Jermaine Dupri is under some financial strains. Dupri started off owing the state of Georgia more than $493,000 in back taxes for 2007. Also, he owes $14,000 in unpaid property taxes on a home in Fayette County. Even his mansion was to be foreclosed on. Yet, the auction was stopped at the last minute. To add insult to injury, he has missed his child support payments for his youngest daughter. It is safe to say that Dupri somehow managed not to pay people.
The biggest concern is this: how did all of this manage to happen?
The reason why this is confusing is because he is a producer and not an artist. Producers are known to get percentage points of whatever an album sells. Also, there is always the consideration that producers don’t have to worry about recouping costs. Recouping Costs are costs that are incurred because the record company has to earn its money back from what was spent on the album . After those costs are recouped, then the artists can earn their percentage points. Unless a producer is producing an album for themselves, they don’t have to worry about those costs. In turn, producers usually tend to make their money without worrying about if the album is a success or not.
So, a multi-platinum producer all of a sudden has financial issues and there is little known as to why?
At this point, one can only use the evidence and draw a conclusion. From what is seen, Jermaine Dupri created a lifestyle that he may have some trouble sustaining. Either that or he has become irresponsible at paying his bills.
To start, having issues with the IRS tends to happen to musicians. Most musicians should always have a bookkeeper and an accountant to make sure that money is accounted for and taxes are paid on the income . This is especially true for artists who have a tendency to do plenty of touring and have to take note of their road earnings. Many musicians have to realize that, for better or for worse, they are “businesses” within themselves. All businesses need to keep their income accounted for. The taxes have to be paid. Extensively, bookkeeping and accounting practices are ways to not worry about IRS issues.
Another concern is Dupri’s recent work output.
To shoot frank, he hasn’t been doing much of anything. Back in 2006, he did production for Dem Franchize Boyz, Avant, Isley Brothers, Monica, Jagged Edge, Donnell Jones, Chingy, 3LW, Daz Dillinger, and Bow Wow. However, his production output and placement on albums has dried up. In 2009 and 2010, he lent his production talents to Fabolous, Bow Wow, Hot Dollar, Nelly, Monica, Usher, and Mariah’s Christmas album. Only one of those albums went platinum (Usher) and another one went gold (Monica). Fabolous may eventually go gold, but that won’t be anytime soon. And the rest of those albums?? I wouldn’t even worry about the sales they have produced. Plus, his production on most of those albums was limited to a placement or two. Conclusively, his production output has staggered.
Even still, with a lack of production and album sales for the artists Dupri works with, there is still a consideration of cash flow inputs and outputs. There is no real confirmation of what he spends and what he still consistently brings in. What can be understood is that he is accustomed to a lifestyle. Having millions of dollars bring about millionaire habits. Once that money is lessened, a person is still left with their old habits, bills, and debts. In the end, it remains to be seen what Dupri’s money is actually doing.
There is plenty for the average person to learn from this situation. For one, a person should make sure taxes are paid. Another lesson is to live either within his/her means. Better yet, how many will make sure they live below their means? It is unfortunate to learn lessons from another’s hardship. Still, Dupri showed all of us how important it is to take care of their finances.
Article by Mark Harris, contributing writer for STACKS Magazine
It is no surprise that Sean “Jay-Z” Carter is the second richest hip-hop artists [read here]. With a net worth of $450 million, his ability to strategically create a successful brand and various business ventures proves that this former street hustler is smarter than your ivy-league spun CEOs.
Forbes writer, Zack O’Malley Greensburg, recently penned a book about the mogul titled Empire State of Mind: How Jay-Z Went From Street Corner to Corner Office. The book highlights the highs and lows of Jay-Z’s rise to the top. With many successes under his belt, the book also shines a light on several failed business ventures of Mr. Carter.
Check out this video of Mr. Greensburg with Dan Gross/Yahoo!:
To read the full article, check out Yahoo! Finance.
If you are a music lover, such as myself, I’m sure it’s frustrating when you purchase a CD and there’s only 3 or 4 hot songs on it. No wonder why people download their favorite tracks straight from the internet. Right? I mean really. Why waste your hard earn dollars on a wack CD? I often wonder do artists and their producers really devote real time to create the songs. Also, the record labels are adding fuel to the fire by green-lighting these wack a** projects! If you are an artist, I’m begging you to please at least give your fans 7 good songs on a 14 track album.
Off the top of my head, I can think of several artists whose albums have been undesirable. But I won’t use this outlet to call them out. LOL. The music speaks for itself. I’m sure if you sit back and think long enough you too can come up with several that you wish you’d never purchased…even if the CD only put you back $9.99 at Target. So what is the key to making great music? I did a little research on the net and was able to comprise this list of helpful tips. Artists this is your time to pay attention! The next time you go in the studio try out these tips to making a great song. Let your next song be your BEST song.
Key Ways To Making A Good Song
1. Create a Diverse Musical Repetoire – Listening to various types of music not only helps you expand your creativity, but it can also maintain your uniqueness. The key to standing out is to be different. Although there has been some artists who has gained a little stardom from jumping on the bandwagon [copying the next guy], this technique jump started their inevitable downfall. So be yourself! Do you!
2. School Yourself About Music – The worst thing is to pay for studio time and you have no idea what you are doing. You are not only wasting the producers time, but you are wasting you or your labels money. If you are not sure how harmonies are developed or how to sing in key, take voice lessons. Go to the library and pick up a few music books to read. Or ask an expert to help you understand chords and the correct format to recording. Be prepared!
