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#1020559 - 08/22/13 12:59 AM Fee for use in ad by major company  
Joined: Apr 2003
Posts: 747
Andy K Offline
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Andy K  Offline
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Joined: Apr 2003
Posts: 747
Clearwater, FL, USA
A major automobile manufacturer has asked to use one of my songs in a future video/TV ad. They have requested a quote. Any idea what is a reasonable rate to request for one year use with options to extend another two years? This would also give them exclusive use of the song for any automotive industry ad during the contract's duration. Thanks!


https://www.stonemarmot.com
Stone Marmot
Nouveau retro pop-rock music
Whatever happened to the Golden Rule is the subject of our latest song,
“The Golden Rule.” Listen at: https://soundcloud.com/stone-marmot/the-golden-rule
and check out its music video: https://youtu.be/0FKlwhjdENc
#1020562 - 08/22/13 01:07 AM Re: Fee for use in ad by major company [Re: Andy K]  
Joined: Jan 2005
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Michael LeBlanc Offline
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Michael LeBlanc  Offline
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Joined: Jan 2005
Posts: 13,325
Louisiana
a car!

#1020578 - 08/22/13 02:37 AM Re: Fee for use in ad by major company [Re: Michael LeBlanc]  
Joined: May 2001
Posts: 7,412
Ray E. Strode Offline
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Ray E. Strode  Offline
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Joined: May 2001
Posts: 7,412
Brunswick, Ga. USA
I like Michael's answer the best! Barring that I would ask them if they have an Advertizing Budget. Most likely they do. Then ask them if they have done simular ad's and basically what they paid. They may not want to tell you. You may want to ask how often the ad will play and even what time of day and if it is local or regional or even nationwide. They may be doing a Co-Op Ad. That is where they pay part and the Auto manufacture pay's part. A lot to consider. If it is a Co-Op you may ask to talk to the Advertizing Rep face to face to do a final Negotation.

Another option is to call some Ad Agency's in your area and get some opinions. Last but not least, get the car. And also get one for me! Ha,ha.

Last edited by Ray E. Strode; 08/22/13 02:39 AM.

Ray E. Strode
#1020588 - 08/22/13 05:48 AM Re: Fee for use in ad by major company [Re: Ray E. Strode]  
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niteshift Offline
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Posts: 5,760
Fiji
Hey Andy,

It varies widely based upon a number of factors...

* Type of medium, eg TV film or internet
* Coverage, local, regional, state, national or global
* Expected viewer coverage
* Duration and number of edits
* Exclusice or non-exclusive
* Advertising budget as a whole

As a guide, these guys seem to be in the the general ballpark, and similar to what you are doing.

Good luck !

cheers, niteshift

#1020595 - 08/22/13 09:09 AM Re: Fee for use in ad by major company [Re: niteshift]  
Joined: May 2006
Posts: 7,909
Colin Ward Offline
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Saint Petersburg. FL
You are probably looking at a few thousand dollars for the upfront fee but make sure you are getting royalties for every time the music is played on TV. The royalties will come through your PRO. They have set scales based on the number of seconds used, the importance of the song in the ad (background, foreground, etc.), and the number of stations playing the ad. You could easily receive much more in royalties than the upfront fee. Try to be your own publisher or avoid having a publisher should that come up. Somebody will have to file a cue sheet when the ad is aired and that will trigger the royalty payment. Not sure who does that in the case of an ad.

I doubt if you will see much in the way of royalties from the internet so you would want to make sure the upfront fee compensates you adequately for that.

I have seen Music Dealers advertising fees for major companies in the range up to $20k, but I don't know how realistic that is. I would definitely ask what their budget is before you throw out a number - you don't want to leave dollars on the table and it is best to get the other party to go first when negotiating.

Good luck!


