Sharing royalties with producer/artists

Hello Bruce,
Because I am working a lot with young artists / bands, there’s a lot of time that they can afford my full rate to mix their tracks. So if I really want to do the project, I can lower my rate and ask for having 5% to 10% of royalties (as arranger for ex), the idea being if after the project is out to the world they meet a unicorn, I will be allowed to have a little go on it with them too…
More seriously, What do you think of this system ? Do you think of a better way to do it ? Does it need a contract established explaining all that ?
Thank you very much !
Romain

Hi Romain,
Its often a struggle to find a way to get paid properly for your work so I agree with you that you have to get creative about ways that you can participate in any upside that the music generates. Having a royalty (points) baked in is certainly the most common way to do this. It really depends on your contribution. The major sources that producers and mixers get royalties from are:

  1. Sound recording streaming income
  2. Sound recording sync income (When the song is used in a film or advert)
  3. Sound recording performance income from satellite and webcasting (Sound Exchange) and in Europe broadcast radio (Neighboring rights)
  4. Music Publishing
    The other way you can structure upside from their success is if you believe they may have the opportunity to get a record deal they will have to pay you your proper fee out of their advance. I would always insist on this and also a royalty.

Yes you need at the very least a letter that lays out the terms of your work, but a contract is preferable. You should always have this, even if you are only getting a flat fee.

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Bruce, thank you very much for your advices and your vision !