What Exactly Is The Leasing Business?
Producers I don’t know how you got into this business but welcome. I don’t know if you’ve been here for some years or maybe you’re just getting started, maybe you had a friend of yours that said “look man, it’s some really easy way to make money right now if you start leasing your beats”, and you were like “lease my beats? They’re not a car, they’re beats”. However you got into this, welcome I’m glad that you here, I really do look at leasing producers as the future of music producers, the future of music production, the future of music producers who actually look at this as a business, and establish their own empires and brands.
Now there’s of course many different examples of success stories from SuperstarO to Tone Jonez, to Epik to OSYM Beats to so many different folks all around, all the folks out here who have been successful for years in the leasing business realm and let me explain something to you, the traditional route or the traditional definition of success for a beat maker / producer has always been, you know, you create a beat, you send that beat off in an email, a major label artist picks it up, “oh my god, he listened to my beat”, picks your beat up and decides I like. I want to pay you five hundred dollars for this beat. But nobody else can have it. And in the past, a lot of producers have taken advantage of that, I took advantage of that, and you know that check is nice but then you’re not able to do anything else with that beat, that beat is done. The leasing business presents a beautiful alternative in that you now have the opportunity to give a beat the life span however long you want that life span to be as long as it’s available for leasing.
Now, when you think about leasing, it’s not that different from when you’re talking about leasing a car or leasing a home or leasing property it’s not that different. The only difference is that you have rappers and singers who say. I want to have access to quality production but I don’t have the budget of five hundred dollars per beat, can I pay you thirty bucks to basically lease under your terms and your agreements, can I basically lease your beat, have your beat, I don’t own it, I just want to basically rent the beat for my project, give me the best possible presentation of my project and then from there you know sort of a win-win for everybody. I pay you something and then I don’t really mind if other people are using the beat. So, that’s really what the leasing business presented as an alternative is that one you’re not dealing with the politics of the industry. Two, your beat is not just bought by one person, unless you make it available for exclusive rights, we’ll talk about that. But your beat is basically made available multiple times so imagine this and I’ve had this happen before where you have a beat that has been leased for over a year and then you look at all your Pay Pal statements on that particular beat and you find out that beat has made you now six thousand dollars. Now imagine, you gave that beat away exclusively to a major label artists thinking like, oh I’m gonna get exposure, I’m gonna get a check, you would have missed out on about 5500 dollars. Had you let that beats sit up on your website for lease. Now that’s what the leasing business presents, it presents you more of an opportunity to establish the independent business that is not reliant upon you having access first of all getting your foot in the door with these major label artists and it doesn’t require you waiting on labels to cut you a check, it’s really right then and there. Rappers and singers from all over the globe who want the opportunity have quality production and are willing to pay you right now.
Now, I know it’s probably a lot of producers that are like “I don’t know how I feel about every rapper or every singer in the world having access to my music or my beats because aren’t there some terrible ones out there?” I mean that’s here for your perspective. You can judge that but I think more important than what you think the quality of their music is really look at the quality of their heart, the quality of their business and the quality of their morales. They’re willing to pay you, they’re ready to pay you, they don’t mind paying you multiple times, they don’t even mind that you’re leasing this beat and making it available to multiple rappers or singers. They’re willing and ready to invest in to right then and there, no politics. So, focus on that for the producers who are skeptical about that and realise that you’re a business. I look at it like it’s no different from if I was the owner of Colgate toothpaste and I made my toothpaste available in all the Walgreens and one time somebody goes and buys it and they have no teeth, and then I’m like “hold on, I made this available for people with teeth. You know what, I’m taking all my toothpaste off of every single Walgreens shelf”. That sounds ridiculous and you know it does. The same thing with this art I understand your music is your baby but you gotta get past that especially within the leasing business and understand that you’re providing a service that many people need. When you start to think about the value that you’re providing, you’ll start to worry less about the embarrassment or what’s your reputation’s gonna be. Look, this is a business and if you run it like a business you will attract the right attention and the right type of artists that you want to attract but you have to really, really operate this as a business.
So, when it comes to the difference between leases and exclusive now when you talk about exclusive rights, exclusive rights are basically when you allow one of these rappers that come into your particular world or your inbox and they say hey you know what I love this beat, they might’ve leased it, they say I love this beat so much I want to be the last person that owns it. And that’s where they become almost like that major label artist that’s willing to cut you a check, for you to take it off the market. So, that’s basically the gist of this business, it’s either between releases and it’s either between exclusive rights.
Now, when it comes to leasing terms, everybody has different leasing terms. But for the most part people look at your mp3, your wav and your track outs as three different price points. OK. And within these price points come certain rights, now some people say with an mp3, sure you can put this mp3 lease, you take a lease and you buy a lease for an mp3, rappers, singers, I’ll allow you to put it on your mixtape, I’ll allow you to even make a YouTube video freestyling on it. I will allow you to sell up to 4000 copies, but you cannot make a music video with it. Well, how can I make a music video? Well, with my wav lease which is the second one up, I’ll allow you to make a music video with it, you know what if you get radio play, I’ll even let you get the radio play with that, untaxed I won’t try to go look for no money from you and then if you get the track out, I’ll even give you unlimited.
So, imagine giving somebody the unlimited terms for one-year process, most leases are for one year but imagine giving them unlimited rights within that. I mean this, pretty much the step below exclusive and all they got to do is pay what? 70 to 100 dollars. Typically, the pricing of these leasing are, mp3s are typically between 19 to 30 bucks, wav are typically 30 to about 50 dollars and trackouts are typically 70 to 100. But it’s up to you, this is your business. I just wanna make sure I bring you up to speed on what this business is all about.