a question about how roc a fella and other record companies work

[young_keyz]

Im taking God advice and spend the rest of 2004 and part of 2005 to save up money and do research before me and my boy put out a cd. Right now im in Ny and he is in Atl so thats the reason for the long time. We plan to start a record company our self, with me being the CO-CEO/Producer and him Being CO-CEO/Artist......Since there really arent any rapper and producer who co own the same company, i look at roc a fella as the root of my question. The first question is how should we split the profits? I know since we are partners 50/50, but we are also owners and artist on the same playing ground, plus we need to make sure our company gains a profit so that we can grow and pay for other things like our artist we both have. I just came from borders bookstore and i found a good book to buy and as of pay day i will buy but for now ill ask a few things now. I understand ponts and cost and what not so as of right now, i feel me and my boy should split 40 percent of cd's sold so that will give us 20 percent each and the other 60 percent will goto the bank to build up. How do this sound, too much, not enuff!
My next question is about when the day comes that we try to put out other artist other then my boy. Until money get better to hire in house production, i will be doing the bulk load of the production. My boy will play the role of C0-CEO. So lets say we have gave the artist 10 points royalties. Since me and my boy are partners and if we sign other artist and i always got a cut its a fact that i will always get paid more then him, so i feel as a producer of the company i will not or waive the cost of my production(as far as points)but to keep things even I will split Executive Producers profit with my partner. So what i dont know right now is, How do Executive Producers get paid. So lets say Roc-a-fella where jayz, dame, kareen own the company and on every cd they are the excutive producers and on somebody like camron cd, how did they get paid(upfront or in points). When jayz album comes up and all there names are the Executive producer are all of them getting paid the same. How much do the Excutive producerss get paid( like puff daddy). I m just tring to find out on a profit level how do every body get paid so we can come up with a ideal of how the numbers should be in every kind of way or out come.

 

[djswivel]

honestly, there's probably a million ways to do it.....There's no real formula except make sure you and your boy both agree 100% and you're both happy. If you have tension right from the get go, there's no way your gonna get it off the ground.

Personally, in stead of putting 60% back into the business and taking 20% each for profits, I would just put 100% back into the business. Wait until your actually making money before you actually start taking money. The majority, if not all the money that you make back is going to be spent elsewhere, on things like promotion, CD duplication, studio time, attorney fee's, etc etc. Personally I would keep it simple. Since you're both doing part of the cretive work, you being the producer and he being the artist, and you're both gonna take on responsiilities in managing the company, then I would split everything 50/50....Costs, profits, loss etc...Right down the center.

 

[g@Vin c@$h]

Im taking God advice and spend the rest of 2004 and part of 2005 to save up money and do research before me and my boy put out a cd. Right now im in Ny and he is in Atl so thats the reason for the long time. We plan to start a record company our self, with me being the CO-CEO/Producer and him Being CO-CEO/Artist......Since there really arent any rapper and producer who co own the same company, i look at roc a fella as the root of my question. The first question is how should we split the profits? I know since we are partners 50/50, but we are also owners and artist on the same playing ground, plus we need to make sure our company gains a profit so that we can grow and pay for other things like our artist we both have. I just came from borders bookstore and i found a good book to buy and as of pay day i will buy but for now ill ask a few things now. I understand ponts and cost and what not so as of right now, i feel me and my boy should split 40 percent of cd's sold so that will give us 20 percent each and the other 60 percent will goto the bank to build up. How do this sound, too much, not enuff!
My next question is about when the day comes that we try to put out other artist other then my boy. Until money get better to hire in house production, i will be doing the bulk load of the production. My boy will play the role of C0-CEO. So lets say we have gave the artist 10 points royalties. Since me and my boy are partners and if we sign other artist and i always got a cut its a fact that i will always get paid more then him, so i feel as a producer of the company i will not or waive the cost of my production(as far as points)but to keep things even I will split Executive Producers profit with my partner. So what i dont know right now is, How do Executive Producers get paid. So lets say Roc-a-fella where jayz, dame, kareen own the company and on every cd they are the excutive producers and on somebody like camron cd, how did they get paid(upfront or in points). When jayz album comes up and all there names are the Executive producer are all of them getting paid the same. How much do the Excutive producerss get paid( like puff daddy). I m just tring to find out on a profit level how do every body get paid so we can come up with a ideal of how the numbers should be in every kind of way or out come.

I like that idea man. I like the way you're plannin on splittin it up. Sounds real smart to me. Just never give up man. Keep that dream.