Finding Financing for Your Recordings

Social networking sites have built many band's fan base without ever getting a paying gig. This brings us to a conundrum how to record their first album without any cash flow. With anywhere between 3 and 18 songs done it may be time for that first album. After finding out the recording studio is going to cost anywhere between $250-$1500 for 7 songs. That is only for the master then you will want $1200 for 1500 copies. Asking every family member and friend might bring in promises of $300. After paying the monthly bills you may be able to plop down another $100. No amount of Netvalar's creative thinking is going to help you out right.

First lets look at a different industry, land development. Sometimes smaller developers will have the finances for a big project but are unsure of over costs. So what do they do they find investors. Not for the company but for the project. A complicated project contract is written up where the investor either gets their money back with interest or an invested interest in the specific development. All over costs are now covered and the development can begin. Within a year of the completed project all investors are usually paid back.

What does this mean for your recording you ask. Lets look at it as a specific project instead. Your first album can be ran as an limited run project with all recording costs and replication costs factored in. When doing your numbers double the costs of replication and add in 50% of the costs for recording. You now will have a good figure to use in finding these potential financiers. Talk to a lawyer or draw up a sample contract and run it by a legal advisor.

I know you are asking "what are you talking about Netvalar?" Well you can now go back to your friends with a contract showing a much bigger sign of motivation. Offer your fans a chance to invest in your very first or maybe even second CD. Bankers, investment firms, or other professionals will see you as more serious and may be willing to invest.

But what do you have to offer? You can offer a basic return of money plus interest to be negotiated per individual. Or you can offer a cut of the proceeds from the sales of that specific project cue album. Maybe some few would be willing to invest on the terms of so many copies going to them for resale, obviously at a much lower price ($2. per cd sounds about right). Going this route though you will want to specify that the project is for physical copies only. Thus allowing you to continue to earn money from digital sales of the same album.

Once long ago I had such a contract on file in my laptop. My roommate at the time stole the laptop and pawned it. All contracts then saved therein were gone never to be seen again. I however know that a very simple 2 paragraph contract can cover everything needed for such an endeavor.

Final thoughts never say Netvalar can't creatively advise you when all seems lost.