Wes,
See, one of the questions you ask is something I have no way of knowing. I don't know who "Kevin" is, what his involvement in the song is, where he is going to release it, etc. Is he a co-writer or just an artist? Is there anyone else involved?
The basic rule of thumb is you split everything down the middle. You have two halfs of a song, the publisher's share and the writers share. You always keep your writer's share. You ASSIGN the publisher's share. It is yours until you get someone to publish it for you, unless you are self published. Now this goes with your co-writers too. They have half the song, and half the publishing. If it is three writers, splits down the middle, third, third and third. All even splits unless otherwise specified.
For instance, if you had three writers, but got the song cut on a SONY, Warner, Universal, EMI, etc. artist. Then mostly likely all publishing will be assigned to the major company, or they will not cut the song.
Most songs without major companies involved don't do a lot. They are featured on YOU TUBE, I Tunes, or sites like SOUND CLOUD, REVERBNATION, etc. They might get a little radio airplay on some small stations, but the large ones that pay royalties cannot play anything outside of a major label cut, because the majors purchase commercial radio time to ensure their artists get that. And if a station is not large enough to charge hefty advertising rates, they are barely staying on to begin with. Most podcasting, Internet radio, private web channels, etc. pay nothing.
If a YOU TUBE video gets enormous amounts of VIEWS, say 100,000 or more, they would be contacted by advertisers who set up an advertising schedule. But that is changing. At first, when YOU TUBE was new, the number would be like 10,000 likes" that were required. Then 20,000, 50,000, now 100,000 and on and on. Probably will be a million likes soon to even register the song has been "viewed."
Radio stations are also rated on the signal strength and how many people they reach. So some station out in the boonies or a college station that reaches 500 people is not going to pay anything in the way of money.
The same with PERFORMANCES. If the artist performs it in a mainstream venue that reports the performances, they pay BMI and ASCAP licencing fees, you might make some money based upon continuous performances. A Kenny Chesney is going to be playing HUGE arenas, night after night, that are owned by Verizon and major companies. Those pay nicely. But if it is small clubs, karaoke nights, or coffee houses that pay little or nothing in fees, they are going to pay nothing. There is nothing to collect.
One of the things ASCAP, and BMI have been doing is suing small venues for licencing fees to pay songwriters. They are shutting down the venues who don't pay and therefore a lot of live music is going away. This is something that is coming to Texas like a freight train, because Texas does everything it's own way. It has had decades of roadhouses and venues that feature live music and usually doesn't factor back anywhere but Texas. But just like the Federal tax system and you have to pay taxes to support some kind of water project in Michigan or Alabama, Texas is about to get hit by a bunch of legal stuff that will be distributed in other areas.
When money declines in one section (paid product for artists, writers and labels) they work in other areas, to collect for the decline.Happens in all industries. It has been said that half of live venues in Texas will be closed in five years. I don't know how accurate that is, but I do know there are a lot of changes coming and Texas has been able to avoid it for now. That won't happen forever.
So the basic thing about recorded music to remember is HOW MANY PEOPLE ARE LISTENING OR VIEWING IT. If you get mainstream success, a lot of plays, views, downloads, etc. you will be paid okay. There are a lot of things you have to give up to GET to that place in the first place, like publishing and making deals with labels, such as a "THREE QUARTER RATE" which is taking around 7 cents verses 9.1 cents per copy sold. And that is only in mechanicals for PHYSICAL copies sold. Most people don't PAY FOR PHYSICAL COPIES. They download or get unlimited streaming. A streaming service that collects nine dollars and nine cents a month actually pay for TEN SONGS. The rest people are getting for free. So if someone is getting ONE THOUSAND SONGS A MONTH, they are paying for ten.
And there is "FILE SHARING" what about the person that sees your YOU TUBE video, bought the CD then sent the file of the song to ten of their friends, who sent it to one hundred of their friends, who sent it to a thousand of those friends? The first one is paid for. The rest are not. that is called FREE MUSIC. And is how around 85% of music is heard now. You gonna head over to everyone of those people and tell them they owe you 9.1 cents?
Great business huh?
And most music is GIVEN AWAY to get people to come in and see the band or artist, buy their t-shirts, and hats, and beer coozies. And the songwriter gets nothing of this. This is why record companies, thanks to AMERICAN IDOL, came up with the "360 DEGREE DEAL" where they are partners in all merchandise, touring, and branding. Those American Idol winners still give half their income to American Idol. If they lose money in one place, they make it up in another.
So what do you tell your friend? I have no idea. Are you having to pay for recording costs, for packaging, for promotion? Are you having to shell out cash for his band when the van breaks down on the Interstate 400 miles from home? Are you having to pony up to pay some money when they travel for a day and a half to find out the gig got cancelled because the venue closed? Are you having to be out there, driving 14 hours in a day, eating almost nothing, getting to the gig, playing for two hours, mostly cover music, to have beer bottles thrown at you through the chicken wire when you can't play "YELLOW ROSE OF TEXAS?"
I think you find something that makes it easy for him to keep going, and see where it all ends up. If you have a good relationship with him (wow, there is that word again!) and they start selling copies, AND then want MORE SONGS, maybe you have made a good deal. What if they end up with a record deal and move into the big leagues?
All in how you look at it.
MAB
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