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-   -   are rappers really rich ? (http://www.wutang-corp.com/forum/showthread.php?t=584)

My First Timbs 06-13-2005 01:44 PM

are rappers really rich ?
 
*repost*

No big explanation just the facts, here is an example of a typical record deal for a rap group (3 person) whose hot.


.Royalty Rate: 10% - Lets assume a group of 3, everything is split evenly.
·In todays times everyone produces their own tracks. No outside production.
·Suggested retail list price: $14.98 less 20% packaging deduction,
$11.98 gets paid on 85% of records sold
$10.19 is what is left, so the artists 10% is equal to
about $1.02 per CD sold


Assumption:
The single goes gold. (a rare feat for a 1st record).

Gold Record = 500,000 units sold x $1.02 = $510,000. Not bad right? Hold on, now big business kicks in. The math, first the label remember them they have to recoup, expenses such as, ½ the cost of the video, tour support, promotion, those lex, coupes, bimmer and benz you were pushing, oh don’t forget the up front money, etc.. you get the picture if you do not here is the math:

· $510,000
- $50,000 up front money (advance)
- $30,000 half the promotion (independent)
- $50,000 half the video
- $20,000 tour support, trips, etc….
- $150,000 studio, recording costs
- $210,000 is left after costs, not bad for a 1st single, right? Hold on, big business is now in effect. Now a third of the $510,000 stays in reserve (someone has to account for items returned from retail stores, you didn’t think the record company would absorb these costs did you) for a year or so depending on the length specified in the recording contract. So the money is actually subtracted from $341,700 (the other 168,300 is in reserves for a year and a half)
Now there is also the artists manager who is entitled to 20% of all entertainment income. This equates to 20% of $510,000 or $102,000 for the manager and remember the group has yet to be paid.

Put it this way the each group member actually receives $36,000 for their gold album. In a year and a half when the reserves are liquidated, IF they have recouped they will receive another $56,000. Again IF they have recouped and where talking about the record company you be the judge. Oh by the way guess who keeps track of this accounting? The LABEL.

This process did not happen over night and took this group approximately 3 years to sign the above deal. Math time: $92,000 for a 3 year effort equates to $30,666 a year not including taxes, clothing etc

Are rappers really RICH ?

Digi Stance 06-13-2005 01:56 PM

Re: are rappers really rich ?
 
dunno

Wu-Tality 06-13-2005 01:59 PM

Re: are rappers really rich ?
 
Depends on the label I guess

deadlymelody 06-13-2005 02:26 PM

Re: are rappers really rich ?
 
Rappers gain little of their money on album sales. It's all about touring etc,.

I-Legit 06-13-2005 02:32 PM

Re: are rappers really rich ?
 
^^exploiting bullshit n whatnot gets u places..same with kissing ass and suckin up ect..ect...oh and gettin over people also....or at least lettin em think that......after so much of sportin a certain image and playin around iwth it right..gets u diff shit..like a clothing line...n shit.....thats a made rapper like 50 or Hova, but rappers aint gonan live on that for ever....ya know..Cappa drove a fuckin cab, and yet lots of hardcore rap fans all know his music and face.....but WHO CARES....u do it for the love of it...

zzzzzz 06-13-2005 03:09 PM

Re: are rappers really rich ?
 
Bill Gates is..

tical2000 06-13-2005 03:13 PM

Re: are rappers really rich ?
 
most rappers, rockers.......make the most money off going on tour.........like 20,000 a night

.......50 Cent supposedly made 33 million dollars last year.....net earnings......holy shit

silex 06-13-2005 03:15 PM

Re: are rappers really rich ?
 
I think tour support, studio cost, video, budjet, are paid by the label, that's why they get like 80% of the sales. And you get paid when your song is played on the radio or your clip on the tv, well at least in france. And i think it's 10% for the manager.

Knicks 06-13-2005 03:16 PM

Re: are rappers really rich ?
 
joe budden brought up something about not having to take the advance money.....n gettin more royalties or somethin.......

and yeah, tours is where the moneys at

I-Legit 06-13-2005 03:19 PM

Re: are rappers really rich ?
 
oh Jay-Z was a millionair b4 he even rapped on tv ns hit...he sold coke...he had a a few mill stashed and thats how he brought up Roccafella..that company was main start up foundation was drug money.....and he got even more rich when he got famous

silex 06-13-2005 03:21 PM

Re: are rappers really rich ?
 
Do you get paid (like every month) when you're just signed on a label but haven't a cd out? Or you just get paid when you sign? (like i heard 50 cent signed for 1 million)

silex 06-13-2005 03:23 PM

Re: are rappers really rich ?
 
Quote:

Originally Posted by I-Legit
oh Jay-Z was a millionair b4 he even rapped on tv ns hit...he sold coke...he had a a few mill stashed and thats how he brought up Roccafella..that company was main start up foundation was drug money.....and he got even more rich when he got famous

He got 285 millions now

silex 06-13-2005 03:27 PM

Re: are rappers really rich ?
 
You can also get mad money if you do all by yourself and sell your shit locally, or like necro etc... they sell less than 200 000 copies but it's on their own label. But if you do that you have to market your thing right (internet is a great way to make a buzz)

My First Timbs 06-13-2005 04:17 PM

Re: are rappers really rich ?
 
u get paid quarterly

this is how the royalties are paid to me in the "book game" :)

"like ghost said.... "its like waitin on babies"

Polocash7 06-13-2005 04:28 PM

Re: are rappers really rich ?
 
The average MC ain't paid. Most MC need tours and shows to survive. There are very few rappers that can live off of album sales. If u wanna get into hip hop,go the producer route. They get their money up front


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