So I've always wanted to start a label that does reissues of older recordings and I finally decided to make the plunge. I picked a recording and managed to find the copyright holders and get everyone on board. In the past I've done a few vinyl pressings for bands that were active and playing shows. I usually gave them a percentage of the pressings (5 to 10 percent) for free, and then let them purchase any additional records at cost from me if they need more.
The problem is that I'm not exactly sure how to compensate for a reissue. The band would probably only want a handful of the represses for their personal collection. Do I offer them a set fee up front? If so how much? I'm planning on doing a small run (300-500) and selling them between 12-15 dollars.
I think the most wonderful thing about the music industry is the fact that there is no set way in doing business. One can make their own ways to do deals, with no blue print to follow.
You say you have contacted the copywrite holders & they are on board. Yet they have not asked for compensation?
If not, then I'd say run with it & give back if its in yr heart. Yet I would also say ANY record/tangible item is a WONDERFUL promotional item & by you re issuing it is a favor, if no body had interest in doing so.
I am doing exactly this - re-issuing vintage music. It's a bit complex, especially, when it comes to more "famous" musicians or bands. We're currently working on "Glenn Miller" tunes - which required a Sony (RCA) license and permission from the estate of Glenn Miller to use some materials. But understand, that the media companies in no way have to give you a license. If they say no - well - that's that.
The licensing process seems to be overwhelmingly complicated at first. But once you develop a working relationship with those folks, it's much easier. As a matter of fact, the people at Sony have been very helpful and supportive and the license fee was *very* reasonable.