How Much is Neptunes Makin a Track?

  • Thread starter Thread starter Darksayr
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Usually they go at around 500,000 with no royalty points. Or they can do 250,000 with royalty. If you charge high you get less points. You wanna make sure that when your selling a track to a famous artist like ludacris or usher you sell at around 250 and get your 3 points. If there coming up you can charge a high rate. Its pretty much math and marketing at the same time. You have to know which ends gonna make your money worth.
 
Very good info...So how much can a "nobody" producer charge to a major label artist and get away with? And whats with tha whole point system anyways? PLEASE, I NEED to know.
 
Music-is-it said:
Usually they go at around 500,000 with no royalty points. Or they can do 250,000 with royalty. If you charge high you get less points. You wanna make sure that when your selling a track to a famous artist like ludacris or usher you sell at around 250 and get your 3 points. If there coming up you can charge a high rate. Its pretty much math and marketing at the same time. You have to know which ends gonna make your money worth.
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I think those figures are inflated. I really cant see anyone dropping $500K on a single. Now, if they dropped three heaters on the album, maybe. But one single??
 
Royalty points are what you make off of air play and album sales. All points on a album is direct money towards the label. Then with that money they distribute it to those that have points contracted. So the labels may end up paying the producer more than 500,000 easy. Purchasing a beat at 500 when its a artist thats gonna sell and make hits on the radio is a safe route for the label. Three points to the producer with a track on a album that sells 245,000 copies is 3.2 million alone to the producer. Thats without taxes takin out. Thats not even platinum let alone gold. Its easy money for a producer. Some ghost producers can inflate more do to there behind the scenes demand. This is how producers afford the ghost producers. A upcoming producer selling to a major can easly grab abour 75K to 100K with 3 points. In a year neptunes were payed 10 million selling the majority of there music at 500,000 a beat with about less than half at 250,000 with three points. When all money is distributed to the people behind the scenes a artist is left with about 50,000. Then they go on tour and cross there fingers they will make more. A night ludacris or nelly make 100,000 a show. Artist are the last to be payed. All depends on radio play and shows for them.
 
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Music-is-it said:
Three points to the producer with a track on a album that sells 245,000 copies is 3.2 million alone to the producer. Thats without taxes takin out. Thats not even platinum let alone gold.
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Music, break this down further will you? I still think its excessive but i may be wrong.
 
taar44 said:


I think those figures are inflated. I really cant see anyone dropping $500K on a single. Now, if they dropped three heaters on the album, maybe. But one single??
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Well the Neps do alot more than just make the beat..They actually take in artist input. They also help write most of the songs that you have heard them produce. Given the almost guaranteed, "get you bling like the Neptune sound" -factor, labes are willing to shell out that kinda cash, confident they will see a return.
 
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Alright a producer does a track for a artist and sells the track at 100,000. The label puts a 50,000 dollar down payment with 3 points contracted on hourly pay also. The album sells at 245,000 copies. Then the producer is given there 50,000 in complete with the first 50 that they recieved. Three points are worth about 13.50. Times that buy 245,000 your sitting at around 3.2 million. With taxes and all takin out you only have around 750,000. Then the rest is made on airplay. The artist gets only about 50 cents worth of royalties. So you can imagine the difference. The 3 points a hour pays off the studio time. Thats why you dont see those points at the end of the day.
 
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So if a producer has 1 beat on a lets say, Alicia Keys album, thats equivelent to 1 point? Or is there some bargaining goin on? Tha more points tha better Im assuming.
 
Alright a producer does a track for a artist and sells the track at 100,000. The label puts a 50,000 dollar down payment with 3 points contracted on hourly pay also. The album sells at 245,000 copies. Then the producer is given there 50,000 in complete with the first 50 that they recieved. Three points are worth about 13.50. Times that buy 245,000 your sitting at around 3.2 million. With taxes and all takin out you only have around 750,000. Then the rest is made on airplay. The artist gets only about 50 cents worth of royalties. So you can imagine the difference. The 3 points a hour pays off the studio time. Thats why you dont see those points at the end of the day.
 
Cool, great info, check out my other post about engineers, maybe you can help me out there too.
 
Music-is-it said:
Three points are worth about 13.50. Times that buy 245,000 your sitting at around 3.2 million.
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I think thats wrong. Surely you meant $0.135 or $1.35 and not $13.50. Redo the math. It just does not add up.
 
I could be mistaken, BUT from what I know... 1 point = 1% of album sales that the record label makes off of whole sale price of the album. There are 100 points per album.
 
taar44 said:


I think thats wrong. Surely you meant $0.135 or $1.35 and not $13.50. Redo the math. It just does not add up.
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I'm with you. The producer gets 13.50 an album? For a, say, $16.99 CD? And how is 3 million only 750k after taxes? I'm confused like a muh...
 
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Music-is-it said:
No its 4.50 a point with producers.
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I dont understand what you are trying to say but my understanding is that one point is roughly $0.10. Therefore, if they get 3 points, that's $0.30. Multiply that by 245,000 copies and they only get $73,500. After tax, the producer might see $45K (If he has a really good accountant).That is no where even close to the $3.2 Mil you quoted. That kind of money is not avalable to producers. Only fat greedy record companies can make that kind of dough (and even they would probably need a good accountant to make $3.2M off 245,000 copies).
 
i think he forgot to mention that all calculations are based on a standard album sale price of $2,300 USD.
Now it makes sense
 
Sorry I gave you album sales. I was typing in between alot. I am gonna get my numbers back at you all. I got tied up earlier. The point numbers are right I just mistyped the amount per point. Ill get back in a minute sorry for the mishap.
 
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taar44 said:


I dont understand what you are trying to say but my understanding is that one point is roughly $0.10.
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wouldnt one point be .01 ... and .10 be ten points?
 
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