Thanks to all who have responded to this thread. I'm still debating how to pay my musicians (I have no upfront money to give them having spent all my money on making the album).

I'm coming around to simply giving everyone a "point" of the Master Use Fee (not the synch fee), this will come to 10% on some songs since I have so many musicians, but I'm happy to do it since they all did such a great job and I'll be keeping the Sync Fee For myself. There's is an sample contract at the end of the CRAFT AND BUSINESS OF SONGWRITING book which says how to do this.

One thing that worries me though is a sentence in the book "it could compromise or preclude your ability later to make a deal with the publisher or others who placed your song, with whom you need to share all or part of the master use fee."

ARGH!

I don't have a publisher/library right now but have some interested generated. I'm pretty sure that I can get people to sign off of the 1% deal but now I read this. Anyone have any suggestions as to how I might structure a deal so that I can pay everyone but not preclude my ability to make deals with publishers/etc.