As a GM of a small indy label, I can confirm that the article's financial model is pretty accurate. We actually use a similar system, but since both our and the band's expenses are so much lower, our bands *usually* recoup within a couple of years. We also don't charge as many expenses against the bands as the majors do. Some mid-sized bands in their initial sales period recoup & make a couple of grand if they keep their expenses down/pay down their expenses from tour income. (Larger bands generally recoup in the 1st pay period regardless of advance/expenses)
The exceptions are usually bands from a decade or more ago who took tour advances or recording advances that never recouped.
While the tools are there for bands to d.i.y. (via IODA or other digital distributors, CD Baby, etc), indy labels can & do function as gatekeepers for the flood of bands that are releasing decent-sounding recordings nowadays.
And yeah, a lot of times when it comes to recording engineers &/or producers, you get what you pay for, especially in a lo-tech setting like a bedroom Pro-Tools set-up.
On the post: RIAA Accounting: Why Even Major Label Musicians Rarely Make Money From Album Sales
Indy labels vs. majors
The exceptions are usually bands from a decade or more ago who took tour advances or recording advances that never recouped.
While the tools are there for bands to d.i.y. (via IODA or other digital distributors, CD Baby, etc), indy labels can & do function as gatekeepers for the flood of bands that are releasing decent-sounding recordings nowadays.
And yeah, a lot of times when it comes to recording engineers &/or producers, you get what you pay for, especially in a lo-tech setting like a bedroom Pro-Tools set-up.
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