Music Investor Agreement

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Music Investor Agreement

13
Dec,2020

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Do we invest in the musician in general, the next album, a tour or something else? The investment can be made largely or for a narrow purpose or something in between. If the investor expects the musician to perform certain tasks regarding music, from organizing a team to writing and performing songs, make sure there is clarity in the agreement on the role of each. Who hires and pays the producers and session musicians? Who manages the artwork, website, physical pressure (if any), distribution and output show? Repayments can be monthly, quarterly or semi-annual. An investor usually has the right to check the artist`s books. If it is a large amount, the investor has the right to demand a higher return of 40 or even 50%. If the investment is smaller, it is also the percentage. The reason is that the artist retains the opportunity to take other investors. For example, if the investment were only $25,000, a fair return would be 10-15%. Some musicians who want to raise money to record and promote a new album are turning to online platforms ranging from PledgeMusic to Kickstarter. These platforms are vehicles for financial support from fans, friends and family. It is also in the interest of an artist to enter into the contract not as an individual, but through an “establishment enterprise. To achieve this, the artist must create an entity such as a company or an LLC. This unit will then do business on behalf of the artist.

As a result, the artist`s personal wealth is protected by the creation of “limited liability.” An angry investor, who is suing the artist for breach of contract, can only try to ensure the repayment of assets in the artist`s installation company. However, as you intend to succeed as a musician, your intention is that you and your music, as a musician, succeed as best as possible, which, in turn, will allow the investor to be rewarded financially. What are the costs to budget for? Production costs may include production, arrangement, mixing, mastering, studio and/or session musicians. How do you plan to repay the investor`s investment? Will all or part of the money from the sale to the investor make his investment and/or to make a profit? Are all forms of monetization used by music to repay the investor? The sale of the corresponding music seems appropriate. What about your author`s dimes? How many times does the investor receive returns and are paid? Basically, an artist`s investment contract involves someone who thinks an artist is going to succeed. This person is willing to make a “bet” by giving money to the artist to advance his career. In return, the investor can look for a percentage of the profits (if and if the artist earns money). One more thing. If the investor pays for your album budget, try to include legal fees for someone who develops or re-examines the investment agreement. A shameless catch. If the investment in an album is made, who owns the Master? Who makes business and creative decisions about the album, including all decisions about its use? Does a person have the power and control to make all musical decisions? If so, to what extent does this person have to consult the other person? Preferably for the musician, she controls as much as possible, while she has financial obligations to the investor. The amount of money invested depends on the identity of the investor and the artist.

Sometimes an investor is so eager to help an artist that she doesn`t care much about losing money. In this case, it cannot even apply for protection in the form of a “pro-investor.” Liability claims cannot affect personal assets such as bank accounts, shares, homes and cars. However, an investor can “penetrate the corporate veil” if he is able to prove fraud on the part of the artist. For example, if the artist transfers the

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