I wrote a book (“Invest in Music – Why the artists pay the fans now”) exactly about what`s available on Amazon (www.amazon.de/dp/B0747VSWKF) liability claims can`t affect personal assets like bank accounts, stocks, houses, and cars. However, an investor may be able to “penetrate the corporate veil” if they are able to prove fraud on the part of the artist. For example, if the artist pays the fortune of the furniture company into his personal account, the investor can look for these funds to get his money back. This article explains how best to structure an agreement for this investment. One more thing. If the investor pays for your album budget, try to include the legal fees of someone who can design or verify the investment agreement. A shameless catch. Others are lucky enough to have someone who would like to invest money in their next project. A wealthy cousin. He`s a great fan.
A rich cousin who is a super-fan. Somehow, they invest you because they want you to succeed and/or because they think investing in your music offers them an attractive financial return for their investment. I just received my first angel investment (much smaller than 25k, but still a great start). I wonder where to find other investors. But it`s written in German, because it`s my native language and maybe not very useful for most of you here. But I also created a landing page (www.investinartists.com). Just leave your email and I will contact you as soon as the English translation is complete if anyone is interested. That`s what I`m working on.
If the amount made available represents a large sum, the investor has the right to demand a higher return, such as 40 or even 50%. If the investment is lower, the percentage is also lower. The reason for this is that the artist retains the possibility of buying other investors. For example, if the investment is only $25,000, a fair return would be 10-15%. Ideally, the investment will give you more time to focus on the music. Thus, if you win an interested investor, you will invest in time to ensure that the partner is right, and the terms of the transaction are reasonable. Good luck! Most investors aspire to both repayment and profit. Generally speaking, this is done in the following way: the investor receives a percentage of the money earned by the artist, minus expenses such as registration fees. This percentage or “return” varies from case to case. However, the level of investment is an important factor in calculating a fair return.
If the investment is made in an album, make sure you are on the same page with the investor, which will be on the album. Would the investor want there to be a particular song? How do you intend to repay the investor`s investment? Does all or part of the sale money go to the investor to recoup their investment and/or get a profit? Are all forms of monetization used from music to repay the investor? The sale of the corresponding music seems reasonable. What about your anticisms as an author? How often is the investor declared and paid? However, before entering into a music investment contract, make sure you have a professional relationship with the person or people who wish to invest in you. In this final piece on MusicThinkTank, Brian Pascoe looks at eight types of music investment agreements and the implications behind them. An artist should consult an accountant who is competent in tax matters. The artist should also urgently consider consulting a lawyer on the creation of the business unit.. . .