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User Name Thread Name Subject Posted
SharonA I've been discounted! (18) RE: I've been discounted! 01 Dec 09

Steve, I took a look at this page:

It's CD Baby's description of its pricing and rates. What it says under "Distribution Pricing" makes me shudder... and makes me think that your assumptions about what you'll receive from a sale are 'wayyyyyyy off...

First of all, that "$4 per album sold" applies only to physical CD's -- the discs in the jewel cases -- not to digital albums.

For a download sale on you set your own selling price per track and per album, and CD Baby keeps 25% of the purchase price (minimum 29 cents). You net 75% of the sale.

For "digital distribution sales through [CD Baby's] partner companies", things get tricky. CD Baby pays you 91% of net income... AFTER the partner company takes its cut. In other words, you get 91% of what CD Baby gets paid by its partner for the sale, NOT 91% of the actual sale price that the partner offers.

The blurb on the page says in part: "What we're paid by partners varies... and contractually we are not allowed to disclose those amounts to anyone who is not yet a CD Baby customer. Depending on what level service you sign up for with CD Baby, some partners may pay less per song, and streaming clips pay much less -- but we still pay you 91% of all download and streaming revenue."

Now, I'm not sure what they mean by a "CD Baby customer" -- I'm guessing they mean you, not the buyer of the merchandise. If I'm right, then CD Baby should be giving you access to information that will tell you how much Lala pays CD Baby for anything of yours that Lala sells. Check into it!!!!!

When pondering exactly what it is that you signed up for, the phrase "pig in a poke" comes to mind.......

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