Colin

I try to critique as if you mean business.....

http://colinwardmusic.com/

http://rosewoodcreekband.com/


#1020609 - 08/22/13 11:31 AM Re: Fee for use in ad by major company [Re: Colin Ward]  
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Ray E. Strode Offline
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Ray E. Strode  Offline
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Joined: May 2001
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Brunswick, Ga. USA
Sorry,
I should read more carefully. You said Major Car Manufacturer. In that case they will definantly have an Advertizing Budget. Again I would call some local Advertizing Agencies for their Opinions. Even some out of state. Also Google some you can call for even better information.

After you gather some better information you will know what to charge. If you just got an E-Mail from your prospect after you have gathered all the info you can just give a price range from low to high with any serious negotations to follow. As of now it could all be just speculation on their part.

Last edited by Ray E. Strode; 08/22/13 11:32 AM.

Ray E. Strode
#1020613 - 08/22/13 11:52 AM Re: Fee for use in ad by major company [Re: Ray E. Strode]  
Joined: Dec 2008
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John Lawrence Schick Offline
John Lawrence Schick  Offline

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Joined: Dec 2008
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PA
Off the cuff...

$5,000 - $10,000 upfront on exclusive usage for one year. Plus 100% writer's & publisher's PRO royalties (since you're doing the licensing you should be entitled to both).

Or...

Let them make an offer and proceed from there. Though this may be perceived as unprofessional.

BTW, a big congratulations Andy!

Best, John smile

#1020616 - 08/22/13 12:54 PM Re: Fee for use in ad by major company [Re: John Lawrence Schick]  
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Posts: 5,760
niteshift Offline
niteshift  Offline

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Fiji
Just another thought....

You really should be dealing with the creative team assigned to the adverts' production, as it's that production company, assigned by the advertising agency's creative team which will eventually pay you. As a major brand, there should be ( eventually ) an audio designer/supervisor.

A quick call and a bit of light chitchat with the assigned producer/designer is probably the best and easiest way to break the ice, and you can take it from there.

cheers, niteshift


#1020634 - 08/22/13 04:00 PM Re: Fee for use in ad by major company [Re: niteshift]  
Joined: Apr 2003
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Andy K Offline
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Andy K  Offline
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Joined: Apr 2003
Posts: 747
Clearwater, FL, USA
Thanks for the replies. I do have a lot more info, but it is proprietary. But it is a North America and territories ad campaign. The song also isn't just for background. The title is what attracted them to the song and is a focal point of the ad.


https://www.stonemarmot.com
Stone Marmot
Nouveau retro pop-rock music
Whatever happened to the Golden Rule is the subject of our latest song,
“The Golden Rule.” Listen at: https://soundcloud.com/stone-marmot/the-golden-rule
and check out its music video: https://youtu.be/0FKlwhjdENc
#1020637 - 08/22/13 04:26 PM Re: Fee for use in ad by major company [Re: Andy K]  
Joined: Dec 2006
Posts: 5,760
niteshift Offline
niteshift  Offline

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Fiji
Go for it mate !

What ever level it's on doesn't really matter. If they're asking for YOU, then it's all good.

There may be a lot of hurdles along the way, ( creatively speaking ) , so I'd just say, tie it up and be done with it. If it's used, it is. If not, not to worry. You still get paid.

Great position to be in !

cheers, niteshift

#1022209 - 09/02/13 02:54 PM Re: Fee for use in ad by major company [Re: niteshift]  
Joined: Mar 2010
Posts: 240
Cheyenne Offline
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Cheyenne  Offline
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Joined: Mar 2010
Posts: 240
Florida U.S.A.
Hi,

You would be at an advantage by approaching a major publisher,
For two reasons One the fact that you are being considered for a commercial , a Top Publisher would know exactly what sort of money you could get and negotiate it.

The second reason is an Artiste or record company would rather do business at a later date with someone who has had his/her music
used on radio and T,V, as opposed to some pretender who has lifted a tune maybe subconsciously .

Be careful taking advice from people who have had no experience,
because it can be a mine field. and you could end up losing out.

I have never heard of this happening before these companies usually contact writers known for being able to write consistently
great add music. no offence meant but thats the way it works




One of the most important principles of songwriting is to remember that a good song is a partnership of many different components, all working together to produce a satisfying musical experience.

