how much money does a band make from each cd sold?

Question

I have heard that they make as little as a dollar per unit sold, from that 16.99 at the store, or the 12.00 on iTunes. Is most of the profit from merch and gate from concerts?

Answer 1

Yep, you're right.

Say a band makes a cd and it sells for 15.00.

First, you have to pay the producers, song writers, etc.
Then, you have to pay the Record company.
Then, all the attorneys and legal personnel.

Then, finally, the artist gets paid like maybe $2.00 per cd.

Thats why you see sooo many bands on tour because thats where they make the money they get to keep.

if you're interested in learning more, watch the Biography of TLC (it originally came on VH1) and they explain all about it.

Answer 2

From what I understand, it depends on the contract. But the artists profit is usually presented in points. An album is worth 10 points, which is kind of like a percentage. So if you only get 1 point (which is what TLC got), yeah, that can be about a dollar a CD. They make the bulk of their money from tours and endorcement deals. Again, unless you had a terrible deal like TLC or New Edition, where the management team had them paying for the concerts, for the expensive videos, etc., and then they had to divide whatever profit was left between all the band members. Also, I think the profit margin for the artist goes up if they filled more than one roll--like if they actually wrote the songs, if they produced tracks, that kind of thing.

Answer 3

It depends on the contract. Smaller acts might get a lump sum contract and see nothing from sales. Other acts that are the do-it-yourself types might get all the profits.

Answer 4

It depends on the interset rate.