For some reason, the last week has seen me drafting or negotiating a ton of agreements between Artist and Producer, outlining what percentage of record sales the former will pay the latter. And yes, records do sell sometimes, so this can be important. If your record “goes Adele” and sells 25 million worldwide, you’ll rue the day you coughed an extra percentage point to your producer without reading this first.
For more on whether a producer should receive a percentage of record sales and/or songwriting points (or neither), read my previous blog post on the topic. Once it is determined that they will receive a % of record sales (which is normally the case), the next question is: what amount does that percentage apply to?