shared ownership cuts

[vapour trail]

Hi all,

I'm seriously looking into setting up a studio in collaboration with a band i already work with as a FOH engineer. They have a great rehearsal space, and there's room there for me to put up my recording gear.

Now, I'm wondering how to settle this financially, taking into account these parameters:

- The building is owned by the guitarists' brother. We're pretty sure not to get thrown out within the next decade or so.
- I wouldn't have to pay any rent as such, but I'd be helping the band recording demos and such. (albums are recorded elsewhere).
- There will have to be some money spent on drywall, some insulation, etc. All the tech stuff comes from my end though. My rig allows for an above-average recording-setup.
- The studio will not be a primary business, and won't be available for rental without myself engineering.

Off course, I would have to pay the owner a cut if and when another band comes in for a project and I charge them for it.
So, what kind of percentage would you guys say is reasonable? I'm thinking to offer 15-20%. any thoughts are welcome
cheers

[joelpatterson]

Seems as though these situations always come down to the quality of the vibe that exists between you and the band and the brother who owns the space... and the differing expectations floating around amongst all parties.

It's easy to imagine scenarios where everyone is satisfied with a "fair" arrangement, but what might happen is that you set up to bring in another band, but the original band decides they need the space that weekend to rehearse for their show. When it's not really "your" space to manage, "your" networking and hustling have an incomplete nature and every decision you make is somewhat... ethereal, say.

On the face of it, you are doing these guys an immense favor, bringing in your gear (obviously recording them for free-- no way around that) but from their point of view, they are doing you the favor.

I would worry less about the specifics of the financials and more about the "rules" of scheduling. And let me tell you-- this is absolutely not the perspective I had when I began-- call me jaded and bitter, but people actually realizing and appreciating and cooperating with you?

[Gregg Juke]

>>>>... and the differing expectations floating around amongst all parties.<<<<

THIS is the crux of the matter. Joel nailed it. I'd get all of the expectations and possible issues out on the table (and then keep communication open, because more will invariably come up). Whether it's scheduling, money, or "This is my place." "No it's my place!" Whatever; get it all out there now, and I'd try to have some type of document or contract that codifies this stuff for everybody to refer to.

If they are too antsy about a contract, you may want to consider that no matter how sweet this sounds now, it probably won't end well. People get funky about agreements and paperwork and all of that, but everybody's expectations and understandings are so wildly different, it's best to get it all out now.

As to your original question, I think 15% would be plenty.

GJ

[vapour trail]

Indeed, very good points.
Thanks!

[kslight]

Pretty much what others said, but another way of doing it is to engineer for the band in exchange for studio time, then charge what you want. Negotiate a rate to book the room as well.

[vvv]

Ya might say I have some experience in these matters, professionally.

In my experience, generally, the more you get in writing, the better.

It may not prevent problems, but it will help you evaluate issues, solutions, risks and costs, and give, at the least, a good basis for arguing your position, and reaching any necessary compromise.

G'luck.

[vapour trail]

thanks for sharing your experiences, though not many had positive outcomes, I have the impression.

These guys are actually very good friends of mine, we go way back. If anyone has issues, I'm pretty confident that they'll be talked about and dealt with.

That said, I'm not planning on making a big investment in soundproofing etc. from the very beginning. If it doesn't work out, I'm out, no hard feelings.

Also, it's not to be a full-fledged commercial studio. Only a few third-party projects a year. We'll have to prioritise the band's rehearsal time, and people coming in would have to be aware of that when they book this studio.

thanks again for the tips!

[sessionsatstudiom]

Good advise thus far. Just lay it out with them in writing. Best thing you can do. Nothing can ruin a relationship faster than miscommunication.

Sounds like it can be a fun situation.

Good Luck.

Mike