Trying to navigate the music industry?
Yeah, it’s like navigating a labyrinth – mystical, confusing and filled with a whole lot of booby traps.
Let’s chat about Kreayshawn for a moment.
She received platinum status for her banger “Gucci Gucci”, and guess what?
She still ended up still oweing the big bucks to her label, Columbia Records/Sony.
Now, settle in, because we’re here to shed some light on the “dark side” of the music industry.
We’re going to help you avoid the pitfalls and navigate your way to success.
Gucci Gucci: A Platinum Hit (Yet Still in Debt)
Back in 2011, Kreayshawn’s “Gucci Gucci” was basically forced down everyone’s throats.
It’s a banger, dare I say, iconic?
Swag culture was a trip.
But anyway, despite her initial blast-off, Kreayshawn still to this day has a jaw-dropping debt of $800,000 owed to Sony for her inaugural album.
Her contract inked its seal during a time when Spotify didn’t even exist, meaning streaming was not part of the deal.
And if you think it ends there, think again!
Adding salt to the wound, Kreayshawn was promptly kicked to the curb by her label right after she broke the news of her pregnancy.
Talk about rough, huh?
This ragged chain of events drives home the capricious and, let’s face it, often brutal landscape of the music world, even for artists who’ve tasted success.
Artist Contracts and Royalties: Explained
The complex nature of artist contracts can lead to financial pitfalls if not thoroughly understood.
Royalties and recoupment, which refer to the profits artists receive from their music and the recovery of costs by the label, play a significant role in the music industry.
Kreayshawn’s contract with Sony hindered her financial success despite the popularity of her song. Which is a testament as to why artists need to get in touch with a layer before putting ink to paper.
However, the argument to be had is “wait – Kreayshawn did have a lawyer?”
Then this is a classic case of sneaky verbiage in the contract that is standard practice across the board in the music business (emphasis on business).
The Impact of Unexpected Expenses and Financial Mismanagement
Surprise bills and mishandling of cash flow – these are just some of the reasons that can land artists in the dreaded ‘D’ word – Debt.
Our girl Kreayshawn’s financial woes serve as a gut-wrenching, in-your-face demonstration of the aftermath of poor money management and sneaky contract verbiage.
Now, let’s nip this problem in the bud, shall we?
By taking the reins of your budget and showing its ugly twin – unplanned expenses – the door, you can dodge being dragged down into the debt abyss and never see the light of day.
For example, if you were to get signed today, please do not film an expensive ass music video.
You can create a badass music video with a small-medium sized budget.
There really is no reason to drop tens of thousands of dollars on music videos, especially when starting out.
Focus on music video promotion vs your production value.
The Importance of Financial Literacy for Artists
Take it from Kreayshawn, that not understanding your bread and your butter can land you in the deep end, drowning in debt and financial instability—which is definitely not where you want to be while you’re trying to lay down sicc beats.
Fine-tuning your financial literacy skills—it’s not as snooze-inducing as it sounds, I promise—can swing open the doors to understanding and navigating the twisty-turny path that is the financial world of the music industry.
A really cool tool I discovered during the pandemic was this record label deal simulator.
It does a fantastic job at not only simulating deals but also providing you with definitions on common legal verbiage.
But again – get a damn lawyer.
Strategies for Artists to Protect Themselves Financially
Artists can take several steps to protect themselves financially:
- Seek legal advice when negotiating contracts.
- Create a budget and track expenses to avoid overspending (my favorite expense tracking and banking platform is called Found – check it out here)
- Diversify income streams through merch, patronage/recurring subscriptions, and live performances.
Changes in the Music Industry and Artist Contracts
The music industry and artist contracts are continually evolving.
For instance, Taylor Swift’s re-recordings prompted changes in re-recording restrictions. Major record labels have adjusted their contracts to prevent artists from re-recording their songs.
To navigate these changes effectively, artists need to stay updated on industry practices and the latest news.
Here are the top music business news websites to follow:
Artists can learn valuable lessons from Kreayshawn’s experience of being in debt despite platinum success.
Understanding artist contracts, managing finances wisely, and enhancing financial literacy are crucial for artists.
With all that being said – on a lighter note – if you’re ready to take the next step in your music career and not get in debt with mismanaging your marketing budget, hit us up.
We offer a variety of music marketing services tailored to you to grow your fanbase, and get more streams.
And who knows – maybe we help you get out of debt because of our marketing strategies! (not financial advice)
hit us up tho!
