Why Independent Artists Should Lease Beats Instead of Buying Exclusive Rights
Navigating the world of online beat purchasing can be confusing, especially when deciding between leasing beats and buying exclusive rights. Whether you’re new to this or considering a switch to exclusive rights, this guide will help you make an informed decision.
Why You Shouldn’t Buy Exclusive Rights
As an online producer, I’ve met many aspiring artists. Common mistakes often revolve around choosing between exclusive rights and leasing beats. Here’s when leasing is the better option:
- Follower Count: You have fewer than 10,000 followers across all platforms (Facebook, Instagram, Twitter).
- Play Counts: Your YouTube and SoundCloud plays are under 1,000.
- Releases: You haven’t released a single, promotional album, or EP yet.
- Knowledge: You don’t fully understand the basics of beat licensing.
Reflect on Your Status:
- Are you a well-known artist in your local scene?
- Would more than 100 people attend your local show?
- Would over 500 people listen to a free mixtape you released online?
- Have you been featured on three or more music blogs run by people you didn’t know personally before you started your music career?
- Do you have a manager, agent, or lawyer helping your career, or have you been approached for management?
If you answered “no” to these questions, leasing beats might be the best option for you right now. There’s no shame in it—in fact, it can be highly beneficial.
The Benefits of Leasing Beats
Let’s break down the advantages of leasing:
- Cost-Effective: Suppose you lease a beat for $50, allowing up to 3,000 song sales. If you promote the track well and sell 500 copies at $1 each, you earn $500. After deducting the $50 investment, your profit is $450.
- Avoid Financial Risk: Compare this with buying an exclusive license for $1,500. Selling the same 500 copies at $1 each results in a $1,000 loss.
In the early stages of your music career, it’s wise to invest in more beats and release more music. Building your fan base should be your top priority.
Consider Unlimited Licenses
Even if you can afford exclusive rights, Unlimited Licenses might be a better choice. These licenses offer:
- No Limits on Streams and Sales: Sell, stream, and play your music without restrictions.
- Cost Savings: More affordable than exclusive rights.
- Greater Flexibility: Similar benefits to exclusive rights but non-exclusive.
Important: Always review the producer’s terms before purchasing.
Who Should Buy Exclusive Rights?
For most artists, non-exclusive licenses are the best option. However, consider exclusive rights if:
- You’re on the verge of a major breakthrough.
- You have over 100k followers across all platforms.
- You’re signed to a major label.
- You have a publishing deal.
- You’re planning a significant marketing investment.
- You’re investing over $5,000 in music video production.