We determine how much money productions receive in three different ways:
For productions that generate profits, we split profits (meaning the revenue minus the costs) 50/50 — half going to HITRECORD and half going to the contributing artists.
2) Budget Line Item
For productions that may not necessarily generate a profit (like television shows, for instance) we earmark a certain amount of money as a line-item in the production budget, and use that to pay contributors. If such a production does generate a profit later on, that profit would be split 50/50.
For outstanding projects going on in the community that may not be commercially viable - but that we still want to fund anyway - we allocate money from more lucrative productions to the Self-Funded Pool to pay contributors of the final pieces. This way more contributors benefit from the money generated through funded partnerships.
For example, a portion of a partnership budget, like that of an LG project, may be allocated to the Self-Funded Production Pool.
If a self-funded production later turns a profit — for example a self-published book or music album brings in revenue above its production costs and go into profit — then those profits would be split 50/50. Any such profit payments would be made in addition to the initial self-funded payment previously paid to contributing artists.
For more information, watch this video: