ANATOMY OF A DEAL

By, Wendy Day from Rap Coalition I get calls everyday from entertainment attorneys and artists asking how I get such great deals for artists. Its easy, really, and Im happy to share it with the world. The only negotiation that is successful is one where both sides walk away happy. If I do a deal with someone, both sides have to walk away feeling like they came out with the better deal, or the resentment will build up and affect the artist adversely. Think about it.if I offer to sell you a brand new Navigator fully loaded, 22s, T s in the headrest, ! ! and "lay#tations, etc and I charge you $%&',''', no matter how much you love that truck, youre going to feel played when you find out it was worth half that. Its the same with label deals((the artist has to feel like he )or she* got a great deal, and the distributor+ma,or label has to feel like they got a great deal. Its really all about managing e-pectations. The first thing that needs to be done is the groundwork needs to be established. There must be some sort of a bu.. on the artist that wants to do business with a ma,or label or a distributor in the music industry. There must be some sort of compelling attraction, and reason, for a ma,or to pick your label or your artist. Talent is N/T enough. 0abels have access to every artist in the world, receive demo tapes by the truckload, and know everyone in the business shopping an artist or label to them. If you want them to pick your label, or your artist, you must stand out and be noticed above all the others. 1nd you have to stand out with an incentive to them. This is why I believe my deals are superior2 not because I am smarter or slicker or have better access, I am not and I do not. 3y deals are the bomb because they work4everyone knows what they are getting, everyone walks away happy, and I never pair folks together who cant make each other money. I am able to look at the same situation through everyones eyes. I know which labels can work which style of rap best because I study the industry. I have the ability to fill needs all around the negotiating table. 5veryone walks away getting what they want for the most part, provided they know what they want. 1nd you can do this too. 6ight now, there are artists that are standing out to the ma,or labels around the country. They are watching them closely to see if the benefit that they offer, is worth the label or distributor making the effort )and e-pense* to sign them. 6emember, when a ma,or label signs an artist, thats a multi(million dollar investment. In todays economy, labels spend between $% million and $2 million marketing and promoting an artist )of which the ma,ority ends up coming out of the artists share eventually, but the label still has to put the money out upfront and take the risk*. If you want a ma,or label to take the risk on you, or your artist, they are going to need to see that you are the best choice out there, and theres a lot of competition. 5ach ma,or label has a department called 7186 6esearch9 which are on the front lines of finding new talent that are creating a bu.. in their own regional area )either through radio and+or regional sales*, and although when they call you it doesnt mean you are getting signed )theres an infinite level of people you have to get through before you get a deal*, it does mean you are getting noticed. I asked #elim :ouab, who ,ust went from 186 6esearch at !ef ;am to !irector of 186 at 5pic, how he finds artists. 7I have a network of people I trust around the country, who give it to me straight. Ive developed a relationship with people in every area around the country to tell me whats really selling, what the bu.. is on the street, and whos hot and whos not,9 says #elim. 71t !ef ;am it was a bit harder than at 5pic, because !ef ;am wants artists with cra.y through the roof sales and like <'' :!# spins already.9 They are !ef ;am and feel they are the =% label right now, so they can be very selective. They dont sign many artists this way2 they didnt sign any of the artists #elim brought through who had a legitimate bu.. on the streets )although they tried*, which tells you how competitive it is. 3any artists feel they can bring a hot song to radio and get a deal that way, but history tells us something different. 7If they are getting radio play, its important, but it doesnt mean people will go and buy the record,9 says #elim. 1n independent retailer outside of 1tlanta whom I recently met said the same thing. ic>0 is a retail store owner? :ackstage 3usic in 6iverdale, @1 ),ust south of 1tlanta*, runs a maga.ine, and has a video show called Aip Aop 5ncounter on B"N in 1tlanta. Ae says, 7I have seen so many artists get big radio play, but dont sell records. #ometimes that ,ust happens, so labels are very careful about signing an artist who gets

only radio play without sales to back it up. In fact, a ma,or label would be nuts to sign an artist who is getting radio spin without the sales to back it up. 0ast year I saw a rapper getting %C'D spins at radio, and I think I sold 2 E!s. 9 #o, while radio play is a plus )even though it is very hard to get for an independent label or artist*, sales are still the key. #o what is #elim looking at nowF "aul Gall and Ehamelionaires out of Aouston are selling and getting radio play throughout Te-as and 0ouisiana. They were set up beautifully for the past few years on #wisha Aouse mi- tapes. 6ashida is getting %<' spins in 1tlanta but the retail reaction isnt there yet2 ;3E and 6onin out of #t 0ouis have a song that has a beat thats driving the song but no real retail yet2 :li..ard out of Nashville, a female 3E, is beginning to get spins but it may be too early to talk about2 and T.I. who was signed to 1rista, but may be available now, is getting attention from "uffy and Eash 3oney((he gets so much love in 1tlanta. These arent the pro,ects #elim is signing, its what hes watching right now to see where they go and what happens with them to determine if he should sign them. The bottom line for someone putting out records in todays climate )ma,or labels who released H' records last year, have cut back to half of that this year*, is to build a bu.. on the streets, sell as many records as possible )with a bar code for #ound#can*, and try to get as much radio play as is feasible. It aint easy, but folks are doing it all around the country and thats your competition.