What royalty should I pay ?
by Will_3 on Apr 16, 2004 at 11:18:23 am
I'm considering producing and marketing/distributing some special interest DVD's.
In each case I have identified subjects who would provide the content...
(None of the candidates are aware they are under consideration and have probably never thought of participating in a project such as this.)
Current canidates include...
1 - An educator who "performs" his educational show on a variety of special subjects at local schools. (We think there may be market with schools outside our area.)
2 - Special interest interviews to be marketed to demographics with similar interest. (We have identified several candidates.)
3 - Narrow market musical performances by a few bands and solo performers in our area. (Maybe enough interest on a national basis to get a return on our investment... if properly marketed.)
We hope to approach each of these people with a proposal to produce, market and distribute the special interest DVD in exchange for giving them a royalty.
Question is what percentage of what should we offer to cover ourselves as...
We are putting up all the up front money and taking all the chances... but want to be as fair as is standard in the industry.
We have even considered just offering them a flat fee like you would pay a studio musician or actor for their time/service/performance... but want to find out what a typical royalty may be for such.
Do you guys have any idea what royalties are paid for such?
(Maybe what royalty's bands receive for music video DVD distribution of their musical performances would be a starting place.)
And, if a percentage... a percentage of what? Percentage of retail, Percentage of our discounted price to resellers, Percentage of net after production cost, marketing cost, distribution cost, etc are recovered, etc... ???)