Join Steve Rennie for an in-depth discussion in this video Splits of income, part of An Insider's Guide to Today's Music Biz 03: Treating Your Career as a Business.
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- Ok, so you've decided to take my advice…and draft a band agreement, and now…you want to know what the key items of that agreement are.…So let's talk about the major issues.…Number one, splits on income.…If you're planning to win in the music business,…then you'll want to make sure that you know…what you're getting when that big score comes.…Who contributes what to each income source can be different,…so having an agreement in place that defines upfront…what each member is entitled to…is hugely important to keeping the peace.…
Defining what each partner's share of the income…and assets of your partnership is how you'll do that.…Assume nothing.…Put it in writing and you'll save yourself…a lot of grief later.…There are an infinite number of ways…that the income and assets of a group can be split.…The easiest way to do it is pro-rata,…where each partner gets an equal share,…and that's typically how it would be for a new group.…Now that's fine as long as…everybody is contributing equally.…But often that's not the case.…
He talks about hobby versus career and the key elements of success in the business world, from distribution and marketing to management and finance. He gives you some thoughts about how you apply those things to your music career. Since successful businesses don't happen overnight—they develop over time in identifiable stages—Steve also covers the stages of development in the business life cycle and how that applies to your music career. Last but not least, he offers tips on drafting a band agreement that will keep the relationships professional and strong.