record contract

What are Producer Points?

by Wes on April 13, 2011 · 0 comments

Ever wonder how producers earn income or revenue? Or why do they handle a lot of artists and talents? Technically speaking, they earn through acquiring Producer Points or the percentage of royalties a producer gets after finishing a recording album.  Simply, they consider 1 point equivalent to one percent. Like any other points, it has mechanisms on how it can be accumulated.

Here are few different ways:

  • Points on the entire album (They get a fixed number of points for the album.)
  • Points on particular songs on the album (it varies and depends on how many songs are there in an album.)

There are some cases that points are paid based on the dealer pricer for the album and sometimes they are paid on the retail price.

There is no existing standard as to how much points can a producer get as part of the royalties. It also doesn’t follow that points are automatically awarded to them because there are instances that they don’t have a share in the royalties. It really varies depending on the producer. More often, deals offered by the producer ensures them that what they will receive increase as the album sales increases. 

Important reminder, before you proceed with any recording process, you should clear any deal with regarding points and its should always be in writing.

Producer points are termed also as album points, producer percentage, producer royalties.

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