Vigilant Promotions

Q & A

What do other promotion companies charge to promote an album to radio?

How do I pay for my project?

What can I use my radio results for?

How do you choose between specialty/ mix-show and college radio?

Can you do a regional radio approach?

Which label should I go with?

What does a Major Label offer?

What do other promotion companies charge to promote an album to radio?

Below are four levels that show the cost of taking a project to radio with other promotion firms. These examples DO NOT reflect the rates of Vigilant Promotions. These are not high-level promotions, but instead designed for independent labels/artists who are still learning the radio game, and/or who are still developing their product. These costs assume you already have manufactured at least 1000 CDs. If you require vinyl, costs will be more.

(These examples DO NOT reflect the rates of Vigilant Promotions.)

Level 1
Independent promoter for college radio: $3000
Postage: $500
Mailers: $100
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Total: $3600

Level 2
Independent promoter for college radio: $4000
Independent promoter for specialty/mix-show: $3000
Single (or promo-only EP) just for radio: $2000
Postage: $1000
Mailers: $100
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Total: $10,100

Level 3
Independent promoter for college radio: $8000
Independent promoter for specialty/mix-show: $3000
Ads in radio trade papers: $10000
Single (or promo-only EP) just for radio: $2000
Postage: $1000
Mailers: $100
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Total: $24,100

Level 4
Independent promoter for college radio: $8000
Independent promoter for specialty/mix-show: $3000
Independent promoter for small-market commercial regular rotation: $20000
Ads in radio trade papers: $20000
Single (or promo-only EP) just for radio: $2500
Postage: $1200
Mailers: $150
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Total: $54,850

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How do I pay for my project?

The area of most concern for all artists/labels is funding. While it is true that you can purchase any size promotion you want, it is also true you can purchase any size office building you want. The question is how big do you really want to go, and how easy will it be to convince your backers (or yourself) that you really need to do it?

We do not recommended that you tell your backers that they will make their money back on your first release regardless of the level of promotion you choose. Instead, you should say that you are investing in an awareness campaign. Most major companies invest in awareness campaigns. Once awareness has built up, you can use it for one of two powerful purposes: Attracting consumers or labels and setting up retail, press and/or tour support for your second album release. It is at this second stage that you are looking to make money. All campaigns are customized to the needs and income of each band/artist or company.

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What can I use my radio results for?

Traditional Distribution:

You can start by getting consignment in select stores. You do this by telling the consignment manager that "you're currently spinning on the WXYZ station down the street." Next you try to get a simple distribution deal through a small independent distributor, which will require more airplay results than "just one station." Finally, you try to get a good-sized P&D deal, which in itself could be considered "successful". To impress these P&D people, you need significant airplay results that will be quite costly. And keep in mind that no matter how good the radio results are that I hand you, you have to take them and use them properly to get your distribution "success". And if retail SALES are your final measure of success, then it will be up to your salesperson (who is calling the stores) to create the sales.

Gigs:

Start by showing the bookers your airplay report. Even if a station is not near the clubs, just the fact you have some spins occurring in other places will help you get booked. On the next level, start talking to booking agents... they will need some bigger airplay results to work with... but they will be able to book you into 200-500 seat clubs (with bigger bands) that you could never get yourself. Finally, with commercial regular rotation, you can work with large agents to get 1000 to 5000 seat venues.

Impressing Others:

The final use of your airplay results can be to attract and/or impress others who can help your career. Labels, newspapers, magazines, TV/film producers, managers, law firms, and (especially) investors all know and understand the fundamental value of airplay, and they will see from your airplay results that: (1) Your material is worthwhile; (2) There now is an audience waiting for your next release; (3) You understand how the radio system works; (4) You agree to work with this system; and most important, (5) You already have paid for a certain level of radio, and thus anyone who would be backing you would have less to contribute in order to get you to the next level.

On-Air Interviews

After your airplay for your song/album is progressing, radio interviews are a great way to make use of the fact that the stations are embracing your material. If the artist is in the vicinity of a station that is playing the material, then In-person interviews can be scheduled or they can be done on the phone, which means a lot of ground can be covered... even in a single day. Setting up the radio interviews is the difficult part. If you have a promoter handling your airplay, they should be able to handle it. However, since the artist's schedule of availability must be matched to the stations', a large number of interviews in a given week (say, 10 to 30) is going to require the cooperation of the promoter, the artist, and at least one assistant who can pre-call the stations.

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How do you choose between specialty/ mix-show and college radio?

Well first of all, larger labels would do both, and possibly commercial regular rotation on top of this. But most of you will need to choose between specialty and college. Here is how!

Have limited CDs?
Go with college.

Have only CDRs?
Go with college...they'll take almost anything.

Hate commercialism?
Go with college.

Do you want to sign with a label?
Go with college...you'll generate more "paper" chart results to put in your press kit. For the same number of dollars, you won't get far in commercial.

Do you want to do some regional appearances?
Do college, because there are many more stations to pick from in any particular region.

These are, of course, just rough guidelines, but the most important aspect to any radio campaign is that, whatever you choose, stick with it and see it through to the end. Stopping a 6 week campaign at 3 weeks will guarantee that you will get almost zero results.

