Scam Busters
Written by Just Plain Folks Mentor Michael Laskow
I may be uniquely qualified to write an article about how to identify a scam in the music business because for the last eight years, I’ve had to work diligently to convince people like yourself that my company, TAXI isn’t a scam. I guess that’s my fault for starting a company that sounds too good to be true.
My education in identifying scams has been augmented by the scores of musicians who call us every year for advice after they’ve been ripped off. Hopefully, this article will help you avoid a couple of the more common pitfalls.
The most prevalent “scam” may not be legally considered a scam at all, but it’s a business arrangement that seems to leave most of the “buyers” unsatisfied. I like to call this one “The Vanity Record.” Typically, musicians who have recently copyrighted a song are contacted by several “record companies” that ask you to submit you material to them.
Shortly thereafter, you will receive a letter stating that the “label” likes your material and would like to include it on their next compilation release. They go on to tell you that they need you to PAY to have your song or songs included on the CD. The cost per track usually ranges from $300 - $1000 per track.
Often, the label says that the CD will be distributed to radio stations and A&R people. Some of the letters I’ve seen have also mentioned foreign distribution. As an artist with a “cut” on the CD, you will typically get ten or twenty free copies of the CD.
The questions you should ask yourself before entering in to this kind of relationship are; “Would Warner Bros. ask me to pay to be on an album?” “Do A&R people or radio stations actually listen to these releases?” “Do I know of anybody who has ever had any success be being on one of these releases?”
The answers will most likely be, “No, no and no.” These companies are preying on your desire to “feel” famous or look famous. Some people are so desirous of having their name and music appear on something that to the untrained eye may “look” like a real release, that they’ll part with the money.
Another close relative of the aforementioned deal is the old, “We’ll take your demo or song idea and turn it into a master and put it on our next release.” The catch? The cost of producing the cut is exorbitant, and that’s where they make their money. The track on the CD is “free,” but production costs are much higher than what you could do it for yourself.
Again, this probably isn’t breaking the law, but it’s not a good deal for you. The best “acid test” I can think of to identify one of these bad deals is to go to your favorite record store, and look for any releases in the bins, or the store’s catalog by the company you’re thinking about working with. No product, no deal.
Another common pitfall to avoid is the, “Yeah, I’m a music attorney, and I’d love to shop your demo - for a fee.” Certainly, there are many fine, upstanding music attorneys who are completely legitimate. There are also some who are not. Their modus operandi?
They may do some other kind of law by day (chasing ambulances is always a bad sign), but fancy themselves as a music attorney. They might offer you a deal to shop your demo for a fee. Typically, the fees they ask will range from $1,500 to $5,000. The problem is that very often these so-called music attorneys don’t really have the connections or relationships that are necessary to shop deals. They have often been known to take your money and simply send out a batch of tapes to a number of labels with a cover letter from them, and that’s it - nothing more.
The A&R people at the labels usually don’t have a clue who these attorneys are, and therefore treat submissions from them much as they would any other unsolicited tape. They never make it past the mail room.
A couple of rules of thumb: “Real” music attorneys will generally shop your music for a percentage. Very few “real” music attorneys will even take on a shopping project. Most prefer to take on clients that already have a deal offer (big surprise).
The most desirable type of music attorney for you to work with is somebody who is currently “hot” and very much involved in the daily goings on of the biz. You don’t want somebody who is on the fringe. Unfortunately, it may be more difficult to get a well-connected music attorney than it is to get a record deal. That’s what we call a real catch-22. And that my friends is the reason I started TAXI!
Website: www.taxi.com
