Understanding Contracts
Our Contracts feature defines how the revenue made by your catalog in the DSPs gets split amongst your Company and your different Payees. The Contract structure is as follows:
Terms
The Terms define the Payout Rate from you to your Payees. You can define multiple Terms per DSP, Territory, Channels and Formats. For example:
Term #1
Payout Rate: 80%
Services: All except YouTube ContentID
Format: All
Channels: All
Territories: All
Term #2
Payout Rate: 70%
Services: Only YouTube ContentID
Format: All
Channels: All
Territories: All
Payees
The Payout Revenue after your terms, can be divided amongst different Payees/Collaborators.
Their email address for login and statements
Their PayPal account email (optional). Read: Connect your Paypal Payouts API Credentials
Their corresponding share %
Their initial Balance (can be positive or negative). Read: Adding Payee Advances in Revelator Pro
* Depending on your type of Account, you may have different types of Payees. Read Parent-Child and Standalone
** You can also set up Commission Payees. A commission payee is someone whose Share % is taken from the distribution fee (your cut of the contract) instead of being taken from the royalties (the cut belonging to licensors).
Assets
Finally, you will define to which Assets the Terms and Splits of the Contract will be applied to. The Source field lets you filter by Artist (Main Primary Artist) or by Label.
Including “All current & future Assets except those on asset-specific contracts” will create a Label or Artist Level Contract.
Including “Only some specific assets” will create Release and/or Track Level Contracts
Contract Levels
Account Level Contract (Parent-Child Only)
An Account Level Contract is created for each Child Account, in which the owner of the account is set up as a Distribution Payee, and the Default Terms of this Contract apply to all catalog under the Child Account.
For non-Enterprise Plans, the Default Terms are set to 100% payout rate and must be edited on a case by case basis.
Label Level Contract > Applied to All Assets of a specific Label
Artist Level Contract > Applied to All Assets of a specific Artist (Main Primary Artist)
Release Level Contract > Applied to only specific Release(s) of an Artist (Main Primary Artist) or Label
Track Level Contract > Applied to only specific Tracks(s) of an Artist (Main Primary Artist) or Label