Distribution Deals & How They Work

Distribution Deals & How They Work

You are about to experience the knowledge the industry don’t want you to know.I entittled the article Dropin jewels because that what about to happen.Are you an artist or independent label trying to get your music carrier of the ground?Or you looking to get your music out to the public?Well question no more!The solution is here!We call it Ghetto $cience.

Ok lets get to the point.Distribution according to websters dictionary means;

Main Entry: dis·tri·bu·tion

Pronunciation: “dis-tr&-‘byü-sh&n

Function: noun : the marketing or merchandising of commodities

– dis·tri·bu·tion·al /-shn&l, -sh&-n&l/ adjective

There are all kinds of deals you can get if you are an indepndent record label with a “Buzz”.Major record companies scout out indie labels with a buzz to do deals.

What kind of deals do most indie labels negoitate with major labels?Joint Venture deals,production deals,rights buy out deals,distribution only deals and etc.These are the most common type between major & indie labels.

What is a Joint Venture Deal?

Main Entry: 3joint

Function: verb

Etymology: 1joint

Date: 1530

transitive senses

2 a : to unite by a joint : fit together ARTICULATE c : to prepare (as a board) for joining by planing the edge

intransitive senses

2 : to form joints as a stage in growth — used especially of small grains

Main Entry: 2venture

Function: noun

Date: 15th century


2 a : an undertaking involving chance, risk, or danger; especially : a speculative business enterprise b : a venturesome act

3 : something (as money or property) at hazard in a speculative venture

– at a venture : at random a certain man drew a bow at a venture, and smote the king — 1 Kings 22:34 (Authorized Version)

Before I go any further I most say this.You are being exposed to some profound information.This is the information the industry don’t want you know.Now back to the point.

A Joint Venture Deal is when a Major record label and a Independent label join forces and become one unit.In this type of deal the major record company is the bank.In a Joint Venture deal,The major record company fronts all the operating cost.The major label then deducts a 10% fee from the gross revenue for overhead.An additional 15-25% for distribution and manufacturing cost.After the major label deducts all the cost annd fee’s,then the major record company and independent company may split the profits 50/50.

In this type of deal normally the labels will sign a certain amount of artists each year.And the Major record company will have the final say so.In most cases called cherry picking.

A joint venture agreement usaually range from 3 to 7 years.If the independent label has some from of bargining power,they made get the Right to do it’s own marketing and promotions.Companies such as Laface,Badboy and SoSoDef had some time of joint venture deal with a Major label.Laface Sold it company to Arista Records for 100 million dollars.Arista is own by BMG which is owned by Bertelsmann AG.Bertelsman AG is a German owned company,Which also owned RCA.

There are five major distributors that distribute music and video on a global scale.Bertelsman AG,EMI group plc(England),Sony Corp(Japan),Vivendi Unversal(france) and AOL time warner(USA).These companies distribute music around the globe.These are the companies that need you to make money.

For those wanting more information on Distribution Deals Please contact us at [email protected] or check out our mp3.com site at


We are currently working on a series of lectures and pamphlets to teach people like ourself the truth about the industry and educate everyone how to make it without a major deal.

Next article will be on Distribution Deals and Fulfillment Deals and how they work.Also we are working on our website that will be link to this site.I thank HipHopspot.com for helping us put the truth out to the public.Our company is currently marketing and selling

Pimpin Da Music Biz Distribution Deals & HOw They Work

lesson one .Just keep looking for us everywhere.

Thank you hiphopspot.com keep up the good work.

Mike $mooth aka Da Architect

Till Da Nex Time

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