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It’s astounding how often people conflate advances and loans when talking about the music industry. If anything it’s closer to seed capital than a loan.
by danem 2y ago
It’s astounding how often people conflate advances and loans when talking about the music industry. If anything it’s closer to seed capital than a loan.
- snapcaster 2y agoDon't you have to pay back advances? Never heard of that happening for failed investments outside of fraud
- danem 2y agoAdvances are recouped from the sales of your albums or tickets. Assuming you’ve made a good faith effort to fulfill your obligations you don’t need to repay the advance or pay interest on the advance if your album doesn’t sell.
- shkkmo 2y ago> Assuming you’ve made a good faith effort to fulfill your obligations you don’t need to repay the advance or pay interest on the advance if your album doesn’t sell. It depends on your contract. Usually, poor sales won't result in needing to repay an advance. However, there are plenty of other clauses that the contract could contain that would lead to the contract being canceled and potentially the advance having to be repaid (due to delays, editorial disagreements, poor quality, etc.)
- bitnasty 2y agoGiven the low ratio of “making it” to “wanting to make it” I would assume that there are many people who DO actually take out loans.
- arrowsmith 2y agoJoe Satriani famously self-funded his first album by taking on large amounts of credit card debt. I'm sure there are many, many other musicians who took a similar risk that didn't pay off as well as it did for Satriani