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Negotiation can be a tough situation for many of us who do not know the strategy of negotiating. At some point in everyone’s life negotiation has taken place many times. Sometimes negotiation can even take place without another person involved. Whatever the formation has been, everyone has experienced the effects of negotiating something to gain or had unfair and selfish experiences with the other parties involved.
I have learned to negotiate a lot better now, but it has taken years of practice. I’ve had fair and unfair negotiations in my life, but I have learned how to be more strategic in getting better results. Recently I’ve had the honor and privilege to interview one of the music businesses most humble but talented song writer/ producer manager named Walter Canady whose work is known and well respected. I asked Walter some questions about some everyday experiences with negotiating in the music business of his own negotiations he has dealt with. I found his skill and the negotiation process quite interesting when he has to negotiate record label deals for artists and his own written songs to go on well-known artist records.
(Me) I asked Walter who are all involved in a record label deal for a promising artist to be signed?
(Walter) When it comes to signing an artist to a label there are several parties involved in getting what each party wants out of the deal. Everyone’s lawyers such as the record labels, A&R guy (Me) my lawyer, and the artist lawyer are involved in the negotiation. Everyone has certain desires that is needed and aim to be accommodated to fit what can be mutually agreed upon for the negotiation to be successful. The reasons the lawyers are in the negotiation meetings as well is to implement the necessary legal arrangements in making sure their client is being treated upon a fair benefit. In the negotiation process for signing an artist or an artist cutting another album, the label negotiates what monies will be paid up front to artist and song writers in the process to foresee their profit return increased. My deal if it is for my songs I am negotiating to be on the artist album is to negotiate up front my pay for each song with the label. I negotiate this way because it is not guaranteed the record sales will return the invested money back to the label. Most artist get paid a certain amount up front and then receive the rest of their money on the back-end of the deal by the label. Not to mention, if the album does not do well in sales the label takes a loss of their invested money.
(Me) I see! can you give me an example of this kind of negotiation and what formation of negotiation you used such as using your leverage of power and appreciation?
(Walter) Sure! In 2001, Michael Jackson negotiated with Sony Records for another album.
Michael had not been in the public’s eye in America for over ten years. The music business and music had changed in a different era. Michael needed songwriters to really reinvent him all over again. When I heard about this I immediately saw the opportunity to populate my brand with greater success by collaborating with a well-known songwriter and producer named Dr. Freeze who was known for writing songs for artists such as Bell, Biv, and Devoe on their album called “Poison”, and the group Color Me Bad on their album called “Sex You Up”. Dr. Freeze had made a reputable name for himself so I decided I wanted to write songs with him and he had agreed to write with me for Michael. We then wrote several songs for the album called “Invincible” by Michael Jackson. However, a well-known writer named Rodney Jerkins was real hot at the time and Sony’s Chief Executive Officer Tommy Mottola wanted Rodney instead of us.
In the negotiation Michael asked for Dr. Freeze and myself to write him songs but Mr. Mottola insisted that Rodney who had more leverage of power should have the most songs on the album and be paid more because of his great demand from artist and also making it political.
My writing partner Dr. Freeze and I negotiated our deal after given the opportunity by Michael to write him songs for the new album using some of our leverage of power and appreciation to Michael. Sony Records negotiated by paying us between $55,000 to $60,000 for each song, while Rodney was being paid $160,000 for six to seven songs on the album. By the time the album was finished only one of our songs we wrote was chosen to be on the album called “The Break of Dawn”. We wished we had more of our songs on the album but Mr. Mottola was not having it. Michael was upset at Mr. Mottola’s decision as well. To tell you the truth, I would have wrote songs for free for Michael just for the exposure for writing songs for Michael! I am happy that even though all of the songs we recorded did not make it on the album Dr. Freeze and I still was paid up front of our money. The album did not sale as well as Sony anticipated because of the feuding that was taking place between Michael and Mr. Mottola. There were great songs for that album and I wished Michael’s fans could have heard them! Negotiating can be beneficial in the beginning but in the end sometimes, the deal that was made can become interrupted by what is known as a deal breaker. The album “Invincible” did not get the promotion it was suppose to get because Mr. Mottola stopped it’s success by not allowing Michael to shoot video’s and stopped more albums to be sold. The album was a great album! After the controversy between Michael and Mr. Mottola Michael left Sony Records.
(Me) Well, as much as you’ve told me, and even more than what I will write about how you negotiate in the music business, I have had the pleasure in talking with you about negotiating and it’s process with deals with record labels and each party involved. I thank you for your time, and sharing with us how negotiating can be good and sometimes tough.
(Walter) Thank you Monique, and if you need anything else to learn about how I deal with negotiating in the music business feel free to ask me.
(Me) Thank you Walter, I will!
I leave everyone with Walters and Dr. Freeze song from the album “Invincible” a video that was edited of different scenes of Michael Jackson concerts. Enjoy! I love this song!
Resources: YouTube, Break of Dawn. Retrieved July 24, 2011 from http://www.youtube.com/watch?v=1RNwX-MTWEM&feature=fvsr
