As for the book, my main point is that artists now have to make money (digital rights to streaming services) for every fan investment they receive. How much investors recover depends on the amount spent, the period, how many other investors are in the same period, and of course… How much money he has to give back. Thus, each investor recovers his fair share, while the artist has the opportunity to have another source of income. It is written in German, though, since it is my native language and perhaps not very useful for most of you here. But I also created a landing page (www.investinartists.com). Just leave your email and I will come back to you as soon as the English translation is completed, in case anyone is interested. I`m working on it. Just my first angel investment received (much smaller than 25k, but still a great start). I wonder where I can deal with other investors. At the beginning of their careers, many artists decide whether to take the plunge and give up their daytime work.
But without the constant income to cover the cost of registration and other expenses, stopping can be a difficult decision. This is particularly the case when the artist has no other source of income. For example, an artist may decide to turn to family members or others to invest money in their careers. Third-party funds can be a welcome request for an artist`s career. But the agreement between the investor and the artist must be well written. Both the artist and the investor are well advised to seek informed advice to protect their interests and structure an agreement that is fair to both parties. Repayments can be monthly, quarterly or semi-annual. An investor usually has the right to check the artist`s books. If it is a large amount, the investor has the right to demand a higher return of 40 or even 50%.
If the investment is smaller, it is also the percentage. The reason is that the artist retains the opportunity to take other investors. For example, if the investment were only $25,000, a fair return would be 10-15%. Most investors are looking for both repayment and profit. As a general rule, this is done as follows: the investor receives a percentage of the funds that the artist earns less from expenses such as registration fees. This percentage or “return” varies from case to case. However, the level of investment is an important factor in calculating a fair return. Some agreements provide for staggered payments instead of a pre-payment. Payment in installments gives the investor more control. This is because it can stop making payments if the artist does not respect the contract. Assuming that the contract requires the use of funds for specific purposes. If the investor only learns or assumes that the artist is spending the investor`s money for expenses that are not authorized in the agreement, he may stop paying the payments.
An artist can earn income from a variety of sources, including record sales, live performance, merchandise, editing and recommendations. The question of whether the investor recovers his investments from all these sources or only from selected income streams is the subject of the negotiation.