3. Seize Inspiration – You never know when words come to mind or when you’ll be inspired. This happens all the time. So why not capitalize off of these moments. Keep a pad and pen handy. Use your cellphone to document lyrics. It is these spontaneous moments that a re proven to be beneficial for artists. Some of the greatest lyrics ever heard were written at the spur of the moment.
4. Create A Catchy Hook - The most memorable part of a song is the hook. Hooks are a vital part of a song. If you have a wack hook, the entire song will be wack. Hooks or choruses are not complicated either. Keep it simple…something your mom, little sister, auntie, homeboy, etc can all repeat and say.
5. Beat Up The Beat Man If The Track Ain’t Hot – No, just kidding. But please pick production tracks that compliment your flow. You do not need the assistance of top super producers to get a hot track. There are plenty of up and coming beatmakers or musicians that will be more than willing to work with you…and they cost less! Just make sure the track is tight and well mastered. You never know when one of your CDs will end up in the hands of a radio disk jockey. The last thing you want is your song to be played for millions of listeners and it’s of pure quality.
6. Ask For Feedback – What better way to validate if you have a hot song or not? Reach out to your family, friends, even strangers on the street for their feedback. Put together a showcase of some sort if you want. The goal, after conducting this little survey, is to gain some insight on how people are jiving to your song. Not everyone will like it. But at least you would have garnered honest opinions. If the majority give it two thumbs down, retreat back to the studio to tweek some things or start from scratch with a new tune.
For those aspiring artists who have no clue, try to practice these tips when creating a hit song. The goal is to produce consistently good music. Before you throw together a wack CD, check your track record. And if you need STACKS Magazine to help gain additional feedback, feel free to send us your music so that we can let our readers preview it!
Ever wondered why you and your music hadn’t quite got off the ground yet! That Retail Chick lays it all out as to why you might be having a hard time.
Here are 10 of her top reasons why artists don’t make it in the music industry:
1. Myspace.com/W T F????
- Myspace started out as a great tool for new artists trying to make a name for themselves in the music industry. But now there needs to be a new rule: All artists that sign up for myspace music must be approved by the Myspace A&R Department! They need one BADLY!
2. “I gotta do a lot of mixtapes so I can be like Wayne!!!”
- Now, let’s do some research. Lil Wayne has been rapping since 1997. And after 9 CD’s, over a dozen HOT mixtapes, and 10+ years in the game he is where he should be. Wayne has laid his ground work. Remind me, what number mixtape were you on??? And why was the last one so whack???
3. “I’m from OHIO and I moved to ATL to break my music because OHIO ain’t feeling me???”
- If you can’t make a name for yourself in your own city, do you really think it will be easier in ATL? If you just moved to Atlanta thinking this is the place to make a name for yourself in the music industry, take a number. Because you just got in line with a slew of other folks that came here to do the same.
4. “I just need to get a distribution deal so I can get these records on the shelf.”
- Records on the shelf at every music retailer in the USA will not equal sales unless you have a GREAT marketing campaign, HUGE promotional budget, and GOOD Music. National distribution is no good without a national marketing campaign. Can you afford that?
5. “I paid DJ (fill in the blank) to host my mixtape and everybody knows him but nobody knows me!”
- It doesn’t matter who you pay to do your mixtape. If the music is whack, it’s whack. And there’s not a DJ in the world that can cosign it and make it sound better.
6. “I paid (fill in the blank) Magazine for a feature story about me & my music.”
- Just make sure that the other artists that were featured in that issue aren’t the only people reading the magazine you just paid!
7.”Artist development…man f–k that, I got SWAG!”
- For all of the artists out there, that have deals, songs on the radio, reality TV shows, or the ones that have no buzz at all; Swag is no good without PERSONALITY and media training is a must! Fans want to see a STAR! And grabbing your pants to hold them up while try to walk or acting stand-off-ish around fans will not work! You may have swag on a record or in a video, but your personality is at Level Zero in person!
8. “Billboard…what’s that?”
- The words Artist & Business are like oil & water, for some reason they just don’t mix. Artist that don’t ask questions or seek information are candidates to be SCREWED! Take a little time and pick up a Billboard magazine. It’s the best $7 bucks you will have spent in a LONG time.
9. “I just signed to this indie label with major distribution!!!!”
- Ok Cool, but do they know what a record label is supposed to do??? I see so many distribution deals that don’t work because the indie label didn’t realize how much of the marketing cost was THEIR responsibility!!!! Don’t blame distribution because your CD didn’t sell…blame the team of people you hired to work at your indie record label.
- Don’t get taken advantage of in this industry. There are hundreds of people out there ready to sell you a dream and take your money whether your music is good or bad. Music in order to be sold has to have what I call the “PRESS PLAY FACTOR.” I will get into what that is a little later.
Funny indeed! But most importantly, TRC’s reasoning is dead on. Hopefully artists will take these bits of advice and re-evaluate their situation.
To read the rest, check out That Retail Chick!
Amidst numerous accounts of low record sales and artists being dropped from their contracts, music labels are making the adjustments to withstand the storm. One of the major music labels doing just that is EMI and they have the financial statements to prove it.
In 2008, EMI saved $72. 1 million in annual spending costs through staff cutbacks, expense reductions, and record sales of their top artists.
“These results were achieved in a physical market that declined aggressively due to structural changes in the global retail environment,” the label stated. Best-sellers on the year came from Katy Perry, Lily Allen, Darius Rucker and Herbert Grönemeyer.
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