Advertising Agency Fees

[tunetown]

I just scored my first commercial through an ad agency. They have asked me to send over my prices. The breif is for 1 x 4 min original instrumental for the commercial and 1 x hour of background original instrumental for all the sales offices.

Anyone know the current rates for this kind of thing. I generally just produce artist and this is new to me.

Also, should it be licensed to them annually with a fee.

Any advice would be great.

Cheers

Peter

[Kris]

Agencies pay very well. Ask INXS how much they got for 60 seconds worth of music from NRMA. (It was a lot.)

I will PM you some rates that I have used later tonight. Definitely do a 12 month license. Agencies call it a roll-over. If they decide to go with it for another 12 months, you get paid all over again.

Kris.

[tunetown]

Excellent. Thanks.

Should I get a music lawyer to draw up a contract or is there a standard one available somewhere??

Cheers

Peter

[bennyboy]

this might not be good advice from a guy who has gone belly up

but here goes

advertising gigs were 90 percent of my work
for music only, charging fee $5000 for licensing per year or and hourly rate for myself at $80 per hour for the composition and recording this is not including the session guys and i just marked there price up 20 percent

most went with the licecensing agreement

[tunetown]

Thanks Benny. We have agreed on an annual license fee. Everyone seems happy.

Cheers

Peter