Royalties

[dvus7]

Can you anybody tell me what the "standard" royalty rate was for an Motown album???

[Hotspurman]

I don't know if this is 'standard' but the information I have been able to ascertain is this - when The Beatles wanted to cover a few Motown tracks on their first album, Brian Epstein contacted Berry Gordy to try and renegotiate the royalty from the industry standard two cents a track to one and a half. I also believe the single rate was 6% royalty against 90% of the wholesale price [[based on later court submissions regarding The Jackson 5).

[dvus7]

I don't know if this is 'standard' but the information I have been able to ascertain is this - when The Beatles wanted to cover a few Motown tracks on their first album, Brian Epstein contacted Berry Gordy to try and renegotiate the royalty from the industry standard two cents a track to one and a half. I also believe the single rate was 6% royalty against 90% of the wholesale price [[based on later court submissions regarding The Jackson 5).



I am aware of the "single" rate. Well, it has been well-publicized that Mr. Gordy was cheating his artists. Maybe the reason, that Eddie Kendricks issued an album without a "lead" single on it, was probably he could make more money off the album!!! Food for thought!!!

[RossHolloway]

Interesting question/topic. I've always wondered who came out ahead when a single sold a million copies: the artists or the writers of the song. Who came out ahead or made more money in the mid-60's: HDH or the Supremes?

[dvus7]

Interesting question/topic. I've always wondered who came out ahead when a single sold a million copies: the artists or the writers of the song. Who came out ahead or made more money in the mid-60's: HDH or the Supremes?

HDH, was the highest paid producers at Motown. Mr. Gordy stated that he had paid them close to 3 millions dollars before their lawsuit!!! The producers make more than the singers!!!

[motony]

in the 60's, the artists made their money by LIVE appearances I don't care what label they were on.It didn't matter what the contract said.Where the Motown artists "lost out" so to speak is that Motown controlled their whole career.A Motown person collected the LIVE appearance money.

[dvus7]

in the 60's, the artists made their money by live appearances i don't care what label they were on.it didn't matter what the contract said.where the motown artists "lost out" so to speak is that motown controlled their whole career.a motown person collected the live appearance money.

there was/still is a royalty rate for albums!!

[supremester]

Groups made so little that unless they were huge like The Supremes or Tempts, there was little royalties earned at all as all production expenses were charged against the royalties earned. That's why Brenda didn't want another LP because she couldn't afford the costs involved. Shelly Berger recently admitted that Motown charged every act that recorded against a track for that track session, even if only one or none were released. I'll bet that DR&TS saw no more than 15% of the money they would have if they had independent financial advisers.


Interesting question/topic. I've always wondered who came out ahead when a single sold a million copies: the artists or the writers of the song. Who came out ahead or made more money in the mid-60's: HDH or the Supremes?

[dvus7]

Groups made so little that unless they were huge like The Supremes or Tempts, there was little royalties earned at all as all production expenses were charged against the royalties earned. That's why Brenda didn't want another LP because she couldn't afford the costs involved. Shelly Berger recently admitted that Motown charged every act that recorded against a track for that track session, even if only one or none were released. I'll bet that DR&TS saw no more than 15% of the money they would have if they had independent financial advisers.

I am pretty sure that the ROYALTY RATE was the same for the group and/or single artist!!!!

[ralpht]

Generally, dvus7 is correct. A group royalty was basically like a single artist royalty. The more members in the group, the less the pay per member.

However, once a group gains sufficient notoriety, and old contracts expire, then the game could possibly change to keep all happy and the hit records rolling.

In all honesty, I don't remember what my royalty was as a producer. I seem to remember 5 or 6 cents on a single, but I'm clueless on my album rate.

[dvus7]

Generally, dvus7 is correct. A group royalty was basically like a single artist royalty. The more members in the group, the less the pay per member.

However, once a group gains sufficient notoriety, and old contracts expire, then the game could possibly change to keep all happy and the hit records rolling.

In all honesty, I don't remember what my royalty was as a producer. I seem to remember 5 or 6 cents on a single, but I'm clueless on my album rate. HEY, RALPH..THANKS FOR THE INSIGHT!!!
Maybe that was the "issue", as far as the artist, was concerned..The was nothing "in writing" [[as far as the contract) was concerned for the albums!!!