A man came up with an income stream methodology that is not based on the realities of ownership — especially in a business situation. So. Let’s compare a song to a commercial truck.
A man owns a commercial delivery truck.
The people who built and drive that truck come to him and say they want to share in that truck’s income stream.
Furthermore, they only want that truck to deliver to one destination cutting out all other opportunities for making music.
You know what his reply will be to that request: A big fat no.
The people press the issue and finally the man says, “You know what? Sure. Okay. Sounds good. You want to be an equity stakeholder in the business? Let’s make that happen.”
He puts a contract in front of them that now shows what part of the overhead they will have to pay to make that truck produce income.
The people scream and holler about their weekly check getting smaller, and they claim he is being — here come the ironic quotation marks —
“unfair and greedy.”
Here’s what those folks don’t know the owner is doing:
At a minimum, spending his own money to drum up business for the truck, invoicing the clients, investing in technology to manage scheduling of it, and chasing after deadbeat customers. Paying for all repairs to it, the building to house it, the warehouse to refill it, the insurance to protect it, vacay time for employees, taxes, Friday Employee Luncheons, and more.
Got that picture? Okay, therefore, let’s say a song is that truck.
Just because someone writes a song doesn’t mean it will make money. It can sit in a catalog for years until it is shopped, discovered, placed, and ultimately produces income. (You could ask Merle Haggard about that except now you can’t.)
So, who’s going to shop that song to artists and TV/movies and advertising agencies and so forth? Who’s going to make sure contracts are correct and pays the attorney for that review and confirms money comes when and where it is supposed to?
Who’s going to protect and defend that song from theft, piracy? More importantly,
who is willing to put their time into that song and wait on their money to come in?
The recording studio? The mastering engineer? The background vocalists? The session musicians? No. These people want their money and they want it now. And nothing wrong with that. That’s their business model.
But the truck owner understands the long view — and so do music publishers and songwriters.
So to read what this fella wrote in the above linked article, and to see that he thinks a socialist type of business engineering is going to make it all fair and all the while cutting out other ways for that song to make money, well, it just boggles the mind.
Bless his little old heart, but yeah, I’m shaking my head at this solution.