Essy Essay

1779 WordsMar 18, 20128 Pages
INTRODUCTORY SUMMERY We will take a look at (The Record Label Profits) and how The Record Label Profits Worksheet is designed to help you estimate how much (or how much more) you will make when you decide to proceed with starting a record label and you release your first record on CD. It can help you get a handle on where your money will be spent for each recording project, and how much you should charge for your CDs, and allow you to budget for shipping, advertising, and miscellaneous expenses. EXPENSES: Recording costs, Copyright registration: Number of original songs/Registration fee Initial product order, Number of CDs/Price each Reorder product: Number of CDs/Price each Promo/free product: Number of CDs given away Advertising: Months/Cost per month Shipping to customers/promo: Units shipped/Cost per unit OR Percent shipped/Cost per unit Misc. costs/office expense: Months/Cost per month INCOME: Product sales: Number of Retail CDs/Price each Number of Whole sale CDs/Price each Manually override sales? Download sales: Number of Downloads/Price each Total Income & Net profit or loss Things to keep track of while operating a record company Recording costs Copyrights Initial product order Reorder product Promo/free product Advertising Shipping to customers/promo Miscellaneous costs Product sales Download sales Total income Record companies make money by selling recordings. It is a high-risk business. According to the Recording Industry Association of America (RIAA), approximately 90% of the records that are released by major recording labels fail to make a profit. Independent labels have to be more careful in their choices and in their allocation of expenses because they do not have the resources to cover many failures. However, they can make and promote records for far lower costs than major labels and be

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