A Living, Breathing Case Study of a DIY Artist: Part Four – 5 Truths About Licensing Companies

Welcome to Part 4 of an ongoing, immediate experiment. All of last month, and over the next 3 months, we’ll learn together as I (Secrets in Stereo) write, record, promote, and release my new album.

In Part 1, we got to know each other. I introduced myself and let you in on my motivation and goals for this project. In Part 2, I gave you 3 things that have allowed me to quit my day job. Last week, I gave you 5 things Music Supervisors want from you and your music. And, this week, I’ll tell you 5 things I wish someone would have told me before I signed that contract with the licensing company.

There are really two roads that lead to the ears of Music Supervisors. The only difference in the roads? One has a guide (help from a 3rd party) and one doesn’t (you go it alone). I have a lot of information I want to pass along for both avenues, but this week we’ll just focus on the 3rd party option. While next week, we’ll get into the solo route.

As I mentioned last week, a solid relationship that’s built on trust is extremely important to Music Supervisors. It takes a lot of time and focus to build that type of relationship, and it’s one that most artists aren’t cut out for. That’s ok! There are companies out there that have devoted time and energy into building these relationships. And if your music is good enough, they will take it on and pitch it for a fee. I highly recommend this option for 99.9% of artists.

Of course, this is not new information to most of you. So, let’s dig a little deeper. I went back though my experiences (good and bad… trust me), and thought of…

5 THINGS I WISH SOMEONE WOULD HAVE TOLD ME BEFORE I SIGNED THAT CONTRACT WITH THE LICENSING COMPANY

1. It’s Gotta Be Non-Exclusive

This essentially means that you (or any other person/company) can pitch your music as well as the company you signed with. I’ve never heard of an artist that was happy in an exclusive deal. There really is no need for it honestly. But, don’t get carried away.  It’s not a good thing to have your music being pitched by more than 2 or 3 companies. If a Music Supervisor is getting the same music from 3 different places, they begin to ask the question, “who actually owns this?” No good. Not good for trust.

2. 50/50 is OK

I scoffed when I saw my first contract from a licensing company, and saw they wanted to split everything 50/50. But, after I saw my 12th one, I realized that was definitely industry standard. Trust me, if they’re good then they earn it.

3. Be Wary of Re-Titling

This is the practice of actually re-registering a song with a P.R.O under a different title. This new title has the licensing company as the publisher, and works as in entirely separate entity from your original song. It’s a common accounting move, but doesn’t it feel a little weird?

Well, even if it is common, here’s why you want to stay away from it… Are you familiar with the iPhone app Shazam? You play a song into your phone, and it recognizes it. Sooner rather than later, this same technology (except on steroids) will be how P.R.O.’s are going track when songs are played in TV and Film. Your re-titled song is going to sound exactly like your original one. The question is, which one will the tracking system recognize it as? Uh oh.

4. There Better Be a Way Out

Make sure, make sure, make sure there is clause in that contract that allows you to be released. This goes for any contract really, but licensing companies like to lock you in because it’s a pain for them to have to pull your music from their library. But, trust me, you do not want to be shackled to a licensing company that has been less than impressive. With that said, I do NOT recommend the licensing company Songs To Your Eyes.

5. Do Your Research

There are a ton of licensing companies out there. Good, bad, big, and small. So, how do you narrow them down? I recommend looking for two things… track record and relationships. Make sure they have recent placements. And, look for testimonials from Music Supervisors. If you don’t know who the Supervisors are that they are quoting, google them.

A list was started over at IndieMusicTech.com that’s a good place to start. I’ve personally had some decent success with Crucial Music. They are respected. For internet focused licensing, I would highly recommend Rumblefish. They license for the Audioswap function on YouTube. I just got a $3,000 check for the last quarter for internet royalties alone

As I said before, the 3rd party road is for most of you. If your music is indeed “sync-able,” these types of companies can do some serious damage for you. But, if you have a knack for the business side of things as well as the artistic, then there is another way… Straight to the Music Supervisor. And, we’ll dive into that game next week.

Thanks!

Josh

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