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Can you do a regional radio approach?

Some people feel very strongly about only going after stations in their particular city, state, or region. While we certainly appreciate the purpose of this (wanting to stay in the area that can be supported by gigs, retail, press, etc), we should point out the plus and minus points of such an approach, versus going after similar stations spread across the country (Alaska, Hawaii, and Canada too!)

The first thing to keep in mind is that radio is a mass medium; it has one purpose... create a "hit". It can only do this when many stations are playing the same thing by the same artist at the same time. This of course is the purpose of a "chart". It will show what similar stations around the country are playing: what songs, by which artists, during a given week. You do not have this level of charting in any other area of music marketing, because these other areas are not nearly as concerned about being "mass". Speaking of charts, what do you think the first thing is that programmers look at before they decide what to spin next? Yes, charts. This includes the programmers in your local region too.

The second thing to keep in mind is that national campaigns (i.e., the campaigns that promoters work) are time-tested and well-defined; the promoter talks with the programmers each week, and the only new thing thrown into the mix is your material. However, when you go for a custom regional campaign, the stations you are forced to choose may not be on the regular contact pattern of the promoter; thus you are not fully taking advantage of the promoter's current relationships.

The final point of a regional push is this: the promoter will be forced to select stations that are known non-performers, or stations that are not part of the tracking services. These "out of the way" stations can sometimes be better performers, since they get less promotion from other labels, or they can be worse since they might not play as many currents (as opposed to re-currents or oldies.) So, half of the trouble of setting up regional campaigns is knowing which stations to choose among the many that exist. (Remember, there are 14,000 broadcast stations in the U.S. and Canada.)

With the above three things working against a regional campaign, when would regional still make sense? About the only time would be if your act has a very strong regional gig pattern (for instance, 2 to 4 gigs a week, with more than 300 paid attendance each.) Depending on your genre this might be enough to overcome the stations’ fear of working with an act that has "no chance of charting". (Remember, you can only chart with a national based campaign.)

If you have ever wondered why your local stations pay no attention to local artists, and instead play other artists from other areas that have nothing going on in your area, it is because the other artists are being put through the "mass media" machine, so at least they stand a chance of charting and being a hit. Since the stations live and die by the charted hits they play, artists that are attempting to chart get preference most every time.

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Which label should I go with?

Independent vs. Major

A good thing to remember, there are (of course) pros and cons to both major and independent labels, and questions you should consider before signing any kind of deal. Before signing any kind of contract, consult an attorney and know what you are signing. This is especially true when signing a deal with a major label. You must have, at least, a general knowledge of the workings of a contract (i.e., options, publishing, merchandising, coupling, etc.) to even THINK about signing a deal. (Major label contracts can be up to hundreds of pages in length complete with payment responsibilities for every portion of a band's albums and videos. Without proper guidance, you could easily end up with a label owning you and your songs. Of course, this is worst-case scenario, but many unpleasant things can happen (and HAVE happened) if you sign a record deal without representation. Lack of proper representation makes it that much easier for you to get screwed.

Of course, major labels are not all out to exploit innocent garage bands, and gobble up everything in their path. In fact, most major labels will be very supportive of their acts, especially in monetary terms. On the down side, majors usually expect results much quicker, and much more visibly, than an independent label. Independent labels tend to be a bit more laid back and much more into artist development, and long term promotion. The difference is simple. Major labels, especially now, are more singles-based than ever before. Larger labels tend to look for the quick return on their investment- a hook heavy hit radio song they can feed to the masses.

Indies on the other hand, are more artist based. Meaning that while the major wants the quick gain, and the quick return on their investment, independent labels tend to be more about building careers for their artists. Indies tend to be much more prone to stand by artists who do not show significant results out of the box. At the same time, majors have a much bigger publicity, marketing, and radio staff, not to mention significant leverage with press, retail outlets, and program directors. These tools can have a significant impact on the success of a record.

The most important thing when making a deal with a label is to never think, "Wow we got a record deal. We made it. We can get lazy now, and just let the label do everything." This tends to happen a lot especially with bands that land a deal with a major label. Just remember, the hardest work is yet to come. The record deal, although it is a good step in the right direction, is just another step in the process. You still have to get out there and SELL those records.

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What does an Independent Label Offer?

Indie Label

By the purest industry definition, an independent label is a record label that is not affiliated in any way with a Major Label, and uses independent distributors to get their releases into stores.

When you think about pursuing an independent record label deal, think about the following issues:

DISTRIBUTION

Make sure the label has a solid distribution deal on a national level. Be sure to check on the relationship between the label and their distributor(s).

Ask some questions like:

How many records has the distributor sold of the label’s product?

Did the label have any problems getting paid by their distributor?

What kind of working relationship do they have with their distributors on their new releases?

Does the label have a budget to pay for some co-op ads, and in-store promotions through their distributor?

ROSTER

Make sure the label’s roster isn’t too big, or else you won’t be given the attention you deserve. Also, make sure the bands on the roster match the type of music you play.

