didn’t go over much and that it doesn’t cost to much money. Well, that is assuming that nothing goes wrong (which it will) and I didn’t even touch on the cost of merchandise and some other things. So, even though I only went over the cost of gas, food, and stay, you should realize that that alone will cost you over a hundred dollars a day (shooting low here) – and you might only be making 50 bucks (if you are lucky). Also, don’t think that just because you get a “record deal” that the label is going to take care of all this – they will support you a little, but you will always have to pay them back, ALWAYS. You will still be responsible for these cost and they will be much, much more. Now, you may be getting discouraged because you realize you won’t be making money from the venues and you see some major cost associated with touring – but there is a light at the end of the tunnel. I will go over why it is all worth it in my next post!

If you have some experience or know of some particular cost associated with touring that I didn’t mention, please leave a comment and share with other readers!

Click here to go to part 1.

The Cost of Touring – Part 1 “How Much Will I Make?”

What is the cost of touring with your band? Well, let’s say that is the first time you and your band are going out on the road. You have worked hard and found a booking agent, or you worked even harder and are booking the whole tour yourself, and you got some shows lined up. Normally, if you get a booking agent with a good reputation, you have a better chance of getting good shows and shows that might actually pay you money. If not, you are going to have to work hard to make connection and use your networking skills to get a show. (Note that this post is written for original bands and that cover bands are a whole different animal – well, kind of, a little.)

I think that the most common misconception is that “I have an awesome band with great songs and we have more skill than any band around!” While all of that may be true, if it is your first time to play a venue (especially out of town where you are much more less known) you will be lucky if you get $50 for playing.

“50 bucks! We are not playing for that much money! They must not know who we are! We deserve way more than that!”

Well, part of that is true – they don’t know who you are and they aren’t going to be willing to pay a band that they don’t know about. They want bands that they know will draw in people so that they can make money. Your band is from out of town and you aren’t all over the radio, so chances are not many people are gonna come out to your show, the venue won’t make much money, and no one is happy. (Why would they pay you 500 dollars and they only bring in 450 dollars because you only draw 45 people? They would be losing money = not good business!) Remember, it is a business relationship and they want what is good for them and you want what is good for you. Your business relationship should be mutually beneficial to both sides.

Now, if you get a good booking agent, you have a better chance at making a little money. A booking agent is gonna book gigs that pay because they are getting 10 – 20 percent of whatever you make. (If they want more, don’t agree to have them book for you – if they want less, they probably aren’t good or legit.) So, they may book a show 200 miles away and you get payed 200 bucks. They make 20 bucks off you, they do that for 5 bands and they make 100 dollars for making phone calls. (Maybe you should look into booking bands? It isn’t really that plain and simple for them, but thats the idea.) So, you make a little money, but you have to pay someone out of it – Hey, it is better than making 50 bucks, right? I will do another post later on finding a booking agent.

So, now that you see your options and you see that you won’t be getting any money your first time out, let’s move on to what it is going to cost you to go play a show. The point of this post was to make you realize that you WILL NOT get payed big bucks and you will be lucky to get any money when you are first starting out. You have to start at the bottom and work your way up – it doesn’t matter if you are the next Led Zeppelin, no one knows about you and no one is willing to pay to see you which means no one is will to pay to book you. I will get to the rest of this in part 2 of The Cost of Touring later.

Click here to go to part 2.

Hollywood’s Top-Earning Couple.. They’re Singers.

This is a list of the top earning Hollywood couples according to Forbes. The top couple is a pair of singers that have overtaken the hip-hop world and brought in 122 million dollars between June 2008 and June 2009. If you don’t know already, the top-earning couple is Jay Z and Beyonce Knowles. They have produced and sang on many top hits over the year, but that isn’t how they made so much money. They brought in a lot of it by diversifying. (Diversifying is the best way to make money and not risk losing it all at once. It is very smart.) The couple oversee clothing lines, perform around the world, and endorse products from companies like American Express. See what working hard can get you? Oh, and Beyonce brought in well over half of the money which shouldn’t be a surprise. She will also be taking the next 6 months off to enjoy life – I think she has earned it. Literally.





Also making the list is Country’s Jay Z and Beyonce – Tim McGraw and Faith Hill. Together they brought in $28 million. Check this out – Every time that NBC plays their Sunday Night Football theme, Faith Hill gets a check. Musician royalties are great if you own the publishing and hit something big! And Tim McGraw has done great with a double platinum album. So, logically what is next after you have conquered music? Movies, naturally. McGraw will star along side Gwyneth Paltrow in Love Don’t Let Me Down.

The last couple on the list that involve a musician is Keith Urban and Nicole Kidman. Together they brought in a little over $17 million. They both earned about the same amount. Keith Urban did it all with the album Defying Gravity which went all the way to Number 1 on the Billboard 200. Quite an accomplishment, but I am sure he is use to it by now.

Working hard really pays off. You just need a plan and steps to get to your end goal. For the whole story, check out Forbes.com. They even have a slideshow – if you aren’t a reader!