We recommend taking the time to read our documentation to fully understand how pre-allocations work and to decide what works best for each track.
The best policy is always to try to match the contract that you have created with the track artists, remixers, or licensors. You should try to match the contract account to the contract that you signed, so for example if you re-release a track you would use the same contract account that you used for the original release.
For those wanting to get started quickly there are several simple rules you can follow for setting your pre-allocations, depending on what kind of contract you have signed with the artists and companies involved. We have put these together based on practices used by various labels we have worked with.
Singles
If you have agreed to pay the artist a percentage of profits from the release:
Add a contract account for the artist (we recommend using the catalogue number) and set the allocation to the agreed percentage. Assign any expenses and sales relating to the release to the same contract account.If you have agreed to pay the artist a flat fee:
Set the artist allocation to 0%, no contract account is necessary. Enter the fee into the expenses section and allocate the cost to the label. Pay the artist a fee using the payments system.If your label does not charge artists for incurred expenses (ongoing label deal):
Set the artist allocation to the agreed percentage, no contract account necessary.
If there are other parties involved e.g., songwriters, vocalists etc. that you have signed contracts with, you would create a contract account for them and assign them the agreed percentage.
Remixes
Assign the artist percentage and contract account as specified above for Singles.
If you have agreed to pay the remixer a flat fee:
Set the remixer allocation to 0%, no contract account is necessary. Enter the remix fee as an expense and allocate the cost to the original artist(s) using the agreed artist percentage, with the remainder allocated to the label. Pay the remixer a fee using the payments system.
If you have agreed to pay the remixer a percentage of royalties:
Add a contract account (we recommend using the catalogue number) and set remixer allocation to the agreed percentage. Split the remaining artist and label percentages according to the agreed artist percentage.If your label does charge artists for incurred expenses (ongoing label deal): Set the remixer allocation to the agreed percentage, no contract account necessary.
Re-releasing singles
For each artist, remixer, and company - assign the same percentage as agreed previously but use the same contract account as the previous release.
Remixes of previously released singles
For each artist - assign the same percentage as agreed previously but use the same contract account as the previous release.
Assign the remixer allocation using the rules specified above for Remixers
Tracks licensed from other labels
If you are releasing the licensed tracks:
Artists and remixers can be assigned 0%, no contract account necessary.
Create a contract account for the licensing company (we recommend using a single account for all tracks included in the licensing deal) and assign the agreed company percentage to the licensing company.
If you are releasing new versions of the licensed tracks:
Artists can be assigned 0%, no contract account necessary.
Assign the remixer allocation using the rules specified above for Remixers.
Create a contract account for the licensing company (we recommend using a single account for all tracks included in the licensing deal) and assign the agreed company percentage to the licensing company.