PUBLISHING

If the label has an affiliated Music Publishing division, and wants part of your publishing, don’t be surprised, but be sure your attorney protects as much of your publishing royalties as possible. Never allow a label to recoup any monies advanced to you for the recording of your record from your mechanical royalties. (This is the money owed to the songwriter and music publisher of the songs you wrote on your record, for the sales of your record.)

MERCHANDISE

Merchandise deals are deals made by your attorney outside of your recording contract, for your likeness to appear on t-shirts and other clothing and objects. If the label wants a percentage of the income from such a deal, you may have to negotiate how much they get.

OPTIONS

Find out how many options the label wants. Since “options = number of records,” you don’t want to agree on too many options.

INDEPENDENT PROMOTERS and/or IN-HOUSE STAFF

Find out if the label works with independent radio and/or retail promoters. It’s a good sign when they do; this raises the chances that your record will be seriously and effectively promoted.

ADVERTISING

Find out if the band has an advertising budget for releases.

TOUR SUPPORT

Find out if and how they support you on your tour (financially, morally, etc.) and how much of any advances for touring are recoupable.

POINT / PERCENTAGE of the LIST PRICE You Receive

Find out how much you get paid for each record sold. A new act usually gets somewhere between 10-15% of the suggested list price of a recording. (Remember too that out of your percentage, you must pay your producer their percentage, for producing your record.)

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What does a Major Label offer?

Major Label

By industry definition, a major label is a label that commands a high percentage of the annual sales of records, and has their own distribution system. ( The Big 5 distribution companies currently are: WEA, BMG, SONY, UMVG, and EMD.)

When pursuing a major label deal be absolutely sure that this is what you really want. Here are some points that might help you determine if this is the right thing for you to do:

OPTIONS
A major label often signs artists for six to eight records (not years).

A&R
Research the A&R person. Know whom they’ve signed, who they’ve worked with, who they’ve worked for, and how long they have been employed.

NUMBER OF RELEASES
Find out how many records the label releases per year. You don’t want to sign with a label that releases too many records. Remember, they only have so much time and enthusiasm to put into the promotion of each record. Many major labels have between 12-25 releases coming out each month.

Here are some clauses that you will encounter (and sometimes have to watch out for) in a contract with a record label:

EXCLUSIVITY
Every record contract includes a provision stating that the deal is “exclusive.” In other words, during the term of the agreement, you can’t make records for anybody else. Therefore, an exclusivity clause in a contract refers to the fact that you may only contract with this record company (you are “unilaterally married” to that company.) I strongly recommend that your attorney define the extent of exclusivity.

TERM
The duration of the contract. (How many records? Any time constraints?)

PRODUCT/CREATIVITY
Who will control the amount of product and the quality of the product? You always want as much creative freedom as possible; the record company often maintains a veto power when letting a band choose the producer, engineer, studio, etc.

RECORDING COSTS
How much (recoupable) recording money will you get? Don’t overdo it! Remember, you will have to pay it back from your royalty rate as applied to actual sales.

ADVANCES
How much (living) money will you get that is recoupable? What about other advances, such as videos, and touring? Remember, you will have to pay back that amount to the label.

ROYALTIES
The money paid for your service as recording artists. Outside of U.S. is calculated differently. (Canada: 75–90 % / UK, Japan, Australia: 60–70 % / Rest of the world: 50 %–of U.S. rate).

VIDEO
Who controls the music video and how the costs are apportioned. Try to have only 50% of the cost recoupable.

PUBLICITY
The label will need your permission for name, likeness and voice in order to publicize your record. Also, ownership of your website URLs may also be a point of negotiation.

MERCHANDISING
Same as with Independent labels

UNION
Your promise to join a union (AFTRA, AFM).

AUDITING
Your right to audit the books. Make sure this clause is included in the contract.

ACCOUNTING
The label’s responsibility is to report financially to you (reports to artists usually occur every six months; i.e., if an accounting period lasts from January till June, the label will report to the artists approximately in September).

ASSIGNMENT
The record company’s right to sell the contract. Majors sometime shuffle acts around from one affiliated label to another within their family of labels.

CONTROLLED COMPOSITION
How the label will pay mechanical royalties. Standard practice is that the label will only pay on 10 songs on your record, and at 75% of the current statutory mechanical license fee. (As of 2002, 8 cents per song, per unit sold.) This rate changes every two years.

TERMINATION
This clause specifies the songs you may not be allowed to record for a set time after the ending of the contract.

SIDEMAN'S CLAUSE
You might want to consider including a sideman’s clause. A sideman’s clause allows an artist to do studio work. The artist still needs permission from the record company; they however, can’t say no unless they have a very good reason. Under normal circumstances -- without such a sideman’s clause -- you would be prohibited from performing for any other band/label under the terms of an exclusive contract. If you have a sideman’s clause in your contract, make sure all members of your band sign the document.

KEY MAN CLAUSE
If a significant label executive resigns, or leaves the company, you may terminate the deal. The label may also put such a clause in concerning a band member.

I hope this information was useful for you. Knowing some basics about the realities of recording contracts before you get involved with them can save you a lot of grief down the road. Remember, record company lawyers have a reason for every clause in their contracts—so should you.

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