In that respect, song components are either enhancing or compromising their combined effects.
#1022233 - 09/02/13 05:33 PM Re: Fee for use in ad by major company [Re: Cheyenne]  
Joined: May 2001
Posts: 7,412
Ray E. Strode Offline
Top 30 Poster
Ray E. Strode  Offline
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Joined: May 2001
Posts: 7,412
Brunswick, Ga. USA
One should know if a song is used Nation Wide for a long period of time in a lot of market's that song for all practical purposes is done as any pontenial further licensing. So keep that in mind if it is used.

Photographer's know pretty much the same thing. If a Photograph is used far and wide that pretty much retires that photo.


Ray E. Strode
#1022268 - 09/02/13 11:31 PM Re: Fee for use in ad by major company [Re: Ray E. Strode]  
Joined: Apr 2001
Posts: 19,304
Brian Austin Whitney Offline
Brian Austin Whitney  Offline

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Joined: Apr 2001
Posts: 19,304
Indianapolis, IN USA
I know for a fact they offered one of our members 500K as the writer/publisher and the artists who did the song 1 Million upfront for 18 months of use plus all earnings from the PRO's. It was a big hit from a big artist. It would likely have resulted in millions by the end, but they turned it down because they felt it was the wrong brand of trucks... they liked GM and it was Dodge or Ford I believe.

OF course you won't get that, but you might want to contact an attorney who handles this type of negotiation. The money could change your life if handled right. If it is a major Car company their budget is enormous and under quoting them will not only lose you money, but might lose you the deal. Be VERY careful and move fast to find someone, hopefully in FL, who can represent or at least consult with you. You might send a note to Stu Shapiro, our resident Mentor here. He may be able to guide you or help you if he does that sort of thing. I use him for all my legal issues concerning JPF and my personal life as well. I think he might even be licensed in FL, but I am not sure.. (I could be wrong about that).

Cheyenne is right in what she said. Find an expert. I am not sure that giving it away to a publisher is the ONLY option, but she's right someone of that nature would be better suited to help you. Nitesong has a lot of experience in that area, I would also find him a credible source of info to help point you in the right direction.

I am so happy for you! I sure hope you can make this happen! We're just not the experts you're looking for on this!

Brian


Brian Austin Whitney
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#1022609 - 09/05/13 09:37 PM Re: Fee for use in ad by major company [Re: Brian Austin Whitney]  
Joined: Apr 2003
Posts: 747
Andy K Offline
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Andy K  Offline
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Joined: Apr 2003
Posts: 747
Clearwater, FL, USA
Thanks for the responses. I responded to their request a week ago. I suspect that may have been too late.


https://www.stonemarmot.com
Stone Marmot
Nouveau retro pop-rock music
Whatever happened to the Golden Rule is the subject of our latest song,
“The Golden Rule.” Listen at: https://soundcloud.com/stone-marmot/the-golden-rule
and check out its music video: https://youtu.be/0FKlwhjdENc
#1022617 - 09/06/13 01:21 AM Re: Fee for use in ad by major company [Re: Andy K]  
Joined: Jul 2010
Posts: 29,275
"Tampa Stan" Good (D) Offline
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"Tampa Stan" Good (D)  Offline
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Tampa, Florida since 1973
Hang in there Brother Andy, and GOOD LUCK Amigo!!!

#1022641 - 09/06/13 11:53 AM Re: Fee for use in ad by major company [Re: "Tampa Stan" Good (D)]  
Joined: May 2001
Posts: 7,412
Ray E. Strode Offline
Top 30 Poster
Ray E. Strode  Offline
Top 30 Poster

Joined: May 2001
Posts: 7,412
Brunswick, Ga. USA
Well,
If this thing has passed I hope you did some research so the next time you would maybe be better informed. As formerly stated, it may have been speculation on their part. However it could still happen so be on the alert.


Ray E. Strode

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