The advance is a fancy way of saying a loan to make an album. Or a speculative investment in how the band could preform in the mass market. Essentially the band is now a quarter million in dept to the record label. Also that chart is a bit wierd. He's showing the total for different things (video tour etc) then the break down underneath.Originally Posted by Don Corleone
I ran the numbers via MS excell and they are in the hole but good.
They start by being given $250000. Right off the bat they lost 47,500 in managers cut and legal fees. So they now have $202500 left. For the album they budgeted $150000, and spent 140500. For a video they budgeted $30000 and spent 37,000. They also spent $15000 on new instruments, amps, a light rack, rehearsing, and a party. So of their advance they have $10000 left. Then they go on a 5 week tour. Spent $50875 to do it and make$35000 ($50000 minus manager and agent cuts totalling $15000), so they are on the hook for the $15875. So of their advance they have -$5875 left. Now they got to keep $16000 from their both the merchandising and publishing advances so they are now at $26125. Now I worked out the guys numbers and he's right they band is in the hole $14000 on the royalties. But they had $26125 left from their advances. So they are left with $12125. But had they not jumped labels they would have had $50000 more.
It's more like (to me) robbing the labels as a form of rebellion against their corruption and mistreatment. Mistreatment of both the artists and us the consumers. I pay $20 (minimum) for a CD.Originally Posted by Don Corleone
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