(View Part IÂ - View Part II - View Part III)
Having the legal aspects of you business is essential to maintaining a high level of integrity in the eyes of your clients. But when you're just starting out, grasping the concepts of all of these different types of beat agreements can be a bit of a handful. After all, there are so many different options that you've seen other producers use during your research phase, that it's hard to figure out a starting point for your own business.
While there does seem to be a ton of different licensing options out there, in all honestly, it's mostly just producers taking a contract template & customizing it to fit terms that they're willing to offer their beats under. Most of the beat players that you'll have the choice of implementing into your website, will have several of these templates for you to use. Here in Part IV of your producer course, we'll go over some of the basic types contracts you'll come across.
Licenses We'll Go Over:Â Â
Free Lease
Exclusive
Synchronization
License Types
FREE BEATS:Â
Not much to talk about here. Generally speaking, you want to offer your free beat(s) (should you choose to offer any) under a strict promo use only agreement. Be sure to clearly state that no profits are allowed to be made from the song without your WRITTEN consent.
LEASING BEATS:Â
This is probably the most confusing out of the four. Leasing your beat can prove to quite rewarding though. This option allows you to re-license an instrumental as many times as you want. I advise you to use the template contract included in your beat player & customize it to your needs.
Be Advised: Since most producers tailor the terms of their licenses to their liking, you should be aware (& understanding) of the fact that many artists may not be familiar how the agreements work.
When an artist leases a beat, they pay a fee to use the beat for a set period, with specific limitations on distribution and revenue. Leasing a beat is an affordable way to access high-quality instrumentals, allowing artists to experiment with their sound without a hefty investment.
Scenario 1: Independent Artist Releasing a Mixtape
Imagine an independent artist who wants to release a mixtape but doesn’t have a large budget. They lease a beat for a small fee, allowing them to distribute the mixtape online and gather feedback without spending big bucks. The lease agreement might restrict the number of streams, downloads, or revenue generated, but this can work well for an artist focused on building an audience.
Scenario 2: YouTube Content Creator
Consider a content creator who posts rap freestyles on YouTube and wants a fresh beat for each video. Leasing a beat allows them to continually update their sound affordably while adhering to platform-specific restrictions. A lease can often come with options for upgrading to a higher license later, giving them room to grow as their channel gains followers.
Although it does get frustrating at times, it is important that you make sure that they fully understand the terms of your agreement before allowing them to commit to a purchase. Encouraging your clients to contact you with licensing questions before purchasing is highly recommended.
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EXCLUSIVE BEATS: The Power of Ownership
Buying exclusive rights means an artist owns full usage rights to a beat, which generally costs more but provides long-term control. When an artist buys a beat exclusively, they are the only person permitted to use that instrumental, giving them the power to create and monetize without limitations. Exclusive beats are a bit easier to deal with because of the fact that the terms are a bit more concrete. Don't get me wrong, you still have the option of fully customizing your artist - producer agreements but the exclusive agreement is a one & done deal. The terms, pricing, royalties & all other particulars are negotiated up front & the artist will typically own the rights to use the instrumental indefinitely once it's all said & done. Since the producer can only monetize the given composition once, you'll typically have more ground should you decide to nudge the price up a bit.
Scenario: Releasing a Debut Album
Imagine an artist ready to release their debut album. They purchase exclusive rights to several beats, knowing these tracks will be part of a larger project that will be marketed and monetized for years. With exclusive rights, they have the flexibility to use the beats across all platforms, maximize their revenue, and retain ownership of the sound as their fanbase grows.
SYNCHRONIZATION: Ever wanted to license your beats or music to be used in TV shows or movies? Synchronization licensing is how it's done. These are a great type of license simply because the pay out is usually higher than when working with artists (although there typically won't be much negotiating due to the fact that most TV shows & movies have budgets specific for music licensing). Depending on the deal worked out, you may even get royalties from plays you get by securing a placement on a recurring TV series.
Scenario: Sync Licensing for TV and Film
A producer creating music for a TV show or film may require exclusive rights to ensure the track remains unique to that project. With exclusive rights, they can license the beat for a higher fee, knowing it won’t appear elsewhere. This exclusivity adds value to the beat, and the artist (or their label) can negotiate higher royalties and licensing fees.
Rapping Things Up
I hope this short guide was able to help you gain a relatively better understanding of the different types of licensing agreements & how they apply to various situations. As previously mentioned, most beat players come with custom license templates. If yours doesn't have contract templates already, we recommend using one of the airbit beat players (the beat players we currently use).
Thank You for Reading!
STAY TUNED FOR PART V
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