I’ve seen my share of scams. There’s no shortage of low-lifes, frauds, self-promoters, liars, cheats, and thieves lurking in the dark corners of the industry. Each has their own con, and all are looking to take advantage of the artists they encounter, whether those marks dream of overnight success or want to game the system.
PAYOLA
The granddaddy of all music business scams, payola is bribery, pay-for-play, the music business equivalent of dark money. First, it was song pluggers influencing jazz-era bandleaders; then it was so-called indie promoters acting as record company bagmen. Payola was made illegal after a scandal in the late 1950s when DJs took bribes in return for radio airplay. It reared its ugly head again in the early 2000s and continues today, it's
cancer now spreading to services charging for placement on streaming service playlists.
THE “BUY-ON” AGREEMENT
Another example of pay-for-play: promoters who charge artists to perform, or headliners who charge smaller acts for opening slots. Think that’s fair? Definitely not. If you are performing, you should get paid, so avoid these scams. It may feel like you’re passing on a great opportunity, but they’re rarely as good as they sound.
THE BLOG
Another example of payola, beware of blogs all too eager to take your money in return for writing a story of posting your music. What’s the risk they write two sentences or regurgitate your bio? If they have to churn out content like that, it’s because nobody’s reading. Everyone is hungry for press, but why should you have to pay for it?
THE GREEDY A&R
A&Rs (short for Artist & Repertoire) scout talent and oversee the creative process on behalf of their employer. A&Rs use both their ears and their network to find that talent, and their role as gatekeepers gives them immense power to break artists. But some A&Rs have developed shady side hustles, charging songwriters, performers, and producers to review their material. These scams come in many forms, including charging for submissions and charging to showcase. Sometimes events are made to look like contests with the winners receiving seemingly valuable meetings or introductions, but it’s the organizers pocketing the entry fees and the ticket sales. A&Rs are already being paid to listen to music: it’s their job. If that’s true, why should an artist have to pay them again?
THE SHOPPER
Just as there are A&Rs on the inside scamming artists with dreams of getting signed, there are consultants on the outside scamming them, too. New to the industry and desperate for connections, some artists are willing to pay up-front to get their music shopped around. But ask the question: what incentive is there for a consultant who already has the dough? Instead of paying in advance to have somebody shop your music, why not negotiate a finder’s fee that is due only when the deal gets done? A scammer will insist on the former, but a reputable pro will agree to the latter. Even better: cultivate your industry relationships and save your cash for an attorney to help you close the deal you got on your own.
THE PRODUCTION DEAL
These contracts involve an industry player who signs an artist to a record deal, even though that player might not have a distribution deal or even own a label. It’s easy to convince a neophyte to give their rights away, and complicated recording contracts obscure what’s really happening. Also, because the production company stands between the artist and the record company, there is a risk that their involvement will complicate the relationship or add no value. Worse, such deals often force the artist to give up 50% of the money and can tie them up unnecessarily. JoJo paid this price: her first deal ultimately left her unable to release new music for years.
THE DOUBLE-DIPPER
It’s standard practice for managers to charge a commission of 15% - 20% of gross earnings in exchange for their services. But they don’t get to put their hands in an artist’s pockets twice. If a manager also runs a label, artists should be vigilant about how their advisor gets compensated. This doesn’t mean a manager can’t own a label at all, just that there needs to be a contract that spells out all the terms should they have multiple roles. (This applies to music publishing, too.)
Furthermore, artists should be alert to any situation in which an advisor attempts to take a copyright interest. Developing artists may not have immediate cash flow, so unscrupulous managers negotiate for a piece of their copyrights. Artists should never give up that ownership easily: copyrights exist long after the owner’s death, and joint authorship means that an artist might be tied to their former manager even after they stop working together.
AND FINALLY, FIGHT BACK
Scammers rely on ignorance and sloth, taking advantage of the uneducated and the lazy. Overnight success is a myth. Instead, it comes from the hard work of making great music and building your audience. There are no shortcuts to success, so be wary of anybody trying to sell you a service that says otherwise.
BLOG by RANGEL SANCHEZ LACHAY
(Singer & Songwriter) (Ex Journalist Student University of Havana)
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