A question about band profits.

[Fallen Embers]

Does anybody know if the band makes more of a cut when you order their CDs/merchandise directly from their website rather than in stores? Seems like they would make more from direct purchases since there are considerably less middlemen that way.

Just wondering..

 

[Tubbs]

Well, think about it. The stores actually pay the band, I think, to get their cd's. That means they get profit before people actually buy the cd.

I'm probably missing a point, though.

 

[soundgarden]

Yes, Jax answered this for me a while back. The guys get a larger profit if you buy directly from the site.

I must add though that buying from stores increases the popularity of the band. If a store manager sees some albums sitting for months he won't get the newer albums.

Your call.

 

[Kenneth R.]

I'm probably missing a point, though.

You are.

Stores don't call up bands and buy CDs in bulk. They deal with labels. And labels deal with distributors. Everyone gets a piece, with the band getting their cut from the label. If you don't have a label, you're doing all this coordination yourself, and stores don't even know about you because you are not a distributor. You may even have to pay the store to shelf your stuff. I am not certain. But, the way I see it, directly from band to fan seems to be the highest profit margin, at the cost of accessibility to those who do not have internet, credit cards, etc. and also they won't see your albums in a store near them if you go this route. Also arglebargle is right about public sales getting you some popularity.

 

[arglebargle]

Also arglebargle is right about public sales getting you some popularity.

uhhh, soundgarden =/= me.

 

[Fallen Embers]

Hey thanks guys. I'm about to order a bunch of stuff and I want to make sure I support the band financially, to the fullest extent.

 

[Kenneth R.]

uhhh, soundgarden =/= me.

my bad i was having issues with UM and all i could see was the sig with your name

 

[Tubbs]

You are.

Stores don't call up bands and buy CDs in bulk. They deal with labels. And labels deal with distributors. Everyone gets a piece, with the band getting their cut from the label. If you don't have a label, you're doing all this coordination yourself, and stores don't even know about you because you are not a distributor. You may even have to pay the store to shelf your stuff. I am not certain. But, the way I see it, directly from band to fan seems to be the highest profit margin, at the cost of accessibility to those who do not have internet, credit cards, etc. and also they won't see your albums in a store near them if you go this route. Also arglebargle is right about public sales getting you some popularity.

Well, screw Amazon then! I'm buying right from the damn sites from now on!

(Except Dream Theater, maybe. I'm pretty sure they're doing quite well by now.)

 

[Snowmaker]

 

[wchuck]

1. The Band produces the CD!

Stores buy the CD for a certain price (PRICE A) but sell it for 110 - 300 % of the price (PRICE B).

Symphony X get the PRICE A when they sell them to a shop.

In their shop they can sell it for PRICE B!

=> so they make more profit when they sell it in their shop
(not really since they sell much more to shops then to people (over their shop))

But: !The money/cd they get is higher when you buy them in their shop!

Nevertheless they can't keep all the money.

The cd need to be produced: cover, booklet, cd itself.

So there are different costs: workers, material/ressources, ... (factors of production)

Often the Label pays this costs, but : (I'm not really sure if it's always like this) They get a certain percentage, just like the Management.

So no matter if the cds are sold to shops, etc. or to people (over their shop),
there's always a certain amount that is abstracted.

The money that's left is for Symphony X.

 

[Eternal Dragon]

hahaha, that episode was great. Kinda reminds me of runescape...... mine coal -> money -> ???

 

[Horus]

That had to be, by far, one of the best episodes of South Park ever.

hahaha, that episode was great. Kinda reminds me of runescape...... mine coal -> money -> ???

Runescape......? Oh my god, I forgot that game existed.

 

[Kenneth R.]

Labels front the cost of production and promotion IF they have reason to believe the band will sell. The band is then in debt to the label for all or most of this cost and must return it through sales. If the band fails to sell this amount in a certain set period of time, they are then forced to pay the label the difference out of their profits and if necessary their own pockets. Yes, you can actually LOSE money from making an album if its cost was high and it doesn't sell.

 

[Metalman7983]

labels give bands/artist monies that they eventually need to pay back aka funds they have to recoup. But some spend their own money on production and various other cossts. I took a music business class it was really interesting I recommend something similar for anyone who wants to be a career musician or in the music business at all.

I remember asking my teacher about that before he said on average most bands/artist only recieve about $1-2 of profit on each CD sold but that depends on if you produce,edit and/or record your own music/album/etc. Of course if you do you will see much more of the profit but I dont know how it works with Symphony X.

I'm glad I know they will make more money if I buy off their site I will be sure to do that from now on they deserve it!

 

[proulxski]

thatgs what I want to know... how much are the record labels/music distrubutors taken from SYMPHONY X... If I'm paying 35$ for a cd lets say Symphony X gets what out of that?

If i'm not mistaken if they make a certain quota/upsell their album than they do get a higher percentage of profit per CD sold

 

[Anonymous]

They'd be getting a few dollars out of that.

 

[The Yngster]

I've heard that selling merch on tour is one of the best ways that bands make money, any truth behind that?

 

[Anonymous]

Yeah, cause everything on tour is overpriced and there's no store to keep half the money. Pretty much all of it goes to the band.

 

[Horus]

Thats why I always buy all my stuff at shows.

 

[urinalcakemix]

I've heard that selling merch on tour is one of the best ways that bands make money, any truth behind that?

All truth, because of the markup, they get the product cheap, sell it for high, they are their own middle man, they get thier predetermined cut, plus essentially the "stores" profit, because, merch tables act like a band store pretty much.

Buy at the show if you love them. Buying at a store helps too, especially exposure wise, so buy at an independent store, as thier worthy of your money, fuck FYE