Now, producers maybe you’re just getting started, maybe you have gotten so excited about taking your business in control of your own palms and you’re looking around and you’re uploading your beats, you’re making your profile look pretty on Airbit, maybe pretty wasn’t the right term but you’re making it look good and it’s time to continue on but as you got down to your dashboard, you probably notice this module called license terms. And for many of us, license terms can be a very overwhelming subject as we start to look down them because look at all the options that are available.
Well, hopefully this video will help you gain more clarity, when it comes to your licensing terms.
Generally, when you get started, there’s two categories of licensing terms. One being your non-exclusive license, and the other being an exclusive license. What’s the difference between the two?
A non-exclusive license basically gives you the opportunity to sell your beat, multiple times to multiple artist and based upon your actual leasing terms, there’s an agreement that, that artist or that singer or rapper agrees upon when they actually go and purchase that non-exclusive license. You get to keep your exclusive rights, you’re not giving that away, you’re basically saying, here are my requirements, you must follow this once you make this purchase.
Now, an exclusive license is a lot different in that you are giving away your exclusive rights to that beat to that particular artist and you are also letting them know, look I will take this beat off of the market, and I will only make it available to you. You’ll be the last person that’ll be able to purchase this beat, I’ll remove it from every single website, YouTube, whatever the case may be, you will be the last one in ownership of this beat.
Now, when it comes to non-exclusive terms obviously the leasing business is built upon that, that is the foundation of the leasing business is the non-exclusive license and the reason that is, is because it’s 2 benefits. One benefit is for you as the producer that you get to earn a recurring income off of one beat, one beat gets to make you multiple money, sometimes it makes you more money than actually selling that beat off one time to a customer who wants exclusive rights, which we’re gonna talk about. They want exclusive rights, you can honestly make more money within a year than you would make in that one time selling the beat off. So, this is what makes the licensing and the leasing business so appealing to producers.
Now, on the other hand, it’s a benefit to rappers who maybe have a limited budget, maybe they’ll have a crazy budget for beats, but they need quality. Well they get to have access to quality production at a very reasonable rate and they get to go shop amongst other producers who are also in the leasing business.
Now, generally when it comes to pricing, non-exclusive license are generally priced from about, anywhere from 15 bucks all the way up to 40 bucks. I’ve seen even some as high as 50. Now, when it comes to exclusive rights, I’ve seen them generally priced between about 75 dollars to anywhere from 250 to even up to 1000 dollars for a lot more of the veteran leasing producers. So, it’s not uncommon to have these price ranges. Now, what you may have a little confusion about initially is the non-exclusive terms, generally they’re divided amongst 4 tiers amongst most producers in this business. Now when it comes to that, you generally see that every single one of those tiers have their own licensing terms. Now, what is a licensing term?
A licensing term is basically an agreement between you as a producer and your buyer. The singer, the rapper, it’s an agreement that says look if you come and you lease this beat, at this quality price, this very low price, you have to agree to these terms, if you’re going to use this beat. Now generally the type of rights that you’re getting with each lease vary, or each license varies, generally producers like to give just the MP3 of a very basic license and you get 2500 sales that you’re able to make un taxed by the producer without having to give out royalties. Also, there’s different tiers that give your buyer the opportunity to use your particular beat within a music video or maybe they even wanna use it for a particular YouTube freestyle video, whatever the case may be, you get to line those things up.
Now, there’s not a one size fits all for every business, every producer offers a different type of product and a different demographic it appeals to. That being said, what you wanna make sure that you do is continue to experiment, go look at other producer’s profiles but don’t immediately take their pricing unless you start to sit there, let your wheels roll and say I wonder why they did that? Experiment, have fun with this.
Now, when you go to your actual Airbit profile, what you’re gonna see is these licensing terms have already been laid out for you. There’s some standard ones that you can look at from the lowest to the mid to the highest, whatever particular tier that you’re trying to create, there’s already terms there that you can kind of manipulate and edit to your liking.
Now, another type of license is the synchronisation or sync license. And this license is for TV, film placements mostly. Sync licenses most commonly fall under the category of non-exclusive categories. Especially for TV and would usually involve royalty payouts of some sort. Now when you’re thinking about the difference between the non-exclusive license and exclusive license and you’re thinking why is it such a great difference between those particular pricing is because your exclusive license is giving it away, you’re fully saying here, this is the beat, I’m removing it, you no longer have an opportunity to monetize that beat. So, when you do that, you wanna price it pretty high to kind of account for the sale that you could’ve had, had you kept it and made it available.
Now that’s pretty much your basic breakdown when it comes to license terms. I hope this helped you out tremendously, I hope that you now don’t feel so confused and that you’re excited about getting in there and really editing things and have fun with this, feel free to experiment. So, for the free airbit users, you do have the opportunity to customise a bit of your licenses but if you really want to get control and gain control over what you offer your customers, you gonna wanna get a premium account at airbit.com. Super easy, go down to the subscriptions and find out how you can do that within your dashboard. But other than that, I hope I helped you out today.