In this article we are going to try and answer one question so many upcoming artiste ask: how much do record labels pay artists in Nigeria.
Now after we answer this question; how much do record labels pay artists in Nigeria, there are various processes involving money that we need to understand about record labels in Nigeria.
How Much Do Record Labels Pay Artists In Nigeria?
There is no fixed amount to how much a record label pays artists in Nigeria; but expect something from 10 to 20 million as advance.
But if you are loyal to the label and have a good business relationship, you can make more money as your career progresses.
When an artist is signed to a record label they receive some form of money which is called ‘advance,’ to make a record.
And after the record is released, the label will keep all the money until they have recouped all they spent for the record to be successful, and this includes the advance, recording costs, promotion and legal fees.
After these costs have been recovered, the label will then keep a percentage of the record sale profits.
And mind you, the artiste have gotten his own share of the profit from the advance earlier paid.
But the increasingly popular 360 deal works quite differently.
In the 360 deal, the signed artist and the label becomes “business partners” in all endeavors, meaning that the label gets a cut of any profits the artists make, even those that are not related to records sales.”
Read also: The Best Record Labels In Nigeria 2022.
How record labels in Nigeria make their money.
Record labels in Nigeria are owned by top business executives and billionaires pikin, who use the money from their big time hustle to fun it.
Sounds funny right?
Yes! Because this means, the record label is not making money by itself.
Now let’s be straight forward.
Record labels in Nigeria make their money by simply selling records
There are different kinds of royalties that record labels collects when a record they own is played on the radio or streamed in digital stores in this modern era, or is being sold in a record shop.
Record labels also make money by marketing and investing heavily in their products; which is the artist & their music.
Which means record labels make money from every aspect of an artist’s career.
There’s this deal type that’s been around for a while which called the 360 deal.
A 360 deal means that the record labels participate in all aspects of an artist’s career, like live performances, touring, merchandising, etc.
Thus, a label is now making money from every action an artist takes that involves getting income.
The next step we will see is how record labels in Nigeria spend on their artiste.
How record labels in Nigeria spend on their artists.
For smaller record labels, recording costs can range from 100k to 200k per album.
For bigger labels however, the average cost can be from 300K to 500K and up.
Now what you should understand is that the artists is going to bear this debt and repay it from royalties of the record sales.
Record labels will spend money that may amount to 2 million for the mass production of the CD’s, jackets, posters, banners, etc.
Record labels often pay two royalties: one to artists, and another to composers & publishers.
In this case artists may receive 10% – 15% while the composers and publishers receive 30% or more.
But then, this depends on if the artiste is not writing or composing his or her own music.
Promotional costs may include but not limited to advertising, radio promotion, music videos, touring etc.
Most of these costs will be recouped from the artists’ royalties; but again it all depends on the terms of the contractual agreements.
Now it’s time to answer the main question that brought you to this article; and without waste of time let’s do so.
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