Understanding Music Performance Agreements
If you’re a songwriter, composer, or publisher, BMI is one of the top Performance Rights Organizations (PROs). They collect license fees from businesses that use their music.
PROs ensure songwriters get performance royalties every time their songs are played publicly on TV, radio, or digital streaming platforms. They also offer a variety of benefits and discounts for members.
What is a Performance Agreement?
A performance agreement is a legal document that states a person or group’s expectations for another entity. The paper often includes consequences if the person fails to meet these expectations.
Many managers use PROs like BMI music performance agreement to ensure employees do their job correctly. It’s a great way to enhance accountability and encourage staff to take responsibility for their work.
To make the best performance agreement, base it on the needs of your business and the range of job responsibilities your employees have. It’s also a good idea to let your staff know about it so they can understand its importance.
For example, if you have a new hire that needs to perform better, clarify how their lack of performance can affect your business in the performance agreement. Then, you can provide training and support to help them improve their performance.
BMI is a music performing rights organization, meaning they collect and distribute royalties on behalf of musicians, composers, and music publishers. Their most common form of advocacy is managing payments for licenses to play or perform music and distributing the royalties from those instances to artists.
How do I get a Performance Agreement?
A Performance Agreement is a license from a PRO (Performing Rights Organization) that allows you to play their music for public performance. It’s the key to paying for a public version of your song.
The US has three significant PROs: ASCAP, BMI and SESAC. Each of these PROs represents different artists and songs.
These three PROs work with songwriters, composers and publishers to collect royalties for their music when it’s played in a public venue. These performances include live shows, concerts and radio broadcasts.
Typically, these performances require a license from each PRO. However, obtaining a blanket license from one PRO can cover all of your arrangements.
This is an excellent option for bars, clubs and restaurants that play music in the background for guests. You’ll pay a monthly subscription fee, and you’ll get access to a vast catalog of music from ASCAP, BMI and SESAC.
Once you’ve signed up, you’ll be asked to complete a Statement of Account. This document will help you estimate how much your gross revenue will be for the year, and it will help you determine when to report and pay your license fees.
You must report and pay your license fees quarterly as soon as your actual calendar year Gross Revenue exceeds $50,000. Please do so to avoid Late Payment Charges (see Paragraph 8 below).
What are the benefits of a Performance Agreement?
Performance agreements are a great way to hold staff members accountable for their performance. They provide an objective way to evaluate performance and help employees understand how their work fits the organization’s goals.
They’re handy for managers, who often struggle to define precisely what they expect from their staff and how it will be measured. By clearly defining and documenting objectives, managers can avoid future disagreements about how they expect an employee to achieve their job’s goals.
Another benefit of performance agreements is that they create a communication system that encourages team members to keep track of their progress. This makes it easier for managers to follow up on their staff’s performance and development plans.
These agreements can be a powerful tool for managers, mainly when used with the management by-objectives approach. This approach is based on the idea that a manager’s role is to help team members understand how their jobs fit into the larger organizational goals and then support them in meeting them.
This is the first step to building believing and bottom-line (the first two of our 4Bs of high-performance). When team members feel that their manager is invested in their success, they’re more likely to be motivated and engaged, which leads to greater productivity. This can also positively impact the business’s bottom line, as self-improvement can lead to new career opportunities and sometimes even salary increases.
How do I sign a Performance Agreement?
Performing rights organizations (PROs) collect license fees on behalf of their songwriter and publisher members, distribute them as royalties to copyright holders whose music is used in public performances, and protect songwriters and publishers from unscrupulous people who try to use their songs without paying for them. Performing rights organizations include ASCAP, SESAC, and BMI.
PROs are often used by radio stations, venues, dance studios, churches, hotels and restaurants to license their music for public performance. These establishments then report their usage to the PROs so that songwriters and publishers can be paid for their music.
In addition, songwriters and publishers receive payments from mechanical licenses, which allow them to manufacture and distribute CDs or audio tapes for copyrighted music. The amount of royalties a songwriter receives from a mechanical permit is based on the number of times the CD or tape is sold.
If you’re a songwriter or publisher, consider joining BMI. It’s free to join, and you can get started today! It’s the best way to ensure you receive your work royalties. But knowing what you’re signing up for and how to maximize your royalties is essential.
