Budget for new recording artist Recording Expenses:
Studio fee: $52, 500
Drum Amp, Mic and Phase : $3000
Recording tape: $8000
Equipment rental: $ 5000
Cartage and Transportation: $ 5000
Lodgings while in studio: $10000
Catering: $4000
Mastering: $10,000
Tape copies reference CDs. Shipping tapes, misc. expenses; $2000
Total: $98, 500 Additional Expensese for Recording:
Professional drum kit: $5000
Professional guitars: $5000
Professional guitar amp rigs (2) : $4000
Professional bass guitar: $1000
Rehearsal space rental: $2000
Total: $17000 Video Expenses (paid from separate advance from Record Label):
Cameras: $8000
Crew: $5000
Processing and transfers: $3000
Off-line: $2000
On Line editing: $3000
Catering: $1000
Stage and construction: $3000
Copiers, couriers. Transportaton: $2000
Director's fee: $3000
Total = $ 30,000 Promotional and Marketing Expenses:
Album Artwork: $ 5000
Promotional photo shoot and duplication: $5000
Events: $5000
Total: $15000 Tour Expenses ( paid from a separate advance from Record Label):
Bus: $25000
Crew (3): $7500
Food and per diems: $7875
Fuel: $3000
Consumable supplies: $3500
Wardrobe: $1000
Promotion: $3000
Agents cut: $7500
Total: $ 58,375 Total Expenses: $ 316, 375

Performing Artist income:
Record sales: 250,000 X $12
Gross retail revenue $3,000,000
Artist Royalty due: $390, 000 Artist Royalty due
Less advances: $317,000 ( $250,00 + $67,000) = $73,000
Less Producer's points/ royalties : $40,000
Net Artist royalty: $33,000 Record company income:
Record wholesale price: $6.50 X 250,000
$1, 625,000 gross income Artist Royalties due: $390,000 before recoupables: $33,000 after recoupablels
Manufacturing, packaging and distribution: $2.20 per record: $550,000 Gross profit: $1,042,000
Producer: $90,000
Manager: $45,000
Studio: $52,500
Agent: $7500
Lawyer: $12,000
Performing Artist, net income each: $8250.00 *How do the members of the group get paid?

The artists get paid by selling their musics through performances and websites. They often used distribution to sell their musics. Distributors are people who get the musics to retailers, collecting money from retailers, and paying the performance artists. Digital distribution is the best way to earn money through selling their albums. The performing artist income is based on the amount of albums they sell. If each albums cost $12.00, and the total record sales is 250,000, then the gross retail revenue is $ 3,000,000

The Artist Royalty is : $390,000 Artist Royalty

These will paid for all of the expenses, including the $98,000 recording expenses, video expenses ( $30,000), marketing expenses ($15,000), tour expenses ( $58,000). Subtracting all these expenses from the artist royalty will leave around a net artist royalty of $33,000.

*Do they own their instruments?

Yes, they own their own instruments. They have a professional drum kit that cost $ 5000. They have two professional guitars that cost $5000. They have two professional guitar amp rigs $ 4000. They have one professional bass guitar that cost $1000. They have a rehearsal space rental that cost $2000. Their total equipment expenses cost a total of $ 17,000.

*Is there an income for performances that will help pay for the recording or will you have to find people to invest in your talent?

They have to pay for the recording expenses through revenues from the selling of their albums.

*How are the profits shared by the group’s members?

The profits are shared through the following:

Record company has $ 1,042,000

Producer: $90,000

Manager: $45,000

Studio: $52,500

Agent: $7500

Lawyer: $12,000

Performing Artist ( if in band of 4) , net income is $ 8250.00 each

Single artist : $33,000.