Texas Music Lawyer Tamera Bennett created an "Investor Checklist" to be used by musicians, artists, and potential investors before investing in a musician's career or recording project. These tips were also discussed during the 2016 SXSW panel "Developing An Indie Artist's Career Using Their Money on Others'".
You can download the Investor Checklist here and review the information below.
Investor Checklist - Musicians, Artists
- What are the expectations of the investor and the artist?
- Is the investment in
- The artist's career as a whole
- A specific project
- A combination of the career and a project
- Will the investment be made in
- Cash paid to the artist
- Payment of recording costs, marketing, touring, other expenses
- Will a business entity be created that is owned by the artist and investor?
- Joint venture
- LLC or corporation
- General partnership or Limited partnership
- Term/Length of the agreement?
- How much control will the investor have in creative?
- Songs cut
- Social media/Public Image
- If investing in intellectual property, who will own the songs, sound recordings, videos, trademarks/band name?
- Is there a cap on investor’s contribution?
- How will the investor recoup its contribution?
- Profit share
- Loan with payment plan
- How will a return on investment be calculated for the investor? Is there a cap on return?
- What is the artist’s track record on prior releases/projects?
- Will the investor just provide money or can they provide industry connections?
- What type of commitment is the artist willing to make to promote career/project?
- Is there anybody else that has already “invested” or is claiming an interest in the artist’s career or project?
Are you ready to take the next step with your music career?