With the emergence of musical greeting cards, this market can be a surprisingly valuable source of income.
The duration of agreements in this area are from one to three years (but can be longer), and the rights granted can be for the United States, the United States and Canada, or the world.
The music publisher will require that the appropriate copyright notice be contained on the card itself, normally on the back of the card.
A variety of royalty formulas apply here, with one of the more prevalent being a percentage of the wholesale price of each card less certain discounts.
Assuming that 100,000 cards are sold in a three-month period at a final wholesale price of $1.75 and with a music royalty of 9%, the calculations would look as follows:
|
100,000 |
Cards sold |
| x |
$1.75 |
Wholesale unit value |
|
$175,000 |
Aggregate wholesale value |
| x |
9% |
Royalty % |
|
$15,750 |
Gross song royalty |
If lyrics are also included in the card, additional fees will be negotiated.
© 2008 Jeff Brabec, Todd Brabec
This article is based on information contained in the new, revised paperback edition of the book "Music, Money, And Success: The Insider's Guide To Making Money In The Music Business" written by Jeffrey Brabec and Todd Brabec (Published by Schirmer Trade Books/Music Sales). www.musicandmoney.com
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